Why startups should care about social responsibility?
CSR ( Corporate Social Responsibility) helps give your employees a sense of purpose, which can motivate them to work hard to achieve your company’s goals. Leverage the positive social impact your startup has to attract and retain high-performing, dedicated employees who will help you achieve your business’ vision.
CSR will not only benefit society but it can also help you achieve your economic targets. Therefore, setting CSR goals that are aligned with your values does not have to break your budget. This article sets out the economic and social benefits of making CSR a core element of your startup.
1. Build a Positive Brand
In a competitive business environment, it is vital that your startup has some advantage or point of difference that will make customers pick you over a competitor. Positive branding through CSR can act as this point of differentiation. There is an increasing trend towards customers buying from brands that are aligned with their personal beliefs: 66% of consumers are willing to pay more for a product or service that comes from a socially responsible brand. Millennials are particularly responsible consumers, with 73% they are eager to spend more on products that are aligned with their beliefs.
Therefore, as a startup founder, your commitment to CSR will help you to:
(a) create a positive brand image;
(b) increase sales, and
(c) reach your economic goals.
2. Growth potential
Being socially responsible contributes to increases in a company’s sales, as conscious consumption trends indicate a growing tendency. Being socially responsible contributes to increases in a company’s sales, as conscious consumption trends indicate a growing tendency. Consumers are willing to pay higher prices for goods when bought from environmentally conscious companies. If a startup sells products or services that negatively will affect the environment or society at large, its growth understandably would be hampered.
3. It helps when recruiting and retaining employees
A more meaningful startup has a greater ability to attract and retain employees. In fact, meaningfulness, defined as the feeling that one’s job contributes to society as a whole, was identified as the third most important employee engagement driver. These findings make sense, as they attest to the fact that employees who feel that their jobs serve a social purpose are prone to then exhibit greater levels of company loyalty.
4. Access Funding
Being socially responsible is not only a point of differentiation for your customers, but it can also help you stand out when pitching to investors. Some organizations provide grants and investment specifically to startups that are dedicated to making the world a better place. Accordingly, being a startup with a social purpose allows you to pitch directly to CSR focused investors and may enable you to apply for government grants.
5. Work Towards a More Sustainable Future
Finally, you should consider the ethical benefits of CSR. Businesses play an integral role in creating a sustainable future. As a developing business, you are in a unique position to integrate social responsibility into your core processes and activities. Whatever your social passion, incorporating environmental and social considerations into your core business processes helps make the world a better place.
It is also crucial for startups to consider the social impact of their operations. Not only is it an opportunity to benefit society and build a sustainable future, but CSR may also help you achieve your economic goals. While these activities are socially beneficial, they may not be viable for startups operating on limited budgets. However, as a startup founder, you are in a unique position to implement ethical practices into your core business processes.