In a way, corporate social responsibility can be seen as a public relations effort. However, it goes beyond that, as corporate social responsibility can also boost a firm’s competitiveness. The business benefits of corporate social responsibility include the following:
1. Stronger brand image, recognition, and reputation
CSR adds value to firms by establishing and maintaining a good corporate reputation and/or brand equity.
2. Increased customer loyalty and sales
Customers of a firm that practices CSR feel that they are helping the firm support good causes.
3. Operational cost savings
Investing in operational efficiencies results in operational cost savings as well as reduced environmental impact.
4. Retaining key and talented employees
Employees often stay longer and are more committed to their firm knowing that they are working for a business that practices CSR.
5. Easier access to funding
Many investors are more willing to support a business that practices CSR.
6. Reduced regulatory burden
Strong relationships with regulatory bodies can help to reduce a firm’s regulatory burden.