The pandemic exposed several social problems across the globe. From income inequality and worker displacement to population growth and resource usage, these long-existing issues were suddenly put under a spotlight. As governments and NGOs scrambled to develop protocols for the new normal, the private sector stepped up to do their part. In the past, businesses were expected to choose between purpose and profit. But more companies have realized that marrying the two was more beneficial for them in the long run.
Creating Social Value for Better Business
Companies would employ unethical business practices—price-gouging customers, cutting wages, or misusing resources—to maximize profits. But historical data and research have disproved this, stating that it can be more harmful to the company’s long-term growth.
In recent years, business owners have taken on a pie-growing mentality to their practices. The primary objective of this concept is to create social value. Doing so allows them to align their business goals with their CSR efforts.
Helping the Community
Creating social value in the community you serve improves your company’s reputation. It also creates an emotional connection between your business and the people you’re targeting. This is accomplished through different activities, such as a charity event that brings attention to a persistent problem in the area.
Supporting Humanitarian Causes
Most humanitarian causes can be related to a business. If you are in the food and beverage industry, you can hold a feeding program in poverty-stricken areas or donate a portion of your sales to a soup kitchen or food bank. You can also support other businesses, such as healthcare franchises and organizations that provide much-needed medical services.
Improving Operating Procedures
Another way for your company to create social value is by improving operating procedures and business practices. Charging a reasonable price for products and services, paying employees a living wage, and creating a fair and ethical work environment contribute to your company’s growth and longevity.
Protecting the Environment
Changing some of your practices to be more environmentally friendly allows you to create social value that benefits everyone. You can start small by using recycled products before expanding your efforts. You can partner with an organization, such as a waste management firm, that can improve your green practices.
The Future of the Business Landscape
As companies continue to discover the advantages of creating social value, it has become easier to make connections between purpose and profit. This can inspire others to do the same.
- The conscious consumer is more likely to support businesses that take their CSR efforts seriously.
- Employees are more likely to stay with an organization that treats them fairly. Additionally, it inspires them to do better.
- The example you set in your industry can create a chain reaction. Your success can inspire companies that are hesitant to make changes for fear of losing profit.
Don’t wait for another global crisis to adopt and implement changes that better your company. You have historical data and several studies backing the success of this combining profit with purpose. Grow your business in a way that is beneficial for all.