Topic 3 Areas of engagement in Business
Even though CSR is more present at society at the moment, it is still necessary for start-ups and company executives to have a clear business case.
Indeed, there is not a universal solution but alternative views or approaches.
For this reason, according to (Gutterman, 2020:24-26) business should engage with CSR based on one or more of the areas:
CSR activities can decrease effectively capital risks while protecting the viability of the company and contributing to social and environmental issues. Some examples are:
- Energy-saving actions that reduce long-term costs
- EEO practices that improve the productivity of the employees
- Community relations engagement which typically reinforces trust and solves local problems
This is related to stakeholder expectations and needs, in other words, CSR apart from decreasing risks, it also offers an attractive image to others:
- Customer relations programs ensure competitive advantage
- Showing a solid brand identity reinforces the positive image and attracts new investments
- Employees prefer to work in appreciative environment where they are taken into account
Surveys have proved that CSR increases the company’s reputation and legitimacy:
- Philanthropic activities improve the reputation of the company and its products among customers
- Sustainability reporting shows commitment and ensures transparency in a way that communications are clear and consistent
Source: Pixabay.com
Companies do this by finding solutions that benefitiates both stakeholders and their own benefits
- Companies that carry out philanthropic activities in their local communities are not only helping their neighbours but also creating a future team of employees