Benefits of Being a Socially Responsible Business
Being a socially responsible business is not only good for the business, but it is also good for you personally. It is a myth that to be a successful business you must forget about ethics and morals. A business can be responsible to its stakeholders, shareholders, and the environment that it operates in, whilst earning a good profit. This article is here to help you see that the above statement is in fact true, so keep reading to learn the benefits of being a socially responsible company.
Earning Peoples Trust
The first benefit, and maybe the most important on this list, is earning people’s trust. A business is only successful due to the customers and the people that work within in it. So, if a business can earn the trust of these people, it is far more likely to hold onto the employees that work within it, and also hold into loyal customers that the business can depend on if they announce new products in the future.
Being a trusted business allows you to harness word of mouth marketing as well, which will ultimately add more sales to your business (which will be expanded on later in the article). With people trusting you, they will most likely go and talk to their friends and talk to other people, and if they see others trusting your business then they will most likely stick with your business.
It is a Myth that being Socially Responsible reduces profits
The quick answer to the above statement is yes. But there is more to the point than meets the eye. If you are wanting to use more environmentally friendly production methods if you are a product business then the initial investment will be quite high. However, where the profits come from are long term gains. Buying the machinery for the products to be made in a more sustainable way can be expensive, but the materials ultimately are cheaper. Also, many products with sustainability benefits are often seen as more premium due to their environmental nature. So, with this in mind, this could add more value and more buying power to your products, hence higher profits.
It is generally held that corporate social responsibility could increase company profits and thus most large companies are actively engaged in it. It is difficult to really prove with numbers that this leads to higher profits as there are many different factors that impact the numbers.
Most executives believe that being a socially responsible business can improve profits. This method of business can promote respect for their company in the marketplace which can result in higher sales, enhance employee loyalty and attract better employees to the firm. Also, Social Responsibility activities focusing on sustainability issues may lower costs and improve efficiencies as well. This may enhance the company’s stock price, making executives’ stock and stock options more profitable and shareholders happier.
Better for the Environment
The next point is the environment. Being a company that is good for the environment is also another way in which a business can be ethically good whilst still being able to earn a profit. For example, one industry that is really known for its wastage of food. For example, when a restaurant or company finishes its working day, a lot of food is wasted and thrown away.
One way in which a business can be more environmentally friendly is by hiring a business to help remove of things such as fats and harmful oils. These are often disposed of down drains, and this leads to sewers being blocked. For example, GF Commodities (https://gfcommodities.com/our-services/yellow-grease-uco-pickup/) is a good example of a company that offers such a service.
Another way in which a company could be more environmentally friendly is by changing its production system. One way in which waste and emissions are produced is in the production of products. So, by using more environmentally friendly materials, the products that the business is producing, will be less harmful to the planet and hence the production line will be more environmentally friendly.
So, why should you do this? Like the above points, all of these moves made by a business can improve the respect that people have for the business. This can also lead to more business and more importantly more loyal business, and employees too!
That was just a small selection of things that a company can use or put in place to make themselves more socially responsible. So go out, and be more socially responsible for you, the planet and your business.
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