Businesses and corporations are commonly known for profit motives with little regard for societal and environmental reforms. Most of us believe that these corporations are very specific when it comes to making profits and that corporate policies negate social responsibility and are meant to benefit a handful of executives only. While that is the case with a few businesses, numerous corporations in recent times, recognized their role in the development of society. These businesses not only aim to improve the communities, environment and the economy by realizing their social responsibilities but make huge profits at the same time! 

So, the inevitable question arises, whether a business can make profits while being socially responsible. And, whether their acceptance of their social role results in losses. 

Let us find out what CSR means and how it causes businesses to be more profitable. 

What does CSR mean?

Corporate Social Responsibility means a business’s self-regulation with the aim to be socially accountable. 

While we can spot the roots of the concept back in the 1800s, the term corporate social responsibility was not coined, until 1953, when American economist Howard Bowen published his book, ‘Social Responsibilities of the Businessman’. 

To be profitable and socially responsible.

• A business, whether big or small, languishing or thriving, can contribute to the environment or society without suffering economically. For smaller businesses, the key is to realize that smaller measures lead to huge transformations. So, to reduce costs, such small businesses can replace old and worn-out machinery with energy-saving appliances, and manage fuel-efficient fleet routing with GPS software. The most efficient way for small businesses to reduce costs while taking up social responsibility is by using recyclable products. In this regard, Fiinovation company has helped and associated with numerous corporations to optimize their resources and reduce their carbon footprint.

• Innovation is yet another prominent way of achieving the aforesaid goals. This means manufacturing products with sustainability at the core of such production.

How are profits generated?

A lot of you must be wondering what exactly drives the profits, or what makes the sales increase. It is therefore significant to know that customers are the key. Customers today are aware. Aware and well-informed of the products and services a particular business offers. Apart from that, most importantly, they are familiar with global news and problems. This is why they keep an eye on how businesses respond to political and social issues. 

Companies integrating CSR, promote positive values and witness a quick surge in customer traffic and profits.

Benefits of Integrating CSR:

Companies can benefit exponentially by integrating CSR with their business models.

1.Public image

The public image of a company is extremely important for customer retention. Numerous companies allocate huge funds just to boost their public image. Companies with good CSR policies tend to profit more as these policies demonstrate that the company cares about the customers and the environment. 

And, Fiinovation fraternity considers sustainability as their core idea. The Fiinovation fraternal society believes in providing need-specific solutions when it comes to sustainable livelihoods. They help businesses with effective policy drafting and implementation designs with the aim to set them apart from their competitors in their respective arenas.

2. Attracting investment

Companies run on investments. And, several potential investors consider CSR a major criterion for deciding whether to invest in a business or not. Integration with CSR can thus drive huge investment as well. In this regard, Fiinovation financing has helped businesses integrate CSR in a much more effective manner and achieve the desired results.

Conclusion

While the reality is that businesses aim to improve their profit margins, it is imperative that they have a positive social and environmental impact too. And with the customers being aware of social and environmental reforms, they pay attention to company policies, which then determine the chances of success.