KANSAS CITY, Mo. (11/15/13)--Kansas City, Mo.-based Mazuma CU's monthly blog is tackling a five-part series on "Community Collaboration," with the first article discussing corporate social responsibility.
The series, written by Mazuma President/CEO Brandon Michaels, focuses on the critical role corporate social responsibility (CSR) plays in the future growth of financial institutions and notes that today's marketplace demands that businesses reflect principles of CSR in their strategies for growth. Credit unions in particular offer an inspirational model for the role of CSR in a growing enterprise, said the $487 million asset credit union.
"Credit unions have emerged as a bright spot within the [financial services] industry, enjoying higher levels of customer loyalty from members who actually own a part of their institutions," said the first article, "Community-Based Corporate Social Responsibility Platforms: The Next Key Building Block for Credit Unions?" "Member loyalty, in turn, is fueled by community engagement and a proactive CSR platform. Indeed, credit unions are a model for how a financial institution can drive growth through community connections based on CSR."
"The marketplace expects financial institutions to respect the communities in which they operate. Doing good and giving back is no longer a luxury. A well-developed CSR program addresses those issues, and functions as a valuable corporate asset. To that end, a proactive CSR platform will support an overall business model," Michaels wrote.
Six elements drive an effective CSR program: Mission, alignment, engagement structure, communication and sales, and evaluation. "To lead the marketplace and rise above competition from other financial institutions, a credit union CSR and community investment platform should embrace all six key elements," Michaels said.
Credit unions "have a unique opportunity to deliver value to consumers that elevates the credit union brand through integrating CSR into business strategy," he concluded.
Future articles will address:
- "Financial Education for Young Adults: A Community Imperative";
- "Why Giving Your Employees Financial Education Makes Smart Business Sense";
- "Small Business Growth Strategies: The Unique Advantages of a Credit Union"; and
- "Creativity and the Growth of Business: Why a Credit Union Should Care About the Arts."
To read the article, use the link.