4 Reasons Why CSR Is Important For The Improved Financial Performance Of The Corporation

Indeed, there are so many ways to define the success of a corporation but, none so clear and solid like the financial performance and that is why this way matters more than the other ways while gauging the corporation’s popularity and capability. But boosting the financial performance also depends upon a number of factors, of which the CSR factor is significant.

What is CSR?

CSR aka Corporate Social Responsibility is the set of initiatives carried out by an organization to ensure the well-being of the society and environment, appreciably. These initiatives might be concerned with the corporation’s products or services or might also be generic. That is, say if the corporation is manufacturing one of the cooking oil kinds! How they sensibly carry out the waste management process without disrupting the environment and the society around and as well as, how they sustainably grow the crops involved (in case of almond, castor oil etc.) are some parameters to measure their socially responsible nature, in which the organization is directly involved.

Otherwise, it can contribute to generic social responsibility factors like afforestation, climate change and so on, in which organizations’ products or services might not be directly related to.

CSR and Financial Performance

Now that we have understood what CSR is, let us see its impact on the ‘Financial Performance’ of an organization. The financial growth of an organization also depends upon its CSR, for which the following 4 reasons are the proof.

  • Brand Recognition

The awareness about being socially responsible is on the rise these days, as people have started to realize that the exploitation of the environment would lead to the destruction of the society and therefore, they are very much eager to associate and appreciate those who are socially responsible, especially the Brand, whose products they take pride in using. Hence, improved CSR performance means improved brand recognition that naturally, leads to the increased financial performance of the organization through increased sales.

  • Increased capital

Investors these days, are only willing to associate themselves with a less-risky corporation and therefore, the corporation with better CSR rating will obviously have the better interest of the investors that help the corporation to improve its financial performance with the help of increased capital.

  • Employee engagement

A socially responsible organization, would not only have transparent working policies but also interest the employees to do best for the cause, which leads to increased employee engagement, appreciably. Increased employee engagement means more products that can lead to the improved financial performance of the corporation through its increased output.

  • Cost savings

When a corporation starts believing in being socially responsible then, naturally it will adapt to the cost-cutting ways or the minimum wastage ways, which lead to the improved financial performance of the corporation, indirectly!

3 Incredible Benefits Of The Blockchain Technology

The way we see the financial transactions has inarguably altered after the intervention of the powerful Blockchain Technology, which is credited as the source of ‘trusted transactions’ by experts like Ginni Rometty, the CEO of IBM. Although Blockchain technology is popularly known for the birth of cryptocurrency, its power aka benefits doesn’t end there! There is more to it than enters the ears, which we are here to discover, from these 3 amazing benefits offered by it!

Driverless Cars

Driverless cars aka self-driving cars are nothing new to the world, as popular models like Tesla, already remains the talk of the town! But, legally, making use of these self-driving cars is impossible without a sober human driver behind the wheel, at least the case in the majority of the countries because there are lot many challenges associated with the autonomous driving practice. One main challenge is the cybersecurity, which is yet to be achieved 100%, even in this technological era that offers ample chances for the hackers to drive your self-driving car into the ditch. But, with the near-impregnable security of the Blockchain technology, experts like Kyle Therriault, Executive VP, AA Garage is optimistic about the availability of the un-hackable self-driving cars in the near future, which means our driving ways are going to be super smart and super secured, undoubtedly!

Digital Advertising

Sure, the digital advertising method has favored the marketing industry and the associated individuals but, not without causing pathetic troubles like fraudulent domains, lack of transparency, uncompetitive payment models and so on that disrupts the growth of the publishers and the advertisers involved, unfortunately!Now, with the powerful Blockchain technology, not only the security also, the transparency is assured that can allow these affected parties to enjoy the wholesome benefits. Yes, if the trouble-causing players are removed from the model only the good ones thrive which also led to the appreciable growth of the industry!

Voting

Whether the nation is a developed one or a developing one, the battle against the fraudulent voting activities during the election is a universal problem, which has to be checked permanently for the welfare of the society. What cannot be achieved using the stringent laws can now be, fortunately, achieved using the Blockchain technology, whose security can curb the tampering of votes and involvement of corruption money, successfully! In fact, The Russian government is keen to use this technique in their local elections, for which the pilot system is all ready and available!