Why Corporations Should Care?
On the business side of corporate social responsibility, it is important for a company or organization to care because it can fully determine whether your company succeeds or fails. Having CSR means corporations have an ethical responsibility meaning they have a responsibility to act ethically and to contribute to the well-being of society. CSR ensures that companies operate in an ethical manner and take responsibility for their impact on the environment, consumers, employees and other stakeholders. It is also important as CSR can affect employee morale and retention as it gives employees a sense of purpose and pride in working for a socially responsible organization, which also in turns attracts and retains top talent to the company. CSR is also vital for reputation and brand image as CSR initiatives can help to enhance a company’s reputation and brand image by demonstrating its commitment to social and environmental issues. This can lead to increase sales, profits, and customers, or, if a company decides not to embrace CSR, a quick and steep downfall in today’s society. Overall, CSR is important for creating a sustainable and responsible business model that benefits both the company and society as a whole.
Over 51% of millenials are willing to pay more for a sustainable and ethically sourced product.
Why People Should Care?
Corporate social responsibility is becoming a growing consideration for people when determining the reasons for supporting the companies they shop with. According to Markstein and Certus Insights, 70% of consumers want to know how the brands they support are addressing social and environmental issues, and 46% pay close attention to these efforts when making purchase decisions. At the end of the day, people are the main source of profit for any company. Therefore empowering the people to influence a company on certain things that they do. It is important that people care about corporate social responsibility because of the influence they hold; they can pressure companies and hold them liable for social, environmental, and economical issues that these companies may be a part of or have some small association with. In an article published by Porter and Kramer, Nike faced an extensive consumer boycott after it was reported that abusive labor practices at some of its Indonesian suppliers in the early 1990s. And in another example is Mattel halting production of Sea World trainer Barnie following backlash from animal rights activists over the treatment of orcas and the safety of trainers. Both of these companies suffered tremendous reputationally and profit wise from ignoring the implications of CSR from you, the consumer. As individuals, we are the ones with the power to support or resist certain companies and make a positive change. When people use their influence to promote corporate social responsibility, changes will happen.