Four Ways CSR Can Differentiate Your Company From The Rest

Leading companies know that corporate social responsibility matters; customers no longer just expect great quality products or services from brands. Customers, especially millennials, want to be part of something “bigger” than themselves, and they will seek this out through the brands they interact with. Corporate social responsibility describes corporate initiatives ranging from philanthropy, to legal compliance, to social and environmental programs. Brands that practice CSR reject the profit-driven mentality of traditional businesses to focus on a purpose-driven mentality; this helps them position themselves positively in the public eye, ultimately increasing profits.

Here are four ways that CSR can differentiate your company from others:

1. Better Brand Recognition

In today’s technology-driven environment, it’s impossible to do anything without someone posting about it online, so why not make those social discussions positive ones? The Rainforest Alliance created the hashtag #followthefrog and partnered with different companies to make it easier for people to identify Rainforest Alliance Certified products. This created a widespread discussion about the brands and companies that paired up with the Rainforest Alliance and pledges made to help the rainforest. By taking part in the discussion, partnered brands become more well-known and talked about among the public. This could be beneficial to smaller, lesser-known brands that are just getting started to generate some real recognition. 

2. Positive Business Reputation

CSR can help you build a brand that’s seen as a responsible business, which can ultimately lead to competitive advantage. When a business stands out for positive reasons, the media takes notice. Patagonia is a great example of a business that has worked tirelessly to build themselves a reputation of being a powerhouse in social change. Through social initiatives and branding, Patagonia attracts like-minded customers passionate about the social impact Patagonia strives for. Ultimately, Patagonia sets itself apart from other similar brands because it is so well-known for its CSR work.

3. Increased Customer Loyalty

A recent study demonstrates that customers are willing to pay more for ethically-produced goods or services and will punish brands that sell unethically-produced goods. In fact, customers claimed that a brand known for both its social value and community commitment was a top purchasing driver. Customers are more likely to be loyal to a brand that aligns with their own values. Millennials specifically prefer to do business with corporations and brands with social messages, sustainable manufacturing methods, and ethical business standards. CSR programs can help your values become more apparent to the public, and customers with these same ideals can seek you out. 

4. Employee Retention

Employees whose values are aligned with those of the company are more likely to enjoy their time at work and therefore stay at that company longer. This helps turn your employees into walking brand ambassadors who are more engaged, productive, and invested in your organization. Interestingly, companies with highly engaged employees saw a 21% increased business profitability. Overall, this will help save your company money because if employees aren’t satisfied at work, they will most likely seek employment elsewhere which leads to your company putting more time and money into recruiting new employees.