Over the past two decades, the merits of corporate social responsibility (CSR) have become more clear than ever. As the planet faces challenges like climate change and growing social inequity, many companies are keen to prioritize the well-being of their workers and communities. Most professionals have come to define CSR as the responsibility companies have to make positive societal contributions. But what about corporate social investment (CSI)? What does corporate social investment mean, and is it distinct from CSR? Let’s take a closer look.
CSI, or corporate social investment, describes the effort a company makes to improve the lives of internal and external stakeholders. These investments are voluntary and not directly related to the efforts of companies to turn profits. One real-life example of a CSI is The LEGO Group’s commitment to finding sustainable raw materials for its products and working toward carbon neutrality.
CSIs can involve areas other than the environment. For instance, The Pfizer Foundation, the charitable arm of Pfizer Inc., aims to decrease health outcome disparities among nations with lower access to vaccines. Within the U.S., the Foundation partners with organizations looking to achieve health equity through outreach to Black communities. Companies hope to have measurable corporate social impact through strategic social investments.
The terms “corporate social investment” and “corporate social responsibility” are often used interchangeably.
To some extent, they can describe the same thing. However, CSR is a broader term that might include everything from diversity, equity, inclusion, and belonging (DEIB) efforts to charity to volunteer work and community partnerships.
When we talk about CSI, though, we tend to zoom in on individual investments made by companies. Financial donations are perhaps the most obvious investments companies can make, but they might also invest time, labor, and other resources into causes that align with their values.
In doing so, companies can maximize their social impact as part of an overall CSR strategy.
Besides having a genuinely positive impact on the world and its people, companies have more than a few reasons to begin implementing social impact solutions.
One of the most attractive parts of corporate social investments is the ability for companies and organizations to create programs that work for them. Smaller and mid-sized companies might have different social priorities than Google, Starbucks, and other multinational corporations. Local businesses often have significant ties with their communities they can leverage for effective CSIs.
Before you commit capital or other resources to specific CSIs, ask yourself and your team the following questions:
Perhaps margins are tight, and you don’t feel comfortable committing cash for your company’s CSIs. Maybe you’re pulling long hours at work, and the opposite is true. A range of CSI initiatives are available for your organization.
In many cases, employees are more inclined to open their wallets for donations if they know their employers will match their contributions. Groundswell offers a nimble, fast-acting platform that matches donations instantly and distributes donations within 24 hours—a lot quicker than some of the bigger CSR software providers.
Putting in sweat equity for meaningful causes is preferred by many employees. Outings can help foster camaraderie or healthy competition between departments.
Choosing charities or organizations for grants and getting that money to the recipient is perhaps the most straightforward way to make CSIs. Consider choosing a CSR platform that doesn’t charge distribution fees.
One of the best strategies for corporate social investments is for companies to look after their employees. Creating a fund for workers to dip into during times of financial hardship can help retain top talent and develop employees who can better focus on their job duties.
Some of your employees might be interested in contributing to donor-advised funds, which are asset repositories managed by a 501`(c)(3) organization. Donors can choose recipients and realize all sorts of tax benefits with this unique charitable arrangement.
Try not to get overwhelmed by the amount of effort it sometimes takes to implement successful CSI programs—start small by identifying the key components of your company’s strategy. Your immediate goals might be to increase engagement among your employees and have them feel like they’re contributing positively to the world around them.
Over time, your company might get some good press and become known for its charitable endeavors, which is another fine goal to have as a business executive. As your company grows, it’s important to find an accessible CSR software platform that also has the capabilities you need.
Groundswell fills what we believe is a yawning gap in CSR and CSI platforms. Many of the well-known CSR software providers are either too expensive or too chaotic for many smaller or mid-sized businesses to adopt. To make things worse, a lot of the so-called “heavy hitters” are pretty light on customer service.
We recognized that most executives and CSR representatives want an efficient, affordable software platform that makes their lives easier. Making a positive impact shouldn’t be a luxury. Groundswell’s digital solutions reflect our deeply held belief that being able to change the world should not be reserved for the extremely wealthy.
To learn more about how Groundswell makes it simple to create CSI and CSR campaigns that support your goals, reach out today to book a personalized demo.
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