Why startups should invest time in corporate social responsibility

Understanding and recognising the impact your business has on communities, the environment and the economy is an important part of your business planning.

Ian Coupe, co-founder and director of Shout Connect, a delivery partner of Boost’s Flying Start service, provides insight into the importance and impact of Corporate Social Responsibility (CSR) for startups and pre-start businesses.

If your business is at the pre-start stage or you launched your business in the last couple of years, you may have decided that CSR is something that you will ‘get to later’. 

In fact, you may not have considered it at all while you are fighting fires to get your business off the ground.

But in truth, today’s business landscape demands immediate commitment to CSR goals and objectives. CSR is now incorporated into business plans, not just long-term strategies. The size of the business is irrelevant. CSR is for all, and the benefits to the organisation, its workforce and communities are significant. 

What is Corporate Social Responsibility?

Corporate Social Responsibility is the impact your business has on communities, the environment and the economy, as well as your workforce and stakeholders. It is also sometimes known as Corporate Social Impact.

A company’s CSR commitment has a direct influence on how its brand is perceived by employees, investors, customers, suppliers and local communities. 

Some examples of CSR activities are care for the environment, a commitment to equality, diversity and inclusion, supporting local communities, ethical business decisions, treating everyone with respect, support for career development and volunteering initiatives. 

Why should startups invest in CSR?

Investing time and resources in CSR reaps several benefits:

• Brand reputation: Promoting a clear CSR strategy to employees, customers and the wider business community enhances the perception of your brand. It can be a valuable differentiator from your competitors.
• A committed workforce: Millennials and Gen Z are more socially aware than previous generations. According to employee benefits and engagement specialists Pluxee, by 2025 Millennials will make up 75 per cent of the global workforce, and 93 per cent of employees believe companies must lead with purpose. A proactive CSR policy helps to attract and retain the best talent.
• Finding new customers: A commitment to CSR can influence the buying decisions of potential and existing customers. To protect their own reputation, your target customers want to work with openly ethical businesses. CSR campaigns can also be undertaken in collaboration with customers which enhances engagement.
• Return on investment: The financial gains of CSR shouldn’t be underestimated. A robust CSR strategy can offer an incredible return on investment. Investors and customers want to spend their money with companies that are committed to their communities, the wellbeing of employees, and issues such as environmental impact and equal rights. 
• Attracting investors: According to business strategy consultants Stratagora, CSR can positively influence investor perceptions and attract socially conscious investors, many of whom want to work with companies that address global challenges such as climate change, poverty and inequality.

How startups and pre-starts can adopt CSR initiatives

What evet approach you decide to take develop your CSR, the underlying priority must be authenticity. A genuine approach is the only way to make your CSR policies and activities effective. 

Many companies know that CSR is important but approach it as a tick box exercise without truly wanting to make a difference, which socially educated stakeholders inevitably see through.  

Startups won’t have the same budgets as established organisations for CSR, but that shouldn’t deter you. Having realistic goals and adopting initiatives that don’t pull too hard on resources are key strategies to overcome a limited budget.

Simple and cost-effective ways startups can incorporate and promote CSR are:

• Investing in people with fair wages and good working conditions
• Creating a safe place to work, with equality and inclusion priorities
• Adopting sustainable practices such as ethical sourcing, recycling and taking part in local initiatives
• Supporting local communities by working with local voluntary organisations or providing low cost or free services
• Encouraging employees to get involved in fundraiser or voluntary initiatives
• Publishing a business code of ethics
• Rewarding employees for reducing their carbon impact with initiatives such as cycle to work schemes
• Developing local authority partnerships.

If you are a startup or pre-start business, evaluate your social impact and explore where you can make a difference. 

About the author

Ian Coupe is co-founder and director of Shout Connect, a Preston-based business specialising in business networking, events and exhibitions.

Shout Connect is a delivery partner for Boost’s Flying Start service and a member of Boost & Co.

Its CSR commitment includes: support of Preston Caribbean Carnival; free conference space for the Volunteer Ambulance Service, 30 to 40 annual work placements for young people each year, along with apprenticeship opportunities.

If you’re looking to grow, scale or start your business, use Boost; Lancashire’s Business Growth Hub. We offer a range of funded business support services. Call our Business Support Helpdesk on 0800 488 0057 to find out more or complete our enquiry form.