Corporate social responsibility (CSR) is not a new concept. Companies have been publicly proclaiming their dedication to sustainability, philanthropy and diversity for decades. But only recently have the true benefits of CSR come into focus for the companies that embrace it.
CSR is more than a PR tool, though. Under the surface, it’s considered an essential element of your business model and a critical driver of your company’s bottom line. According to recent research, companies with well-defined social missions are more likely to attract loyal consumers, recruit dedicated employees, and be recognized as innovation leaders. They also enjoy easier access to finance and face fewer capital restraints.
Given these benefits, many investors take great interest in a startup’s social mission. An Edelman study found that 76% of investors expect companies to address one or more social issues and view CSR as an indicator of long-term viability.
Startups that embrace and exemplify a clear social mission from the get-go will have an easier time attracting much-needed backing.