Forbes: How Commitment To CSR Improves The Bottom Line

April 14, 2020

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The United Nations Sustainable Development Goals (SDGs) have made it fashionable to jump on the corporate social responsibility (CSR) bandwagon. For many firms, it’s a marketing line item more so than a fundamental transformation that ripples across their governance, product development, manufacturing, supply chain, operations and financial measurements.

For executives and board members on the fence, there is now empirical evidence that CSR is more than lipstick on a pig; it has the potential to increase the economic value of innovation and shareholder value.

Corporate Social Responsibility

CSR is a private business self-regulating framework that helps an organization be socially accountable to its customers, employees, shareholders and the public, especially in the areas of economic, legal, ethical and philanthropic duties and responsibilities. The definition has extended to include the environment in terms of waste and pollution reduction in their supply chain and social, educational and giving programs such as community volunteering, socially-responsible business practices, cause promotions and activism, cause-related marketing, corporate social marketing and corporate philanthropy.

But for some shareholders, CSR has been viewed as a socio-political, left-wing, bleeding-heart movement that sacrifices profits and return on capital.

According to a recent study, CSR is more than a capitalist having a heart; it creates significant value, increases innovation and benefits the bottom line. It’s good for business.

Empirical research explaining CSR’s impact on innovation has been limited thus far. The study set out to examine the relationship between CSR, corporate financial performance and the importance of CSR in shaping a firm’s strategy.

To read the full article, visit Forbes: https://www.forbes.com/sites/forbesbusinesscouncil/2020/04/14/how-commitment-to-csr-improves-the-bottom-line/

About Scott Amyx

Managing Partner at Amyx Ventures, Top Global Innovation Keynote Speaker, TEDxWallStreet, Forbes, Singularity U., SXSW, IBM Futurist, Tribeca Fellow