Corporate social responsibility is a growing trend whereby businesses engage in philanthropic partnerships with non-profit organisations, conservation groups or charities. If your business is considering participating in corporate social responsibility, there are 4 distinct advantages in doing so:
1. Boost company reputation. According to a Curtain University of Technology study, corporate social responsibility significantly boosts the reputation of a company, which in turn enhances competitiveness in the marketplace against competitors. Customers, investors and other external stakeholders were also more likely to positively evaluate a company that engaged in corporate social responsibility.
2. Economic benefits. Contrary to popular belief, giving back can provide a company with economic benefits. From government grants, higher customer satisfaction and loyalty, to greater partnerships with stakeholders and investors, the Curtain University study concluded that through corporate social responsibility, these non-financial benefits eventually led to economic gain.
3. Retain and attract workers. The ability to participate in community activities, whether it's tutoring children, being more environmentally conscious or financially assisting charities, was seen to increase staff morale and attract prospective workers, reports experts at Curtain University.
4. Community participation. Of course, one of the major benefits of corporate social responsibility is the way companies can directly help non-profit organisations. For example, the partnership between The Smith Family and AMP meant that almost 2500 disadvantaged students were able to join the comprehensive Learning For Life educational support program. This funding led to a 27% increase in the number of children accessing the program in the first year of partnership. It also helped fund significant research into education, as well as training for Learning for Life workers.
