What should businesses be thinking about CSR?


A business is an organization that serves consumers by offering and selling the goods or services provided. The company is run to profit from sales received from consumers and fulfill the goals for consumers, namely to meet needs or obtain satisfaction from the goods or services it receives.

In a business, the company does not only sell goods. For an item to be purchased by consumers, a company must make a lot of efforts to bring consumers to buy the company’s goods or services. Actions such as marketing products widely and on a large scale and providing promotions that provide economic value so that companies can increase sales. However, although these businesses focus on their products and deal with consumers, business is not entirely dependent on transactions between organizations and consumers. A good business cannot only sell its products to consumers in large quantities. Still, it can also show them that their company is a company that is run with good values and foundations so that consumers believe that the product or service provided is a product or service—made by a good company.

Corporate Social Responsibility, referred to as Corporate Social Responsibility (CSR), or Environmental Social Governance (ESG), is a concept or strategy that emphasizes the company’s commitment to act ethically and has a responsibility to public awareness and concern about the impact of the company’s operational planning and implementation on the environment and society. CSR in the company aims to provide value to the community, participate in environmental awareness and improve the welfare and productivity of employees working in the company.

If done properly and correctly, CSR will generate profits for the company and society. The benefits of CSR for companies are:

They are delivering Innovation

Innovation is related to continuous development so that companies can provide new products that can satisfy consumers without harming the environment or giving side effects to people who use these products.

Cut company costs

Applications such as avoiding overpackaging and minimizing non-environmentally friendly energy can save the company’s capital, which will allocate the saved expenses to better uses.

Provide differentiation

Businesses that do CSR will be more aware of their products and their effects, so the company will focus on things that promote benefits for the community, such as more environmentally friendly products.

Better customer service

Consumers are one of the reasons why a business can run and grow to be successful. Through more positive service and communication, companies can be closer to their customers so that consumers are more satisfied and have a positive value to the company.

Increase employee productivity

If not followed by good employees, a good company will affect the company’s performance to be not optimal. A good company treats its employees well and invites them to actively participate in the company’s strategy to increase the employees’ morale. The activeness of employees can provide creative ideas that have not been thought of by the company. Companies that can make their employees work optimally and are treated well will attract the attention of excellent and professional prospective employees.

Protects against long-term losses

Companies that do CSR will plan carefully, taking into account the risks and costs of failure. Because a socially responsible company is bound to society, if the company suffers a loss as a result of a wrong decision or a failed product, it will harm the company financially and harm society. CSR also changes traditional business thinking that only seeks profit to become a business that cares more about the environment and society.

Even if a business is willing and implementing a CSR strategy, companies must pay attention to several important things to avoid. First, focus on what the company wants to achieve socially and plan for capital well. Having a goal that is not supported by the community or even threatens the community, and misallocates funds, will cause the company’s reputation to deteriorate and the lack of effective CSR implementation. A company must have goals appropriate to the social environment by showing that the company sympathizes and wants to support the community and balance the proper capital to achieve company efficiency. Second, the company must have strong leadership. Strong leadership will motivate employees to keep growing and in line with the company’s vision and make the company’s goals run consistently. Hence, it is essential to have leaders with leadership attitudes who can positively improve the company. Finally, companies must think long-term about implementing CSR. CSR will be successful if it is carried out continuously in the long term. CSR also pressures the company to achieve its long-term goals, mission, and vision, so that the company can develop well, both in the short and long term.

Cannot separate Good business from the implementation of CSR. In this era of globalization, a CSR strategy is needed to be carried out by every business so that the company can run according to what the community supports. CSR is beneficial for companies not only to seek profit but also to care for the natural environment, society, and employees in the company. Through good CSR, the company can benefit, the community’s life will improve, and it will well maintain the natural environment around.