Social responsibility: worthy, but worthwhile?
Insurance professionals considering establishing CSR programs should know what the data has to say about CSR’s significance to consumers.
But what about the 29.6 million small businesses out there, which include many of the nation’s agents and brokers, that make up 99.9 percent of all U.S. businesses? They are more likely to have lower profiles and fewer resources than large corporations. Are CSR efforts worthwhile for them?
Whether brokers or agents have a workforce of five or 50 — or even if they are solo entrepreneurs — there is value in supporting a cause, giving back to a community and doing good.
Small steps, big rewards
Insurance professionals considering establishing CSR programs should know what the data has to say about CSR’s significance to consumers:
- 92 percent of consumers have more positive images of companies that support social or environmental issues.
- More than half of consumers are willing to drive somewhat farther and pay slightly more to shop at a store viewed as socially responsible.
- Nearly 52 percent of a business’ reputation is based on its perception as fair, ethical, having a positive influence on society, and the importance of its products and services.
Putting the CSR wheels in motion may be easier than you think. Like any strategy, it requires first setting a firm foundation, then deciding how much you can give, either through cash donations or by devoting sweat equity.
Do not get overwhelmed by the myriad of giving options out there. Choose those that align with your values as well as those of your customers. Perhaps that means teaming with a national cause such as the American Red Cross or, in Aflac’s case, Habitat for Humanity, Children’s Miracle Network Hospitals®, the Aflac Cancer Center, and My Special Aflac Duck™, a social robot designed to be a meaningful companion to children facing cancer. However, there are also a great deal of local opportunities: area libraries, homeless shelters, soup kitchens and organizations that collect school supplies, to name a few.
The big idea for developing a CSR strategy is to choose efforts that hold personal significance, make sense for your business, resonate with clients and are sustainable. As an example, Aflac is a pioneer in cancer insurance and cares passionately about the treatment and cure of childhood cancer, our primary philanthropic cause. In fact, 75,000 independent sales agents licensed to sell our products donate more than $500,000 each month from their commission checks and also participate in fundraising activities. Our 23-year effort to help kids with cancer not only makes business sense, but it is long-lived.
The verdict on CSR’s value
Let us get back to the main question: Are socially responsible programs worthwhile for small businesses, including those run by agents and brokers? Absolutely. Companies of every size should care about and commit to CSR not only because it is the right thing to do, but because it is important to their customers.
CSR has a direct effect on:
- Employee attraction and retention. According to the 2020 Workplace Report, 80 percent of 13- to 25-year-olds want to work for a company that cares about and contributes to society. More than half would not work for an irresponsible corporation.
- Employee engagement. The 2015 Community Involvement Study revealed that 89 percent of companies have found a positive correlation between employee volunteerism and increased engagement at work.
- Consumer engagement: Eighty-seven percent of consumers will purchase a product because a company advocated for an issue they cared about. Conversely, 76 percent will refuse to purchase a company’s products or services if they learn it supported an issue contrary to their beliefs.
According to Reputation Institute, the concept of philanthropy tying back to brand identity is transcendent across the world’s top companies. Their 2018 Corporate Reputation Survey found that companies with the strongest consumer reputation consistently demonstrate delivery of brand promises through corporate citizenship. The emotional connections consumers develop to these brands as a result drives supportive behavior like the willingness to purchase a company’s products, recommend the brand, invest or even work for the company.
When establishing a sustainable CSR strategy, keep in mind that slow and steady wins the race. It will take time for your efforts to garner consumers’ trust. Whether a big or small business, your work in helping solve societal challenges through doing good can really pay off personally and for the business.
Catherine Hernandez-Blades is senior vice president, chief brand and communications officer at Aflac. Her responsibilities include Advertising, Brand Strategy, Social Media and Corporate Communications, including Aflac’s award-winning corporate social responsibility program.
This article is for informational purposes and is not intended as a solicitation.
Aflac herein means American Family Life Assurance Company of Columbus and American Family Life Assurance Company of New York. WWHQ | 1932 Wynnton Road| Columbus, GA 31999.
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