While many of the nation’s largest companies are putting more resources than ever into corporate social responsibility, many small businesses continue to fall short when it comes to supporting community, social and global causes. Corporate social responsibility —CSR for short — is a broad term used to describe a company’s efforts to improve society in some way, such as raising and donating money, volunteering or adopting environmentally friendly initiatives. The benefits of being a socially responsible small business are many. Here are three important benefits:
Increased revenues. A recent survey by Cox Business found that nearly three-quarters of consumers would spend more money at a small business if it supported a social cause. Other studies have shown similar results. In one survey, 55 percent of consumers said they are willing to pay more for products from socially responsible companies. Research also has found that as much as 42 percent of how customers or clients feel about a company is based on their perceptions of the firm’s corporate social responsibility.
Recruiting assistance. One study found that 79 percent of Millennials said they consider corporate responsibility when deciding where to work. A study by Stanford University found that many MBAs would be willing to take a lesser-paying job to work for a socially responsible company.
More loyal employees. Research shows a strong and positive link between a company’s social responsibility efforts and employee engagement. And in one study, 83 percent of Millennials said they would be more loyal to a company with a CSR program.