Drag the boxes on the left into the P & L statement and see the effects. The effects are an estimate and depend on the companies operations, size and industry. The text at the bottom of the page explains how this area of CSR affects the P & L statement.

Organisational Governance
Environmental Policy
Labour Policy
Workplace Safety & Health
Product & Service Issues
Supply Chain Management
Corporate Philanthropy Programmes
CSR Leadership

XYZ PTE LTD

Profit and Loss Statement for the year ending DDMMYYYY
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NoteS$S$
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Less:Sales Returns0.000.00
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Add:Other Operating Revenue0.00
Less:Other Operating Expenses
Selling & Distribution Expenses0.00
General & Administrative Expenses0.00
Finance Expenses0.000.00
Net Operating Profit0.00
Add:Extraordinary Revenue0.00
Less:Extraordinary Expense0.000.00
Net Profit0.00
Earnings0.00

Having organisational governance structures increases your brand equity by demonstrating to the public that your company takes CSR seriously, and therefore increases positive feelings associated with your brand. Done early and well, this also gives your company a tool to differentiate yourself from your competitors.

Results:

  1. Increased brand equity increases the likelihood that consumers will choose your product over your competitors, leading to increased revenue. It also increases your attractiveness to investors, especially socially responsible investors (SRIs), which reduces the need of your company to raise capital and to incur finance costs.
  2. Better management systems reduce the chance of CSR/PR disasters and the costs involved in damage control, in effect decreasing your G & A Expenses.

This involves extracting resources responsibly, using environmentally-friendly materials, reducing waste and wastage, and increasing energy efficiency. These efforts increase your brand equity by demonstrating to the public that your company takes CSR seriously, and therefore increases positive feelings associated with your brand. Done early and well, this also gives your company a tool to differentiate yourself from your competitors.

Results:

  1. Acquiring materials sustainably ensures a stable source of them, stabilises prices, and decreases the fluctuations of COGS.
  2. Decreasing waste and wastage reduces unnecessary material and transportation costs. Increased energy efficiency reduces energy costs. Both reduce your S & D, G & A and COGS.
  3. Increased brand equity increases the likelihood that consumers will choose your product over your competitors, leading to increased revenue. It also increases your attractiveness to investors, especially socially responsible investors (SRIs), which reduces the need of your company to raise capital and to incur finance costs.

Improving labour policies increases your brand equity by demonstrating to the public that your company takes CSR seriously, and therefore increases positive feelings associated with your brand. Done early and well, this also gives your company a tool to differentiate yourself from your competitors. Happy employees are your best ambassadors to the general public of your company's efforts in promoting CSR, as they speak from a position of trust to their family and friends, increasing brand equity further.

Results:

  1. Happy employees feel a sense of ownership over the company's well-being, are more productive, makes sacrifices, and are less likely to leave. This reduces your G & A and S & D costs as you produce more per employee and spend less on recruitment and training.
  2. Increased brand equity increases the likelihood that consumers will choose your product over your competitors, leading to increased revenue. It also increases your attractiveness to investors, especially socially responsible investors (SRIs), which reduces the need of your company to raise capital and to incur finance costs.

Improving the standards of CSR along your value chain increases your brand equity by demonstrating to the public that your company takes CSR seriously, and therefore increases positive feelings associated with your brand. Done early and well, this also gives your company a tool to differentiate yourself from your competitors. It also reduces instances of bad publicity that may arise from your suppliers' practices.

Results:

  1. Increased brand equity increases the likelihood that consumers will choose your product over your competitors, leading to increased revenue. It also increases your attractiveness to investors, especially socially responsible investors (SRIs), which reduces the need of your company to raise capital and to incur finance costs.
  2. Reducing the chances of bad publicity arising from your value chain acts as a form of insurance on your market share, ensuring your consumer base and taking away the reasons for them to make a switch. This also removes the need to seek and nurture alternative business relationships, which decreases your COGS.

Improving the workplace safety and health conditions of your company increases your brand equity by demonstrating to the public that your company takes CSR seriously, and therefore increases positive feelings associated with your brand. Done early and well, this also gives your company a tool to differentiate yourself from your competitors.

Results:

  1. Less employees getting injured during the course of work reduces the need to hire replacement staff, your insurance and medical pay-outs, extraordinary expenses arising from costly lawsuits and damages.
  2. Increased brand equity increases the likelihood that consumers will choose your product over your competitors, leading to increased revenue.

Ensuring that your products are safe to use, serve the function(s) they purport to do, and providing responsive service to your consumers throughout the entire duration of your product life cycle boosts your consumers confidence in your products and company.

Results:

  1. Happy consumers recommend your products to their family and friends, improving your market share, and revenue.
  2. Happy consumers do not return products to your company, decreasing sales returns.
  3. Having safe products in the market reduces COGS by reducing the chance of costly product recalls.

Take the lead in how CSR is done across and within industries by setting the standard, and get involved with everyone to improve CSR standards across your industry as a whole by sharing your experience. This is a great way to show that CSR is more than a PR exercise, vastly increasing your brand equity by demonstrating to the public that your company takes CSR seriously, and therefore increasing positive feelings associated with your brand. Done early and well, this also gives your company a tool to differentiate yourself from your competitors.

Results:

  1. Increased brand equity increases the likelihood that consumers will choose your product over your competitors, leading to increased revenue. It also increases your attractiveness to investors, especially socially responsible investors (SRIs), which reduces the need of your company to raise capital and to incur finance costs.
  2. Increased brand equity also results in your company becoming the company of choice. This results in the best talents applying for employment and current employees holding on to their jobs. Employees are highly motivated, feel a sense of ownership over the company's well-being, are more productive, makes sacrifices, and are less likely to leave. This reduces your G & A costs as you produce more per employee and spend less on recruitment and training.

Contributing to the development of poor communities locally and internationally, exhibiting the knowledge that active involvement is more than just money, and committing for the long term increases your brand equity by demonstrating to the public that your company takes CSR seriously, and therefore increases positive feelings associated with your brand. Done early and well, this also gives your company a tool to differentiate yourself from your competitors. Such activities also boost employee morale and commitment to the company.

Results:

  1. Increased brand equity increases the likelihood that consumers will choose your product over your competitors, leading to increased revenue.
  2. Happy and motivated employees who see meaning in their work and feel a sense of ownership over the company's well-being are more productive, makes sacrifices, and are less likely to leave. This reduces your G & A and S & D costs as you produce more per employee and spend less on recruitment and training.

Reap the benefits of CSR by tackling these issues simultaneously, and incorporating these philosophies into the planning and operations of your company.