Updated on February 6, 2023
Corporate Social Responsibility, or CSR, is more than just a buzzword.
A simple definition of CSR is that it’s a “self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public.”
And in 2023, a company’s CSR practices may be a deciding factor in its success. We’ll explore the research below that shows how consumers and employees alike care about CSR, which makes it an important part of any business strategy.
The good news is that CSR initiatives don’t have to be an expensive undertaking. Small businesses can do good, give back, and reap the benefits all on a shoestring budget.
Why Corporate Social Responsibility is Vital in 2023
Corporate social responsibility involves company-led initiatives that prioritize community, social good, activism, or philanthropy.
And while that’s always been important, it may be even more so in 2023 for a few reasons:
- Consumer attitudes: A study by Cone Communications found that 63% of consumers look to companies to take the lead on social and environmental change. They also found that 76% of consumers would decline to do business with a company if it held views that conflicted with their beliefs. Another 2021 study found that 75% of Americans believe it’s no longer acceptable for companies to just make money—they must positively impact society, too.
- Employee expectations: The 2022 Edelman Trust Barometer report found that 69% of surveyed employees believe that positive societal impact is a strong expectation or deal breaker when considering a job. Half of all employees believe their employer should connect them with opportunities for charitable engagement, as per America’s Charities Snapshot.
- Business success: One KPMG study found that 70% of surveyed CEOs in 2021 believed ESG initiates improved financial performance, up from 37% the previous year. A letter to investors from Merrill in 2022 highlights how ESG initiatives have positive investment outcomes—in 2021, returns from two ESG-focused indices were 25.3% and 19%, outperforming others during the volatile 2020 year.
From this data snapshot, you can see that ESG has important impacts on consumers, employees, and businesses. So, making sure your company is engaging in strong CSR initiatives can be a win-win-win practice.
5 Ways Small Businesses Can Practice CSR on a Shoestring Budget
There’s a common misconception that CSR is an expensive undertaking, primarily reserved for large corporations who can donate millions of dollars to charity.
But the reality is that any company can do good and give back. If you’re watching your budget, you just need to get a little creative.
Here are five ways to do good through CSR at your company in 2023.
1. Pick a Cause and Go All-In
When you’re working with a small CSR budget, your best bet for the greatest impact is to hyper-focus your efforts.
Ideally, you should decide on a single cause and strategically dedicate your dollars and your resources to supporting it. This could be something like:
- One local charity or non-profit in your community
- A specific cause or movement (i.e., mental health, children’s health and wellness, education)
- An event or initiative (i.e., an annual fundraising gala)
Start by asking your team what causes they’d like to support. With their input, you increase the chance of buy-in and give everyone something to feel excited and energized by.
2. Get Creative with Your Donation Dollars
Financial donations are always welcomed by charities, causes, and initiatives. And, thanks to the internet, donating money to great causes is easier than ever.
You can always donate directly to the initiative of your choice, or take advantage of one of these innovative giving platforms:
- Kiva: This online platform lets you make small business loans to entrepreneurs in developing countries all over the world. Search for various causes like women-owned businesses, shelters, agriculture, etc., and donate as much or as little as your company can afford. This is a great way to help people create an opportunity for themselves and their communities. And with a repayment rate of nearly 97%, you can take that donation and reinvest it repeatedly.
- GiveDirectly: This app uses mobile technology to transfer money directly to the world’s extremely poor population without your money also being dedicated to salaries, admin costs, and offices.
- GoFundMe: This popular platform is used to crowdsource finances for personal causes and initiatives. It’s a great way to get involved with and support local community needs that may not be attached to a formal charity.
3. Offer Volunteer Days for Your Team
If you don’t have dollars to donate to charity, you can opt instead to donate time.
One way to do this is to offer your staff a preset number of volunteer days each year, above and beyond their regular vacation time and other paid days off. There are two ways to do this:
- Employee choice: Let your team members take a day off to volunteer at the charity of their choice. You can have them submit a request for approval by management.
- Team volunteer days: Bring the whole team together and volunteer for a day. Not only do you give back to your community, but it’s a great bonding experience for everyone.
Volunteering your time may also include activities like hosting a workshop or mentorship. By sharing your unique skills and knowledge, you can support students, immigrants, or others who want to learn and grow.
4. Match Employee Charitable Donations
Another great way to maximize the impact of your company’s charitable donations is to match your staff’s donations to any charity they like.
This is an effective way for both your business and your team to reap the tax benefits of charitable donations as well.
You can take it a step further by offering automatic payroll deductions. So, instead of having to remember to donate regularly, it’s simply taken from their paycheque and given to the charity of their choice.
5. Find Ways to Go Green
Being socially responsible doesn’t necessarily need to mean giving time or money to charities. It can be as simple as taking action to operate your business in an environmentally-conscious way.
This could include things like:
- Swapping in energy-efficient light bulbs
- Going paperless (as much as possible)
- Banning plastic bottles and providing your staff with reusable ones
- Installing a dishwasher to avoid reusable cutlery and encouraging your team to pack lunches
- Use green and non-toxic cleaning products in your office
- Ask your team to power down all electronics when they’re not using them
Even small steps in the right direction can make a big impact.
CSR in Tucson: Charities and Non-Profits
If you’re local here in Tucson, there are so many opportunities to give back to our community.
We previously wrote about ways to give back in Tucson for the holidays, and highlighted a few local charities and non-profits to check out:
- Casa Maria Soup Kitchen
- Toys for Tots Tucson
- Salvation Army Tucson
- Diaper Bank of Southern Arizona
- Arizona Department of Child Safety Giving Tree Program
- Emerge Center Against Domestic Abuse
- Angel Charity for Children
- CASA Support Council for Pima County
- Aviva Tucson
- Gospel Rescue Mission
Additionally, there are Tucson branches of national organizations such as Big Brothers Big Sisters of Southern Arizona, United Way Tucson, and Ronald McDonald House Charities Southern Arizona.
This is a non-exhaustive list. If you want to dive a bit deeper and see what’s happening in and around Tucson, check out the charity directory compiled by the Newcomers Club of Tucson. They’ve cataloged dozens of initiatives, programs, charities, and non-profit organizations, all grouped by categories like animal, seniors, children, health, social justice, and more.
However you choose to do it, corporate social responsibility can help boost your reputation and make your employees happier at work. And with some planning and a strategic approach, you can do it effectively without breaking the bank.
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