Improved public opinion. People in society have a more positive view of organisations that act responsibly. An investigation measuring consumer responses to CSR campaigns found that businesses that have a campaign that communicated their CSR activities effectively, resulted in an improved public opinion (Pfau et al., 2008). People with a positive opinion of a business are more likely to become customers and more likely to contribute to positive word of mouth.

Improve customer loyalty/brand image. Studies have found that customers prefer to buy from brands that are seen to be socially responsible and a large proportion of customers, 84% in one study, would switch to a brand if it was associated with a good cause (Pfau et al., 2008). Organisations should, therefore, ensure they are aware of the causes their customers and potential customers value. By both conducting and communicating CSR activities that are in line with the values of consumers, businesses are less likely to experience their customers switching to another brand and more likely to attract new customers.

Ability to charge premium prices. Customers are generally more willing to pay higher prices for socially responsible products. This includes products with a reduced negative environmental impact and from organisations with ethical working practices. One study found that people were willing to pay up to 16.8% more for socially responsible products (Tully & Winner, 2014). Being able to charge higher prices allows businesses to recoup the increased costs of socially responsible activity and could lead to improved profitability.

Enhanced recruitment, motivation and staff retention. The social responsibility of an organisation in its activities, is important to the people that work for them. As a result, firms that have a good CSR record attract more candidates in recruitment (Adetunji & Ifeanyi, 2013). This can lead to a larger pool of candidates to choose from, improving the overall talent and competitive advantage of the organisation. Staff have been found to be more motivated when the organisation’s CSR strategies are in line with their own values (Kim & Scullion, 2013). Improved motivation leads to higher productivity and reduced turnover. Lower turnover in turn reduces the high costs involved in recruitment.

Reduced pressure from government and other stakeholder groups. Governments can make operations difficult for organisations that are suspected to be undertaking unethical activities. This may include regular inspections, requesting evidence of operations and fines. All of which can be time-consuming and expensive. Pressure groups may publicise unethical business behaviour, organise protests and arrange boycotts. All of which can lead to a very negative brand image. By conducting and communicating socially responsible activities, governments and pressure groups may ease the pressure and turn their focus to other, less ethical organisations.

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