While giving money away and using company resources to support philanthropic causes, social ventures, and the local community may seem like it would make a company less profitable, that’s not necessarily the case. These days, more than ever, people want corporations and companies to connect with them on a human level. They want to do business with people who care about others, not faceless corporations simply trying to make the most money.
Last week, CR Magazine honored 100 publicly traded companies at the New York Stock exchange for their corporate responsibility practices. Topping the list were household names like AT&T, Mattel, Bristol-Myers, Eaton, Intel, Gap, Hasbro, Merck, Campbell, and Coca-Cola.
“By advancing accountability and transparency through this research we empower those closest to these companies to make better decisions and ultimately judge these companies and their behaviors,” reads CR Magazine’s website. “In that way, we move us all closer to a world where everyone has the information they need and markets function more effectively.”
Among the considerations for best CR practices are climate change, employee relations, environmental, financial, governance, human rights and philanthropy. Those companies that excel in all areas gain many benefits from doings so, giving them an advantage over competitors.
“For us it’s a win-win proposition,” Niki Kelley, Campbell’s Manager of Corporate Social Responsibility, told Fox Business. “It’s a long-term delivering of shareowner value to all of our stakeholders.”
Not only do good CR practices keep companies accountable and consumers happy, they also contribute to higher employee morale and productivity. People enjoy working for companies they are proud of, and solid corporate social responsibility practices help foster that.
The “trick” for companies is to find a way to balance social responsibility with corporate—financial—responsibility. That way, everyone is happy.