Is CSR a Sign of a Broker’s Integrity and Work Ethic?
The role of corporate social responsibility (CSR) is growing in global corporations, and has over the years become infused with their identity. Giving back is more than a small charitable act, but rather a reflection of a company’s overall ethos.
While every business is – and has to be – focused on profits, perhaps well-performing companies who choose to only focus on profits may be unintentionally unveiling their lack of compassion towards the society and hence their clients. Whether this is the case or not, the public has become increasingly aware of more than just the products a company offers, but rather the brand it represents.
The financial industry is under even higher scrutiny considering the extent of a fintech company’s involvement in the overall economies of countries. But many brokers have risen to the challenge and proved people’s perception wrong, by being highly cautious of social responsibility and the positive effect they can have on their local societies and the world.
CSR in the Fintech Industry
Brokers aren’t an episode of the Oprah Winfrey Show, hence why many may choose to hide behind the low expectations about their social responsibility. But over the last couple of years, brokers have become more actively involved in charities, donations and giving back.
In a recent poll, over 65% of brokers say their companies engage in CSR-related activities yearly, and over 30% of those respondents say they participate in at least one CSR event every quarter.
From planting a tree for every new client to holding a weekly food drive to help the needy, brokers have held their own weight in the CSR scene. These small actions can make a significant change over time.
Do a Broker’s CSR Practices Effect You?
Of course, licensing, trading conditions, support, platforms and many more technical details are the main concern for every trader choosing to trust a broker. But should you overlook their share of giving back?
While some brokers who don’t give back may still be ideal for trading, remember that the safety element every trader is looking for goes beyond funding methods, and compensation funds. You have to consider the type of people running the broker and how ethically-conscious they are.
2020’s COVID-19 pandemic which led the world into an unprecedented global lockdown resulted in hundreds of thousands losing their jobs and falling below the poverty line. This gave us a glimpse into the ethical standards of brokers who chose to intervene and give back at a time when most businesses were struggling to stay afloat.
The stability of the FX industry at a time when many industries are losing track, is a great opportunity for brokers to give back to their local communities, raise funds to help the needy, and straight up donate to relief efforts.
What Do a Broker’s CSR Efforts Really Mean to You?
Simply put, ethical practices leak from CSR work into maintaining ethical guidelines and practices within the services offered to you, the trader.
The truth is the financial markets are filled with conflicts of interest, and this has been the natural course of businesses since the early days of corporations. There are those who are just trying to lure in the most vulnerable traders and willing to blur the line of ethical practices and take advantage of those who are not well-versed in market conditions.
And there are those who offer a pure portal to the market, where traders can equally and fairly get their opportunity to participate in online trading.
Spotting a broker’s CSR efforts, is spotting their leniency towards being an ethical corporation, and carrying a sense of responsibility alongside, naturally aiming to make profits. It simply reflects a general view that the business is more than just a profit-making machine.
As a trader, you have the power to choose brokers who not only offer the best trading environment and resources to support your growth, but also those brokers who best align with practices you support. For traders, that means choosing brokers who benefit society through CSR programs and deliver their services ethically, with empathy and responsibility.