6 Reasons Why a CSR Strategy Is Imperative For Your Startup
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Let’s face it. The first thing on a startup’s mind is not going to be corporate social responsibility (CSR). It could probably be the last thing; if it is in their mind at all. The obvious priorities will be along the lines of attracting investment, customers, fresh talent and of course, profits. And rightly so, since the company is just starting on the right foot, firmly planting its next. They want their visionary ideas to take off, before committing any of their time to CSR.
That is fair. But what if we say that CSR plays a huge role in attracting all four of these big priorities?
A cogent CSR strategy in place for your startup can go a long way in ensuring your growth and giving you a competitive edge. For startups looking for reasons why they should commit to CSR—or even those who are not actively thinking of it—here are six reasons why you should implement a CSR strategy for your organization.
Attract and retain the best talent
A survey by Deloitte clearly shows that the Millennials and Gen Zs are invested in environmental and social concerns and will join companies that work towards addressing them. This cannot be taken lightly, since millennials are forecast to comprise 75 per cent of the global workforce by 2025.
The Deloitte Insights 2020 Global Marketing Trends Report shows that purpose-driven companies have 40 per cent higher levels of workforce retention than their competitors.
Attract a loyal customer base
When a company shares its consumers’ values and contributes to solving common problems, consumers are going to stay loyal to the company. Now imagine what that means with millennials currently holding $200 billion in annual buying power in the US alone.
The UK Small Business Consortium reports that 88 per cent of consumers are more likely to buy from a company that supports and engages in activities to improve society.
Build a healthy society
If the community your business operates in is plagued by socio-economic problems, it is less likely that people are going to be interested in your business. But by working with them and engaging in honest dialogues with them, startups can boost support and foster positive relationships.
Sustainable practices help in cost savings
CSR can start right at the heart of your operations. Through streamlining processes, promoting sustainability and energy-saving, you can achieve operational efficiency and reduce costs significantly. That occupants of greener buildings may be more productive is the icing on top.
Enhance brand reputation and promote differentiation
Communicating your CSR programs and showcasing the difference you make in the community you operate in can boost your brand reputation. As improving brand awareness is a top priority for startups, your CSR activities can prove to be the fulcrum of how you are different from your competition.
Investors today look at a company’s environmental, social and governance (ESG) criteria while screening for potential investments. A survey conducted by DeVere Group, a British advisory firm, reveals that ESG concerns topped traditional factors such as anticipated returns, past performance, risk tolerance, etc., when making investment decisions.
According to DeVere Group, 77 per cent of 1,125 millennials say that environmental, social and governance concerns are their top priority when considering investment opportunities.
Bringing it together
Increasingly, consumers are asking purchasing questions such as, “What resources were used to make this product?” Under what working conditions were this product manufactured?” As a startup looking to grow, these are questions you should address without fail.
Passion and purpose drives startups. This purpose fuels founders and employees to make their business something more than its commercial identity. It is easy to assume that things such as CSR and sustainability apply only to large corporations. But that is not true. There is a CSR strategy out there for every company, irrespective of size.
“Startups no longer have the luxury to keep CSR in the backburner. It is very much a part of everything we do, especially in a generation as aware and resilient as today’s.”
It is even easier now with robust solutions that help you create the right CSR strategy for your startup.With a strategic approach and an invested leadership, CSR can contribute significantly to the commercial bottomline. So, why are you waiting? Start your CSR journey today.