Why SME should view CSR as an investment
CSR – Corporate Social Responsibility is no longer a new term to SME and entrepreneur, as often as it is used, people tend to mistake CSR with Charity and Philanthropy. Not only CSR is relatively different with the two latter concepts, it could bring a lot more values to the company, with a right plan and proportioned investment.
CSR plan could make your business more competitive to others which provide same category of products or services. It is believed that consumers appreciate the positive impact of business to the community through a concrete CSR plan. An individual research has shown that consumers are willing to pay 25% more to buy product/ service from a company with higher ethical business strategy; they will choose to buy goods made by disadvantaged people even though it might cost more. Once effectively communicated, disabled-friendly working environment or LGBTI+ equality could enhance your company value. For example, The Bodyshop’s “No Cosmetic testing on animal” campaign created awareness and also help them win out their direct competitors.
Photo by The Body Shop
While many companies have to spend a lot of money in Branding, there is another good way to shine your brand with lower investment – CSR. Tiger Beer has embarked on a six-year global partnership with Worldwide Fund for Nature (WWF), starting with a USD 1 million annual donation to support the organization’s tiger conservation efforts. Their slogan “Can you imagine a world without tigers?” has been very successful. It is just one of perfect practices to invest in your brand and do good to the community at the same time.
Photo by Heineken
When CSR is well-done, not only the customers will be raving fans, your staff and partners will become brand ambassadors, too. Employee turnover ratio tends to be lower in those companies which pay more efforts by putting integrity and environment over their profit. Indeed, we know that business can save a lot more money and maintain the quality of services if you have employee engagement and commitment. At the end of the day, CSR can make a circle of good things and win everyone’s hearts.
Last but not least, many SMEs continue doing charity in very basic ways without any strategic plan, purely by impulsive emotion might cause many side effects to the beneficiary or natural environment. A common charity activity is bringing foods in plastic containers to poor people on streets or in hospitals. It is a good will which comes from the intention to help the underprivileged but carelessly dispose a tons of harmful single use plastic to the environment. A thoughtful CSR strategy can avoid this kind of mistake and invest the money more wisely.
More often than not, Charity and Philanthropy are considered an expense to enterprises. Thus, a cut in Chary and Philanthropy are first attempt to save cost. Due to the misunderstanding of these two terms, CSR are also being treated unfairly during the difficult time. With the above-mentioned benefits, CSR should be viewed as an investment more than an expense. “Everyone needs to be loved – No one deserves to be pitied” and CSR is a right way to love people and nature with deep understanding and strategic planning.
