By Shel Horowitz
An increasing part of the debate about CSR focuses on moral
imperatives--and those certainly are important. But self-interest
is equally important: CSR raises profits. Here's how:
- People want to do business with businesses they trust. Your
commitment to CSR builds trust and creates the desire to give
business to you. Social commitment can make a huge difference,
especially when comparing similar offerings at similar price
points. - As CSR becomes part of your company's brand experience, it
makes it easier to obtain repeat and referral business. Many
studies say it takes between five and seven times as much money to
bring in a new customer as it does to keep an existing one. Repeat
and referral customers bring in revenues for zero or near-zero
marketing cost. - The media love positive stories. Positive media attention for
what you're doing right helps to build solid brand awareness, but
it also offsets the impact of any negative stories.Entire brand empires, including The Body Shop, Ben
& Jerry's, Patagonia and Fetzer Vineyards,
have been formed largely on the basis of positive press. And good
press for its acceptance of responsibility for a disaster that
wasn't even its fault helped Johnson & Johnson make a
rapid rebound after the Tylenol recall in 1982.
- CSR commitments to sustainability and diversity directly boost
profits. Sustainability strengthens a company for generations to
come while slashing present costs. Energy giant BP's
sustainability commitment fueled 70%-plus revenue growth, 32:1
environmental return on investment (ROI), tripled stock prices,
kept 16.9 million tons of carbon dioxide out of the air, saved $650
million in energy costs, and reduced spills by 30% and safety
incidents by 94%.
Shel Horowitz initiated the 'Business Ethics Pledge' movement at
http://www.principledprofits.com/25000influencers.html.
He explores the profitability of CSR in "Principled Profit:
Marketing That Puts People First."
Contacts: Andrew Brown, 972.515.3883, [email protected];
Marc Epstein, [email protected]; Christopher Lloyd,
202.515.2562, [email protected];
Mary Wong, 561.438.7626, [email protected]