Doing Good While Doing Business

How Can You Make a Difference?

Corporate Social Responsibility

People are paying more attention to how an organization chooses to operate, how it treats its employees, and the impact it has on the environment. An organization that recognizes corporate social responsibility (CSR) is ethical and accountable for its social and environmental impact. CSR initiatives include using sustainable ingredients/products/processes, philanthropy, and how you treat employees. Corporate social responsibility isn’t a trend, it’s a large factor in where people spend their money and where they want to work.

In 2017, Cone Communications published a study on CSR. The study found 63% of American consumers were looking to businesses to take the lead on social and environmental change and 78% of people wanted companies to address social justice issues. 87% of consumers said they would be willing to buy a product or service based on a company's advocacy concerning a social matter and 76% of those surveyed said they would decline to do business with a company if it held views and supported issues that conflicted with their beliefs.

Identifying how your organization benefits society while also doing business is the first step, but the community won’t know about an organization’s CSR or sustainability without being transparent. Have a plan for CSR and have a plan to communicate it well with your audience. CSR and transparency go hand in hand. Consumers are willing to support organizations that are beneficial to society and they are looking for honest, open information about how an organization operates. If your organization operates in a sustainable way or benefits humanity, it’s important to create a strategy for communicating that with the public.

Implementing CSR

When you begin thinking about corporate social responsibility and the impact your organization has on society or the environment, focus on what will be most meaningful and relevant to your customers, employees, and partners. CSR shouldn’t be seen as a quick-fix, it’s a long-term initiative authentically tied to the core values of the organization. Getting employees involved with your CSR initiatives will heighten their engagement and motivation.

Purpose-Driven For-Profit Organizations

One best practice of CSR is to weave it into the business model. Take TOMS Shoes, for example. The founder, Blake Mycoskie, witnessed children growing up without shoes in Argentina and was driven to start a company that would match every pair of shoes purchased with a new pair of shoes for a child in need. Over 60 million pairs of shoes have been donated since TOMS was founded in 2006.

TOMS is a for-profit company, but for them, it’s about more than comfortable shoes and making a profit. People buy their shoes because they want to share in the good feelings of doing the right thing. People want to work for TOMS because the work is driven by purpose, values, and making a difference. The CSR is built into the brand experience.

Environmental Efforts

All organizations have a carbon footprint. Working to reduce this footprint benefits society. Does your company produce materials using recycled content or organic materials? If not, is it possible to switch to a more environmentally sustainable option? Is there a way to build a product that uses fewer utilities? It’s possible you are already an environmentally friendly organization. Are you conveying that in your communications with the community? Consumers are demanding higher standards for their products with regard to environmental impact.

Philanthropy

Invest in your organization’s local community and communities around the globe. There are many ways for an organization to contribute. It’s important to be aligned with the core values of the organization and the people that work there. Involve employees as much as possible with your philanthropy efforts. Share how your organization makes a difference in the lives of others by sharing a picture of employees fundraising for a local non-profit.

Ethical Labor Practices

Consumers want to spend their money where they believe people are treated and paid fairly. Your organization’s policies matter. Is there a reasonable work-life balance? Does your organization encourage an environment that is friendly and accepting? Many successful organizations are also “best-places-to-work” which makes sense because if the people that work there are happy, the consumer has a better experience.

When organizations hide their labor practices, this usually results in a crisis at some point. For example, Amazon is often praised for its success as a company and the number of jobs it has created. However, in the fall of 2018 Amazon announced a pay increase to $15/hour for all its employees to the public. They neglected to announce the fine print. Although they were increasing hourly wages, they were phasing out some other compensation programs that left some employees taking home less under the new salary scale. Employees were quoted in the media saying, “It’s a slap in the face.”

When considering if your labor practices are socially responsible, think about how the public would react if you were transparent about those practices. Striving to be transparent with the public is the goal.

Volunteering

Rather than donating funds, contribute your time to a cause that aligns with the organization. Again, get employees involved and make it fun for them to participate. Volunteering is a great team-building activity while also contributing to the overall good of society. You can establish a monthly or quarterly volunteer day, or maybe a yearly companywide initiative.

Consumers have spoken, they want organizations that are sustainable, ethical, and responsible for their actions. They place a higher value with organizations that prioritize communicating this information with the community. Commit to CSR authentically and don’t forget to openly share about how you’re contributing to the issues that matter to the community.