Some would argue that businesses have a responsibility to incorporate some social impact initiatives into their business models. Regardless, the impact of doing so has an effect far beyond the communities the initiatives seek to benefit: it can help the business, too. For one, 64% of Millennials won’t take a job at a company if it doesn’t have values aligned with social responsibility.
A recent global report by Accenture found that customers are more likely to spend money with a company when their brand purposes reflect issues that matter to the consumer.
Perhaps you feel the pull to align your business with social impact and are wondering how to start. To alter your business’s impact while positively affecting your company’s reputation for future employees and customers, follow these steps to incorporate social impact into your business model.
1. Choose A Social Initiative Related To Your Brand
It’s important that when choosing a social initiative, it’s somewhat related to your brand. It wouldn’t make much sense to donate a percentage of all sales in your supplements business to sustainability efforts. Brands that do this well include Luna Bar, which are power bars made for women. They’ve committed to the social initiative of equal pay for women, which aligns with their brand messaging. They find ways to connect this initiative to their product, such as when they committed to paying each of the 23 women in the USA’s World Cup soccer team the $31,250 difference between their salaries and the male soccer players’ salaries.
Who does your brand serve, and how can you introduce a related social impact initiative? Chances are that if you created the brand you have now and it matters to you, the answer may be a social initiative that’s already close to your heart.
2. Align All Employees And Investors With The Impact
It’s important that not only the founders and decision makers of a business feel invested in the impact. Lian Pham, cofounder and Chief Heart Officer of The Company of Nomads spoke with me about their purpose to “be the change.” As a social impact company, the Company of Nomads has taken up several initiatives, such as creating a food hall in Houston featuring goods from local farmers and creating business incubators in the local communities.
“It starts with the founders aligning their life purpose with the startup and its social impact initiatives, of course,” Pham shared with me. “But we also believe that the employees should be invested with that purpose, and if potential employees don’t appear to be, then they shouldn’t be hired.” Pham says this extends to investors, too - “You can’t make long term decisions when you’re focused on ROI’s,” she noted. “So the investors must understand your long game and the impact you’re ultimately trying to make.”
3. Put Your Money Where Your Mouth Is
Empty words are insufficient. Just stating that your company is in support of a social initiative without proving it by allocating financial resources will not help. It doesn’t necessarily have to be a percentage of all sales given; perhaps once a quarter, all of your team members and employees commit one full day to volunteering at a soup kitchen or hosting underprivileged youth at your office for a workshop.
Document the company’s impact in an annual newsletter and on an “impact” tab on the company’s website. Including photos and testimonials will help, too. The idea is that your customers will understand the impact you’re working towards, and how supporting your business supports the impact. Another common way to do this is to put the power directly into the hands of the customer: such as DIFF Eyewear’s “buy one, give one” model with eyeglasses. For every pair of glasses purchased, they donate prescription glasses to someone in need. This confers a sense of social responsibility to customers.
Ultimately, whether you’re a social impact company or a business incorporating social initiatives, it’s your responsibility to give back in some way. Choosing a cause you believe in that resonates with your business is the best way to pass on good fortune and help those (or those causes) that need it most.
Are you ready to incorporate Social Impact into your business? Do you need a helping hand to navigate and ideate what that looks like? We can support you.
One10 exists to create a more inclusive and sustainable world. We believe that the power of business can be harnessed for good. One10 enable change makers and innovators to create meaningful social and environmental impact through mentorship, social impact consultancy, and social enterprise acceleration.
Apply now for the next intake http://oneten.com.au/pitchit or contact the team to access a range of services.
This article was first published here by Stephanie Burns.
