While a large number of companies are quick to recognize the benefits of CSR initiatives, many are unable to see the mutual benefit and massive impact it plays on employee and company-wide morale. Experts insist there is a direct correlation between boosted morale and increased profits. And why wouldn’t they be related? Employees are the primary stakeholders of a company, and to have them personally invested for far more than a paycheck is critical for engagement, sustainability, growth and success.
For companies who struggle to see the benefits of CSR, or for those who would like to help increase their company’s engagement, here are just a few of the many cases for why it is now imperative to make these strides at every level within an organization:
Unified in the Triple Bottom Line:
While every business functions within the pursuit of financial profitability, triple bottom line businesses see profit, people, and planet as a singular and strategic business plan. Organizations who are committed to sustainability recognize that “profit” isn’t mutually exclusive from the environment nor the creatures who inhabit it.
In fact, many are starting to experience the very financial gain every business seeks because they’ve done the hard work of ensuring their triple-bottom line is in balance.
When every level within an organization is unified around their company’s triple-bottom line, employees are much more likely to feel fulfilled and, thus, willing to invest their talents for longer periods of time.
In the same way an employee has a vested self-interest to further the interests of the company, a company also has a vested self-interest in acting on behalf of the communities they function within. In doing so, they benefit the world-at-large and enhance perception and trust with their stakeholders. This philosophy is often referred to as ‘enlightened self-interest’, and when applied to business, it is one of the most efficient ways to empower unity throughout the company.
In today’s world, a company who opens up an operation in a new community and depletes all its resources without investing back into the community is already on its way out the door. In the last decade, consumers have made it painfully obvious that they will not tolerate those sorts of business practices.
Inside Out/Outside In:
This unified vision brings a higher level of innovation from the inside out because employees are no longer spending as much mental and emotional energy discerning whether or not their current employer is aligned with their values and doing the right thing. With increased innovation comes efficiency and effectiveness, ultimately translating to economic profitability.
From the outside in, clients are able to pick up on the energy radiating from company-wide passion and are quick to partner with a forward-thinking company that will help them find the most innovative and efficient solutions to their unique set of problems, while at the same time showing that they care.
When a partnership is developed between two socially responsible companies, the results become exponential.
Corporate Social Responsibility has, perhaps, never been more prevalent in business conversation. Interestingly enough, social distancing is an interesting paradigm that has shifted us into a heightened awareness of the way we as individuals come and go about our days around one another. Coupled with the global battle against racial inequality, the two have sparked an urgent conversation that businesses around the world simply must engage in if they are to continue to be relevant and impactful.
While the problems facing corporate America are indeed daunting, we can all celebrate the urgency that entered the conversation due to this year’s events. It may seem like we’re starting up the base of a mountain, but as we work together to round the top, the snowball will eventually gain enough size and momentum to blast through the remaining obstacles that stand in the way of a far more conscious capitalism.