Corporate Social Responsibility Value Highlighted by New Study
Corporate Social Responsibility (CSR) can often be overlooked as an important part of a business. A new study, however, reveals details that indicate how mandatory CSR could benefit companies not only through safeguarding branding, but also by boosting financial performance.
The study was carried out by ISB Professor Hariom Manchiraju and co-authors S. Arunachalam, Rahul Suhag, and Praveen K. Kopalle. It questioned if mandatory Corporate Social Responsibility spend could contribute to an increase in gross margins. A mix of companies, including companies that had already been spending on CSR initiatives as well as those that had not, were included in the research over a six-year period.
The study found that companies that did not engage in CSR spend at all performed less well in increasing gross margins than those that were already engaging in CSR spend or engaged in CSR spend after the mandate came into effect. The research’s findings offer yet another reminder of the value of CSR and should serve as the prompt some businesses need to engage with CSR more enthusiastically.
FlexManager’s Corporate Social Responsibility module is part of our Eco-Compliance suite of offerings. It’s designed to help you understand and engage in CSR best practices through customizable dashboards, in-depth analytics, and customizable outcomes.
Book a demo with FlexManager now to discover more about our Corporate Social Responsibility module. When you do, you’ll discover how to empower your business to invest in the well-being and value of the communities that support it.
Original Article: How mandatory CSR helps firms boost margins and competitive advantage
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