According to economist Milton Friedman, a business’s core purpose is to maximize returns to the exclusion of corporate social responsibilities (CSR). However, that view, which most 20th-century American executives agreed with, is changing fast. A Deloitte study found that 93% of business leaders agree that companies should contribute to the greater good of society.
Using CSR, companies can move beyond maximizing returns to creating value by investing in society’s health, education, and environment. However, CSR involves complex decisions to balance giving back to the community and business sustainability. This article discusses the three best CSR practices you can apply to maximize business sustainability.
- Align CSR Purpose with Company Goals
CSR aims to spread the economic gains across shareholders, employees, customers, and the surrounding communities. However, the CSR activities must align with the overall business strategy to offer maximum value to the business and society.
You must do your due diligence by evaluating your company’s core values, getting employees’ opinions, and conducting community needs assessments. That way, you’ll establish the true purpose of your CSR initiatives and align them with company operations. Once you align the CSR purpose to your company’s mission, vision, and values, the impact will be felt as intended.
- Use Your CSR Work as a Capacity-Building Initiative
Your business activities and CSR initiatives need talented teams for successful implementation. You can gain more and maximize sustainability by using your CSR work as a capacity-building initiative. As you hire and train employees for CSR purposes, notice exceptional volunteers or talented employees who may be a good fit for other company work then retain them.
For example, you can hire and train a social media influencer to popularize your upcoming CSR activities and retain them to join your online marketing team. Since people already associate them with your non-profit works, they can be more effective in bringing in new customers.
- Leverage Your Core Capabilities in Social Responsibility Initiatives
Your social responsibility initiatives feel more authentic when they align with your company’s strengths. The community will better understand and appreciate your efforts if they can relate them to your company’s capabilities.
For example, JetBlue Airlines has vast experience in in-flight travel, which it leverages through its Aviation Career Education (ACE) Camp. In the ACE Camp program, JetBlue employees teach underprivileged high school students the science and technology behind aviation. By focusing on flight travel, JetBlue creates a strong impact through its education CSR program.
Likewise, any company can achieve clarity of purpose and have a bigger impact on society if it builds its CSR efforts around its core capabilities. For instance, a company offering car title loan online services to car owners can leverage its industry knowledge and run a sensitization campaign. It can educate people on relevant laws and how to avoid online scammers.
Be In It for the Long Haul
Creating a successful CSR strategy is not an overnight affair. It requires a lot of planning and long-term commitment. To achieve a balance and provide value to both the company and society, ensure your CSR initiatives fit nicely into your company’s long-term goals.
