A lot gets said about corporate social responsibility. What does it actually entail? Why is it important? And how does one go about implementing it? If you Google “what does Corporate Social Responsibility (CSR) mean” you get this:

“Corporate social responsibility is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders.”

The main challenge for businesses to operate effective CSR is connected to definitions such as this. this definition basically says, “do nice things in a really wide range of areas to keep everyone happy”. As vague as this is to understand, it’s something that’s even harder for big businesses to actually pull off. A company must act within the bounds of their image, reputation and advertising strategies. Whatever idealistic movement they want to take also needs to be directly related to the business itself and must appease the ever-present stakeholders and stockholders involved.

If done correctly however, a well thought out CSR policy or campaign can really help to differentiate a company from its competitors and can turn abstract moral victories, into more tangible financial ones – all whilst helping out some environmental or social issue (everybody wins).

Clearly there’s a lot to talk RE: CSR, but one particular case of solid CSR that recently caught my eye in the media was a move made by the discount German supermarket chain Lidl to empower its employees. To set this story up, let’s briefly go back to Business 101: Keeping your employees happy and motivated is a key way of increasing production while effectively keeping costs down, therefore increasing efficiency. It also means lower staff turnover, high levels of loyalty and a dedicated and enjoyable atmosphere for everyone involved.

There are many ways of achieving this and they would normally require a complex combination of factors and circumstance to get it all right. At the end of the day however, the simplest method is often the best one. And one of the greatest (and simplest) motivators in just about every industry, anywhere in the world, ever, is money (to a certain extent obviously).

In tune with this golden rule, Lidl are set to raise their minimum pay higher than the English minimum wage in a move that will cost them £9 million outright. By the first quarter of 2016, the budget chain will give a pay rise worth £1,200 a year for more than half its workforce. While this represents a massive gamble, it does set Lidl apart in terms of its reputation. This is coming off the back of the rise in the national (UK) living wage next April, where some industries are nervous that the increased pay rise will effect prices of both products and services.

In response to this, Ronny Gottschlich, chief executive of Lidl UK, said: “We recognise that every employee forms an integral part of team Lidl, and each individual’s contribution is valued.” Instead of raising the prices of products/services as some retailers have predicted, Lidl have instead boldly predicted that not only would prices of goods and services NOT increase, but that the pay rise would actually lower them in the long-run instead.

Why is this move likely to be effective? Well first of all it is relatable to their target market. Budget shoppers will tend to be have less disposable income and therefore be more savvy with how they shop. The increase in disposable income will ensure that they can spend more safely, and this being directly connected to Lidl’s efforts, encourages brand loyalty and creates a much more positive brand image in the process: a brand that has gone above and beyond with the raise on the national living wage increase; a “retailer of the people” if you will. At a time when politics is at the forefront of the news and people’s minds, appealing to the public with some good old fashioned Corporate Social Responsibility could be considered a risk that’s definitely worth taking.