A great product or service isn’t enough. Consumers are no longer looking merely for value in price. They’re seeking companies with values. To be successful in today’s marketplace, what you need is to build a business with social impact.
Consumers want businesses that align with their values. They want companies that are aware of the larger social, political, and environmental concerns in society and are actively addressing them. That’s why all entrepreneurs should aim to build a business with a social impact.
But isn’t social impact only for larger businesses?
That’s a valid question some entrepreneurs might have. The answer is no. The size of the business or the domain that it operates in is irrelevant. You can build a business with social impact whether you’re a multi-million dollar SaaS startup or a neighborhood restaurant.
What’s needed is awareness, intent, empathy, and commitment. And increasingly, these will be differentiators in the market. Your intent to create social impact will influence the decisions of those who buy your products.
Consumers, media, analysts, and the social media landscape are always watching. Companies shouldn’t just focus exclusively on their bottom lines. They should focus on making a positive difference in the world.
If you don’t commit to building a business with social impact, one of your competitors might. If there are only marginal and temporary differences in your product or service, a commitment to a cause that concerns consumers could turn out to be the difference.
This doesn’t mean you have to turn your business into a nonprofit. You can still focus on generating revenue and profits. But you should also show unequivocal and credible support for larger issues.
If you realize that social impact is crucial to your business, the question is, where do you begin? Here are some proven ways in which you can build a business with social impact.
Be committed to the process
Don’t treat commitment to social, political, and environmental issues as temporary endorsements that you occasionally need to make. It’s a process and not an event. For that, you need to be committed as a company. Ensure that all employees, beginning with those in leadership positions, know the need to be invested in the process. See it as another investment that your firm has to make.
Secondly, working for social impact cannot be a piecemeal effort. Halfhearted measures can be quickly spotted, and you might do more damage than good to your brand equity. What you need to demonstrate is continuous and credible involvement.
Finally, tie it to your mission. What’s a higher-order benefit that your product or service offers that improves people’s lives? If you can figure it out, you can link your business to a lasting social impact.
Be bold and speak up
It’s easy to offer tentative support to causes. Usually, this happens once there’s no other alternative. But consumers prefer businesses that are bold enough to take a stand and speak up when it matters.
The media and market will know if you’re on the sidelines on an issue. When you do speak up, they will realize that you’re simply being opportunistic. But if you courageously endorse a cause before it gains momentum, people and institutions will have a favorable view of you.
Don’t wait for the industry or a trade association to comment on a cause first. If you feel that there’s injustice being done, raise your voice. You might lose some customers. Some might use social media to criticize you. But there will be plenty more who will support you.
Walk the talk
Making statements is easy. In fact, that’s the easiest part. The hard task is to get involved by contributing to a cause. One of the most effective ways to build a business with social impact is by identifying organizations that work on issues that matter to you and giving them money.
The important aspect is to regularize it. Donating shouldn’t be a one-off affair. It should be a monthly or annual affair. You can also partner for specific events or drives of an organization.
You can set aside a part of your profits for a specific cause. Consumers would appreciate it if you make such a promise and demonstrated it with evidence. Finally, don’t turn your donation into a public relations event. State it subtly on your website or marketing collateral.
Donate in multiple ways
While monetary contributions are important, that isn’t the only option. If you’re a small business or startup that doesn’t have adequate funds, there are several ways in which you can donate and help create social impact.
Your business can donate goods or services. You can donate the product or service that you make to a charity in your neighborhood. It doesn’t have to be significant. It only needs to help that organization. That’s why you should talk to them before donating.
For example, if you’re an accounting business, you could help a local charity with their accounting. If you’re into hardware, you could donate your old server to a nearby organization. If you’re a marketing agency, you could help an organization create campaigns and find donors.
Start local
It’s tempting to comment on global issues and donate to national or international causes. While that needs to be appreciated, you can start closer to home. In all likelihood, this is where your involvement and support could be needed the most since these problems may not have visibility for the media or large donors to support them.
It could be a homeless shelter, animal rescue unit, or children’s library in your neighborhood. Since you know the area, it would be easier for you to reach out and be a part of the activity. You could donate money, goods, or services or help them with your expertise.
Such causes wouldn’t need large sums of money. As the organization gets immediate help, they also don’t have to waste time looking for sponsors. Additionally, this creates positive brand equity for your business in your locality.
Hire from marginalized groups
One of the most demonstrable ways to build a business with social impact is by hiring individuals from marginalized groups. Start by conducting a human resource audit of your employees. Are there enough women, black people, people of color, indigenous people, or those from other sidelined communities?
If not, start actively hiring individuals from these groups. Actively and intentionally seek people from communities beyond where you normally recruit from. Giving such individuals the right opportunity could create a credible social impact.
Giving representation to marginalized groups also extends to your vendors and contractors. Ensure that you have a diverse group of external business associates. This not only helps you build a business with social impact but also widens your business network.
Be mindful of your company’s environmental impact
It’s one thing to support a cause, but it’s an entirely different thing to analyze your own impact. All your donations won’t matter if people find out that you’re not living by your principles. In the social media-driven landscape we live in, that can immediately impact your sales and revenue.
For example, do you source ethically? This could be a challenge, but at least you can start by better understanding where you source from and minimize its negative impact, if any. Technology allows you to find ethical suppliers and partners from around the world. Even if you can’t transform suddenly, start making small steps.
Once you start ethically sourcing, you can include that in your marketing. There could be price ramifications, but some customers are willing to pay extra for such products and services. It might take time to get everything in order, but it’s something no business can afford to ignore.
Support and celebrate your employees
Creating social impact shouldn’t be seen as a corporate duty. It should be seen as a company philosophy and principle that requires the involvement of all your employees. The first step is to hold open conversations with your employees on diversity, equity, and inclusivity programs.
This will bring to light problems that you may have overlooked. Maybe employees from marginalized groups in your business don’t feel heard. Maybe they feel that they don’t have opportunities to grow. Listening to them is the first step toward solving those problems.
Secondly, encourage your employees to support causes they believe in. Give them the time and space to participate in those activities, and you will start developing a culture of inclusion and positive change in your business.
Finally, celebrate your employees’ involvement with nonprofits or charities. If someone has run a marathon for a cause or donated time or money to an organization, appreciate their efforts in your company newsletters and town halls. You should also applaud them on your social media channels. This helps humanize your business to your followers.
In short
These tips will help you build a business with social impact. If creating lasting positive change isn’t reason enough, remember that entrepreneurs who build a business with social impact will have greater positive visibility, supportive customers, and friendly media coverage.