Strategic Thought

Disciplines of RM >

 CorpSoc Responsibility

A good reputation makes it easier to recruit employees - employees stay longer, reducing the costs of disruption of recruitment and retraining. Employees are better motivated and more productive

Benefits that Risk Management can bring to CorpSoc Responsibility:

• CSR helps ensure you comply with regulatory requirements
• Activities such as involvement with local community are ideal opportunities to generate positive press and positively improve customer spending and support
• Good relationships with local authorities make doing business easier for instance in getting plans approved.
• CSR can make you more competitive, and reduces the risk of sudden damage to your reputation (and sales) - Investors recognize this, and are more willing to finance you.
• Increased Profit: Several academic studies have shown a direct correlation between socially responsible business practices and positive financial performance
• Access to Capital: Companies that are committed to CSR often have access to capital that would not otherwise be available, due to the increase in Socially Responsible Investment.
• Reduced Operating Costs / Increased operational efficiency: By considering impacts, a company's actions can result in environmental, social and economic benefits. Construction firms, for example, reusing products on-site: reduces landfill, reducing community and noise disturbance or additional trucks bringing material to the site, reduces environmental impact of damage caused by heavy truck wheels and reduces cost for the client of buying new material.
• Enhanced Brand Image and Reputation, leading to increased uptake on advertising and promotional campaigns.
• Increased Sales and customer loyalty: Research has shown that consumers not only want good and safe products, but they also want to know that what they buy was produced in a socially and environmentally responsible way.
• Increased productivity and quality: Research has shown that company efforts to improve working conditions, lessen environmental impacts or increase employee involvement in decision-making often lead to increased productivity and reduced error rate.