Why Should Local Brand Focus on Corporate Social Responsibility (CSR)?: Why Should Local Brand Focus on Corporate Social Responsibility (CSR)?

Building consumer relations with the company’s brand is more important than ever since people tend to buy a product based on not only the quality but also how they emotionally feel connected with that brand. Having a glance at most of the established brands around the world, we can see clearly that most of the famous companies are more likely to use both marketing and advertising as well as Corporate Social Responsibilities (CSR) in order to make community contributions and subsequently it helps increase their sales. However, nowadays in Cambodia, the concept of CSR is in its infancy and it is being interested in only a few big corporates while more local brands should also focus on CSR in order to benefit and build their reputation in the long-term sustainable growth. They can run CSR programs in various formats such as by funding the poor community, using the individual time to serve the community, or providing expertise by sharing information, skills, services to assist any vulnerable group, and so on.

1. Connect Emotionally to Draw Customer’s Attention

Psychologically speaking, people are more likely to purchase any products from a socially responsible company, which cares about the same issues as them because they believe that they will take part in supporting the poor or grassroots communities. In fact, CSR is seen as a key contributor for businesses to generate more income in long-term sustainability because it is a potential approach for businesses to get social recognition as assisting corporate image enhancement, brand awareness, and brand reputation.

2. Build Brand Image in the Public

Businesses seriously consider their reputation in the public and they can try to build positive perspectives from their target audience so that they can gain more respect and trust from them. Obviously, if the contribution is full of human interest and very impactful, it will be covered by several media outlets. The socially responsible company will be mentioned in the newspaper and the public will gain more understanding about the socially responsible business. Also, this is the best strategy for advertising your business in the newspaper and it is very effective since it is an indirect advertisement.

3. Improve Marketing Growth

Businesses can get more opportunities to run effective and efficient marketing and public relations programs through their community activities. In addition, it is a unique gate for businesses to promote their brand to media and markets, where they cannot do it through their regular marketing practices.

4. Increase Your Company’s External Benefits

Generally, for other external benefits, CSR helps draw more perception of investors, donors, sponsors, and the financial community as well as build relationships with other companies, governments, the media, suppliers, peers, customers, and the community in which it operates. Interestingly, CSR provides businesses more chances to show their willingness to social cohesion to all related stakeholders such as customers, suppliers, government, and other community groups.

5. Increase Workforce and Ethics for Staff

With a practice of CSR, the business will gain more competitive advantage and reputation as well as strengthen the ability to attract and retain workers or members, customers, clients, and users. In addition, it maintains employee morale, commitment, and productivity since they will take part in the specific activities of socially, environmentally, and economically benefiting the vulnerable community and the poor.

Conclusion: As a general rule, in Cambodia CSR has traditionally been seen more in a picture of philanthropic activities, where companies make profits by any means and then donate a share to charitable causes. However, it is not just the only way that company can run the CSR program. Obviously, the company can still implement CSR programs by volunteering and sharing information to educate people in the grassroots community regarding social and environmental concerns. This involves taking account of the social and environmental impacts of business activity on a range of stakeholders, working to enhance positive returns and reduce negative externalities.

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