Social impact is necessary for your Business
The future of successful business includes strong social impact strategies. In fact, according to a study by Deloitte, nearly 60 percent of businesses believe that social impact is key to their future success. There are a number of reasons for this shift in focus, including the fact that customers are increasingly aware of companies’ impact across the issues they care about.
As the world becomes increasingly complex, consumers are looking for brands that are willing to help make a difference. In order to stay competitive, companies are beginning to focus on their social impact as a way to attract new customers and increase revenue.
When done correctly, social impact can be a powerful storytelling tool. Well developed social impact strategies can create a halo effect that positively impacts a company’s revenue and reputation. Social impact and corporate social responsibility (CSR) are umbrella terms for activities in which organizations undertake efforts to reduce their harm or positively impact a specific area of society.
Social impact is a broad discipline of work encompassing everything from diversity, equity, inclusion, and belonging within a company, to decision making impacting sustainability, local community empowerment, policy design, and monetary support for involved programs (e.g. nonprofits, researchers, community activists, and etc.)
Increasingly, companies are realizing that their social impact extends beyond their walls and has a real impact on their bottom line. A study by Deloitte found that companies with strong social impact saw a 5 percent increase in revenue growth compared to those without. Another study by Boston Consulting Group found that for every dollar invested in CSR, there was an average return of $18 in increased revenue.
Consumers are more likely to buy from brands that support social causes. In fact, research shows that consumers are more likely to buy from companies with a strong CSR track record, even if the products themselves are not necessarily cheaper or better quality. This is known as the halo effect: the idea that one good thing about a company will make people think positively about all other aspects of the company as well.
One key benefit for companies, outside of revenue, is that it can help a company to attract and retain top talent. A study by Deloitte found that 73 percent of millennials would take a pay cut to work for a socially responsible company.
In conclusion, it is evident that companies with a strong social impact are more successful. This is because they have a positive effect on their employees, customers, and the community as a whole. They also tend to be more sustainable and profitable in the long run. As a result, businesses should focus on becoming more socially responsible if they want to be successful in the future.
