The Impact of CSR on Business Strategy

If you want your business to bring about a change in society, if you want your company’s activity to provide added value and thus increase its reputation, implement a CSR (Corporate Social Responsibility) program.

For a CSR program to be successful, it is important that it aligns with the company’s values and strategy, as well as with your consumers’ expectations! By taking these into account, with the help of a market study, you will achieve quantifiable results.

What is CSR?

Corporate Social Responsibility (CSR) is a commitment made by companies to behave ethically and responsibly toward society, improving community life in various ways.

Most often, a company that chooses to be socially responsible integrates social and environmental issues related to its sphere of activity into its actions and strategies.

CSR involves creating long-term and equally profitable relationships with the market and the social environment, thus more than a simple act of philanthropy or donation. Although it requires costs, CSR is a profitable management strategy to the extent that it generates, in the long run, the credibility and trust necessary for a company in its relations with those it depends on: shareholders, business partners, customers. (CSR România)

The Role of CSR in a Company

In a competitive world, companies strive to build their brand to have a positive impact in order to attract customers, investments, and increase turnover.

CSR is an integrated part of the company’s strategy and reflects its philosophy.

A CSR strategy is defined, first and foremost, by the image and values with which the company identifies. Thus, by promoting the values it believes in, the company gains the trust of customers, suppliers, and partners.

In recent years, large corporations here, as well as small firms, have understood the significance of social responsibility. They have understood that to exist, they need to give back to the community.

Who is Bringing Change to Romania

There are more and more social responsibility projects, increasingly complex and innovative. Below are a few examples of multinationals and local firms that have decided to get involved in the community to a greater or lesser extent.

Policolor

From its founding in 1965 to the present, Policolor has been developing CSR, they just didn’t call it that. Most often, they supported social causes through product donations needed for the renovation of hospitals and schools. They have developed their CSR strategy over the last two years, through which they have taken on a mission.

ING Bank

ING Bank and The Institute launched Urbaniada, a competition that awards concrete solutions for improving life in urban spaces. Through Urbaniada, ING aimed to contribute to a better life in the city, this being one of the bank’s objectives, part of its social responsibility strategy.

Vodafone Foundation

Some multinationals choose to direct their resources for doing good toward their own foundation, as is the case with the mobile phone company Vodafone. The most recent and extensive CSR campaign aims to renovate the Neonatal Intensive Care Unit of the Constanța County Hospital.

MKOR Consulting

Pentru a face bine nu este nevoie de bugete uriașe. Spre exemplu, noi am ales să redirecționăm 20% din impozitul pe profit către Asociația Inima Copiilor.

Sustainability reporting – mandatory in Romania since 2017

Sustainability reporting has become mandatory in our country according to Order no. 1938/2016 of the Ministry of Public Finance (MFP), which transposes the provisions of EU Directive 95/2014 into Romanian legislation.

The financial report for 2017 should also include a non-financial statement. The statement will cover environmental, social, and personnel aspects of the company, information on respect for human rights, and the fight against corruption and bribery.

CSR campaigns – an important criterion for customers

According to the results of the study conducted within our agency, final consumers would pay more for products that support social causes.

At the same time, the main reason why the interviewed persons would not be willing to purchase such products is related to distrust. They are not convinced that their gesture supports a social cause.

For this reason, communication of the supported cause and transparency are very important aspects that contribute to the purchasing decision.

Where do you start?

The mission of a CSR strategy is to identify, develop, and support projects and programs that have a positive and direct impact on community life.

The priorities of companies that decide to get involved in CSR differ from one management to another, but there are several directions that any program follows.

Here are some ideas to keep in mind when setting up a social responsibility program:

The entire team will understand and support the cause, from bottom to the top;
Keep in mind that CSR is a proactive tool;
Develop a CSR program that encompasses the purpose of your business;
Develop a strategy and select the right partners for its implementation;
Evaluate the effectiveness of the program.

When you make the decision to get involved in CSR, you will most likely feel overwhelmed by the multitude of causes, societal needs, or the multitude of possibilities to intervene in society. How do you make the best decision, taking into account the priorities of your consumers?

The role of a Market Study in CSR

Identify the expectations and needs of the community with the help of a market study.

Market research plays an important role in defining the CSR approach. A market study will help you build a CSR strategy that is in line with your brand values, motivates the team and employees, and, in the long run, has a positive impact on the community, as well as on the company’s reputation.

The market study uses various tools to measure your consumers’ desires and brand perceptions. This information, if harmonized with the company’s values, can generate an authentic CSR strategy.

Market research will provide you with information about how customers perceive the company and how much they identify with your company’s values. Furthermore, market research will help you identify specific, realistic causes that will bring concrete results.

With the help of a market study, you will obtain information regarding competitors and their approaches to CSR. You will be able to measure opinions and perceptions about your own business over time.

Do you want to find out what values your consumers consider important?

If you want your business to have a positive impact on society and you don’t know where to start, we can help you. Browse the portfolio of our clients to convince yourself of the professionalism with which we work.

Together we can better identify consumer values and desires to develop a CSR strategy that brings about change.