Kathy Wu Brady (she/her/hers) | Chief Operating Officer | Catchafire (New York, NY).
In today’s rapidly evolving business landscape, it is becoming increasingly evident that organizations cannot simply focus on profit margins and growth without considering their impact on society. A study by PwC revealed that CEOs are aware of this variable, with 64% considering corporate social responsibility essential for long-term business success. Stakeholders, including customers, employees and investors, are also demanding that businesses take an active role in driving positive change. Embracing social good is not only a moral imperative but a strategic necessity that leads to better business outcomes.
Throughout this article, we’ll explore the powerful potential that lies within companies that dare to align their strengths, gain input and support from stakeholders and adopt a visionary approach to building and learning for a socially responsible future.
Playing To Strengths
To embark on the journey of social impact, businesses should first focus on leveraging their strengths and expertise and designing a path that is aligned with their strategic priorities. Identify areas where the company can create the most significant positive change while aligning with its core values and capabilities.
A financial company, for instance, could leverage its expertise in finance to start its CSR journey. This company might choose to focus on financial literacy programs for underserved communities. Through workshops and educational resources, the company could empower individuals with essential knowledge on budgeting, saving and investing. This strategic approach would strengthen the company’s brand reputation, foster community connections and promote financial well-being for all.
Getting Buy-In
In recent years, there has been a notable shift in stakeholder expectations. Employees, consumers, investors and the community at large are no longer content with companies simply minimizing their negative impact. Instead, they demand that businesses play a proactive role in addressing social and environmental challenges.
Survey data shows that both consumers and employees are seeking purpose-driven companies. According to a survey conducted by Deloitte, 87% of Millennials believe that “the success of a business should be measured in terms of more than just its financial performance.” Many consumers today prefer to purchase products and services from companies that align with their values, while job seekers actively seek employment opportunities at organizations that contribute positively to society.
Taking the time to survey and connect with your constituents to learn what matters to them will help bring them along on the journey and help ensure customer loyalty and employee motivation.
Build And Learn With The Long Term In Mind
In the grand pursuit of social good, remember that great things often have humble beginnings. It’s absolutely OK—encouraged, even—to start with smaller steps that align with your values and vision. By doing so, you’ll lay a sturdy foundation for the long-term journey ahead. Embrace the process of building and learning as you go, for it’s in these incremental strides that profound impacts are made. Take the time needed to assess progress, celebrate victories and candidly acknowledge areas that could benefit from improvement. Every lesson learned is a stepping stone to success and an opportunity to galvanize your stakeholders.
To ensure you’re on the right path, leverage the most valuable resource at your disposal: your internal team. Empower passionate staff members by offering them the chance to engage in assignments dedicated to social good. You’ll be amazed at the commitment and creativity they’ll bring to the table when given the opportunity to make a difference. You might also consider bringing in outside expertise on a temporary basis. These experts can infuse fresh ideas and unique perspectives, elevating your efforts to new heights.
Remember, success in this endeavor doesn’t have to happen overnight. Embrace the notion of progress over perfection, and as you begin to see the return on investment—not just financially but also in terms of positive impact—use that evidence to advocate for increased investment over time. Trust that the collective efforts of your team, guided by purpose and commitment, will pave the way for a brighter, socially responsible future.
Embracing CSR is not just an altruistic endeavor but a strategic decision that can yield substantial benefits for organizations and the communities they serve. When organizations play to their strengths in the realm of CSR, they cultivate a virtuous cycle of success, strengthening their position in the market, building meaningful relationships with customers and contributing to a more equitable and sustainable world.
As the ripple effects of responsible business practices continue to gain momentum, it becomes evident that responsible organizations are not just improving society but are securing a brighter and more prosperous future for themselves.
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