Social responsibility allows businesses of all sizes to make beneficial changes that contribute to society. It occurs when businesses decide to act morally to gain the trust of their clients as well as their bottom line. Social responsibility increases customer trust. In this post, I will show you 10 social responsibility examples that will restore faith in humanity.
Key Points
- Social responsibility implies that companies should conduct themselves in a way that helps society in addition to maximizing shareholder value.
- Socially conscious companies ought to implement policies that minimize negative effects on the environment while advancing their well-being.
- Businesses can practice social responsibility by encouraging volunteerism, enacting environmental improvements, using moral hiring procedures, and contributing to charity causes.
- Customers are more actively seeking out products and services from businesses that practice social responsibility.
- Social responsibility is also a community relations effort to bring the consumer closer to the company.
What is Social Responsibility?
Social responsibility is a moral system that holds people and businesses responsible for carrying out their civic duties and doing good deeds for the community. This idea holds that businesses have to balance the interests of the community with the pursuit of profit maximization.
Furthermore, investors and consumers who look for successful investments that also benefit society and the environment are becoming more and more concerned with social responsibility.
Types of Corporate Social Responsibility
Harvard Business School states that the types of social responsibility are:
#1. Environmental:
Companies in this sector prioritize having a beneficial effect on the environment. They embrace carbon offsets, sustainable sourcing, renewable energy sources, and production practices.
#2. Philanthropic:
Businesses that practice philanthropy dedicate themselves to improving society. They frequently provide funding to charities, museums, universities, art programs, and other non-profit cultural organizations. They may also offer scholarships and grants.
#3. Ethical:
Organizations that are committed to upholding high ethical standards may incorporate these values into their corporate structure. For instance, they might state in writing that they will never purchase materials from suppliers who abuse the environment, like disposing of waste into the sea.
#4. Economic:
Organizations that are committed to economic responsibility are aware of where their money is going and the impact it has on various aspects of the value chain. They also understand the importance of paying fair wages to their employees and taking good care of their profits.
What are the Benefits of Social Responsibility?
When a firm decides to engage in their social responsibility, there are many benefits, including:
#1. It Offers a Business a Competitive Advantage.
The majority of consumers concur that a company’s social responsibility ranks highly when deciding which one to patronize or do business with. You can use your company’s social responsibility as a selling point for your marketing and brand positioning.
#2. It Boosts Employee Retention.
The success of your business is greatly influenced by the individuals who work for you. Top talent will be drawn to and remain with your company if you maintain a reputation for providing socially conscious work environments for your staff.
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#3. Social Responsibility Attracts Investors to Your Business.
Most investors think that a firm can position itself for long-term success by committing to social change. Therefore, by balancing your profit-making and social responsibility, you are opening your business to countless prospective investments.
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#4. It Enhances Your Corporate Culture.
If your employees see that the company is implementing social projects, they are probably going to be more driven and devoted to them. Therefore, you should encourage your workers to participate in social activities, which can help increase team members’ motivation and loyalty. Everyone becomes more involved and productive as a result.
#5. It Boosts Client Loyalty.
Businesses that have a reputation for being good corporate citizens tend to attract more customers. Your devoted clients will bring in additional revenue for you as they spread the word about your product to others they know and write favorable reviews.
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#6. It Enhances Your Business Reputation.
Continuous social responsibility gives your clients, investors, and the general public the impression that your business is sound financially. This, in turn, may draw in both current and potential investors.
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#7. It Increases Your Business Value.
Businesses frequently discover that they reduce operating costs and improve the environment when they start recycling and implement more energy-efficient practices. Additionally, transparency with investors, shareholders, and the community is increased through social responsibility, enhancing the company’s standing and raising its total value.
What are the Disadvantages of Social Responsibility?
Although there are many benefits to corporate social responsibility for businesses, there are also some disadvantages. The following are some of the disadvantages of social responsibility:
#1. It May Be Expensive.
Smaller companies may find carrying out social projects to be financially burdensome. Additionally, they may need to hire more staff for these projects, which can be difficult for small businesses.
#2. It May Be A Waste.
Social responsibility projects are supposed to boost a business’s reputation, but they may not significantly impact the business. Therefore, it is critical to think through your social responsibility plans and assess how they will affect the company.
So now that we have looked ta the pros and cons of social responsibility lets go over the best examples of social responsibility by brands all over the world.
Top 10 Examples of Social Responsibility
In case you are seeking inspiration for your brand here are the top examples of Social Responsibility:
#1. Microsoft Philanthropies
Microsoft, founded by Bill Gates and Paul Allen, started its charitable giving program in 1983 when it donated $17,000 to a local charity. According to its charity page, Microsoft’s giving initiative has donated both money and time—employees volunteered over 720,000 hours for nonprofits in 2022 alone. The initiative helped NGOs generate nearly $255 million in 2022 (with a corporate match).
Furthermore, they launched Microsoft Philanthropies, a social welfare initiative, to work with businesses, institutions, and governments to create “a future where every person has the skills, knowledge, and opportunity to achieve more.” Among the many activities are promoting computer literacy, supporting NGOs, and collaborating with international organizations.
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Photo Credit: Microsoft. A young lady who benefited from the Microsoft Philanthropies program.
#2. Ford Motor Company Carbon Neutrality Program
Ford has grand ambitions for its CSR program. “Build a better world where everyone is free to move and pursue their dreams” is their stated mission. From an initial $11 billion commitment, they have expanded it to $22 billion on electrification, with the goal of having carbon-neutral cars by 2050.
“We’re committed to carbon neutrality,” stated Bob Holycross, Ford’s VP, Chief Sustainability, Environment, and Safety Officer. “It’s the right thing for our customers, the planet, and Ford. Ninety-five percent of our carbon emissions today come from our vehicles, operations, and suppliers, and we’re tackling all three areas with urgency and optimism.”
#3. TOMS Grassroots Campaigns
Over 95 million pairs of shoes have been donated to children in need as a result of TOM’s goal to donate a pair for every pair of shoes sold. However, the business came under fire for bringing about a reliance on free shoes and bringing down regional shoe manufacturing.
TOMS revised its approach by distributing one-third of its earnings to community-based initiatives that address mental health, equal access to opportunities, and the reduction of gun violence. Through their CSR efforts, TOMS has improved the lives of 105 million individuals and counting!
#4. Lemonade
Lemonade policy buyers are prompted to choose a charitable organization to support at the time of purchase. The unclaimed money that remains from Lemonade’s insurance premium is then totaled and donated to that organization once a year. It is called the Lemonade Giveback Program.
Consequently, the business donated more than $1.8 million to charitable organizations in 2022, including the Breast Cancer Research Foundation, Pencils of Promise, and others.
#5. Starbucks Workplace Diversity and Inclusion Program
Starbucks aimed to hire a more diverse workforce and give opportunities to particular cohorts. As part of its socially responsible efforts, the company committed to hiring 25,000 US military veterans and their spouses by 2025. Since its launch, it has hired 40,000 veterans and their spouses, exceeding its target number.
Starbucks established a mentorship program to engage in partnerships and connect black, Indigenous, and people of color (BIPOC) to top leaders in order to address issues of racial and social fairness. By 2025, the company hopes to have 40% of BIPOC employees working in retail and manufacturing and 30% of BIPOC employees working in corporate roles.
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#6. Cariuma Plant 2 Trees Campaign
Cariuma is an eco-friendly shoe brand that eliminates quick fashion by using sustainable materials and producing long-lasting, high-quality footwear. Its “Get a Pair of Sneakers, Plant 2 Trees” campaign demonstrates both its commitment to environmental preservation and human welfare.
In your honor, Cariuma will plant a tree in the Brazilian jungle when you buy a shoe or just sign up for their email newsletter.
#7. Google Social Issues Initiatives
Google is reputable because of its vocal CEO, Sundar Pichai, as well as its ecologically friendly programs. He speaks out against social concerns such as the anti-Muslim remarks made by President Trump and the effects of artificial intelligence on fake news and disinformation in society.
Additionally, Google funds programs that promote inclusion in the workplace and in society in the following areas:
- Racial equity
- Disability inclusion
- Gender equality
- LGBTQ+ inclusion
- Veteran inclusion
Furthermore, Google uses volunteers, funding, and technology to help communities get ready for catastrophes, offer efficient relief, and promote long-term recovery. They have contributed more than $60 million to over 50 humanitarian emergencies since 2005, and have also contributed an extra $100 million to the worldwide COVID-19 response.
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#8. Pfizer: Access to Healthcare Campaign.
The Pfizer Foundation was founded in 1953 with the intention of “assisting in the construction of healthier communities worldwide.” This is accomplished by facilitating fair access to vaccines, promoting health equity, and supporting community-based innovations and safety net healthcare providers.
In addition, they offer funds in the event of natural calamities, such as the aftermath of Hurricane Matthew in Haiti and the worldwide refugee crisis in Europe and the Middle East. The purpose of this funding, which is to reach as many people as possible, is to collaborate with NGOs.
Twenty groups receive $100,000 annually through Pfizer’s Global Health Innovation Grants program to help them develop ways to treat vaccine-preventable illnesses in their communities.
#9. The Walt Disney Company Local Communities
Disney safeguards the rights and well-being of their workers, and they are aggressively enforcing stringent international labor regulations.
Furthermore, they encourage staff members to get involved in the community by being involved themselves. They have provided 13 million hours of community service through the VoluntEARS program, and the company has donated over $140 million to initiatives that benefit underserved groups.
#10. LEGO Foundation
The LEGO Group also wants to use play-based learning to teach kids all around the world. A three-year agreement between UNICEF, the LEGO Group, and the LEGO Foundation was announced in 2021. As part of this relationship, $2.5 million will be invested in supplying community-based family support programs with materials to help caregivers comprehend the long-term advantages of integrating play into their daily lives.
The LEGO Foundation aims to persuade adults that play is a universally accessible activity for children. It stimulates creativity, piques interest, and fosters a lifetime love of learning. It believes that kids who play acquire a variety of abilities necessary for success today and lay the groundwork for a better, healthier life in the future.
Photo Credit: Lego Foundation
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What Are Examples of Social Responsibility?
Examples of business social responsibility include volunteering, philanthropy, ethical labor practices, and environmental preservation.
What Are the Main Benefits of Social Responsibility?
Customers are looking for products and services from businesses that practice social responsibility.
How Does Social Responsibility Benefit Companies?
Companies that adopt social responsibility initiatives, as seen in the examples given above, can improve their brand image in addition to perhaps enhancing their bottom line. Additionally, social responsibility programs promoting social responsibility can also boost staff morale.
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