Reduce costs and improve productivity: Many economic experts believe that CSR with the application of more modern and cleaner technologies results in lower operation costs. With its newly installed environment-friendly technology, the Chinese producer of porcelain Jiangxi saves approximately 10 million US$ every year with reduction of 6% of water consumption, 65% of liquid waste and 74% of gaseous waste. An effective system of human resource management with sensible salary and bonus schemes, clean and safe working environment, staff development opportunities, health insurance and education policies also helps reduce costs and improve productivity significantly.  

Increase turnover: Hindustan Lever is a branch of Unilever in India. To overcome the difficulties in inadequate and low quality supplies of cow milk, the company built up a programme to train the local people to breed milch cows, improve the basic infrastructure, and establish an association of cow milk suppliers. Two years later, the supplies of cow milk increased as high as 40 times, resulting in the factory working at full capacity. The turnover and profit of Hindustan also jumped accordingly.

Brand and reputationPracticing CSR also contributes to improving the prestige of a business and the value of a brand. A Korean Busan-based furniture manufacturer, after obtaining a forest resource friendly certificate issued by the government, succeeded in pushing its turnover and penetrating the American and European markets. Though the selling prices increased 20%, the company continuously received big orders.The SELTA branded products, initially created by Japanese businessman Youshi Nakamura who had been pressed by the problems of traffic jam and pollution in Tokyo 10 year ago, are loved not only in the domestic markets but also in Australia, Switzerland, Canada, Sweden, etc. for their low prices, convenience and environment-friendly aspects.

Attract and retain employees Attracting and retaining talents is always concerned by businesses as the human factor decides the productivity and quality of products. Businesses having fair and satisfactory salary schemes, good insurance policies, education and training opportunities, and unsoiled working environment are more able to appealing and keeping good staff.Owners of businesses practicing good CSR always believe that they are given return on the investments to better workplace policies, as stated by the CEO of Rohto, a company always proud of its CSR activities: “All that we have done for our staff has benefited Rohto—labour efficiency, product quality, faith and creativeness.”

On the other side, employees also express their own ideas and views about CSR. ¾ of them revealed that they are more “loyal” to employers who are more accountable to the community. A recent research showed that half of the 2,100 interviewed MBA accepted lower salaries provided by companies with better CSR.