For today's consumers, it's not enough for companies to just sell a quality product.
Many consumers have an expectation that the companies they buy from are working towards meaningful change.
As companies grow and evolve, many want to make a social impact while others are content to pay lip service towards philanthropy without reaping much benefit.
As a purpose-driven entrepreneur, social impact is at the forefront of my mission.
For me, fulfillment comes from doing work that consciously, systemically and sustainably serves or attempts to solve a local or global community need.
Let’s discuss what it means to be a social impact company, and how you can make meaningful change the centerpiece of your business.
Social Impact: What It Is And Why It’s Essential
Social impact is any change that addresses or solves social injustice and other challenges.
Social impact businesses or organizations achieve these goals through conscious and deliberate efforts in both their operations and administrations.
Many companies incorporate philanthropy to various degrees, but in order to be considered a social impact company, social impact must be your primary goal which can be developed through social skills.
Social entrepreneurship enjoys a number of benefits not limited to the positive social change they choose to pursue. They are better known, attracting customers and employees who want to support worthy causes.
Most companies want their goods or services to help people, but social impact companies go above and beyond to help create a better world and build solutions to real problems in the world.
Social Impact Companies and The Development Goals
Companies with social impact can influence positively in a number of different ways.
Vivid social impact examples may be providing people with clean water and sanitation to fighting climate change, there’s no limit to the positive social changes a business can choose to pursue.
The United Nations has set a total of 17 Social Development Goals (SDGs) that call all countries to action in a global partnership.
These can act as a guide in choosing what kind of social impact you want to make.
Companies With Social Impact Make a Difference |How?
A recent study showed that more than a third of consumers across the world would pay more for products or services that are making conscious efforts toward sustainability and creating social impacts.
Although it’s impossible for one person or organization to meet all 17 of these social impact goals, you can maximize your level of impact by choosing one goal and creating a detailed plan of steps to help you achieve that goal.
When viewed in their totality, social impact companies are important because they take profit-driven business models and make them sustainable.
Companies with social impact are not the complete solution to global challenges, but they are a step in the right direction.
That still requires significant shifts in public awareness, policy, and economic practices. But the rise of such organizations shows that businesses can be part of the solution.
The Reason of Social Impact Companies Rise
People are increasingly interested in social impact companies that aim to tackle social issues through their business models. As long as those issues continue to exist, you have a sustainable business model and revenue.
When companies with social impact have a strong purpose that serves the greater good, it motivates employees to give their best.
A clear purpose, vision, and mission can motivate your leaders and team.
The more employees know about the company's goals, the more they will be able to work together to achieve success.
Setting measurable goals and tracking progress will encourage everyone to contribute his or her best effort.
In addition to generating more fulfilled, inspired employees, social impact companies are also attracting investors.
Impact investing is growing at a rapid pace. Investors want to generate environmental and social positive impact and financial returns.
Businesses that strive to serve, add value and create impact in the world will be rewarded by the marketplace.
Even businesses built around other models can incorporate social impact into how they operate.
Purpose and profit are no longer mutually exclusive concepts: It's time for companies to understand that doing good for society makes business sense.
Social impact can take many forms, such as eradicating poverty, providing clean water and sanitation, and using clean energy to create affordable innovations.
Companies that put an emphasis on social impact not only achieve lasting impact by helping to make society a better place to live, but also gain a competitive edge over other firms that aren't focused on similar goals.
Consumers are looking to buy from companies with purpose and investors are looking to make social issues central to their strategy and operations.
The only way for companies to outperform in this new era will be for them to go above and beyond their competitors, measuring and communicating their superior performance in the process.
Our global society faces enormous challenges, but boldness and strategic thinking will reward companies that address those issues.