Corporate Social Responsibility (CSR) is generally used to describe business’s efforts to achieve sustainable outcomes by committing to good business practices and standards. While the concept may be relatively new in the region, the actual practices and related policies are not new. The key role and responsibility are often discussed in the aspects of business, social and the environment.

Why CSR?
Your Source of Competitive Advantage
Most businesses compete either on price, level of quality or service as their competitive advantage. Non-profit organizations often use efficiency, values of service or societal benefit to generate their competitive advantage. Can your organization or direct competitors tap on additional economic, environmental or social advantages that can be used for competitive purposes, such as community support, better brand identity, reduced waste disposal costs or better employee working conditions?

Today consumers, investors, governments and even employees have become more sophisticated and more aware of good corporate behavior, or lack thereof. In this new business environment, a company's reputation has become one of its most valuable assets, and CSR has become one of the key components of corporate reputation.

Create Shareholder Value
Investors are becoming more concerned to invest in company’s that act with good corporate governance and social responsibility. Increasingly, a company’s performance as a responsible business is key to its financial and stock market standing, helping to protect it from instability and share price volatility.

Increased Revenue Base
CSR can boost factors that drive revenue in important ways. CSR initiatives and cause-related marketing could build reputation and goodwill among suppliers and customers. Employees who identified with the social mission are likely to be motivated, committed and more prepared to make sacrifices as a team member.

Strategic Branding
A company’s reputation is fundamental in maintaining and attracting new customer base. Consumers today are more sophisticated, becoming more selective and sensitive to a company’s image and CSR efforts. A distinctive CSR profile serves as a strategic branding tool in differentiating from competitors.

Operations Efficiency
The efficiency of a business is about productivity and effective use of resources. CSR can help to increase efficiency through environment conservation and recycling initiatives, as part of Eco-efficiency strategy. Positive management-employee relations are also crucial in bringing about good customer service, productivity and product innovation.

Better Access to Capital
Access to capital enables a company to grow and make timely investment. Companies with good CSR standing are likely able to secure equity and debt capital with most ease. The growth emphasis in Socially Responsible Investment (SRI) is a clear indication of likely future trends.

Human & Intellectual Capital
A company’s human and intellectual capital is one of its most valuable assets. Good workplace conditions and relations can help a company to attract, keep and develop human capital, keeping operations and staff morale high. Community involvement can play a complementary role in developing new skills set, encouraging participation, sharing and team spirit in the workplace as well.

Lower Business Risk
Companies are being held increasingly accountable for their actions today. Such business risk could affect reputation, access to capital and even long-term viability in some instance. Proactive dialogue with external stakeholders can help to foster understanding, in preempting and minimizing the repercussions.

Is CSR for SMEs?
Pursuing responsible business practices can help any business enhance reputation and standing in building trust from stakeholders, generating sales, boosting enthusiasm and product innovation. It can be important to the Small and Medium-sized Enterprises (SMEs).

For so many, social responsibility is just a new way to describe something they do already. In this context, CSR does not aim to reinvent the wheel. It is about building on existing practice, maximising its impact and making a link between CSR and your core business activities.

In many instances, SMEs are ideally placed to pursue such responsible workplace practices. SMEs often have longstanding contacts in servicing a local area and are well placed to understand and benefit from the community relations. Being more flexible and less formal than large companies, they can direct resources to CSR efforts more effectively. Certain CSR trends are already a part of SME culture. For example, SMEs in certain sectors are more likely to have family-friendly workplace practices in a less bureaucratic setting.

Your CSR Story?
CSR can involve almost any aspect of a company's operations. It ranges from workplace safety, family-friendly practices to community contribution. Every company has a story to tell that sets it apart. It is important for every company to find its story for effective communication to its stakeholders.