Today’s consumers are more demanding than ever. They want to see beyond the shiny packaging and understand a brand’s authentic story. To meet this demand, many organizations have introduced social responsibility programs as part of their corporate social responsibility (CSR) initiatives.
CSR is the practice of businesses considering the positive impacts of their activities on society beyond a company’s financial performance. However, CSR is not just about spending money to do good or charity; it’s about adopting a business model where you are creating value for the society and at the same time, creating value for your business.
Now, there are numerous benefits to incorporating social responsibility into business strategy. As such, marketers have come up with clever phrases like “natural” and “organic” that give the impression of being socially responsible without actually being so.
While it’s nothing new, it has become more common in light of consumers’ increasing interest in sustainable practices and support for brands that adopt them.
Fortunately, with a little knowledge about the sneaky tactics used to sell greenwashed products by using greenwashing practice, you can avoid falling for these tricks. In this article, we’ll discuss the various reasons why companies practice social responsibility and how to identify those that fake it.
Why Organizations Are Practicing CSR
Increase Brand Value
Brand value is a measurement of how much your customers are willing to pay for your goods or services.
If you want to maximize your brand’s value, you need to convey the type of person who uses your products. Using greenwashing practice, consumers will instantly connect with your brand and be more likely to buy from you.
If your customers believe you are committed to making a positive difference, they’ll be more likely to purchase your products or recommend them to friends. This can help you increase brand value by encouraging customers to buy more from your store and giving them a reason to refer your brand to friends.
Improve Your Bottom Line
Although social responsibility may not be top of mind for many companies, it can have a significant impact on the bottom line.
Brand advocacy is one of the best ways to increase sales by encouraging your customers to buy more. Additionally, customers are more likely to keep buying from you if you are committed to making a positive difference in the world. If you have a strong social responsibility program, potential investors may also be more likely to finance your company.
Investors typically want to support brands that have a positive impact and are committed to making the world a better place. Having a solid social responsibility strategy can help an organization stand out and make it more attractive to investors.
Make Your Company Attractive to Investors
Having a strong CSR program is one of the best ways to make your company attractive to investors.
Investors are looking for companies that are committed to making a positive impact on the world. If you have a strong social responsibility strategy in place, you can make your company more appealing to investors by demonstrating your commitment to making a positive difference.
Help Attract and Retain Employees
Many professionals are more interested in working for organizations that are committed to making a difference in the world. A recent survey found that nearly three-fourths of respondents would be willing to reduce their salary if it meant working for an organization that is committed to making a positive difference in the world.
Having a brand that is committed to making a difference can help your organization stand out and attract top talent. This way, you can also retain employees by giving them a sense of purpose and demonstrating that they are making a positive difference in the world.
Showcase Your Company’s Expertise
As consumers become more sophisticated, they are less likely to be impressed with marketing jargon. Today, consumers want to see companies that are committed to making a difference in the world. This can help you attract potential clients and customers and prove your expertise to current ones.
For example, if your company specializes in nutrition and fitness, you may want to host nutrition classes or fitness seminars for the community. Doing so can help you showcase your expertise in nutrition and fitness and make an impact on your community at the same time.
How To Identify Companies that Fake CSR
Check the Company’s History
If a company has an extensive history of environmental negligence, then it’s unlikely that they’re serious about being socially responsible now.
After all, a company that has for example, made massive amounts of money from polluting the environment heavily in the past isn’t going to just start caring about the environment now because they want your business.
Look at Their Policies
If a company is being honest about being socially responsible, they should have policies in place that reflect that. For example, they may have a policy in place that requires their suppliers to follow certain sustainability standards. They may also have a policy that requires employees to use reusable products in their day-to-day work.
Another good way to see if a company is serious about its goodwill commitment to society environmentally friendly is to look at their track record.
Take a look at what types of sustainability initiatives the company has been involved with in the past. If the company has a track record of partnering with environmentally-friendly organizations, then it’s more likely that they’re being honest about their current efforts.
Examine Their Products and Services
If a company is serious about being aware of its impact on society, then they should have green practices throughout their entire business. That includes their products and services. If a company is offering environmentally friendly cleaning services but using harmful chemicals, then they’re probably not as responsible as they claim to be.
The Bottom Line
Ultimately, social responsibility is a win-win for both consumers and businesses. Consumers demand more ethical products, and businesses have responded by introducing their own social responsibility programs. However, not all businesses are genuine in their efforts to make a positive difference. That’s why it’s important to be able to spot a company that is not truly committed to making a difference.