When we say that CSR is something followed by a company or a firm in the social well being of the customers of the society in the name of brand and products, it becomes important to know the financial reasons for why this is a must for all the companies. Below listed are few of these important reasons and these are probably the major reason for why a company should follow the CSR concept.
- Cost savings – this is probably the most important and a major reason for why a company should follow CSR. As we know CSR is something to do with the society apart from the services and products offered by the company, where it becomes essential that they do something beyond their business goals. Yes and this needs to be in line with the services offered. For example, when a company is trying to comfort its customers with some of the sophisticated products, it should keep in mind the social responsibility it has on the society at the time of manufacture or designing of the same. This conscious effort would not only help the customers when they use the product but would also help the company in saving something in the name of energy and other additional costs. So this way it would not only be able to provide services at the best to the customers but would also be able to satisfy the society without harming or disturbing their normal and routine living.
- Profitability – as all of us know it is the increased demand and sales that lead to the profitability of a firm. And for this, it is important for a firm to prove its efficiency among its customers. Now here it is also important for the company to apply and follow the concept of CSR which is also an expectation from the customer’s side. When this is fulfilled, i.e., when a company is able to satisfy a customer satisfying the needs of the environment and the society, there is automatically an increase in the same leading to higher profits.
- Brand identification – a company that is known in the market to be selling and dealing in products and services following CSR will be able to achieve a brand name and identification among its customers automatically. This would help in increasing its market position thereby making its products and services a good and better one in the market.