Corporate social responsibility (CSR) is an in-depth approach that incorporates ethical, environmental and social considerations into a company’s operations and decision-making.

CSR matters because it can help a company build a positive reputation, improve employee engagement, attract and retain customers and investors, and even boost financial performance.

Here’s how CSR can help your business.

1. Improve Reputation. Businesses that actively support local social and environmental initiatives are viewed as responsible and caring by their customers, employees, and communities. This positive perception can boost brand reputation and loyalty.

2. Increase Customer Engagement. Consumers are increasingly conscious of the social and environmental impact of their purchasing decisions. By aligning with organisations and groups doing good work, businesses can attract and retain customers who share similar values, creating a sense of community and fostering customer loyalty. Customers have said that they are more likely to support businesses that are sustainable [1].

Customers often have a personal interest in supporting the needs of their own community. By creating and maintaining goodwill within the community, you can give them a reason to trust and be loyal to your company.

3.  Boost Employee Morale. A company with strong CSR processes can be an effective way to engage and motivate employees. And when businesses actually involve their employees in these initiatives, it reinforces a sense of purpose and pride in working for an organisation that cares about the community and the environment.  This will help you retain your employees, as rehiring can cost as much as 20% of their annual pay. As more and more young people enter the workforce, they are choosing to work for businesses that have demonstrated their ability to be good corporate citizens. [2]

Overall, supporting local sustainable social action can be a great way for your business to give back to your community and create a better future for everyone. There’s no better time than at the start of a new year, to begin planning your social impact.

Be creative with how your business will reduce its carbon footprint and build a brand that is known for its ambitious and innovative approach to sustainability. We’d love to discuss your ideas.

Writer: Colleen B. Filippa

With a background in Environmental Science, Colleen is the Founding Director of Fifteen Trees. In 2009, after 20 years in primary, secondary and tertiary education institutions, Colleen left the classroom to start the company. Fifteen Trees is a social enterprise assisting individuals and companies to reduce their carbon footprint by supporting community groups such as Landcare, schools and environmental networks.