Corporate Social Responsibility is giving back to the community, empowering women and youths and transforming lives are just to mention but a few of the objectives that are targeted in this line of business. To firms, this is a calculated move.

Economics will tell you, the reason why firms operate is to minimize the cost of production and maximize profits unless they are non-profit making organizations. Investing in Corporate Social Responsibility has become so vital to brand building that corporates are really throwing in the card.

There are two outcomes generated from this initiative. One the firm’s client base grows because there are soo many philanthropists out there looking for a corporate firm to work with in support of such  programs and two, the brand’s name becomes engraved in the hearts and minds of the communities touched such that as the children grow up they associate themselves with that brand by default.

Giving out money to communities for social and economic development in the name of transforming lives is a financial bait that big firms throw to catch investors, sponsors, potential partners just to mention. It works so well that these firms expand their strategies to conquer and attract more big fish into their financial webs.

The throng of investors.

Lots of investors are very passionate about how they are impacting to the communities around them. The best way to channel their resources to the ground is through these corporate firms under the CSR department. The firms then put the resources in the specific departments and allocate a  reasonable amount of it to the real projects set for the communities. With such potential investors on board, they get contracts and massive opportunities to diversify, reach more clients generate more revenues.

Potential partnership.

When other firms see what they are doing, they come in to work together generate new ideas and identify potential leads. While partnering there is value brought on the table. Both the companies cut down on their costs on. Through the partnership, more resources are brought on board and you are able to reach more communities and paint a good name for themselves out there.

Sponsorship

The likes of USAID, UNICEF, UNEP, who are primarily Non-Profit Making Organizations, are so much into Community base based products. THrough CSR, these firms are able to attract such non-profit making organization and individual sponsors to sponsor the programs with cash or in Kind. With contribution from such powerful NGOs, the firms have it all wrapped around their fingers.