Corporate Responsibility Pays Dividends, Literally


Companies considering Corporate Social Responsibility (CSR) programs may be wondering what the numbers really look like for engaging in your greater community.  Up until now, that has been a challenging thing to quantify, but consulting firm IO Sustainability recently dug deep into over 200 studies and their data revealed some intriguing results. 


Not only can CSR programs help with employee retention and overall profitability, but they can also increase the market value of a company by up to 6 percent over a 15 year period.  Those numbers grow significantly when the company develops deep relationships and integrations with existing nonprofit organizations within the local community.  In some cases, market value can increase 40 to 80 percent! 


How about increasing sales revenue by up to 20 percent?  Upwards of 60 percent of consumers have increased brand loyalty for responsible and sustainable brands; in addition a firm’s overall value can increase 7 to 11 percent from its corporate social responsibility reputation. 


Companies with robust CSR programs can also reduce their financial risk and related costs. This is realized a number of ways, from credit spread reductions by up to 40 percent, higher probability of receiving investment grade ratings, avoiding market losses from perceptions of corporate crisis, reductions in share price fluctuations of 2 to 10 percent and an overall reduction in market risk. 


Corporate social responsibility can reduce staff turnover by 25 to 50 percent and can improve overall employee productivity by 13 percent more than companies without similar programs.  Employees will even accept less pay at a socially responsible company. 


Getting involved with nonprofit organizations can benefit your business as well as your local community. CSR programs help you develop and build relationships, increase your revenue, reduce your financial risk, attract loyal employees and grow your market value.  Doing good makes sense.  And it can also be good for your dollars and cents. 


Our mission at CPP Connect is to help connect small businesses with local nonprofit organizations to build commerce and communities through social responsibility. Join us in our movement toward good!