The Business Case for CSR

The "business case" refers to the commercial business benefits of CSR in
quantifiable terms which convince “non-believers” of the business benefits of
CSR. Today consumers, investors, governments, and even employees have become
more sophisticated and more aware of good corporate behavior or lack thereof. A
company’s reputation has become one of its most valuable assets, and CSR has
become one of the key components of corporate reputation.

The following ponts discuss how responsible business helps to enhance business
operations and achieve sustainable outcomes:

·      Create Shareholder Value: Investors are becoming more
concerned to invest in companies that act with good corporate governance and
social responsibility.

·      Increased Revenue Base: CSR can boost factors that drive
revenue in important ways. CSR initiatives and cause-related marketing could
build reputation and goodwill among suppliers and customers.

·      Strategic Branding: A company’s reputation is
fundamental in maintaining and attracting new customer base. Global consumers
today are more selective and sensitive about buying eco-friendly products and
care to consider company’s image and CSR efforts.

·      Operations Efficiency: The efficiency of a business is
about productivity and effective use of resources. CSR can help to increase
efficiency through environment conservation and recycling initiatives, as part
of eco-efficiency strategy.

·      Increased Productivity and Quality: CSR facilities increased
productivity within the organization.

·      Access to New Markets: CSR also provides business
organizations with access to new markets, improves the competitiveness and
market positioning.

·      Better Access to Capital: Access to capital enables a company
to grow and make timely investment. Companies with good CSR standing are likely
to be able to secure equity and debt capital with utmost ease.

·      Human & Intellectual Capital: A company’s human and intellectual
capital is one of its most valuable assets. Good workplace conditions and
relations can help a company to attract, keep and develop human capital,
keeping operations and staff morale high.

·      Lower Business Risk: Companies are being held
increasingly accountable for their actions today. Such business risk could
affect reputation,access to capital and even long-term viability in some
instance.