CSR is no longer a nice-to-have, it’s a must have. Today’s customers expect businesses of all sizes to “do good” in their community.
A 2015 study exploring CSR’s impact on consumer behaviour found that:
- 84% of respondents said they tried to purchase products and services that were socially or environmentally responsible whenever possible;
- 90% were likely to switch brands to one associated with a good cause;
- more than 50% had boycotted a company after learning it had behaved irresponsibly, and;
- over 90% of consumers polled expected companies to do more than make a profit.
Beyond opening markets and securing relationships with customers, CSR is a powerful recruitment and retention tool. This is especially true for the Millennial generation (although all generations now prioritize these issues); both Gen Y and Gen Z want to work for companies that actively cultivate their communities.
An extensive 2015 report reviewing 300 studies on the ROI of CSR projects found they:
- Increase employee productivity up to 13%;
- Reduce employee turnover rate by up to 50%;
- Save up to 90 to 200% of the salary of each employee that is retained, and;
- Make recruiting more competitive; workers are willing to take up to a 5% pay cut to work at companies with strong CSR initiatives.