by Kim Thomson
It’s no secret why a non-profit or cause based organization might want to partner with a major company or corporation. Many caused based organizations (for the sake of this article let’s refer to them as non-profits) receive help in the form of monetary donation or enlist the help of corporate employees for an event or day to “give back”. The upside for the non-profit is clear. But why should a for-profit corporation engage in Corporate Social Responsibility (CSR) programs?
Data has shown that participating in CSR and community based giving programs is actually a profitable strategy. About 53% of consumers report that they would pay a 10% price increase on the same product if it came from a socially responsible company rather than one with no known affiliation to a cause.[1] It’s no wonder advertisers have turned toward emotionally evocative ads this year (think Super Bowl), and I don’t just mean tear jerkers. I think we’d all (the creators included) rather forget the Nationwide Insurance commercial with the dead child discussing what he won’t do. But think about the ones that made you laugh, or what always gets me- the commercials with a soldier returning home and seeing his family. It makes you feel good, so you’re likely to remember it right?
CSR isn’t that different, it conveys your company’s compassionate side because of its participation. Such participation also makes your employees feel good, both about where they work (because they’re part of one of the ‘good companies’) and about their personal participation. So if CSR makes you look good to the consumer, they’re more likely to buy from you and even willing to pay more for your goods and services. On top of that you’ll be doing good in your community and engaging your employees. So what’s the downside?
It’s hard to see the downside given the facts. If your company is not already profitable maybe it’s not time to pay your employees for volunteer efforts or invest in a partnership with a non-profit. You still have to pay your employees and make your investors and stakeholders happy. But CSR can also increase brand awareness, by providing you with more visibility within your community.
Having a tough time finding new employees? CSR could have a positive impact on your employer brand. With 70% of millennials identifying themselves as a social activist[2] making time for activities that give back could be hugely attractive to a population growing in importance in today’s workforce.
While profitability and positioning are great reasons to engage in cause based partnerships and CSR, at the heart of every company’s strategy there should be a genuine desire to contribute to society. These relationships should never be entered into for the sake of elevating your own profits. It should, instead be a real part of your corporate identity. It’s not about positioning yourself as a good company but actually being a company with a true desire to bring positive change into the world. If that’s a part of your company’s mission and they aren’t already engaging in CSR, maybe now is the time to start.
[1] Clendaniel, Morgan. “The Brands That Survive Will Be The Brands That Make Life Better.” Co.Exist. November 07, 2011. Accessed June 03, 2015. http://www.fastcoexist.com/1678768/the-brands-that-survive-will-be-the-brands-that-make-life-better.
[2] Swinand, Andrew. “Corporate Social Responsibility Is Millennials’ New Religion.” Crain’s Chicago Business. March 25, 2014. Accessed May 02, 2015. http://www.chicagobusiness.com/article/20140325/OPINION/140329895/corporate-social-responsibility-is-millennials-new-religion.