How Effective is Corporate Social Responsibility (CSR) Strategy and Marketing?
Today many large companies have CSR departments and expert employees to manage CSR activity. Company image and reputation are important and the benefits of CSR are significant.
Here are some key points from various sources about the benefits of CSR and its promotion:
- “88% of consumers said they were more likely to buy from a company that supports and engages in activities to improve society.” According to Better Business Journey, a Small Business Consortium from the United Kingdom.
- "Nearly two in three consumers say they feel businesses should work more with charities to tackle social and environmental issues, and just under half say they would be more likely to buy products from a firm that endorses a charity."
- A Forbes article "Consumers Overwhelmingly Want CSR"
An important point is also that employees like to work for socially and environmentally responsible companies. So CSR conscious companies are often able to attract top talent.
Sales and profitability can also be improved by CSR activity. This can be as a result of perhaps recyling efforts saving costs as well as competitive differentiation from improved brand image.
These examples show the impact of CSR on Sales and profits:
- "According to recent research from PR firm Edelman, the goodpurpose study, over three-quarters (76 per cent) of consumers would buy and recommend products from a company that supports a good cause, and 44 per cent would refuse to buy from a company that does not. It is of great value to a business’s reputation to work for the good of society, as 44 per cent of consumers would criticise a firm to other people if it fails to actively support a good cause."
- An Economist Intelligence Unit study said that, “corporate citizenship [CC] is becoming increasingly important for the long-term health of companies... 74 per cent of respondents to the survey say corporate citizenship can help increase profits at their company… Survey respondents who say effective corporate citizenship can help to improve the bottom line are also more likely to say their strategy is ‘very important’ to their business (33 per cent) compared with other survey respondents (8 per cent).”
These points highlight how CSR is an important part of business strategy. Furthermore effective CSR often incorporates activity from all parts of the business due to the work force motivational benefits as well as efficiency. Transparency in supply chains can also be a CSR strategy which can be seen as a competitive advantage in this age of the 'conscious consumer'.
The effectiveness of CSR strategy and marketing campaigns depends on the level of planning and promotion, as with all marketing and PR campaigns.
Ultimately CSR helps improve sales, profits, motivation and society as a whole. This makes it very effective.