Corporate Social Responsibility
Nowadays, the dynamics between companies and consumers have changed. When people buy, they are not only interested in the product. They are concerned about how the product was created, where, the company’s values and positions on social and environmental issues, etc.
Thus, organisations have become more aware of their corporate social responsibility, also known as CRS. The European Commission has defined it as the responsibility of enterprises for their impact on society. CSR strategies influence employees, shareholders, customers, and the workforce in general.
A 2017 Cone study showed that nearly 90% of consumers would buy a product because a company took a stand on an issue they care about. So, it is easy to understand how important CSR is to attract and retain consumers. Reputation is key in today’s market. When consumers are not satisfied with a company or its products, they turn not only their backs on them. They use the Internet and social media to explain why they did it, to spread the message and influence, other consumers. It is easy to understand how damaging this can be.
On the other hand, CSR plans strengthen relationships between employees and employers. Corporate social responsibility is crucial to retain employees and attract candidates. Nowadays, workers are looking for more than a salary. So, a good CSR strategy can be fundamental. Employees know they can use their work to make a difference in society and the world.
That is exactly what a 2018 Glassdoor statistic showed: 93% of job seekers and workers said that when applying for a job they are aware of the company’s missions, values, culture, etc. So, it is not a surprise that employees who identify with the company, its mission, and its CSR strategies are more engaged and satisfied with their work. Consequently, this leads to a decrease in employee turnover rates.
Also, CSR strategies are helping to cope with the lack of diversity in the workforce. It is a way to include people of different ages, races, genders, etc. Diversity helps build a sustainable future and companies know it.
CSR plans are a way for companies to stand out from their competitors. They improve the brand image. Which can influence investors, who typically want to invest in organisations that have the same values as them.
In a more specific case and given the substantial importance that the Life Sciences Industry has in our lives, CSR plans in this sector can make a real difference. This industry has been a helping hand in social issues, environmental protection, and human rights promotion.
The impact of this industry on the environment is significant. And as we know, climate change is affecting our planet in every way, and the consequences are becoming increasingly drastic. Therefore, the industry needs to develop CSR plans related to this subject. For example, by improving the recycling system and creating greener medicines.
In addition, it is common that, in situations of natural disasters or in developing areas, Life Sciences Industries help communities, not only with money, drugs, machines but also with employees, experts. These are examples of CSR strategies that prove to have a major positive impact on society.
Some life sciences companies are partnering with different organisations, ONGs, and even governments to work together on sustainable solutions to social issues.
For example, the Medtronic Foundation and Medtronic PLC have teamed up to promote health care. This foundation works closely with local health policymakers and workers to strengthen health policies and services in unserved places.
In another case, MedTech Europe also created a Code of Ethical Business Practice. This code regulates the relationships between this company and other organisations in relation to development, research, and education. It includes “transparency obligations”. This is a way to protect a company’s reputation. It also ensures that the company’s performances are clear and transparent.
- Why Social Responsibility Matters to Businesses, September 2019, Investopedia
- The 5 Benefits of Increasing Your Corporate Social Responsibility, July 2019, RealLeaders
- Five CSR Trends Every Company Can Get Behind, February 2019, Forbes
- Corporate social responsibility in health sector: A case study in the government hospitals in Medan, Indonesia, March 2018, ResearchGate
- Foundations in life sciences and health care, 2018, Deloitte