Being a socially responsible business often involves higher material and labour costs. But there is a business case to be made for being a good corporate citizen.
In a competitive labour market, employees are drawn to companies that have a good track record for responsible behaviour, such as environmental protection. By being a good role model, a company will attract people who have skills such as innovativeness, leadership and the ability to work in teams. And by treating employees responsibly, costly employee turnover is minimized. It is also good for a business to stand out from the crowd—for the right reasons of course. Being a good corporate citizen can help a company differentiate itself.
For example, if a company shows that it is committed to helping solve social problems such as rising high school dropout rates, it is also showing that the firm values positive social change. That image will appeal to customers who want to deal with a company that genuinely cares about young people. And by adopting improved environmental practices, a company shows consumers and the public that it cares about the community, the planet and the future. This can help solidify and guarantee customer loyalty. (Improved environmental practices also help a company to comply with environmental regulations and avoid penalties.)
To read more about ways to implement corporate social responsibility, follow the link below: