State and explain with at least three reasons why business should not involve itself in social responsibility
Answers
Answer:
1. Expands the potential customer target market size
Social contribution and sustainability are features that appeal to a whole new class of customers for any solution. These features are extremely important in penetrating customer sets in different cultures around the world, and more discerning customers in every geography.
2. Incentivizes customers to pay a premium price
Sustainability and social responsibility are ways to extend your exclusivity and added value, thus lowering risk, improving profitability, and justifying a premium price.
All stakeholders see this as an advantage, encouraging new investors and raising the valuation of your business.
3. Increases customer advocacy and loyalty in all markets
These days, existing customer advocacy is a key attractor of new customers. In addition, according to recent statistics, the cost of bringing a new customer to the same level of profitability as old ones is up to 16 times more.
Loyal customers post great reviews and bring in many new friends.
4. Is seen by customers as a competitive edge
Most Millennials and customers of all ages these days strongly believe that all businesses must be socially responsible, and make that a top criteria for selecting a solution source.
It's a message that you can use both indirectly and directly in your brand positioning and marketing.
5. Improves your team motivation and productivity
Sponsoring social initiatives and providing time for employees to support their own initiatives builds loyalty, pride, and motivation among team members and disparate organizations within the company.
This makes everyone in the company more engaged, more responsive, and more productive.