The common perception of the relationship between environmental friendliness and profits used to be mutually exclusive i.e. high profits lead to low eco-friendly functioning, and vice versa.Corporate Social Responsibility (CSR) was an ‘extra’ that was rarely, if ever, highlighted.
But this was a decade ago. Since then there has been a radical change in the perception of environmental friendliness and a rise in CSR. Although companies have always viewed ‘green’ as just another fashionable status to tag their company with, it is now an important element in their customer value chain and Innovation. Earlier, companies embraced CSR for the primary reason of differentiating their brand in the crowded marketplace. However, because CSR is now relatively more common among companies, the rules of the ‘green’ game are changing. It now looks at –
- Environment Conservation with an impact to the bottom line is being focused on as Businesses work towards a Responsible Environment.
- Community Development is also key focus given the impact the business has on the neighborhood and work towards being a Responsible Citizen.
Customer behavior is also changing all over the world.
With sustainability and global warming becoming an important ecological concern, end customers are now more influenced by the eco-friendly ideals of the brand they buy their products and services from. In fact, their perceptions about the environmental friendliness of brands are already influencing their buying behavior vastly. A whopping 41 percent of the U.S. population is either interested in or already purchasing from green companies, or they are choosing green products and services over others. From a business standpoint, enterprises with foresight are focusing on innovation and growth opportunities provided by Corporate Social Responsibility.
How CSR Effect’s your Business
‘Social Responsibility is becoming one of the most dynamic and challenging subjects corporate leaders are facing today and one of the most important challenges shaping the future of our world. Social Responsibility, social innovation and corporate governance are collectively shaping the identity of organizations and are therefore becoming increasingly integrated into the business strategy of today’s most successful corporations’.
The most progressive organizations today see Social Responsibility as an important driver for social innovation and long-term value creation. Companies accept his wholeheartedly. In fact CSR needs to be aligned to the core business. It not only helps build the brand value, it also enriches the underserved. As we all know aligning the business to support social development for sustainability and continuity creates the real fortune, which is at the bottom of the pyramid.
It is a simple formula. Social Development + Environment Conservation = Business Continuity
CSR is now becoming increasingly important as the concept which frames the business contribution to sustainable development. It has the potential to become a strategic activity adding value on different dimensions—business, society and ecosystems—if it integrates with the strategy of the enterprise and monitors all efforts.
Organizations have made a strong commitment with policies for environment, waste reduction and green procurement which are being adhered to. They also work towards impacting people to create social value.
Planet enhancement initiatives like Reforestation, Greening centers across the globe, Recycling campaigns and working towards reducing the carbon footprint and climate change and environmental degradation. Lastly organization also focusses on skill sharing and knowledge to provide livelihoods for women empowerment to reduce social inequalities.
The following blog post will discuss the different ways CSR helps create, integrate and redistribute value to your business and the ecosystem.