How Corporate Social Responsibility Efforts Can Strengthen Brand Equity and Customer Loyalty
July 11, 2023
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The phrase “Corporate Social Responsibility” (CSR) describes how organizations demonstrate accountability to society through economic, social, and environmental efforts. While it's certainly not a new concept, today’s CSR looks quite different from the optional altruism of the past.
In a world grappling with issues such as social justice, economic disparity, and devastating climate change, modern CSR initiatives balance profit with purpose – ultimately creating shared value for consumers and stakeholders, as well as the environment.
Last year, Skillsoft released its first annual CSR survey, collecting insights from more than 1,000 professionals in a variety of industries and job functions on how their organizations are approaching corporate social responsibility.
From the resulting CSR at Work Report, we learned:
- CSR efforts have grown since pre-pandemic
- Training is foundational to employee engagement
- CSR priorities are influenced by “doing the right thing”
Additionally, we learned that organizations are moving towards Environmental, Social, and Governance (ESG) programs. While 53% of people in our survey from last year said they use the term CSR instead of ESG to describe their sustainability efforts, this is rapidly changing. Even during this past year, ESG has emerged as a more structured and investor-focused approach to corporate responsibility, yet CSR remains a broader concept encompassing a greater range of voluntary initiatives taken by organizations.
Learn more about our findings here.
This year, we’re looking forward to uncovering even more insights. We’ll be conducting our second-annual survey – today through September 1 – and will compile your responses anonymously to help benchmark our collective progress in corporate social responsibility.
The Link Between Marketing and Corporate Social Responsibility
One interesting question we asked as part of last year’s survey was, “Who shoulders the responsibility for an organization’s CSR efforts?” Anecdotally, we’d heard that CSR initiatives often come from marketing – but there tends to be a lot of sensitivity there because no one wants their CSR efforts to come across as a marketing ploy.
Yet, as Skillsoft’s Chief Marketing Officer and Chief Sustainability Officer, I’ve seen the link between marketing, corporate communications, and CSR become increasingly significant in recent years. That’s not to say that marketers should be the only ones responsible for CSR efforts – in fact, marketers must be mindful and strike the appropriate balance to avoid performative CSR gestures. Marketing does need to be a part of the equation, however.
Here’s why:
- CSR enhances brand reputation: By communicating your commitment to social and environmental issues through your marketing efforts, your organization can differentiate itself from competitors and appeal to socially conscious consumers – leading to increased brand loyalty and customer trust.
In fact, 77% of consumers are motivated to purchase from companies committed to making the world a better place.
- CSR helps to meet customer expectations: Today’s consumers are increasingly concerned about social and environmental issues. They expect companies to go beyond profit-making and contribute to the betterment of society.
Forty-one percent of Millennial investors put a significant amount of effort into understanding a company’s CSR practices, compared to just 27% of Gen X and 16% of Baby Boomers.
- CSR creates a competitive advantage: Companies that effectively integrate CSR into their marketing strategies can gain a competitive advantage. Differentiating your brand based on social and environmental responsibility can attract new customers and retain existing ones. Such initiatives can also help companies attract and retain talented employees who align with their values and mission.
- CSR increases customer engagement: Marketing campaigns centered around CSR can engage customers on a deeper level. By involving customers in social or environmental causes, companies can foster a sense of shared purpose and inspire active participation. This can lead to increased customer engagement, word-of-mouth marketing, and positive brand associations.
Creating value for the customer, positively impacting society, and inspiring innovation and positive change are the three top factors impacting an organization’s purpose.
Interestingly, our 2022 CSR at Work Report showed that there is no “typical” owner of an organization’s CSR program. Of the people we surveyed, 10% reported marketing as the leader of their organization’s CSR efforts, with human resources and executive leadership directing CSR efforts more often – 16% and 20% of the time, respectively.
And that tracks. The impact of CSR goes well beyond marketing. It directly influences all areas of an organization – from finance, operations, sales, human resources, and everything in between.
Does your role influence your CSR perspective? Most certainly! Read more.
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Incorporating CSR Into Your Marketing Strategy
So how can marketing and CSR co-exist? Incorporating marketing into your CSR strategy can be an effective way to communicate your company’s social and environmental initiatives to your target audience, amplify your impact, and build brand reputation. But authenticity is key.
Following are strategies you might consider as you incorporate CSR into your marketing efforts:
Define your CSR goals: Establish clear objectives for your CSR initiatives. Identify the social or environmental issues you want to address and the impact you aim to achieve. Ensure that your goals align with your organization’s values and are relevant to your target audience.
Integrate CSR messaging into your brand: Align your CSR initiatives with your overall brand identity and messaging. Communicate how your organization’s social and environmental values align with your products, services, and mission. This will help to build a consistent and authentic brand image.
Develop compelling storytelling: Create engaging narratives that highlight the positive impact of your CSR efforts. Share stories about the people, communities, or environments positively affected by your initiatives.
Engage stakeholders: Involve your stakeholders, including customers, employees, and partners, in your CSR initiatives. Encourage them to participate in your campaigns, volunteer for social causes, or provide feedback. Engaged stakeholders become advocates for your brand and help amplify your CSR message.
Measure and communicate impact: Use this data to demonstrate the effectiveness of your efforts in addressing the identified social or environmental issues that are important to you. Communicate your impact transparently through reports, case studies, or interactive dashboards.
Seek feedback and adapt: Regularly seek feedback from your stakeholders to understand their perceptions and expectations regarding your CSR initiatives. This feedback can help you refine your strategy and make improvements where needed.
Remember that CSR efforts are a work in progress – at your organization and others. By considering how your organization’s CSR efforts impact your role and department, you can make an outsized impact.
Tell us about how your organization approaches corporate social responsibility. Please complete this year’s CSR survey to share your insights, opinions, learning moments, and more!
