Week 6: How Doing Good Grows Your Business

How Doing Good Grows Your Business

Social and environmental problems are growing at a faster rate than philanthropic dollars can keep pace.

More and more corporates have CSR as statistics shows that when corporations do good, they can do well -- increase the bottom line -- at the same time. Therefore, doing good helps to make the company looks good and in the same time increase their sales level, thus, many corporates are starting out or perfecting what they are already doing.

Some of the statistics that proves that company’s fair better when they are support a social cause. Here are just a couple:

·       94% of consumers would switch brands to one that supports a social cause if price and quality were about the same, according a 2011 research report by Cone Communications. That’s up from 66% in 1993.

·      Corporations that “endear” themselves to all stakeholders wildly outperform the broader stock market, according to research conducted by Rajendra Sisodia, David Wolfe and Jagdish Sheth.

Therefore, by supporting a social cause the company’s sales would increase, it strengthen brand positioning, enhance corporate image, increase the companies’ ability to attract, motivate and retain employees, and it definitely appeals to investors. It also decreases operating cost due to low turnover rates and better performance because the employees know that they are doing their job with a purpose.

With the support of social causes, the company will also practices better values, thus, improving the working environment, better employer-employees relationships, and it also benefits the community and protect the environment.

More and more companies and organizations are looking into expanding their CSR and what more they can do to involve their employees to do good. Some companies encourages their employees to volunteer or organize some projects to help the less privileged to improve their standard of living.

All in all, the world is moving towards doing good and helping one another which is definitely heart-warming.

References:

Stengel, G. (2012). How Doing Good Grows Your Business. Retrieved Novemeber 29, 2012, from Ventureneer: http://ventureneer.com/vblog/how-doing-good-grows-your-business