20 Apr New Study Reveals Data Demonstrating CSR Is Better For Business
A debate that has raged for decades in business can finally be put to rest. The central question of whether corporate social responsibility efforts actually enhance the bottom line has been answered by a lengthy new report containing a hefty amount of supporting data, statistics, and sources. The report was envisioned as a project, and was launched by the Campbell Soup Company and Verizon in order to measure the benefits of environmental, social, and governance (ESG) programs within businesses. The study, entitled “Project ROI: Defining the Competitive and Financial Advantages of Corporate Responsibility and Sustainability,” was conducted by IO Sustainability and Babson College.
While the study finds that the highest drivers of ROI for any company are providing high-quality products and services, effective CSR practices can augment and boost business performance to deliver a higher ROI than if a company with the same products did not engage in CSR. The report also found that companies that fully dedicate to CSR in their long-term business strategy reap the most financial benefits. Effective CSR can increase the market value of a company by 4 to 6%, and over a 15-year period it can increase shareholder value by approximately $1.28 billion.
The study also found that engaging in meaningful CSR could avoid revenue losses of up to 7% of a company’s market value. It can also reduce the employee turnover rate by a staggering 50%. Read the study in full for a comprehensive breakdown of the numerous benefits that come with a CSR program within your company.
When CSR is practiced in a company, employees are more engaged and committed to work. Any company that reads Project ROI has the data in hand to focus and invest funds in CSR. When you decide to start corporate responsibility practices it is paramount to find a cause that aligns with your brand’s core values. When you connect with Good360 you can find a nonprofit organization that is in line with your brand identity and vision. By donating your excess goods to organizations in need you can begin your CR journey, boosting your bottom line and generating greater loyalty in your employees.