The Benefits of an Effective CSR Programs
CSR policies generate many benefits for organizations despite the huge costs incurred in running such programs. This explains the reason why many organizations have increased their focus on CSR programs. The first benefit that has accrued to CBA due to its CSR programs is an increase in its market share in the Australian market. CSR has helped CBA to build a strong brand that has seen it capturing the market, making it unshakeable even with the high rate of competition in the financial sector. According to Yoon-Joo (2017), CSR has a huge influence on purchase intentions of consumers hence making it a powerful marketing tool. The second benefit that CBA has reaped out of its CSR programs is its ability to engage both employees and customers hence creating loyalty and impacting on the society. This has helped CBA to continue expanding its business portfolio by differentiating itself from the competition.
The two major strategies adopted by CBA in its CSR policies aligns with the major components of CSR. CSR policies have four major components that make it easy to achieve the objectives of a firm. The first pillar is the economic pillar, which forms the foundation of CSR policy. This ensures that a firm is run in the most profitable manner. CSR helps firms such as CBA to achieve its targets by cutting running costs such as advertisements, hence improving brand visibility translating to high profitability. The second pillar is conformity with legal requirements. CBA operations have been done within the law save for a few cases of legal challenges faced by the firm. The third level is ethical standards while the fourth is philanthropic. CBA has excelled in this since it has invested many of its resources in transforming the society. According to Benlemlih and Bitar (2018), involvement in CSR by a firm leads to an increase in investment efficiency hence leading to increased returns. This accrues to organizations according to stakeholder theory that promotes information sharing.
CBA has strong CSR policies that has seen it a major player in the Australian and global market. The bank CSR policies touch on every sector of the economy hence making the bank an integral player in transformation of the society. The two main areas of focus by the bank is in the field of education and cultural inclusion. This has seen the bank making huge contributions in financial literacy among young children. It has also ensured a creation of an equitable, fair and just society in cultural inclusion that incorporates the minorities and women in its leadership. The bank has other CSR policies making it an active participant in all segments of the society. The only factor that is causing a big threat is the scandals that have hit the bank. The bank should therefore lay strategies to ensure that such issues of poor customer service do not end up ruining its reputation hence watering down its CSR policies.