June 21, 2017
Turn Corporate Responsibility budgets into venture capital
Discover how you can boost revenue 20% with Corporate Responsibility practices.
Corporate social responsibility has long been regarded by corporations as a “spend”. Initiatives to drive Corporate Responsibility or sustainability were often considered cost centres. But in recent years, more and more companies and organisations are turning Corporate Responsibility to their advantage. They’re using Corporate Responsibility budgets as seed capital to drive revenue, boost brand image and shareholder value, increase employee retention, and reduce costs. And all while doing things that benefit society and the environment.
Companies with effective Corporate Responsibility strategies experience a 5-20% uplift in revenue.” – World Economic Forum Report on Sustainable Supply Chains
A study in 2015 by the World Economic Forum identified a comprehensive set of 31 proven practices that act as a guide for companies looking to leverage their Corporate Responsibility funds and sustainability initiatives to achieve a combined benefit of alleviating socio-economic concerns as well as driving corporate goals. This “triple advantage” of positively impacting the environment, society and profitability can be easily attained by companies that optimise their Corporate Responsibility strategies effectively.
Responsible outcomes are increasingly being rewarded by both markets and consumers, and the results are becoming too large to ignore. For example, when Walmart redesigned its packaging material for increased sustainability, the reductions in size and weight not only cut emissions by 2-3%, it also slashed supply chain costs by 3-5% through lower material cost, higher freight utilisation, and lower inventory cost leading to cost savings of $3.4 billion. On the other hand, companies that did not invest effectively in Corporate Responsibility and sustainable practices are at a competitive disadvantage.
Every $1 in corporate philanthropic contributions can generate $6 in increased sales revenue.” – Project ROI, a study conducted by IO Sustainability and Babson College
A study by Harvard Business School that over the course of 20 years, investing a dollar in companies focusing on business growth earned only $14.46 versus $28.36 earned by investing that same dollar in a companies that focused on environmental and societal issues while growing their business.
The case for leveraging Corporate Responsibility funds and tuning sustainability strategies to benefit business outcomes while creating greater socio-environmental impact is undeniable. While many companies that have acknowledged this and harnessed it to their advantage, those that haven’t could soon find that they missed a massive opportunity.
At Goodera, our enterprise, volunteering and partner platforms are designed to enable corporations in optimising corporate social responsibility, sustainability and volunteering initiatives, derive sustainability reports as per global standards ( such as GRI, SDGs, DJSI, CDP, and IR) and much more. Learn more about how your organisation can benefit here: www.goodera.com