HomeNewsWhy Corporate Social Responsibility is here to stay
Why Corporate Social Responsibility is here to stay
The idea of corporate social responsibility (CSR) is nothing new.
Even back in the 1800s, there are examples of business owners contributing to society as philanthropists. One such person was Bradford industrialist Titus Salt. He built a textile mill and model village in Saltaire, providing workers with fair wages, improved living conditions, and more. His efforts went beyond profit, he wanted to make life better for his workforce and community. While this may not have been the norm for all business owners back then, expectations have changed. CSR is no longer a nice to have, it’s essential, and it’s here to stay.
What is CSR?
CSR is about businesses taking responsibility for their actions and making a positive difference in the world. This can mean improving working conditions, cutting down carbon emissions, sourcing materials ethically, engaging with the community, and more.
Many companies now build CSR into their strategy as it can help with brand image and reputation. The goal is to balance making a profit with helping society and the environment.
While there’s some overlap with ESG (Environmental, Social, and Governance), the two are different. CSR is more about strategies and culture to ensure ethical operations and is self-regulated. In contrast, ESG refers to the criteria used to measure sustainability and is often looked for by investors. B Corp certification goes a step further, showing a commitment to sustainable business practices.
As the world has changed, so too have our expectations for how we want businesses to behave. People now, especially younger generations, are more conscious of social and environmental concerns. And they want to buy from companies that share their values.
Studies have found that eight out of ten consumers are willing to pay more for sustainably produced goods.1 When it comes to the workplace, most Gen Z’s and Millennials are looking for purpose-driven work. They’re even willing to turn down work that doesn’t align with their values.2
Businesses that fail to embrace CSR risk alienating customers, especially the younger generations. Much like quality and price, ethics and sustainability now play a role in the buying process. CSR is part of the customer checklist for deciding whether to buy. Those ignoring it could find themselves left behind or facing public criticism.
Ignoring CSR can even lead to a potential loss of sales. As people demand transparency and accountability, it’s more than an ethical choice. It’s good business.
The benefits of embracing CSR
Embracing CSR brings a range of benefits to businesses, from building a strong brand reputation to boosting employee morale and strengthening customer loyalty.
Building brand loyalty:
When businesses invest in CSR, they come across as responsible and trustworthy, which goes a long way in building customer loyalty. People feel good about supporting a company when they know it’s committed to making a positive difference.
Attracting and retaining employees:
Today’s employees want to feel connected to their work and to know their company shares their values. Many, especially younger generations, look for employers that support the causes they care about. Volunteer days, charity partnerships, and sustainable practices all help build a positive culture. Showing a genuine commitment to environmental and social responsibility makes companies more attractive places to work.
Protecting the planet:
Environmental responsibility is a huge part of CSR, especially with the current climate crisis. Companies working towards net zero are helping the planet by reducing pollution and emissions. But they’re also setting themselves up for long-term success in an eco-conscious market.
Read our net zero case studies to see how taking care of the planet can also be good for business.
Creating trust:
With social media and online reviews, businesses are now held publicly accountable for their actions. Being open and transparent about company practices shows a commitment to ethical and responsible operations. This builds credibility and trust, strengthening their reputation with customers and the community.
Gaining financial benefits:
Sustainability initiatives can often lead to real cost savings, whether through energy efficiency, waste reduction, or improvements in the supply chain. Today’s investors are also drawn to companies making a positive impact, seeing CSR as a sign of stability and long-term potential.
Ensuring legal compliance:
With growing regulations around environmental and social practices, prioritising CSR can put companies in a better position to stay compliant and avoid penalties. Taking a proactive approach can also help businesses manage risks more effectively.
Sparking sustainable innovation:
By focusing on sustainability, companies often find creative solutions to problems. These innovations can benefit the environment, improve efficiency, and cut costs. In a market that values eco-friendly choices, it also helps businesses stay competitive.
Showing their core values:
CSR is a way for companies to show they care about more than profit. Whether it’s supporting local communities, promoting diversity, or protecting the environment, many successful businesses weave CSR into their identity. Patagonia, for example, is known for its environmental activism and lives its values. This commitment has created loyal customers who value both the products and the ethics behind them.
How to incorporate CSR into your company
More and more companies are now focusing on social responsibility. So, if you’re wondering how to bring CSR into your business, here are some ideas to get you started:
Creating policies that benefit the people and the planet
Cutting down on carbon emissions
Improving workplace practices for employees
Promoting diversity, equity, and inclusion
Supporting charities and local causes
Developing volunteering initiatives in the community
Sourcing materials and suppliers ethically
Ensuring transparency and security in data practices
Making responsible, conscious investments
No matter whether you’re a large organisation, or a small sole trader, even the smallest actions can make a big difference.
For example, a solicitor could offer pro bono work for human rights cases or employees might volunteer in the local community. Businesses can also set up green supply chains and waste reduction programmes. It’s also crucial to prioritise employee wellbeing by supporting both physical and mental health.
CSR is here to stay
CSR has come a long way since the 1800’s. But the core idea – businesses have a responsibility to do good – remains as relevant today.
With growing social and environmental challenges, CSR is now essential for companies. It builds your brand’s reputation, let’s you make a real difference, andconnects you with your community.
As life gets more complex and technology evolves, people are looking for authenticity and real connections. CSR is only going to grow in importance. It’s not only about doing what’s right, it’s about building a business that leaves a positive, lasting impact on the world.
To chat about how The Business Village can help with your CSR strategies, or what we’re doing towards B Corp certification, please contact:
Net Zero Barnsley is part of the Low Carbon Project, a project part-funded by the UK Government through the UK Shared Prosperity Fund. Sheffield City Council is the accountable body for the South Yorkshire region. The Low Carbon project has received £3,445,606 from the UK Government through the UK Shared Prosperity Fund.
The Shared Prosperity Fund provides £2.6 billion of funding for local investment by March 2025. The Fund aims to improve pride in place and increase life chances across the UK investing in communities and place, supporting local business, and people and skills. For more information, visit https://www.gov.uk/government/publications/ukshared-prosperity-fund-prospectus
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