There is a reason as to why traditional multinational organizations such as Coca-Cola and Disney, among others continue to dominate the market. These companies continue to rank among the most desired organizations around the world. It is evident that their products and services have contributed to their reputation, but their significant contributions to the community and environment make them adorable. The way they conduct their business in an ethical approach shows their commitment to the local communities.
Being philanthropic while at the same time minding the welfare of workers, suppliers, other businesses, and more so, the customers is a clear statement that these organizations value the aspect of being good corporate citizens. Despite many business commentators arguing that corporate social responsibility has no value to the business, customers continue to respond in kind.
- Higher Revenues
Recent research by Nielsen Survey reported that more than 56% of global respondents are willing to pay extra for the services and products manufactured or sold by the companies that have good corporate social responsibilities. While other companies are struggling to adjust their prices so that they can attract customers, good corporate citizens are selling their products at higher prices. This enables them to record higher revenues as compared to other companies in the same sector. It is important to record that higher revenues mean that a company has higher profits.
- Attracting and Retaining Talents
In this era of extreme competition, every business is interested in attracting talented employees who can help the entity to formulate strategies that will enable it to compete effectively. Talented individuals are also interested in working in companies that mind the welfare of the community. They do not only mind working in these companies, but they want to stay there, and they are not likely to be lured to other organizations.
Companies that practice good corporate social responsibility are also attractive when it comes to a service based gap year program. High school leavers who spend a year working in these organizations don’t only gain practical skills about how businesses operate, but they also learn to give back to the community. This means that the companies also prepare future employees who are sensitive about the society and the environment as well.
- Government Subsidies
Local and federal governments are always interested in forming agreements with organizations that support the community. The government may channel money to a particular company so that it can support the community. Due to the cordial relationship that exists between these companies and the government, there is a chance that the government will allow organizations tax rebates and other benefits such as capital injection.
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This has previously been seen when a disaster affects the industry; only the good corporate citizens are supported by the government so that they can continue with their operations.
- Increased Value of the Shares
Investors are highly interested in companies that have a good reputation in the market. Good corporate citizens have a high reputation not only among customers but even in government circles. Therefore, investors will channel their resources to the company so that they can buy equity. Due to the increasing number of investors who want to channel their resources to the company, the value of the equity increases, which increases the value of the company.
- Easy to Access Loans
Companies that practice good corporate social responsibilities have a high reputation even among the lenders. Most of the financial organizations understand that the entities will attract enormous profit, which will enable the firm to pay its loans. Therefore, the company will always get the necessary support and financial aid that it requires.
Corporate social responsibility is an essential undertaking for any organization out there. The debate continues whether being a good corporate citizen works. However, the above benefits highlight that it is beneficial when a company chooses this path. However, companies that practice corporate social responsibility incur a huge amount of money while at the same time spending much time when preparing and formulating strategies.