CSR or Corporate Social Responsibility implies that an organization is operating in a sustainable and ethical way. Moreover, it deals effectively with its social and environmental impacts. It actually means that there is a need for careful consideration of the community, human rights, society, and the environment in which it seems to operate. A CSR strategy may not be the top priority for startup owners as they would be more concerned about attracting customers, investments, fresh talent, and getting profits.
However, business management experts like Eric Dalius firmly believe that CSR would play a pivotal role in attracting the top four priorities that startup owners are chasing after customers, investments, fresh talent, and profits. A cogent Corporate Social Responsibility stratagem should be in place for a small business or startup for winning a competitive edge and ensuring steady growth.
As per Investopedia.com, organizations are increasingly paying more attention to social responsibility. From an optics point of view, socially responsible organizations tend to project more appealing images to shareholders and consumers alike. It helps in positively impacting their bottom lines. Here are some of the top reasons why startups and small businesses should focus on implementing a robust CSR stratagem.
Eric Dalius Points out the Top Reasons
For Attracting Best Talent & Enhancing Employee Retention
We understand that organizational success depends on the proficiency, and quality of the employees they can successfully attract and go on retaining on a long-term basis. The brightest and the best in the industry will join you if your organization is recognized as having a robust socially responsible culture for all its team members. As per the findings of a survey conducted by Deloitte, we understand that the Gen Zs and the Millennials are certainly invested in social and environmental concerns and they have a preference for organizations that are working towards addressing these concerns. Moreover, according to a Deloitte 2020 report, purpose-driven organizations seem to demonstrate 40% relatively higher workforce retention levels as compared to their competitors.
For Attracting a Devoted & Steadfast Customer Base
It is of pivotal importance for an organization to embrace socially responsible policies to attract and retain customers. Building a loyal and steadfast customer base is essential for ensuring long-term success for your company. Many consumers are more than willing to pay a premium for products, knowing that a portion of the profits would be going towards upholding social causes. More often than not, startups are successful in connecting to their clients on a much deeper level and in building robust relationships with their vendors just because they have incorporated some social initiatives within organizational vision and values. You could be successful in driving new business avenues and opportunities if your startup participates in social good.
For Achieving Cost Savings through Sustainable Practices
Corporate Social Responsibility could begin at the very heart of all your organizational operations. You could be successful in acquiring operational proficiency and remarkably reducing costs through promoting sustainability, energy-saving, and streamlining processes.
For Enhancing Brand Image & Reputation
Your organization’s overall brand image and reputation could get a major boost when you communicate your precise CSR programs and showcase the real difference that your organization is making to the immediate community or society at large. Since boosting brand awareness seems to be a top priority for small businesses or startups, all your CSR efforts and activities could go a long way in demonstrating how your organization differs from your competitor.
We all understand that purpose and passion are instrumental in driving startups. Do not take it for granted that CSR and sustainability are applicable solely to large organizations. You should keep in mind that a CSR stratagem is there for every organization, irrespective of the type or size.