Corporate social responsibility (CSR) is a form of soft law. It is not required by U.S. statute or regulations, i.e., “hard law,” but is nonetheless seen as obligatory by most corporations because of consumer expectations and internal norms.
Socially responsible companies should adopt policies that promote the well-being of society and the environment while lessening negative impacts on them. Companies can act responsibly in many ways, such as promoting volunteering, making changes that benefit the environment, and engaging in charitable giving.
Consumers frown upon companies that ignore social responsibility and develop unethical reputations. What’s more, companies with these reputations are more likely to stumble into legal troubles, which could result in their failure. In short, companies care about social responsibility because customers do.
We’ve seen that consumers are increasingly caring about transparency and that companies take positive actions regarding social and environmental issues. … In fact, 63% of the American consumers surveyed by Accenture believe they hold the power to influence brands reactions and stances on issues of public concern.
Being a socially responsible company can bolster a company’s image and build its brand. Social responsibility empowers employees to leverage the corporate resources at their disposal to do good. Formal corporate social responsibility programs can boost employee morale and lead to greater productivity in the workforce.
Socially responsible actions that ordinary people can take include:
- Supporting socially responsible companies through informed spending.
- Conserving energy by carpooling or turning off unnecessary houselights.
- Contacting their political leaders in favor of legislation they support.
Do businesses have a responsibility to contribute to the community?
Do companies have a responsibility to their communities? The resounding answer is yes! … The decisions a company makes impact their employees, customers and vendors, all of whom are part of the communities they serve.
Studies have shown that companies that fully integrate CSR into their operations can expect good financial returns on their investments. Companies integrating CSR have been shown to increase sales and prices as well as reduce employee turnover.
How does CSR affect the economy?
Higher share of CSR firms in the economy means higher economic growth. Business performance of CSR firms positively affects economic growth and their associated share in growth is 6% for 25 economies included in the panel.
People have become more sensitive about what they buy and who they buy from. Fifty-four percent of consumers are more likely to be loyal to a brand or store that shares its efforts to be environmentally responsible or has sustainable and ethical business practices.
When it comes to brands taking stands, new research from @MarksteinCo + Certus Insights shows that consumers expect the brands they support to be socially responsible. The nationally representative online survey of 600 adults was conducted by Certus in August.
The responsible consumers have a high level of socially responsible consumption, while the “indifferent consumers” have a low level of socially responsible consumption.