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The Profitablility of Corporate Social Responsibility

 

 How being good can make you money!

 

Today corporate social responsibility (CSR) takes on a large role in driving profits. Examples of this can be seen in many of the world????????s most successful companies like Google, StarBucks, Microsoft, The Walt Disney Company, BMW, Apple, and Intel. The benefits of CSR doesn????????t stop with profits, as consumers are more willing to buy, recommend, work for, and invest in a company that practices CSR. According to Simply CSR, a UK based responsible business planning firm, ???????Consumers increasingly don????????t accept unethical business practices or organizations who act irresponsibly. Advances in social media (giving everyone a voice) means that negative or destructive practices quickly fuel conversations online. Organizations are accountable for their actions like never before.??????? Properly implemented CSR policies can garner your company new business, increase customer retention, reduce employee turnover, differentiate your company from the competition, and can generate positive publicity. I believe StarBucks says it best,

 

 

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???????It????????s just a moment in time ???????? just one hand reaching over the counter to present a cup to another outstretched hand.

But it????????s a connection.

We make sure everything we do honors that connection ???????? from our commitment to the highest quality coffee in the world, to the way we engage with our customers and communities to do business responsibly.

From our beginnings as a single store over forty years ago, in every place that we????????ve been, and every place that we touch, we’ve tried to make it a little better than we found it.???????

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Making money and a difference in the world is the end goal of CSR and many companies can take a lesson from AFRIpads Ltd., a Uganda-based company that produces and sells reusable, sustainable menstrual pads. Originally designed for the middle and upper-class market in North America, AFRIpads Ltd. has changed their business model and with the permission of Pads4Girls started producing these products locally in Uganda. According to an article by journalist Jenny Griffin of the Entrepreneur titled Keeping Girls in School Is This Startup????????s Mission, ???????In Uganda, women weren????????t looking for a green pad, but any pad that was practical, comfortable and — most of all — affordable. Lunapads itself had hoped to reach women in the developing world, but its affiliated nonprofit organization, Pads4Girls, was spending nearly $80,000 a year to reach only 300 girls. AFRIpads now reaches 300,000 African girls and women, has generated more than $500,000 in revenue and provides full-time work to more than 80 local women.???????

 

Lastly, it????????s important to understand that even companies that produce products that pollute can have a positive reputation for social responsibility. According to Nielsen of Reputation Institute, a global consulting firm based in New York, ???????it????????s not about their products, it????????s about the company behind the products.???????

 

 

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