While the concept of corporate responsibility is nothing new, there remains a demographic of entrepreneurs who do not understand the precise impact that this can have on their business. This ignorance has a detrimental impact on many aspects of business, from turnover and profitability to the way in which your firm is perceived by customers. Without a clear understanding how this can benefit your venture, you may be missing out on numerous opportunities.
What Corporate Responsibility means for Brands in 2015
With this in mind, let’s take a look at the fundamental elements of corporate responsibility and how they can help to drive your business forward in 2015. For example: -
The Calculation of energy usage and Associated Costs
Sustainability is a key component of corporate responsibility, as this enables the implementation of practices that can lead to long-term savings and increased profitability. This can be measured with accurate, managerial accounting skills, which help you to calculate precisely what energy you consume throughout the business and how much this costs. The next part of the process requires you to associate these costs directly with the manufacturing and distribution of your products, so that you can estimate margins and establish profitable price points.
Developing a Culture of Awareness
While sustainability and corporate responsibility can help your brand to save money and generate profit, it can also help to develop a culture of awareness among your staff members. By encouraging good habits and reinforcing the importance of sustainability, you employees can embody the firm’s philosophy and create a more progressive representation of the brand (especially if motivated staff members immerse themselves in community-based environmental projects). This also creates an opportunity for further financial savings, as statistics prove that switching from an air conditioning system to an open window can reduce energy bills by more than 10%.
Create a Sustainable and Identifiable Brand Identity
According to a Nielsen study completed in 2014, more than 55% of global online consumers are willing to pay more for products or services delivered by socially and environmentally aware brands. This number is set to increase in the coming years, and it offers a unique opportunity for sustainable businesses to establish a vibrant and easily identifiable brand identity. With the use of sustainable materials and waste disposal processes, it is possible to effectively engage existing customers and reach out to new demographics. This not only creates a more cost-effective business model that benefits the natural environment, but it also ensures that your business is able to compete aggressively in its chosen marketplace.