Submitted by Jacob Shriar
Your company needs to be socially responsible because people are starting to value socially responsible companies more than ever.
As companies try harder to appeal to millennials, they need to think about becoming more socially responsible, as that is very important to them.
Besides all of the benefits that being socially responsible brings, it’s the right thing to do.
As consumers, we’re becoming more aware of what’s going on in the world around us, due to the power of the internet and social media.
As we find out the damage that many companies are doing, they’re becoming increasingly angry and more demanding that companies make an effort to show that they care.
The concept of core values and purpose for your brand is becoming more important, so being able to embody that purpose through social responsibility will be a key differentiator for companies in the future.
The Research For Being Socially Responsible
Let’s look at a few interesting pieces of research that proves how important corporate social responsibility is.
When thinking about how to appeal to millennials, think about this: they will spend more than $200 billion annually starting in 2017, and $10 trillion in their lifetimes.
Consider these statistics from a study done about millennials and social responsibility:
â— 1 out of 3 millennials boycott or support businesses based on the causes that matter to them.
â— 4 out of 5 millennials said they’re more likely to do business with a company that supports a cause they care about
â— 3 out of 4 millennials believe that corporations should create economic value for society
Another incredibly interesting study was a 2003 study from Stanford which found that MBA graduates would be willing to forgo an average of $13,700 of their annual salary to work for a socially responsible company.
A survey done by Nielsen found that 50% of consumers would be willing to pay more for goods and services from socially responsible companies.
A study by marketing firm Cone Communications and Echo Research found that 90 percent of shoppers worldwide are likely to switch to brands that support a good cause, given similar price and quality.
In a Society for Human Resources Management study, companies with strong sustainability programs had:
â— 55% better morale
â— 43% more efficient businesses processes
â— 43% stronger public image
â— 38% better employee loyalty
Benefits Of Being Socially Responsible
Besides just being the right thing to do, there are many benefits for your company being socially responsible.
1. Earn Respect From Employees
Your employees will respect you if you create an environment that shows empathy and compassion.
It’s hard not to respect someone that gives back, whether it’s time or money.
Earning your employees’ respect is one of the hardest things to do, so this is an easy way to build and keep that respect as a good leader.
2. Engage Your Employees
Employee engagement is so important, and such a hard thing to get right. One of the most important ways you can engage your employees is by including them and giving them more responsibility.
If you allow your employees to volunteer, or if you allow them to participate in a social responsibility committee, that will make them more engaged at work.
That engagement will lead them to work harder and be more productive for you.
3. Improve The Community You’re In
You should show your love and support to the community that you’re in because it’s the right thing to do.
If your community is doing well, they’ll likely spend more money at your organization, creating that full circle.
4. Build Your Talent Brand
Being socially responsible is one of the most powerful ways to build up your talent brand, and start attracting amazing talent to your organization.
Also, the people you hire will be a much better culture fit.
People want to work at companies that they can get passionate about. They’ll also be more passionate at work because they’ll be more bought in to the company.
5. Access To Capital
Accessing capital and raising money can be one of the biggest struggles for companies, and being socially responsible can make it a little bit easier for you.
There are investment firms that specialize in helping social responsible companies:
â— Kapor Capital
â— Obvious Ventures
â— Investors Circle
6. Have Happier Clients
Customers want to do business with companies that care about being socially responsible, and they’ll continue to do business with these companies.
Being socially responsible can help you gain new clients as well as maintain long term relationships with them.
Is Your Company Socially Responsible?