Why Every Company Needs to Run a CSR Program

Companies can benefit by carrying out business activities for the community. Therefore, they also need to give it back to the community as a form of business responsibility. This is often referred to as Corporate Social Responsibility (CSR).

This corporate responsibility program for social life is very important in helping businesses. The form can be very diverse and can be adjusted to the capabilities of the company. Believe me, all forms of CSR that are given will return in a bigger form for the business in the future.

The Important Role of CSR for the Company

There are three big principles that Corporate Social Responsibility carries, namely profit, planet, and people. All of this is very synergistic for each other. The company distributes profits to get more profit for the surrounding community and the Earth as a whole.De

In other words, the program being implemented will more or less have an impact on the company. Following are the reasons CSR is very useful for companies:

1. Your customers are valuable

The first reason CSR is so important is that this program is made for consumers. Business needs customers, buyers, consumers or whatever you call it to make a profit. That way, you need to "take care" of consumers to keep believing in the business being run.

The CSR program provides benefits to the community to improve their welfare. Call it a program that provides donations, financing, or grants to communities. Companies can also provide access related to life, such as roads, clean water, to health assistance.

However, this program is not limited to humanitarian matters. Companies can also create jobs for people who live around the location of doing business. This step tends to be appropriate for large companies that want to expand their business in new company locations.

2. Increasing the level of public trust

A study in America said that as many as 87% of consumers tend to buy products from companies they know. On the other hand, about 76% of consumers will refuse to buy products from companies that contradict their beliefs.

That is, your business needs to build trust from the public. One of them is by running this CSR program. This program will bring your business directly to the community so that the impact can be felt immediately.

A number of companies even donate their products to be used directly by a community group. When the product is usable and durable, it is not impossible that people will have more confidence in using the product in the future.

3. Motivate employees to be more attached to the company

Not a few people end up applying for jobs at the company because of the CSR strategy being implemented. In other words, CSR can give a pretty good impression of employee branding. When a company provides assistance to outsiders, it can appear that the company is good enough to look after its employees.

A good CSR strategy also provides attachment to employees so as to keep them working. Moreover, if the company involves its employees to be able to take part in CSR programs related to humanity.

On the other hand, CSR also provides motivation to employees. Research conducted by Harvard found that employees are more motivated, inspired, and loyal to companies that have strong goals for society. This step also makes employee performance can be further increased in their daily activities.

4. Open opportunities to get new investors

CSR also plays a big role for your business. This is because companies that are committed to the environment and society are more attractive to investors. A study states that 61 percent of investors consider that this CSR program is a sign of a very ethical company by reducing investment risk.

Investors do not think that grants, donations or other social commitments are not a waste of company finances. In fact, this CSR program becomes a small investment from a company for bigger results and avoids small mistakes from financial utilization.

5. CSR can save money

It may sound like something of a contradiction. However, this is the reality. The right CSR strategy will allow companies to save more money than other marketing strategies.

Companies can establish closer relationships with the community and make consumers more loyal. As mentioned above, it is very likely that these people will later trade back for your product and make the company more profitable.

It doesn't end there, employees can be more loyal and lower the level of employees resigning from the company. This step keeps you from getting employees who are more knowledgeable about the business being run. Companies also do not need to provide time-consuming and costly training for new employees.

In other words, the business you run cannot only be profit-oriented. You need to share it to keep the business going. Every element in the company needs to consider returning it and being useful to society.