Definition Of Socially Responsible Business Practices
Socially responsible business practices refer to those corporate activities whose main purpose is to benefit individuals, a community or the environment. They include sponsorship, grants, product donation, corporate volunteering, community engagement and so on. The goals of having a social business strategy in place are the following:
- Deliver an impact: make a difference and concretely help social projects reach their goals.
- Further a cause: raise awareness on a cause and promote it using corporate assets.
- Gain a positive public image: you can come off as a caring and generous.
Breaking Down Socially Responsible Business Practices
Stakeholders all over the world expect their favourite brands to engage somehow in responsible activities. That is, they value those boards that invest in social and beneficial projects. One example could be a company giving back to the community. Another one comes from grants. Regardless of the nature of the aid, social business has the purpose to deliver a tangible and measurable impact. Moreover, it’s not about supporting or advocating whichever cause. As a matter of fact, companies have to carefully select those projects that best align with their own culture and mission.
Example of Socially Responsible Business Behaviour
Let’s take a look at the different social activities a company can promote:
- Social Sponsorship: Social sponsorship is a form of sponsorship that goes further into audience engagement. The audience is indeed invited to engage and experience the product.
- Cash donations: historically this has been the most popular way companies have contributed to social causes. Granting financial support, in fact, is immediate and easy. Nevertheless, sometimes it’s not as effective as other aid tools.
- Gift in-kind: this form of corporate giving has been praised by many market experts. As a matter of fact, its quality comes from the fact that donating goods and services can help nonprofits pursue their goals in a more efficient way
- Corporate volunteering: many big firms offer employees the possibility to volunteer extra-time for nonprofits, school or other institutions. Extra-time regularly paid, of course
- Community engagement: giving back to the community. Many corporations are switching to this CSR branch as it’s a powerful strategy to enhance reputation.
A socially responsible business behaviour can take those shapes. But it can also be the global behaviour and direction taken by the business that will touch the audience and have an effect on the brand image.
Social Business Benefits
- Social impact: helping social projects achieve their mission by donation or proactive participation can boost their impact.
- Brand image: standing out as a noble and committed corporate citizen can improve your reputation.
- Customer loyalty: people love brands who are involved in social activities and they are more inclined to buy from them in the future.
- Differentiation: living in a period where the competition is tight almost in every market, gaining the reputation of a kind and caring corporation can help you differentiate.