How Companies Contribute To Society

  • How Companies Contribute To Society

    According to classical economic theory, companies want to maximize their profits. The reality often looks different. Many companies are committed to sustainability or social projects out of conviction and sometimes also benefit from this economically.

    Many companies assume social responsibility and thus anchor their corporate successes in society in the long term. The opportunities for getting involved are as diverse as the society.

    The topic of sustainability is becoming more and more important. This applies not only to consumers and in the election campaign, but also to companies.

    What is Corporate Social Responsibility?

    This term refers to the social responsibility of companies to work towards sustainable economic development. This not only means ecological sustainability like the responsible use of resources in production and environmental protection. It is also the considerate treatment of employees and other members of society.

    The basic principle of CSR is that it is voluntary. Companies support society and protect the environment because they want to, not because the law requires it. The roots of this corporate philosophy lie in the model of the orderly businessman, which was already valid during the Middle Ages.

    RDL floor heating

    Reasons for Corporate Social Responsibility

    Moral conviction: Smaller, family-run and regionally rooted companies in particular feel obliged to treat the environment and their employees with care for moral reasons. For them, it is part of the obligation of entrepreneurship to contribute to the well-being of society.

    Economic benefits: CSR can also contribute to the company’s economic success. Sometimes consumers or the head of purchasing at a company pay attention to the life cycle assessment of products. Anyone who can score here secures a competitive advantage. Non-governmental organizations (NGOs) in particular select their suppliers based on their compliance with social and ecological principles.

    Sustainability is also playing an increasingly important role in financing and the search for investors. Sustainable financing is becoming increasingly important for companies. Among other things, they want to increase their attractiveness as an employer. Thus, they find qualified employees in times of a shortage of skilled workers.

    Better reputation: “Do good and talk about it” is an old guiding principle of public relations. Companies that are pioneers in CSR can use this offensively in marketing and thus build a positive image with customers, business partners or suppliers.

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