By Nityant Sethi
What is the CSR policy?
Corporate Social Responsibility, also known as the CSR policy, has become an important part of modern corporate policies and builds a connection between companies, communities, environment and their stakeholders. As businesses continue to find reasons for being socially responsible, there is a need to understand how such practices have an impact on the overall performance of the business.
The CSR policy is a model that businesses use to show accountability and give back to society. According to Nadia Rekmann, contributing writer for Business News Daily, examples of things that a CSR policy could include are environmental sustainability, ethical labour practices, and philanthropy or community involvement. This approach allows companies to improve their brand image and build stronger connections with their customers, who buy products from the business to promote and boost ethical practices.
Improved Customer Perception
Another important aspect of CSR involves the impact on customers. According to Reckmann, socially responsible companies seem to have a good public image, which nowadays can be considered a major factor in a market where brands are increasingly accountable to customers. According to a study by Kantar, a leading global data and insight consultancy, companies perceived as impactful can experience up to a 175% increase in brand value over 12 years, versus just 70%, for companies who are less responsible. This shows that CSR is not just a moral decision but a strategic business decision leading to greater profitability and market share.
Attracting and Retaining Talented Employees
Thirdly, the CSRI policy helps with talent recruitment and retention. According to Susan Cooney, Symantec’s global diversity and inclusion leader, people today, mostly Millennials and Gen Z, are more interested in working for organisations committed to social and environmental causes. In fact Deloitte’s 2021 survey indicated that almost 70% of respondents would refuse to work for an organisation not having a strong sense of purpose. The CSR integrated into business operations impacts workers positively in regards to morale and commitment, and attracts employees who are dedicated to the company’s mission.
Appeal to Investors
Investors are increasingly looking for companies that employ CSR policies as well. According to the 2021 Giving in Numbers report from the Chief executives for Corporate Purpose, over 80% of responding businesses surveyed said that investors were very Interested in seeing data on issues of sustainability and social responsibility. With strong CSR practices, a business shows investors its area of interest for long-term growth and sustainability, which makes the business more attractive to potential investors.
Johnson & Johnson’s Usage of the CSR Policy
The multinational pharmaceutical company Johnson & Johnson (J&J) creates and markets a variety of consumer health items, medications, and medical devices. With well known brands including Band Aid, Tylenol, and Neutrogena, J&J is dedicated to promoting health and wellbeing throughout the world. The organisation implements the Corporate Social Responsibility policy that emphasises ethical corporate practices, environmental sustainability, and community health as part of its goal. For instance, J&J manages health programs that provide resources and vaccines to poor areas in an effort to increase access to healthcare. By investing in renewable energy sources and making packaging more recyclable, the company minimises plastic waste and aims to become carbon neutral by 2030.
My Opinion About Corporate Social Responsibility
In my opinion, a well-organised Corporate Social Responsibility policy can be an influential tool for business today. It may require high expenditure initially, but if done with the right business idea and planning, the CSR can pay off with great long-term benefits, such as brand reputation, customer loyalty, and employee satisfaction. Yes, it does require a lot of skilled workers, and resources, as well as a higher risk to start a socially responsible business, but companies develop good relationships with their stakeholders and communities, and CSR also allows businesses to have a chance for greater profitability, talent retention, and socially minded investors may outweigh such costs by offering a better, more successful business model in the long term. With these benefits in mind, I personally would take the risk to start a socially responsible business. With the right partners, ideas, and planning, it’s not only a great money-making strategy, but after all, it is better for the environment.