Doing Good Is Good For The Bottom Line

Written by, Jenni Darden

When deciding what company to work for, or do business with, many employees and customers place value on working for and supporting businesses that prioritize corporate social responsibility (CSR). According to Double the Donation, CSR is a broad term used to describe a company’s efforts to improve society in some way. These efforts can range from donating money to nonprofits, to implementing environmentally friendly policies in the workplace. CSR is important for companies, nonprofits, and employees alike.

Among companies offering similar services, many will choose to work for, or do business with, a partner who is actively involved in their community and whose values align with their own. One way businesses prioritize corporate social responsibility is through community engagement.  Community engagement represents an investment in your region and positively impacts a business’s bottom line by improving employee retention, attracting investors and creating a positive public image.

In most service-related industries, it is truly the people that make a difference. When employees are involved in the community and participate in bettering where they live, work, and play it reflects in their everyday lives.

The 2019 Work Institute Retention Report shows that voluntary employee turnover rates are going up and the cost of turnover for businesses is high.  With employee supply being limited and demand for workers increasing, workers have and will continue to have, increased choices. Some areas to assess in reducing preventable turnover are culture-employee fit, alignment between a company’s mission and an individual’s values, and work-life balance. Small investments in employee and customer retention can result in significant savings for companies.

Corporate social responsibility and employee engagement help attract and retain productive employees. One of the core values of IMPACT Management is Grow Fast.  The Grow Fast program supports opportunities for employees to reach their goals both personally and professionally. If community engagement and social responsibility are important to you, they are important to IMPACT.

From a customer perspective, not all vendors are equal, and consumers don’t always choose to do business rationally; they choose emotionally. If they like your company, they’ll use you. If they don’t, they’ll use one of your competitors.

Investors are more likely to be attracted to, and continue to support, companies that demonstrate a commitment not only to employees and customers but also to causes and organizations that impact the lives of others. Companies that demonstrate their commitment to various causes are perceived as more philanthropic and consumers feel good doing business with companies that help the community. By publicizing their efforts and letting the general public know about their philanthropy, companies increase their chances of becoming favorable in the eyes of consumers.

Recently IMPACT Management raised funds for The Empowerment Plan, a local organization dedicated to serving Detroit’s homeless community and donated gift boxes and books to the children being treated at The Hurley Foundation in Flint. This is part of IMPACT’s ongoing commitment to corporate giving.

Bottom line; doing good is good for the bottom line.  When companies show that they are dedicated to improving their communities through corporate social responsibility they are more likely to attract and retain valuable, hardworking, and engaged employees, align with the mission and values of customers, and create and maintain a positive public image.

 

Sources:

https://doublethedonation.com/tips/why-corporate-social-responsibility-is-important/

http://info.workinstitute.com/retentionreport2019

 

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