The role of social responsibility in promoting network business

Every entrepreneur is interested in the development of their business. In addition to the many factors influencing success, business also has a strong social component.

Today, careful consideration of society and the environment has become one of the key indicators of an organization's progressiveness, the commitment of its owners to European values. In this article, we will explain what corporate social responsibility is and what benefits it brings to business.

What is Corporate Social Responsibility

There is no universally accepted concept of corporate responsibility in management theory, but drawing conclusions from authorial definitions, business social responsibility (BSR, also known as corporate social responsibility) is

A dynamically changing set of voluntary actions by the company aimed at solving significant problems and contributing to the common good.

Being a socially responsible business means that the enterprise acts ethically and sustainably, works to ensure that its product does not harm the environment, pays attention to the public, and, to the best of its ability, contributes to solving environmental and social problems.

The concept of CSR is often perceived subjectively, but it should never be confused with simple charity, equated with government programs, or seen as a PR method.

What does social responsibility include

According to the UN, social responsibility can be internal and external. Within the basic, internal CSR, companies provide:

- workplace safety;

- stable, decent wages;

- social and medical insurance guarantees for employees;

- opportunities for learning and skills development;

- financial assistance to partners and employees in emergencies.

Internal social responsibility is aimed at improving processes within the company, which directly affects the quality of products and the company's development pace.

Among other things, each organization must pay taxes and fees in accordance with the rules of the country and region where it operates - this is its direct legal obligation.

External CSR includes:

- guaranteeing product quality and ethics;

- interacting with local communities and government organizations;

- volunteering and charitable activities.

External social responsibility is aimed at the company's environment. It creates a favorable environment for development and increases the level of loyalty of individuals and society as a whole.

Unlike legal responsibility, social responsibility does not imply strict norms and is voluntary. Also, businesses can choose the direction of their external social activities, taking into account the interests, values, and issues of their audience.

Advantages for socially responsible brands

The concept of corporate social responsibility has become a popular tool for ensuring the sustainable development of companies worldwide. Caring for society is rewarded multiple times and multiplies the company's profits in the long term. For example, organizations that approach the development of their social responsibility strategy wisely:

- optimize the efficiency of production facilities;

- attract scientists and experts to product development, thereby increasing its uniqueness and quality;

- enhance the company's reputation and image, popularizing the brand;

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- shape corporate identity;

- save resources on recruiting and retaining required specialists;

- develop distributor structure and improve partners' work efficiency;

We wrote about how to influence the productivity of the partner structure in the article How to unite and increase the productivity of distributors

- expands partnership with local communities and civil organizations;

- reduces the cost of acquisition and increases the lifetime value of new consumers through higher loyalty levels in their choices.

Social orientation provides a significant competitive advantage to businesses. As statistics show, consumers increasingly recognize the importance of the social component and strive to buy products/use services from companies that adhere to these norms.

Cone Communications/Ebiquity research shows that 91% of respondents expect businesses to take action on social and environmental issues. At the same time, 84% prefer to buy products and deal with responsible companies.

Not only consumers, but also investors are selecting ethical companies for their portfolios, those that have the right image in the eyes of their audience.A socially responsible enterprise creates the impression of a more reliable and sustainable business.

TOP Socially Responsible Network Companies

Throughout the history of MLM industry development, network companies have sought to be socially responsible. Often, such an approach is the foundation on which the organization is built. The FlawlessMLM team has compiled a list of the top 5 partner projects that incorporate corporate social responsibility into their processes.

1. Trades of Hope

Project website - tradesofhope.com

Year and country of establishment - 2010, USA

Product - handmade jewelry and other goods

The Trades of Hope business model is based on hiring women in difficult life situations to produce goods. In this way, they help women from Kenya, Uganda, Cambodia, Nepal, and many other poor countries earn a living.

2. Victoria Benelux

Project website - victoria-benelux.com

Year founded and country - 1991, Belgium

Product - jewelry

The main mission of Victoria Benelux is to support women, help them achieve self-realization, and attain financial independence. Essentially, the company was initially socially oriented. In addition, they provide financial support and promote the Think-Pink movement (an international campaign to fight breast cancer).

3. Déesse Cosmetics

Project website - deesse.com

Year and country of foundation - 1971, Switzerland

Product - decorative and skincare cosmetics, dietary supplements

Déesse created a corporate charity fund called "Déesse for Children" and support social projects in Romania with these funds. They also sponsor 2 children's homes, an elderly care facility, and a charitable dental practice.

4. Shaklee

Project website - us.shaklee.com

Year founded and country - 1956, USA

Product - dietary supplements, cosmetics, and household products.

In the 1950s, it was almost impossible to purchase environmentally friendly products in traditional retail outlets. Shaklee became one of the first companies to engage in mass production and sale of environmentally safe products.

5. Avon

Website - avon.com

Year and country of foundation - 1886, USA

Products - skincare and makeup, fragrances, clothing

Avon is a flagship of social responsibility in network marketing. Firstly, they support women affected by domestic violence. Secondly, they make a significant contribution to the fight against breast cancer - the company has donated over $800 million for breast cancer research. They have also launched the "Breast Cancer Crusade" program, which raises funds and purchases modern equipment for oncology clinics.

For example, thanks to Avon, the first mobile mammographic complexes appeared in Ukrainian oncology centers.

Network marketing companies have always aimed to support their distributors and employees - providing opportunities for career advancement and earning salaries based on efforts, not on any characteristic (gender, race, education).

Corporate responsibility programs add more weight and value to a business. When launching a new business or improving an existing one, consider its social component from the outset.