Corporate social responsibility is a model of business which is heavily rooted in responsible ethics. A company that adopts this strategy may enjoy several benefits from a positive consumer image to higher sales and worker output. Corporate social responsibility requires a company's full dedication and resistance to cutting corners on materials and employee benefits, which could ultimately serve to damage the company's image.
Better Brand Image and Reputation
According to the International Institute for Sustainable Development, a company who adopts a business model involving corporate social responsibility is able to develop a better image for its brands and a more positive company reputation. The image of the company and its products are improved because consumers believe the company to be ethically responsible in creating products with only quality materials and using manufacturing techniques which don't pose a threat to the environment.
Increased Worker Productivity
Corporate social responsibility places an emphasis on taking care of workers in the form of competitive wages and helpful benefits like health care and retirement plans. This leads to increased worker productivity because the employee feel the company cares and supports them and they in turn work harder. The company isn't viewed as the villain in a corporate social responsibility model but the helping hand.
Greater Customer Loyalty
Consumers like to purchase quality products for a fair price. A business that uses corporate social responsibility can build customer loyalty on the strengths of how its products are made and the ingredients which go into them. According to Santa Clara University's Markkula Center for Applied Ethics, an example of this form of brand loyalty is found in the organic food industry where companies readily tell consumers what's in the product to show consumers the quality ingredients and health benefits of buying from them.
Lower Regulatory Oversight
A company that deals with the environment and its business matters in an ethical, responsible way ultimately nets less government oversight than a company looking to shave the edges of what's legal. This leads to a lower chance of expensive fines and sanctions by federal and state regulatory agencies. State and federal government officials may even seek out a company with a socially responsible reputation for opinions on shaping policy in the company's field.