More and more business owners are trying to become socially responsible companies. What people say and think about your company matters. Being in the ranking of the 10 companies that best look after their employees, care for the environment or take part in philanthropic and humanitarian causes brings humanitarian rewards, but it also brings other kinds of advantages, which we look at below.
Being a socially responsible company involves more than one trait or action. We can say that a company is socially responsible when it:
- Looks after the environment: Society increasingly values care for the planet and pollution-free companies.
- Looks after working conditions: For these companies, employees aren’t numbers or codes; they are an essential part of the business. The employees make the company.
- Takes part in humanitarian causes: These companies donate part of their profits to such causes.
That said, supporting philanthropic or humanitarian causes also has some practical advantages:
- The company earns an honourable reputation for supporting this kind of cause.
- Employees get involved, and in some cases they are so motivated that they volunteer for the cause.
- Society, and therefore the consumer, rewards the company by recognizing its work. Companies that set aside a percentage of the profit on a particular product tend to increase their sales, because society is very aware of these causes.
- Free publicity from the organizations. The company’s name will come up every time people talk about the cause you are supporting.
- And let’s not forget that the money a company gives to charitable causes is tax-deductible at a high rate. That is one of the reasons why financial institutions fund some student scholarships. Either you support a charitable cause and earn social recognition, or you quietly hand the money over to the taxman.
Whatever the reason, it is good to see companies bringing some colour to humanitarian causes.
Further reading
- How to attract your first customers
- Why new businesses fail
- 5 ways to grow your business
- Tips for choosing a business partner
- Which legal structure to choose for your business
Featured image: Venkytsv, CC BY-SA 3.0, via Wikimedia Commons.
