Eric-Theodore Yepao on Corporate Social Responsibility and its Value to Businesses
Over the years, companies have begun to adopt initiatives related to corporate social responsibility, a self-regulating business model that holds companies accountable to stakeholders, the public, and themselves.
Eric-Theodore Yepao, who has dealings in Paris, France, is an ethical investor and founder of Nordland Holding Europe in Bad Homburg vor der Höhe in Germany. He provides a detailed explanation of corporate social responsibility and why businesses should integrate it into their long-term planning.
Brief Overview of Corporate Social Responsibility
Corporate social responsibility encourages companies to be aware of their influence on broader societal issues, Eric-Theodore Yepao states. These issues, like poverty, gender inequality, and climate change, often require urgent attention because they represent widespread economic, environmental, and social problems. Therefore, businesses that engage in corporate social responsibility are, essentially, working to improve society and the environment rather than purely concentrating on their financial bottom line. By committing to a corporate social responsibility model, the company focuses on its values, positions itself as a positive force for change in connection to a specific social cause, and demonstrates a strong mentality that looks beyond its profits.
CSR Creates Customer Loyalty
Businesses that successfully implement a resounding corporate social responsibility structure are more likely to acquire and retain customers, says Eric-Theodore Yepao, founder of Nordland Holding Europe. A loyal consumer base is crucial for any company’s long-term prospects and many people, in the knowledge that their hard-earned money will contribute to pressing social causes after a purchase is complete, will be more inclined to pay a premium for goods or services. Also, companies can increase their foot traffic when they strive to assist the local community where their brick-and-mortar stores reside. Corporate social responsibility has become an indispensable component for the brand image of numerous companies, attracting an abundance of customers due to their ethical efforts.
A company’s internal structure is immensely boosted through corporate social responsibility, bringing in employees who are keen on making a positive world impact, Eric-Theodore Yepao notes. With this, businesses can achieve an emphatic team environment that employees can thrive in because a connection has been established with their corporation and the world that surrounds them, thus enhancing their workplace morale and overall productivity. A happy, determined staff will only serve as a competitive edge and a firm corporate social responsibility model on the company’s part is certain to supply that edge.
Eric-Theodore Yepao Shares Noteworthy Examples of CSR
To get a better sense of the competitive upper hand that companies earn through corporate social responsibility, Eric-Theodore Yepao, founder of Nordland Holding Europe, shares a few examples of businesses that have executed it impeccably.
In 2011, outdoor clothing and gear company Patagonia delivered a sustainability message that summarized its commitment to responsible consumption, a statement that would be the driving force behind its various other campaigns. A full-page advertisement was released, covering the environmental costs of the company’s top-selling sweater. In it, they asked consumers to think twice before purchasing the sweater. How did the customers respond to this transparent advertisement? Well, in the five years that followed, Patagonia reported an annual double-digit growth.
Mexican fast food chain Chipotle expressed a commitment to selling “Food With Integrity,” which includes the use of fresh foods free of artificial flavors or preservatives, sourcing meat that has been responsibly raised, and removing genetically modified ingredients from all of its products. In Chipotle’s case, they got further ahead of the curve because the company was a frontrunner in its causes, introducing these initiatives before fast food chains like McDonald’s incorporated their own similar intentions. Experts concur that when a big brand becomes distinguished for a particular cause, other companies experience difficulties in gaining traction and attention for accomplishing something similar.
Starbucks has long set the bar for its corporate social responsibility efforts, dedicating tremendous efforts towards sustainability and community welfare. Many of the company’s CSR goals, such as reaching a 99% target of ethically sourced coffee, creating a global network of farmers, applying green building throughout its stores, providing millions of hours of community service, and developing a trailblazing college program for its workplace personnel, have already been hit. All of these triumphs are the offspring of the coffee giant’s “Shared Planet” slogan, which suggests that everyone has the ability and responsibility to help take on bigger environmental and social issues that are resonating.