Corporate Social Responsibility Report:
People Increasingly Orient Themselves with Social Causes. How Do You Earn Their Business?
Corporate Social Responsibility* (CSR) is a business model where companies balance social good with business growth. Well-executed CSR programs integrate social impact goals with business growth objectives that have a direct positive impact on the community and on the company’s bottom line.
Helping your community work toward financial wellness can enhance your brand, expand your client base, and build your business.
Brand & Business Benefits of CSR
Businesses in the financial industry are capitalizing on CSR programs to offer a way to achieve brand differentiation and connect with potential clients on a deeper level. Americans have been the most giving people in the world for the last 10 years, according to the World Giving Index; and people want to do business with companies that align with their values.
Financial services businesses are capitalizing on CSR programs to offer a way to achieve brand differentiation and connect with potential clients on a deeper level. Companies leading CSR campaigns receive benefits that support their core business objectives, including:
Financial Education is a Preferred Method of CSR for the Financial Industry
Financial literacy is a cause that brings people together – and large financial institutions have recognized the opportunity, shifting about 4% of their total marketing budgets toward financial education according to the Consumer Financial Protection Bureau.
Business Model Alignment: One of the most critical factors for a successful CSR campaign is alignment with your business model. For those in the financial industry, financial literacy education is a cause that aligns perfectly with your brand, can be integrated naturally with your existing services, and provides a cohesive experience through prospecting and client communications.
Widespread Support for the Cause: Another key benefit of using financial wellness for CSR is the wide support for financial literacy and the economic empowerment agenda. People have a deep connection to this cause, as many have gone through personal challenges themselves. Further, the cause’s focus on helping people work toward the American Dream is one that garners vast support.
The Rise of CSR in the Financial Industry to Align with American Values
Corporate Social Responsibility (CSR) programs have increased from $120 million in 1990 to over $20 billion in 2018.
CSR programs balance purpose and profit – providing social good while maximizing business returns.
Risks of Implementing a Financial Wellness CSR Program
Although CSR campaigns offer tremendous upside potential, there are also risks. When a campaign is not executed properly, it can harm a brand’s reputation and impede the company’s business growth. The most common mistakes made when implementing social cause programs include:
