Why cutting CSR goals from the budget could cost you

April 19, 2023 5:30 AM

As organizations prep for a potential recession, budgets are getting trimmed — and it's easy to understand why organizations may put their corporate social responsibility (CSR) efforts on the back burner. But doubling down on purpose-driven efforts could actually increase a company's bottom line.

Roughly nine out of 10 employees say it is no longer acceptable for companies just to make money; they should positively impact society as well, according to a survey by consultancy Porter Novelli. In addition, 93% say that companies must lead with purpose, prioritizing their people, customers and community in addition to profit.

"Not only can having a solid corporate purpose framework help drive the underlying growth of an organization, it also provides an inspirational and motivating message to your employees and consumers," says Tess Murphy, director of managed lending and CSR lead at microfinance nonprofit Kiva.

Successful CSR initiatives — which can include anything from reducing the carbon footprint of a corporation to organizing volunteer sessions with employees — can lead to greater brand awareness, higher employee engagement, increased recruitment of top talent and higher retention rates.

But even good deeds require some guidance. Murphy outlines five ways to ensure a strong foundation is being laid to help your organization create the most impact from CSR investments.

Get company executives onboard

When leadership is behind a mission, it almost automatically becomes more successful. Having a conversation with executives around the priorities of the business — and then investing in CSR programs that align with these — helps to reinforce the work that the organization is doing on a bigger level, says Murphy.

Build out your corporate purpose framework

"Purpose is a really important motivator," says Murphy. "It's an intrinsic motivator for employees to feel like what they do matters. How can you get all these seemingly disparate teams aligned toward a shared goal? Build out a corporate purpose framework and then drive it through with storytelling and data that reinforces your overall brand."

Leverage employee networks

"People are your power," Murphy says. "Tap into them and hear what they want to see the organization do, then take a strategic look at the nonprofit partners being brought into the philanthropic investment side and create long-term, meaningful partnerships with them. It's most successful when you can marry the nonprofit investments with the employee engagement aspect."

Speak with other CSR professionals

"The CSR space is not a closed community, and [other leaders are] willing to share tips and recommend partners," says Murphy. "Tap into [platforms like] Benevity [that help manage charitable giving], as well as CSR conferences, and start to talk with other CSR professionals and then pair that with your research."

Join forces with other departments

Getting other teams throughout the organization to buy into CSR programs means making the benefits to all involved very clear. Murphy points to Kiva's partnership with Visa as an example: Each Visa employee received $50 from their employer to loan to a low-income entrepreneur, with the goal of helping support economic independence. To promote the effort, Visa activated across teams.

"The marketing and comms team wants to promote this on their external channels because their promotions get higher engagement rates, and help drive their overall metrics," Murphy says. "The HR team is using quotes from employees on LinkedIn and on the @lifeatvisa Instagram handle, because that helps them recruit new employees."