Companies
Corporate Responsibility

Why Your Company Should Be More Socially Responsible

Burgess COMMENTARY

Peter Burgess

Why Your Company Should Be More Socially Responsible Shutterstock The digital world and technology have brought vast amounts of information. Every person has an enormous library of data at their fingertips. With this opportunity has come a lot of transformation, including an emerging desire from consumers who are now looking for brands to emphasize social responsibility. In fact, they want to do business with companies that are market leaders in social responsibility. In 2017, Cone Communications published a study (registration required) about corporate social responsibility (CSR). In their reporting, they stated, 'Companies must now share not only what they stand for, but what they stand up for.' The key findings from the study included the following: • 63% of American consumers were looking to businesses to take the lead on social and environmental change. • 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. • 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. In an article for Business News Daily, Susan Cooney of Symantec stated that CSR is a critical aspect of recruitment. She said, 'The next generation of employees is seeking out employers that are focused on the triple bottom line: people, planet and revenue.” In the same article, Liz Maw, CEO of nonprofit organization Net Impact, noted, 'Sustainability ... is [now] vital for business success. Communities are grappling with problems that are global in scope and structurally multifaceted. The business case for engaging in corporate social responsibility is clear and unmistakable.” MORE FROM Civic NationVoice: How College Decision Day Launched At This West Virginia School Mitsubishi Heavy IndustriesVoice: How Leadership And Collaboration Will Help Manufacturing Thrive In The Digital Age The bottom line for businesses large and small is that you get a competitive advantage in regards to sales and also talent recruitment by not only claiming that you support positive social outcomes but also by walking the walk and demonstrating it. Why Becoming A B Corp Can Make Good Business Sense One of the ways your business can become a socially responsible company is by becoming a “B Corp.” You can gain more significant traction by demonstrating to your customers that you have a credential that sets your business apart from the rest. This certification is done by the recognized global social good nonprofit B Lab. B Lab achieves its mission to make the world a better place through business and corporate social responsibility by creating a global community. Also, it provides alignment of business missions through its partnership with Benefit Corporation, and it helps B Corps measure their impact. Around the world, there are currently 2,482 B Corporations in 50 countries and 130 industries. Some of these B Corps include brands such as Ben & Jerry’s, Patagonia, Causebox, Reynolds Jet and City First Bank. Obtaining the B Corp stamp of approval allows you to join a club of companies that are working together to achieve social good. • It helps your business differentiate itself from its competitors or, as B Lab states, the “pretenders.” • You’re joining a global movement for profit and social good. • It helps companies achieve greater impact, grow to scale and have higher valuations, all of which are elements that investors seek when looking to invest in businesses. • It helps your business attract talent in today’s market that is more responsive to companies that have a broader mission than just making money. • You’ll gain access to 80 partners who provide services to B Corps, including in technology and talent, which will help your company save money and obtain third-party services. • Once you become a B Corp, you have the opportunity to network with other B Corps during the annual B Corp Champions Retreat, which seeks to build a more inclusive and sustainable economy. Becoming Socially Responsible Of course, becoming a B Corp is not the only way to demonstrate that your company is socially responsible. • Create a volunteer program: When you develop a volunteer program, you are accomplishing a number of things. First, you are telegraphing to the public that your organization believes in social responsibility. Second, you are informing prospective employees that you have a value-add for them so they can contribute to society through your company’s volunteer program. Third, you are helping to retain talent within your company. • Give away a percentage of your profits: Many businesses today, including small companies, give a percentage of their profits, typically 10 percent, to charity. The contribution they make is a way for businesses to demonstrate that they are willing to put their money into an endeavor that will be making a social impact. Additionally, the owners of businesses may be able to take a tax deduction on the gift if they itemize charitable gifts. Business owners are operating in a globalized world, which means you're no longer only competing with your competitors in your local community. You're potentially competing with companies with similar products, services and even talent needs across the nation or even around the world. You're also competing with major global corporations that may deliver similar products at a much larger scale and a lower price point, and they may have more leverage to attract high-performing talent. An excellent way to set your company apart is to consider becoming a company that is socially responsible and doesn't just focus on profit as an element of success. Forbes Business Development Council is an invitation-only community for sales and biz dev executives. Do I qualify?