Today, a business’s success is not measured solely by its profit. It is also measured by the responsibility it is willing to take on for the world.
Social responsibility is a concept that makes businesses responsible for their actions. A socially responsible business self-monitors its actions. The company ensures that its actions do not harm its customers, stakeholders, and the people of the world at large.
A business can assume any form of social responsibility, including philanthropic, ethical, environmental, and economic responsibility.
Why Social Responsibility?
By demonstrating social responsibility, a business garners genuine public admiration and respect. The more socially aware a business is, the greater the public support it commands.
Walt Disney is an example of a company that has made social responsibility an integral part of its business. The company has been associated with philanthropic contributions toward protecting the planet and wildlife.
Disney is also known for its commitment to attaining a zero greenhouse emission target. In 2018, the company successfully reached its set goals for greenhouse emission reduction. The company makes a public announcement of its social responsibility activities. With this approach, the media giant ensures accountability for itself and its stakeholders.
Amazon-owned Zappos is another example of a socially responsible business. The online shoe store donates its products to charity. As a result of its donations, the company has witnessed dramatic growth time and again. The company also demonstrates social responsibility with an employee welfare-focused internal culture.
How Can Social Responsibility Be Key to Your Business Success?
A well-planned social responsibility strategy helps achieve desired outcomes. In addition to the intended greater good, being socially responsible brings in the following benefits for your business:
Helps Establish an Emotional Connect with Stakeholders
Stakeholders are more likely to trust and develop a bond with brands that are more responsible and value-based. You can establish an emotional connection with your primary stakeholders, including customers and shareholders.
With an efficient social responsibility drive, you can achieve consistent results. The greater good you do will return to you in the form of respect, admiration, and loyalty for your brand.
Makes Way for an Expanded Target Market
People around the world are better connected than before. Any issue plaguing a specific part of the world is no longer local. The issue is a global concern.
When your business aligns with a cause, you are reaching out to the local demography as well as the global supporters.
This massive reach familiarizes your brand with diverse geographies and populations, expanding your market size.
Facilitates Introduction of Premium Pricing
With a well-defined social objective, you transform your business and your products/ services into an exclusive entity. Customers show more willingness to be part of a socially responsible brand even if there is exclusivity attached to it. They are willing to pay the premium price for your products or services when they believe your brand quality and the values it stands for.
This exclusivity is seen by stakeholders as a mark of goodwill and profit, which results in more investors showing interest in your business.
Enables you to Attract and Retain Employees
While money remains a key factor for prospective employees, it is not the only motivator. Many talented employees are willing to take lower pay in return for a greater sense of purpose.
With a well-planned and well-executed social responsibility process, you give your employees a strong sense of purpose. People want to be part of the greater good. When they discover an opportunity where they can bring in a positive change, they are more than willing to do their best.
This sense of purpose motivates employees to work harder and accomplish meaningful results. The results make employees proud to be associated with your brand. This pride translates into loyalty. Loyal customers are more likely to stay with you through thick and thin.
Attracting new talents will also be easier as employees want to be part of a business that aims to succeed responsibly.
Establishes a Strong Work Culture
By being socially responsible yourself, you give your employees the freedom to support causes close to their hearts. Employees are more motivated to work at a company that understands responsibility and social purpose.
When employees are positively motivated, team engagement, morale, and productivity are all high. Employees show pride in being associated with your brand, which boosts loyalty.
Saves You Customer Retention Costs
The cost of gaining a new customer and reaching a level where the customer can create profits as an old customer is 16 times more than before.
Given these increasing costs, a better business strategy would be to retain existing customers rather than lose them to costly new ones.
As a business with strong social responsibility values, you are more likely to keep your old customers with you. As they become your brand ambassadors, new and loyal customers will keep coming in.
Sharpens Your Competitive Advantage
The modern customer is discerning. A customer is more attracted to brands that not only reflect quality but also go beyond the business.
Social responsibility is one way of demonstrating that you are in the business to earn money, but you also want to go beyond to do something meaningful. This brand message conveys your responsible vision and adds to your marketing muscle.
Gives Your Business the Advantage of Governmental Finance Opportunities
In some countries, social initiatives such as philanthropic activities and environmental conservation drives attract governmental rebates. With strategic social initiatives, you can take advantage of such policies and support your efforts further.
Increases Your Revenue Generation
Earning a higher profit margin may not be the first thing on your mind when planning a social responsibility initiative. But you can reap the benefits of your good deeds by boosting your bottom line.
As a responsible business, you impact your stakeholders, especially customers. You make people more aware of world issues and their effects on humankind. As people become more aware, they show their support for the cause through your brand.
Customers will support you when you prove that your actions align with your values. This trust and loyalty will translate into increased sales and revenue.
In Conclusion
Sustenance and survival are the first steps to business success. By becoming socially responsible, you can take your business to the next level of growth.
Are you ready to propel your business to greater and more responsible heights of success? The benefits, as well as opportunities, are endless.