Benefit and Challenges
Benefits
Being a socially responsible company can bolster a company's image and build its brand. Consumers feel that when they use a product or service of a socially responsible company, they are doing their part.
The more socially responsible the company, the more supportive the community and consumers become. Socially responsible companies gain the loyalty of customers and employees alike.
Today, people have a desire to work for a reputable, ethical, and charitable company because they find that they are happier doing so,
and when employees take pride in the company they work for, the company's production rates, employee satisfaction, and the overall bottom line are more positive.
In fact, according to recent research 64% [millennia’s] won’t take a job if a company doesn’t have strong corporate social responsibility (CSR) values. Social responsibility empowers employees to leverage the corporate resources at their disposal to do well.
Challenges
A business's ability to attain and then retain sufficient profitability to sustain itself and move forward is not easy. CSR is costly since being socially responsible incurs additional expenses. Examples of socially responsible actions include investments in pollution reduction, employee benefits packages, donations and sponsorships to the community, etc.CSR can be detrimental to the business for two related reasons: It distracts from what businesses should be focused on
2. It undermines proper business accountability.
All in all, branding is the key to a business’s longevity and success, and authentic and environmentally and socially responsible companies have become the choice of consumers, which is a trend believed to be going forward as the demand for things, such as refugee aid and climate change, arises. This means that the reputation of these brands will also improve. In fact, research shows that more than half the number of consumers around the world are now more loyal to socially responsible brands, and the number is growing fast.