Why holding corporate accountable isn't just a trend

Muhammad Umar Karim
April 17, 2023
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Why holding corporate accountable isn't just a trend

Now more than ever, consumers are demanding companies change how they do business and take an active role in addressing social, cultural, and environmental issues.

Corporate Social Responsibility (CSR), the act of companies being accountable to themselves, stakeholders and the public, has taken its place in today's corporate world, and businesses that ignore it do so at their peril.

But how does this benefit us?

Better ability to attract and retain employees

Similar to consumers, employees value company purpose too. Currently, employees are more driven to work for purpose-led brands whose values align with their own.

Workers seem discouraged by the stock standard values that have always been part of a company's marketing plan.

As we navigate "The Great Resignation", companies with strategies that value environmental, social and governance (ESG) and corporate social responsibility can better appeal to modern employees. They are also more likely to retain their existing employees.

Read our thoughts on "The Great Resignation" here

Company culture

Employee engagement is an integral part of your company culture. In our experience, employees increasingly value purpose alongside salary and benefits when considering new job opportunities. Environmental, Social and Governance (ESG) strategy can be a great business practice for engaging your employees.

Employees increasingly value purpose alongside salary and benefits when considering new job opportunities (Photo: Priscilla du Preez)

Whether you have existing CSR initiatives or starting from the ground up, look for opportunities to involve your employees. You can provide employees with information on why these corporate social responsibility initiatives are essential to your company. Through informative training, you can better build corporate social responsibility into your company culture.

The importance of CSR for millennials

As the millennial consumer population grows, companies must consider their corporate social responsibility status. Instilling a model of social responsibility is necessary for attracting what is becoming one of the most significant market segments.

Millennials are particularly tech-savvy, and they don't think twice about researching a company and looking into its ethical record and labour practices.

Many feel it is their duty to make the world a better place, and this burgeoning generation wants to avoid being associated with or supporting companies that do not take responsibility for their impact on the world and the people in it.

Employee engagement is dependent on a company's CSR reputation. Most millennials want to work for a company committed to social responsibility.

With millennials soon to be the largest generational segment of the workforce, companies looking to hire these workers must embrace CSR to attract and retain talent. Millennials don't just want to consume products and services made by companies with a CSR presence; they also want to take part in making these meaningful social and environmental changes.

CSR and ESG are more than just a business trend. Businesses that want to stay relevant to new generations and help people in need worldwide while increasing their profits will benefit from embracing CSR and enhancing ESG programmes.