Ever wonder why there are so many successful companies in your community? Ever notice how good it feels to work at a company that you truly believe is making an impact on society?
The fascinating thing about them is that they all started with the same goal: to make money. Why do some of these companies prioritize social responsibility while others don’t? What can we learn from those who choose to do both?
There are many benefits of socially responsible companies, but for now, let’s focus on how it benefits our communities.
1) Increased community involvement
When communities know that their local businesses care about more than just profit, they will be more involved and supportive of that business. Furthermore, employees will feel empowered to take part in initiatives outside of work. While each company is different, some popular initiatives are food or toy drives, fundraisers for community organizations, and volunteering.
2) Better public image
In a time when many businesses are facing negative public opinion, it can feel difficult to promote your cause in a positive manner. However, socially responsible companies make a point of standing out in a good way by putting their money where their mouth is and going above and beyond for the community. This makes people more willing to support them with both praise and money.
3) Reputation boosts
Who wouldn’t want to work for Apple or Walt Disney? In addition to being one of the most successful companies today, Apple and Walt Disney build their employee base from some of the brightest minds in technology. You could say that their social responsibility efforts have been very effective because they have been able to attract top talent all over the world. One of Walt Disney’s chairmen has contributed to their wealth by reputation boosts. People watch Bob Iger net worth because he worked hard to be where he is today.
4) Financial benefits
This is what everyone wants to hear about. When employees are encouraged to participate in socially responsible initiatives, they will feel more fulfilled which can lead to many benefits. These include increased productivity, lower turnover rates, and the ability to recruit top talent at a cheaper rate than competitors looking for similar talent.
As it turns out, there are quite a few reasons why businesses should prioritize social responsibility. This means that customers benefit as well because these companies tend to be very customer service-oriented.
5) Good press
Numerous studies have shown that companies with good social responsibility records tend to receive more positive media coverage than their less socially responsible competitors. This is because people care about companies with strong morals and values, so they will express interest in the news stories associated with them. Media attention can bring in new customers which in turn results in greater revenue.
6) Stronger company culture
People are more likely to trust, respect, and even love companies that have values similar to theirs. When a business has strong morals it inspires employees to work harder because they know their efforts will directly benefit the community (and not just another bottom line). Furthermore, when employees feel like what they’re doing is making a positive impact on society it boosts morale and encourages them to stay at that job. All of these things create an awesome workplace environment which in turn produces happier and more productive employees; this means greater revenue for the business.
7) Brand loyalty
Social media lets you easily connect with your community and share information. It will help to build a base of loyal followers that will promote the things you do.
People like to buy products from companies that share their beliefs. This is called brand loyalty. Companies who go out of their way to prove that they care about the community they operate within will develop loyal customer bases. Though it may need a bigger initial investment, the long-term benefits will end up outweighing the short term.
This is just one example of how socially responsible companies have increased profits by being socially responsible first. The first part of increasing any kind of revenue is usually marketing. If you are looking for ways to promote your company, consider how social media can help.
Socially responsible companies have been around as long as capitalism itself. The points mentioned above are not the only reasons why they exist, but rather key reasons why they perform better than their less socially responsible counterparts. If you believe in the power of business to make positive change, support businesses that prioritize social responsibility.
By investing in social responsibility, businesses gain significant benefits such as increased community involvement, good press coverage, and stronger enabling company culture. It’s hard not to be motivated by all the great things socially responsible businesses accomplish.
Successful companies can be hard to come by, but when they’re both socially responsible and profitable it’s a beautiful thing. By supporting both types of companies, we can create a better world for all of us.