Business benefits of a CSR policy

Why do fashion brands adopt and promote CSR policies? Having a corporate social responsibility plan entails a series of benefits for the company, among which we find:

• Greater capacity to attract talent: Workers are motivated by clearly defined socially responsible management practices. They like to be part of organizations that respect the individual and invest in her ability to learn. Social responsibility attracts talent to the company and, at the same time, makes the worker feel encouraged to stay in the job position. A good CSR reduces employees’ turnover and supports Human Resources management.

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• Stakeholders’ loyalty: CSR helps to improve the company’s image and the links it maintains with its employees, customers, partners, and suppliers.
• Implementation of codes of ethics and conduct, as well as respect for compliance, helps prevent the risks of receiving complaints, negative publicity, or bad press. It contributes to protecting the good reputation of the company and prevents situations of crisis.
• The implementation of environmental measures, such as reducing energy consumption or recycling plans, can help reduce costs, as already exposed in our module about circular economy processes.
• A company that complies with the principles of transparency has easier access to means of financing since it has the trust and credibility of the markets.
• Credibility is another point in favor of a socially responsible company because if it is respectful of people and the environment, it will earn a reputation that will guarantee greater sustainability. Corporate social responsibility focuses, in this line, on three aspects: care for the environment, the working conditions of its workers, and support for humanitarian causes.

The latter brings numerous benefits:

• Improved reputation for collaborating with these types of charitable causes,
• Involvement and motivation of workers,
• Recognition of the work of the company by consumers,
• Free advertising by organizations,
• Tax relief for financially collaborating with this type of association, providing tax and labor benefits.

In short, CSR integrates the company’s social commitments into its business strategy, under sustainable development objectives. Thus, it contributes to the improvement of society through investments and activities of which the company’s employees, clients, and investors feel proud.