How good CSR impacts your
Impact – We live in a time when people are more socially conscious and aware of what they are bringing to the table for others. Take businesses, for example; everyone is in the rat race to be the first to achieve something, while others run to satiate their audience. Impact, as a whole, on society is the common factor that is undeniably the connection for all.
In a recent study conducted by Nielsen, it was found that over 66% of consumers across the globe were willing to pay for products and services from companies committed to having a positive social and environmental impact. Think about this statistic how a good repertoire can make a lasting impact. Especially with the current generation – GenZ being the target audience now.
In fact, the numbers were even more compelling when you focused on India alone. A recent Global Consumer Pulse survey found that almost 82% of Indian consumers would support a company that reflects their personal values.
The Statistics: Are They Just Numbers?
Every year, the budgeting reports of companies highlight their contributions to society and the environment. With percentage increases in the budget, a thorough report on what has been done and the results and images to support statements are needed. The question lies in authenticity. How much of what is reported is followed up and seen through from start to end to secure “impact”.
Sound CSR management is estimated to boost a business’s revenue by up to 20%. Furthermore, studies show that 7-11% of a company’s value is derived from its CR brand and reputation.
Simply put, CSR can help companies cultivate goodwill that easily translates to an incessantly growing competitive advantage and loyal customer base.
The Before & After Of Embracing CSR: A Measurable Difference
Corporate Social Responsibility (CSR) has increasingly become a significant aspect of business strategy for Indian companies. The impact of embracing CSR can be observed in various dimensions, including financial performance, brand reputation, employee satisfaction, and community development. Here’s a
detailed look at the section-wise impact good CSR brings to companies.
1. Community Engagement and Impact
● Before CSR: Data on community engagement was less systematic and often anecdotal. Many companies had limited structured CSR initiatives.
● After CSR:
- According to the India CSR Outlook Report 2023, 78% of Indian companies have adopted structured CSR policies since the
implementation of the Companies Act, 2013, leading to more strategic community engagement. - NASSCOM’s 2022 report noted that IT companies, including Infosys
and Wipro, significantly increased their CSR spending, focusing on education and healthcare, positively impacting over 5 million
beneficiaries annually. In addition, there is an increase in CSR funding. Check out the complete report here.
2. Brand Reputation and Trust
● Before CSR: Companies with minimal CSR activities often faced challenges in building strong brand reputations.
● After CSR:
- Edelman’s Trust Barometer 2023 indicated that 72% of Indian
consumers prefer to buy from companies that demonstrate social responsibility, reflecting an enhanced brand reputation for firms engaged in CSR. - KPMG’s 2022 Corporate Responsibility Report highlighted that
68% of Indian companies that actively engaged in CSR saw improved brand loyalty and customer trust.
3. Employee Engagement and Retention
● Before CSR: Employee engagement was primarily driven by financial rewards and less by corporate values or social responsibility.
● After CSR:
- A survey by Great Place to Work India in 2023 found that 65% of employees felt more motivated and engaged in companies with strong CSR programs.
- The 2022 Employee Engagement Survey by Aon Hewitt reported that companies with robust CSR initiatives had a 25% higher
employee retention rate compared to those without such programs.
4. Compliance and Competitive Advantage
● Before CSR: CSR was largely voluntary with minimal regulatory requirements.
● After CSR:
- The Companies Act, 2013 mandated CSR spending for companies meeting certain criteria. As a result, CSR expenditure in India
increased by 50% from ₹13,000 crore in 2013 to ₹19,000 crore in 2022, according to the Ministry of Corporate Affairs. - Deloitte’s 2022 India CSR Report found that 80% of companies reported that CSR activities had positively impacted their
competitive positioning in the market.
5. Positive Social and Environmental Impact
● Before CSR: Impact data was less detailed and often not systematically reported.
● After CSR:
- The India CSR Report 2023 stated that companies with active CSR programs contributed to significant social and environmental outcomes, including constructing over 2,000 schools and hospitals and planting 10 million trees annually.
- The NITI Aayog’s 2022 report noted that CSR initiatives in healthcare, education, and rural development have led to improved access to education for over 1 million children and better healthcare services for approximately 2 million people.
6. Financial Performance
● Before CSR: Financial performance data related to CSR impact was not extensively documented.
● After CSR:
- A 2022 report by McKinsey & Company found that companies with integrated CSR strategies saw a 10-15% increase in revenue and a 12% improvement in operational efficiency over a three-year period.
- The 2023 Corporate Sustainability Report by PwC highlighted that companies with strong CSR commitments experienced a 20% higher return on investment (ROI) compared to those with minimal CSR activities.
Most Popular CSR-Supported Initiatives In India
For companies who’ve just begun dipping their toes into the realm of CSR, it can be quite challenging to find a cause to support. Here’s a list of some of the most prominent CSR initiatives that are supported by Indian businesses:
● Education: The best way to instill change is to invest in education. Let It Count has a plethora of initiatives listed on our platform that strive to make quality education accessible to all underprivileged children.
● Healthcare: You cannot build a thriving community without proper healthcare. We host to a bunch of initiatives ranging from holistic cancer care for young adults to programs that try to instill hope in terminally ill children.
● Environmental Preservation: The threat of climate change has made
environmental preservation the need of the hour. With the NGOs we have on board, that you can invest in to preserve India’s threatened ecosystem.
● Women’s Empowerment: Inclusive growth isn’t possible without gender
equality. Let It Count strives to accomplish this goal by supporting various programs that directly work to empower the women of India.
The Challenges Companies are Facing with CSR Investment
Here are some common challenges that businesses are facing with CSR:
● Companies struggle to find programs that are effective and trustworthy.
● Most companies don’t know how to measure the impact of their CSR contributions.
● Companies are struggling to find initiatives that align with their core values.
At Let It Count, we understand how complicated investing in CSR can be and have helped several organizations successfully navigate this complexity.
Let It Count does so by serving as a bridge between organizations that want to
invest and social programs that need this investment. We help you connect with vetted and trustworthy programs that address various social and environmental issues plaguing the country.
We help companies with:
● Annual CSR Strategy Development
● Project Identification and Reliability Assessment
● Budget Allocation
● Monitoring and Evaluation
● Compliance and Reporting.
To Conclude,
While CSR can be immensely beneficial to a company’s reputation, we are well aware of the challenges it can entail. Businesses often struggle to identify
reliable projects. Even if they do, most of them don’t have the means to measure the impact their contributions are making.
We assist you in connecting with projects that align with their core values. We ensure complete transparency by presenting comprehensive reports showcasing the impact being made.
If you want to streamline your CSR endeavors, contact us today!