Companies with social responsibility policies attract more customers and encourage loyalty over the long term. And this is essential for an organisation’s ongoing success. From protecting the environment to tackling poverty, these policies enhance the image of socially responsible organisations. It becomes synonymous with your brand. This makes you more attractive to consumers which translates to a positive effect to your bottom line.
But it is more than that. Corporate social responsibility (CSR) is attractive to consumers for a number of reasons. And they will all have a positive flow on effect to your organisation. The beliefs of a brand are increasingly more important to consumers. They want the beliefs of the organisations they deal with to align with their own beliefs. Consumers are willing to pay a higher price to deal with or by products from socially responsible companies. Your policies and beliefs are an incentive for consumers to become a customer of your business.
Price based strategies alone are no longer enough to engage consumers. When looking to buy, consumers look at a brand’s beliefs and purpose and how it implements these as part of the business. How consumers respond to your beliefs is now important for success.
Research shows that people are aware of a company’s commitment to social responsibility. When a company’s purpose and beliefs match with consumers, they will engage with your business. If they do not match, 42% will walk away and you will never win back 21% of them.
Consumers care about the world
Companies need to meet consumer expectations. More and more they expect sustainability and CSR from brands. A study found that a third of respondents choose to buy services and goods from companies with a social and environmental conscience. And 21% of respondents are acutely aware of the increasing problem with waste. They said they would choose companies who were working proactively to change their packaging so it is more sustainable.
Today’s consumers have high expectations of brands but it has positive benefits for your company.
Corporate social responsibility – the benefits
CSR policies will contribute to the success of your business over the long term by:
- Reducing costs. A reduction in energy use and waste, natural resources and raw materials means you create efficiencies within the organisation which cuts costs. A waste program is socially responsible has a positive effect on your profit margins.
- Building consumer trust. Social responsibility and sustainability strengthens relationships and builds consumer trust in your brand. This will ultimately translate into long-term success. It also attracts employees who want to work for a company that is making a difference to the world. And this increases employee morale and productivity.
- Driving company growth. CSR policies such as sustainability can open new markets and inspire innovation.
What it comes down to
Companies that embrace CSR grow consumer loyalty through positive brand recognition. This drives growth and profits and sets it up for long-term success.
Contact us to discover how your company can embrace socially responsibility. We can show you how to grow your business to achieve success over the long term.