Impact of Consumer Information and Corporate Social Responsibility (CSR) on Corporations
Although consumer capability and convenience are driven by one of the key areas of innovation, i.e., the Internet of things (IOT), however, corporations must do more to protect consumer information. For example, WeMo home automation is one of the IoT products of Belkin International, Inc. WeMo welcomes its consumer’s feedback regarding its products and services. Its consumers post whatever they built and they also share it with the company, however, the company critically avoids the privacy concerns by discarding the personal information of the consumer.
Corporations must care about corporate social responsibility (CSR) because it has been integrated as part of daily business schedules by both small and large organizations. Online customers are willing to pay more for services and products from such corporations that are both environmentally and socially responsible. Also, corporations without presence of CSR are mostly found facing legal troubles and ending up in disasters. Other than this, CSR is not preferred by customers but employees too, it appears to be one of the significant factors in employee engagement. An example of CSR is the ‘5by20’ program by Coca-Cola company that was initiated to empower women.
With respect to consumer’s point of view, various factors are present with respect to their decision of purchase. A huge number of services and products offered by various organizations are present for the consumer in the market. Consumers are willing to rely more, trust and purchase products and services more of those corporations that protect their information and do practice CSR. Therefore, protecting consumer information and practicing corporate social responsibility can offer a significant competitive advantage to the company as it helps the company in acquiring a strong and loyal customer base.