Evidence-Based Reasons for Responsibility
Corporate social responsibility is key to effective branding, performance and building credibility among stakeholders. In this blog, we present a handful of evidence-based examples of why companies should invest in responsibility.
1. Better results and cheaper capital
According to a meta review on sustainability and ESG (Environment, Social and Governance) practices conducted by Oxford University researchers Gordon L. Clark and Michael Veins and assets manager Andreas Feiner, 90% of selected capital studies showed that companies with strong ESG-practices were able to attract cheaper capital than their non-ESG focused competitors. The review also linked strong ESG practices into stronger performance and stock price development.
2. Employees are expecting it
In talent report ordered by Net Impact and conducted by researchers at New Jersey State University, professionals in the modern work force are seeking a career where they can not only find financial stability, but can also contribute to causes they themselves find meaningful.
3. Customer loyalty and satisfaction
The majority of consumers are expecting companies to care about social and environmental issues, and 78% of consumers hoped that companies would address these issues in some way. Most consumers, 87%, reported that they would purchase a product because the company advocated for an issue that they cared about. Indeed, 76% of consumers reported they would not buy products from companies who advocated against issues they felt were important.
4. It’s not too late yet
While the battle against climate change and many other dire challenges is certainly hard, we can still change the trajectory. Here you can find what it takes to limit the global warming to 1.5°C and how different actors have committed to it.
1.5°C
5. It’s not only the “right” thing to do, but is also a necessity
Growing concerns over ESG issues and the benefits of responsibility have motivated both policymakers and companies to take responsibility more seriously. The Corporate sustainability and due diligence proposal of the European Union has encouraged many of the Member States to come up with their own Corporate social responsibility laws and regulations. Additionally, the growing number of global regulations is pushing companies to ensure that their own supply chains and partners consist of responsible actors.
