Power & Purpose Blog

Why Social Impact is Business Currency

Social Impact is Business Currency

Social impact is at the very core of what we stand for and the work we do, and we are passionate about it! We work hard to create social impact programs for businesses that help generate both financial and social profits. In fact, we believe businesses can be some of the most powerful agents in creating local and global solutions.

Impact Is Brand Image

It’s a notion that business leaders are beginning to embrace—the business world is changing; it’s not just about the profit endgame anymore. Consumers have created a “Responsibility Revolution” where social impact is image and this impact is part of the new currency of brand building for business. A great social impact strategy should be tied to business strategy…analyzing possibilities for social impact using the same frameworks that guide business choices. Social impact programs fulfill several wonderful objectives: provide culture building, leverage core competencies, fulfill/support company objectives, help build public brand, meet community needs, and leverage the relationships of a company stakeholder system.

Technology Is The Great Instigator

Consumers are helping to shape the way companies “do” business. Social technology gives consumers power and an unprecedented voice. The evolving customer is able and willing to punish and reward brands. Along with that, social media and the ever-changing technology of our current society allows us to use that power for social good. Harnessing that power is the key to using our impact to its full potential. A perfect example of this is the incredible influence of our emerging leaders of our future is that 92% of millennials and 71% of business leaders reject profit as the sole measure of success (Deloitte, 2015). In short, our young generation of consumers don’t accept the old standard of business. Financial profit is not their only measure of success. The “new” consumer demands that corporations be held accountable for the outcome of their actions and policies, for good and bad. Transparency is essential in corporate social impact to harness consumer loyalty. 

It’s Not “Business As Usual” Anymore

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Because of tech-dependent and tech-saavy consumers, companies are entering a new phase in their relationship with society. The first phase involved businesses’ philanthropy, or donating money to causes to show business concern about community problems and commitment through financial support. In the second phase, Corporate Social Responsibility (CSR) created a placeholder for companies to take actions to minimize social and environmental harm. The third phase is now about solutions: companies synergizing their core services and products with social purpose. The key: for companies to move beyond generic solutions for social responsibility that are fragmented and disconnected from business strategy.

Employees Come and Stay Because of Impact

Millennials employees are also creating a values shift. In fact, businesses with a strong sense of purpose are 57% more likely to have a high level of employee satisfaction, and are 63% more likely to gain new employees (Deloitte, 2015). By 2025, Millennials (1977-1995) will represent 75% of the world’s workforce with three in four Millennials seeking employment from a company that supports a social cause through active involvement (Millennial Impact Report, 2014).

Your social impact strategy is unique to your company. It inspires and unites your stakeholders – from your employees to your suppliers to your customers – to create more value for everyone. It generates opportunity, innovation and competitive advantage. This is the future of business.

Maggie & Hector

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