In other words, being socially responsible means obeying the law, respecting the environment, and being mindful of the impact the business has on its stakeholders, the industry, and the community in general. The said responsibilities may be too much to follow by some entrepreneurs, but the following benefits will make you think again.
Good Marketing Strategy. Being socially responsible is an effective advertisement for your company. Efficient product awareness can be achieve if you positioned yourself as a socially responsible company. One good example of this is the video below.
Stronger trust from stakeholders. Social responsibility builds a sense of trust and this is vital to have a smoother relationship with your stakeholders.
Greater Customer satisfaction. Since your customers perceive that your company is associated with a good cause, there is an intangible added value of satisfaction to your product when they buy it.
Improves employee commitment. Being socially responsible means you take good care of your people. And if you take good care of them, they will take good care of you and your company.
Self-fulfillment for the entrepreneur. Doing something good feels good. On the businessman’s part, there is a sense of self-fulfillment because he knows the good effect of his actions.
Enhances Profitability. According to the 2013 Cone Communications study, 88% of American consumers would switch to brands associated with a good cause.
In a nut shell, from what I learned from my book (Launching New Ventures by Kathleen R. Allen), it is definitely not enough to have a successful business and make a profit. The business must hold itself to a higher standard of social responsibility by giving something back to the community or communities in which it does business and, through them, to society as a whole. :)