Whether you are an NGO or a company thriving in an economy, Corporate Social Responsibility is one of the things you always need to keep in mind. CSR programs help companies and to improve their public presence, while also supporting the community in various ways that include education and creating a better environment.
However, CSR programs might look easy on paper, but there are always a few challenges that need to be navigated to ensure that these programs are effective. You will run into a few snags every now and again, but understanding them beforehand will make it much easier to deal with these challenges. In the following article, we will look at a few of the common CSR challenges an organization could face.
Top Challenges Of Running A CSR Program
We will not only focus on the challenges that NGOs have to deal with but all the various companies that employ CSR programs as part of their organization. The following challenges are what you can expect to run into while using some of the solutions to deal with these challenges as they arise:
Demands For Greater Disclosure
Once you start these programs and funds go into a CSR program, you will find that many people demand more disclosure of these activities. While it is possible to give them full disclosure of your activities, the results often need time before you can reveal them. Many activist organizations could potentially demand disclosure.
Solution: Doing the right planning beforehand can save you a lot of trouble. You can use the market research and planning to give backers and activists some disclosure of your activities.
In the modern age, people want value for their money and the days of the philanthropist is slowly phasing out due to economic constraints. With limited funding sources for company projects, there could be a few snags in finding the funding to support your CSR programs.
Solution: It might be one of those things you need to fund out of your pocket at first while allowing investors to see the process before involving them.
Investors are no longer interested in the sales of a company or their financial status as much as they always were. Nowadays, investors also want to know which CSR programs have been implemented to support the environment or social issues. If you don’t have any of these programs, it could be problematic to get backers.
Solution: Once again, you might need to revert to backing CSR programs out of your own pocket. As your results improve, you might also attract the attention of backers and investors looking to join the bandwagon.
Since funding sources are scarce, we cannot always afford to have failed CSR programs. However, this is unavoidable and you will eventually need to deal with failed programs. One of the toughest conversations one can have is with a backer to inform them that their money has been wasted. However, it can often happen.
Solution: Honesty is the best policy and once you see a CSR program is no longer viable, it might be best to stop the program. It is best to disclose this to all backers and have some expert insight.
Ineffective Market Research
For new companies and NGOs, it can seem like a waste of time to put in the effort to do some market research. However, market research is vital when it comes to having the right statistics and making accurate projections.
Solution: Instead of skimping on the market research process, you might need to invest a couple of bucks to find an expert to help you with the process. Additionally, there are tons of tools that can be used to predict the outcomes of projects and give you real-time analysis.
A CSR program is vital to the sustainability of any company. However, it can take some time to find the funds to get these off the ground. If you run into any of these snags, you can try the solutions to see how it works for you. We would like to encourage you to share any other CSR program issues you experience for us to help you in finding a solution.
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