Social Responsibility (CSR) impacts on sales

In these days of confinement, we are seeing in the media how companies are stepping up to help with both financial and material resources. These measures can be considered as Corporate Social Responsibility (CSR) , come from the heart. They are committed to their fellow man and do not seem to expect to receive anything in return other than to contribute to the needy.

Ultimately, albeit altruistically, they are generating content that improves public perception and fosters a positive attitude towards the company. As a result, it improves customer confidence, company reputation, brand sentiment and even profitability.

I want to make it very clear that, as a citizen, I appreciate all that businesses of any size do for society in this time of need. I do not believe that these Social Responsibility actions are aimed exclusively at economic ends. I truly believe that they do it from a feeling of support and that, then, by transitivity, it will (or will not) have a positive impact on your company.

CSR in companies

In 2018, the consulting firm OI Sustainability compared companies that carried out Corporate Social Responsibility actions (apart from the business) with others that integrated them within their marketing and operations strategy. They found that those that merged a CSR message into their marketing and commercial strategy achieved the following results:

  • They increased their sales by 20% (some even managed to raise the price of their products or at least not lower them).
  • Increased productivity by 13% (reduced staff turnover).
  • They reduced the risk of being sued.
  • They increased the value of the share by 6 %.
  • They minimized their financial risk, cost of debt and equity capital.

Social Responsibility Strategies

So, if you want to implement winning CSR strategies in your company that will ultimately improve your bottom line, start with:

  • Identify the areas of social impact that fit the company’s strategy, products, services or operations (e.g. education, health, sports, environment, etc.).
  • Interact, ask questions and involve your customers, suppliers and investors in this initiative for greater alignment.
  • Engages the organization by dedicating resources to these projects, both financial and human (e.g., tree planting, soup kitchen). It is necessary to give it continuity.
  • Measures social impact performance with pre-established key indicators.
  • Hire an external party to help you tailor the approach, but not to do it.

When a company improves its corporate image, it usually translates into: more loyal customers, increased sales and greater interest in its corporate actions. It is possible to generate a strong link between the social and the corporate.

Álvaro Fernández de Araoz – CEO of Correcta

Share this article

Related Posts