The catchphrase ‘corporate social responsibility’ (CSR) became popular in the late 60s and refers to an organisation’s total responsibility towards the business environment and how it operates. Ever since its inception, it’s been used to cover a range of ethical issues from the environment through to human rights and while it originated in philanthropy, it now supports projects that are external to the normal business activities of a company that aren’t directly related to making a profit.

All the world’s largest companies have CSR strategies, indeed the KPMG Corporate Responsibility Reporting 2013 found that more than three quarters (83%) of the top 100 companies in Australia by revenue now report on CSR, compared to 57% just two years ago (1).

Suffice to say CSR is a business approach that is here to stay but why is it so important to a franchise business?

A solid corporate social responsibility strategy will set a franchise business apart. While the main aim in implementing a CSR policy should be to positively contribute to and impact on society, such a plan can also have affirmative effects on both your business culture and bottom line. In order to create social change and have an impact that will filter through to consumers, a franchise business needs to create a concrete CSR strategy that’s consistent with both their core values and their unique position within their industry sector. A valuable CSR program should ensure customers feel good beyond the product or service they’ve purchased because they’re effectively supporting a company that supports a cause they wholeheartedly believe in.

When it comes to finding suitable franchisees, the culture that exists within a franchise company and its corporate behaviour, provides valuable insight into the principles a franchise business holds and can be the difference when it comes to recruitment decisions. Your socially minded approach could be a determining factor separating you from a potential franchisee. By creating a CSR plan and nurturing a certain culture, a franchise business will attract and align themselves with like-minded franchisees.

Howards Storage World’s marketing manager, Dominic Panetta explains that supporting Bear Cottage Children’s Hospice is consistent with Howards’ core values and the support received from their community of franchisees is invaluable.

He says, “Part of Howards’ core values include a focus on helping and inspiring our customers to become more organised. This sense of support and inspiration is also reflected in our attitude towards providing support for Bear Cottage which provides ongoing support to terminally ill children and their families. Our franchisees are very supportive of Bear Cottage and are actively involved in raising funds via the sale of Bear Cottage product in-store; as well as being involved in multiple charitable events throughout the year such as participating in the City to Surf as well as local area activities where funds are raised to support Bear Cottage.”

Through their support of Bear Cottage, Howards offers their franchisees another reason to invest.

From a franchisor’s point of view, social responsibility has several benefits for brand awareness and increased market opportunities. The franchisor can raise brand awareness at a national level by undertaking certain schemes and individual franchisees invested in the strategy can help raise brand awareness at a regional level.

A good CSR strategy can also help to enhance your relationships with local governments, community organisations and members of the public. When a franchise business gets involved with a community or social cause it becomes a symbiotic relationship: more exposure for the franchise means greater exposure for the charity or cause they support. It also creates a positive profile of the franchise business in the public eye as franchisees strive to become closer to their customers.

Corporate social responsibility needs to be consistent with a franchise’s core values and supported by the entire network; when executed well, it’s a win-win for franchise, employees and the various causes being supported.

A good CSR program will build employee engagement, engender teamwork and will assist with employee retention. According to the Australian Charities Fund, CSR programs enhance employee motivation (2). Employee engagement will then have a positive effect on customer loyalty, revenue growth and will drive business performance.

CSR is vital in attracting and retaining top talent and for Howards Storage World’s new staff and new franchisee the induction program includes a visit to Bear Cottage.

Panetta explains, “Included in every induction program within Howards includes a visit to Bear Cottage for new team members to gain a better understanding of the support Bear Cottage provides and how Howards can assist in that process. Additionally, throughout the year, our group office hosts a number of fun fundraising initiatives which helps to keep Bear Cottage top of mind among our staff.”

CSR should start at the boardroom table and be included in a business strategy, setting the tone at the top and incorporating CSR into business objectives and responsibilities of franchisees. Much like implementing a marketing or sales program, there is a process to developing a CSR strategy, which is typically created through an analysis of various external opportunities as well as internal policy changes.

For Howards Storage World, their support of Bear Cottage transpired from the personal values of the group’s directors. Knowing they wanted to utilise Howard’s profits to give back to the community, Howards carefully considered several charities before deciding to lend support to Bear Cottage.

Panetta explains, “Bear Cottage needed help. They didn’t receive any state or national government support and because they had a low profile and no brand awareness, they were relatively unknown as a charity. Howards also wanted to partner with a charity that provided national support, similarly to the national support provided by Howards to its franchisees.

“Additionally, Bear Cottage and Howards Storage World’s group office shared a similar geographic location on Sydney’s Northern Beaches. This allowed Howards to provide new inductees with the opportunity to personally visit Bear Cottage in order to have first hand experience with the charity we support. “For these reasons, Howards believed we could lend weight to Bear Cottage in order to bring more attention to the charity.”

Beyond charitable contributions, Howards also is very conscious of supporting other forms of corporate social responsibility. This takes on the form of a variety of eco-friendly bamboo consumer products sourced from sustainable growth forests together with the well renowned Howards Catalogue which is printed on PEFC Certified paper – both of which are harvested from sustainably managed forests.

Perhaps your franchisor expresses CSR through funding and providing resources to worthwhile causes or maybe you produce products or provide services that are in the best interest of society (or a combination of the two); whatever emphasis you place on it, CSR aims to ensure that companies take account of their social, economic and environmental impact.

Howards Storage World franchises are now available.