Report: Well-designed CR positively impacts sales, marketing, engagement


A study commissioned by Verizon and issued by IO Sustainability and Babson College has found that well-designed Corporate Responsibility programs lift sales, increase shareholder value and improve employee productivity.

Project ROI provides a global assessment of the range of business impacts of CR policies, processes, and programs.

Among the study’s key findings:

  • CR programs can have significant positive impacts on sales, marketing and customer engagement.
  • They can increase revenue by as much as 20 percent, command price premiums up to 20 percent and increase customer commitment by as much as 60 percent.

Conducted by IO Sustainability and Babson College and sponsored by Verizon and Campbell Soup Company, Project ROI stands out from other CR studies in its breadth of data coverage, focusing sharply on metrics and return on investment.

The study assessed over 300 studies primarily from rigorous, peer reviewed research. The study analyzed results and determined the financial and business related value CR delivers.

Project ROI analyzed existing research and data to assess CR’s value to society and to businesses’ bottom line, outlining a clear roadmap of best practices for companies that want to improve the effectiveness and authenticity of their CR approach.

Other key findings from Project ROI:

  • Project ROI further proves the value of CR in driving employee satisfaction, productivity and retention, and provides investors and community leaders with proof points for investing in or doing business with a particular company.
  • Corporate responsibility nurtures, grows and protects brand and reputation value, potentially by up to 11 percent of a company’s total value.
  • Over a 15-year period, companies with effective CSR programs have on average increased shareholder value by $1.28 billion. There is also an increased potential valuation for companies with strong stakeholder relationships of 40 percent to 80 percent.
  • CR impacts employees in very positive ways. Companies with a strong CR commitment can see increases in employees’ productivity by as much as 13 percent. In addition, these companies can experience reductions in turnover by as much as 50 percent, with workers willing to take up to a five percent pay cut to work for a company doing CR well.

Yet, as the study also finds, it is not enough for companies to simply conduct CR programs; they must do them well. Companies that fully commit to doing CR are rewarded by their customers and investors, while those that are viewed as insincere or dabblers do not benefit from CR or may lose market share and customer loyalty.

To see the full downloadable Project ROI report, visit www.projectROI.com. (Registration required)