Corporate Social Responsibility (CSR) is essential for both society and business. When businesses contribute to communities, it helps brands build a good reputation, but also encourages trust and open access to new markets.
By engaging in CSR, businesses can be socially accountable to themselves, the communities they engage with, stakeholders, and the general public. With all that comes with CSR, also comes myths that continue to misrepresent what corporate social responsibility is truly about.
In this article, we’ll debunk these myths.
Myth 1: CSR is Meant for Businesses to Avoid Tax
Some people think businesses do CSR just to dodge taxes. That’s not true. CSR isn’t a loophole; it’s about doing good for your community, your employees, and your environment.
In South Africa, research shows there’s no clear link between CSR and tax avoidance. Companies that genuinely care about CSR, helping communities, going green, or treating employees fairly don’t use it as an excuse to avoid paying their share. In fact, those companies are often more responsible with taxes, not less.
When businesses contribute to society, they’re not just ticking boxes; they’re helping create a better environment for South Africans to live in through initiatives they deeply care about.
For small businesses and entrepreneurs, CSR isn’t about reducing tax bills. It’s about building trust, credibility, and a reputation people can believe in. Do it for the right reasons, and the benefits shall follow. The benefits include loyal customers, engaged employees, and stronger community ties.
Myth 2: CSR is Just Good PR
While CSR helps brands boost their image and maintain accountability amongst stakeholders and their audiences, it isn’t just meant for that. Think of good PR as an unexpected benefit that can come with social responsibility.
However, companies should be prepared to engage in this responsibility without reaping the benefit of good publicity. Engaging in CSR for the wrong reasons can lead to companies losing the plot and getting distracted from the true meaning behind social initiatives.
When companies engage in initiatives merely for the sake of PR, it will most likely reveal itself, potentially leading to a breakdown in trust. This could lead to a domino effect of negative factors, such as damaging vital relationships with communities, losing access to markets, non-profit partners, and the business’s wider base of supporters. True CSR is about making a tangible positive impact, not just looking good.
Myth 3: CSR is Too Expensive
Business owners sometimes make the mistake of assuming that CSR would cost the business too much money, not realising that engaging in this responsibility doesn’t always mean releasing a large cash injection into a social project.
Your organisation can drive impact by engaging in corporate volunteering programmes. Corporate volunteerism is the process by which companies encourage employees to dedicate efforts towards charitable causes. In the case of CSR, these companies formalise this process by identifying charitable causes their employees can engage in.
According to Double the Donation, 96% of companies have found that their employees who participate in volunteering are often more engaged than employees who don’t.
Myth 4: Employees Don’t Care About CSR
The idea that CSR is just for the employer and that employees don’t care is common, and it is false. Research shows that CSR involvement can contribute to employee retention, with almost 85% of millennials believing that making a positive difference matters more than being recognised professionally.
Another study on the experiences of employees participating in organisations’ corporate social responsibility initiatives revealed that employees are primarily driven by love in participation in social initiatives. When companies actively engage in such efforts, it not only attracts employees but also boosts their engagement and develops a healthy perception of management.
Myth 5: CSR is Only for Big Businesses
One of the biggest misconceptions about CSR is that it is only reserved for big businesses. However, small businesses can engage in CSR initiatives too. In fact, there are a variety of corporate social responsibility ideas for small businesses.
Small businesses can make a real difference, too. This doesn’t have to be something massive that costs millions. It can be as simple as helping a local charity, volunteering, creating a skills development programme where you rely on the skills your business specialises in, or thinking outside the box on ways to create impact and help your community.
