Over the last few years, the concept of being socially conscious has become mainstream for the public—and businesses are following suit. Corporate social responsibility, or CSR, is the term used to describe a company’s self-enforced commitment to being ethically responsible in the way it conducts its business. In this post, we will discuss why CSR matters and what it means for a B2B SaaS company to be socially responsible.
Why CSR matters for the B2B SaaS industry
When it comes to the B2C sector, it’s easy to see the importance of making a statement about social responsibility since purchasing decisions often have a significant emotional component. While companies in the B2B sector have different challenges to face in this department, the importance of establishing yourself as a socially responsible business cannot be underestimated. Here are a few reasons why:
The B2B buyer is changing.
In the past, avoiding social issues was considered a safer move for B2B companies than taking a stand, but the landscape is changing. In fact, a report from 2020 showed that 75% of B2B buyers consider a company’s ethics as a factor in their purchasing decision.
You need to stand out in the increasingly competitive SaaS market.
As the B2B SaaS market is increasingly flooded with new competitors, CSR can be used to help your business stand out from the crowd based on your demonstrated values. If a buyer is attempting to implement a CSR initiative at their own company, it makes sense that an organization with a social responsibility and values system already in place will earn a place at the top of their list.
You will attract and retain high-quality employees.
The public’s interest in social responsibility certainly extends to potential and current employees who are more likely to be committed to a company with values they can get behind. “The Great Resignation” has negatively affected many businesses that have yet to get on board with modern employee needs. On the other hand, this has freed up many talented individuals looking to use their skills at a company that shares their values, so it’s in your interest to make it known that yours does.
What does it mean for a B2B SaaS company to be socially responsible?
Committing to corporate social responsibility means paying attention to and mitigating your company’s negative impact on society. There are three main sectors of societal impact that CSR focuses on: environmental, social, and economic. In this section, we will talk broadly about what each sector includes and questions you should ask to make sure you are successfully demonstrating social responsibility in these areas.
Environmental
Environmental responsibility refers to the actions your company is taking to be environmentally friendly and reduce its carbon footprint. You need to consider how your business practices are affecting the environment. Are you contributing to greenhouse gas emissions, excessive waste or pollution? If so, how can you reduce that impact or eliminate it altogether?
Read about Google’s environmental initiatives.
Social
The social aspect of CSR requires that a company is ethically responsible for its employees, stakeholders and customers. Does your company pay a livable and competitive wage for all positions across the board? Have you established a diversity, equity and inclusion framework within your organization? Are your website and software accessible to everyone?
Economic
Economically responsible businesses make financial decisions with social responsibility in mind, meaning that profit is not the only consideration. Does your company make deals with the cheapest suppliers, regardless of their business ethics, or are you willing to spend a bit more for a company that shares your values? Does your company examine its salary system to ensure there are no inequitable pay gaps, even if it means spending a bit more on compensation?
Taking the first step
While committing to social responsibility can feel overwhelming, the payoffs for your B2B SaaS company will be well worth the effort. A great first step in establishing your CSR initiative is having a strong internal communication strategy to get everyone on board.
For assistance in getting your internal and external communication strategy just right, Content Matterz can help. Contact us today to get started.