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Business

Posted By Jessica Weisman-Pitts

Posted on April 27, 2022

Why businesses need a CSR strategy and 5 tips to ensure efforts come across as authentic

By Mick Clark, Managing Director, WePack Ltd

In today’s competitive market, businesses can stand out from the crowd by implementing effective corporate social responsibility (CSR) strategies.

When a business is going above and beyond for the common good, it shows its dedication as an active and caring partner to the communities impacted by the work, building brand reputation and gaining consumer trust.

However, the way in which the word is spread is critical.

In this article, I discuss the best ways a company’s actions, and the way they are communicated, can be showcased authentically and in a good light.

The importance of CSR for business strategy

CSR is often undervalued as not being an effective use of time or budget, but there are many benefits to including it as part of your business strategy.

Brand values matter to customers, with a recent study finding 87 percent of UK consumers say their values are playing a greater role in where they choose to shop. With such a large percentage of the population agreeing, and with the market being more competitive than ever, brands simply can’t afford to not engage with social issues.

CSR campaigns provide you with all-important content to share on your social media and website for more authentic messaging that cuts through the noise of sales-driven social media posts.

You can also share your good work with relevant publications to reach your target audience and raise brand awareness, potentially leading to sales down the line.

Your employees care about social issues too (both in and outside the office). Allowing them to feel heard will create a better work environment, reducing staff turnover and attracting a wider talent pool to secure the best team for your business.

Overcoming challenges

While there are many benefits to CSR, there are challenges businesses must address to ensure a successful campaign – the biggest of all is convincing your customers that your efforts are genuine

Some costly mistakes that can contribute to this include confusing CSR with product launches. While product launches are certainly something to shout about, they’re not something to tie CSR into if it’s not relevant.

For example, fast-fashion brand H&M came under fire for the launch of its Conscious line which promised more sustainable options for eco-conscious customers. However, the brand was accused of tricking customers and greenwashing when it was revealed that 96 percent of its sustainability claims were false or misleading.

Businesses will also need to be proactive when getting involved in trending topics and issues

but being able to respond quickly requires efficient communication and resources that SMEs may not have at their disposal.

On the flip side of this, campaigns that have been produced too quickly without time to be thought out thoroughly and neglecting the involvement of comms teams may lead to mistakes being made.

One example of this is Pepsi’s infamous advert in response to the Black Lives Matter movement that was heavily criticized for trivializing police brutality. The huge backlash resulted in the campaign being pulled from social media in a matter of days.

And with 80 percent of consumers refusing to buy from companies involved in scandal, one wrong move could be detrimental to not only a brand’s reputation but also revenue.

A different approach

The most obvious way businesses can avoid CSR initiatives coming across as marketing ploys is to evaluate how much of a difference they truly make for their cause.

For example, Pride Month has gained notoriety for businesses across the nation altering logos with rainbow colours during the month of June in apparent allyship for LGBTQ+ communities.

But critics argue that a lack of continued support throughout the year and brands simply ‘jumping on the bandwagon’ of showing support without much action is little more than ‘woke-washing’. This could have a detrimental impact on brand reputation, as companies could be seen to be profiteering off the struggle of others.

If brands wish to engage with social issues, real care must be shown for causes being campaigned about or else risk losing customer trust. For this reason, a more nuanced, active approach to CSR is needed for campaigns to come across as genuine.

One example of a successful CSR initiative for Pride was Indeed’s 2021 #EmpathyatWork campaign which not only featured a real-life non-binary actor, it also shared important resources for underrepresented groups in the workplace to give confidence and encourage inclusivity at work.

So, how can we ensure all CSR campaigns come across as genuine? Below are my top five tips for success:

  1. Demonstrate action

While many businesses talk about the social issues affecting their customers, few take affirmative action to drive radical change.

A passive approach to CSR can have the opposite effect and negatively impact customers’ view of a brand. So, it’s important to give just as much, if not more, focus on how to tackle CSR and not just how to communicate it.

And if you can’t donate time, contributing financially can make just as big an impact. At WePack, we regularly donate to charities and causes around the globe, most recently donating £6,000 to Rapid Relief Team (RRT). Monetary donations are essential to keeping charities operational, so businesses shouldn’t neglect to give where they can.

  1. Communicate with employees first

Brands should look closer to home before beginning to challenge social injustices in the community.

Gender pay gaps, fair labour conditions, environmental policies and discriminatory hiring procedures should all be reviewed to ensure no injustices are being dealt in-house.

This may mean having to face some hard truths about where your business falls short for your employees, but that’s ok – use it as an opportunity to communicate with staff, improve your policies and highlight how you listen to the wants and needs of employees.

A happier workforce that feels listened to is likely to be more productive and the business can enjoy a decrease in staff turnover and greater talent acquisition.

  1. Showcase ROI

Often one of the biggest struggles businesses face is convincing shareholders of the value of CSR.

But CSR campaigns can and do impact your bottom line, so it’s important to measure success and demonstrate ROI to investors and trustees.

Align your reporting with the strategic priorities of the business, whether that’s revenue growth, brand awareness or employee engagement and turnover. Tapping into the needs of the brand can help you to better justify CSR.

  1. Discuss the problem, not the solution

Discussing how to fix social issues opens your business up to a world of scrutiny, after all, most social issues are complex and simply don’t have an easy solution.

Instead, be an advocate and raise awareness around the problem to show your customers that you care, but don’t act like an expert in the field if you’re not or risk putting off customers.

  1. Avoid pushing products

Nobody wants to feel like they’re being sold to, especially not during campaigns that play off emotions.

Rather than overtly promoting products or services, consider CSR as a way to sell your brand’s values to your customers. This can lead to sales down the road since, as we’ve learnt, consumers are more likely to buy from brands that share their values.

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