Why is Social Responsibility Important to a Company?

Corporate Social Responsibility (CSR) stands as a fundamental principle for companies committed to making a positive impact on society and the environment. CSR involves companies taking responsibility for their impact on society and the environment, encompassing a wide range of initiatives and activities aimed at promoting ethical and socially responsible practices. Integrating CSR into a company's core values can significantly boost employee engagement and pride, leading to increased brand loyalty and revenue generation.

KSTB Enterprises: A Model of CSR in Action

Founded on the corporate social responsibility model, KSTB Enterprises is a prime example of a business that balances profit with social good. Internally, KSTB focuses on the triple bottom line, encompassing profit, people, and the planet. Externally, the company supports nonprofit organizations by researching, writing, and submitting grants that enable them to enhance the lives of the communities they serve.

Research and Strategic Planning

According to Strategic Corporate Social Responsibility: OnStrategy Resources (Ballowe, 2022), integrating CSR into core business processes and stakeholder management can lead to the creation of both social and corporate value. This aligns with my company's belief in doing well by doing good. Historical research by Latapí Agudelo et al. (2019) indicates that the contemporary belief in corporate social responsibility is not new, highlighting the historical significance of societal responsibility in business.

The Role of the CSR Manager

To achieve our goals, KSTB hired a CSR Manager two years ago. This manager is responsible for charity donations, volunteering, and community contributions. He works closely with the marketing manager and is a critical part of the public relations strategy. By focusing on the triple bottom line—profit, people, and the planet—KSTB has seen continued success and increased revenue.

The Benefits of CSR

Corporations that integrate CSR into their business models can benefit in several ways. It enables better decision-making, increased brand loyalty, and enhanced employee recruitment. CSR can improve a company's reputation and, consequently, its bottom line.

Profit and Reputation

At KSTB, we prioritize making the right decisions over maximizing profits. When I first started the company, I quickly realized that not all clients are meant to be our customers. Recently, I turned down a potential client due to my concern over their questionable business practices. This decision aligned with our company culture and maintained our high reputation.

Social Responsibility and Employee Engagement

KSTB's commitment to social good has significantly impacted employee engagement and retention. During the pandemic, we provided 100% virtual work options and full benefits, leading to 100% employee retention over the past five years. Our focus on social good has improved employee attraction, motivation, and retention.

The Planet and Community Impact

At KSTB, we view our responsibility to give back as a fundamental part of our mission. In 2022, we established the KSTB Enterprises Foundation, a philanthropic arm of KSTB Enterprises, to support students at Historically Black Colleges and Universities (HBCUs). We have also contributed to the lives of students by stockpiling essential items and providing financial support.

Conclusion

Ultimately, corporate social responsibility and sustainable business practices go hand in hand. By integrating CSR into our core operations, KSTB has seen significant benefits, including a 40% increase in customer retention and loyalty, and an operating profit since the company's inception. Our reputation precedes us, and we continue to prioritize both profit and purpose.

References:

Ballowe, T. (2022, September 29). Strategic Corporate Social Responsibility: OnStrategy resources. OnStrategy. Retrieved February 12, 2023, from Landrum, S. (2017, March 17). Millennials Driving Brands to Practice Socially Responsible Marketing. Forbes. Retrieved February 12, 2023, from Latapí Agudelo, M. A., Davídsdóttir, B., Jóhannsdóttir, L. (2019, January 22). A literature review of the history and evolution of Corporate Social Responsibility. SpringerOpen. Retrieved February 12, 2023, from Redden, E. (n.d.). Mackenzie Scott surprises HBCUs, tribal colleges and community colleges with multimillion-dollar gifts. Retrieved February 12, 2023, from