In recent years, there’s been a shift in the corporate world. A new breed of businesses has been emerging, and these businesses are different in a few key ways:
First, they’re focused on long-term growth. They’re not looking for quick wins; they’re in it for the long haul. Second, they’re socially responsible. They’re aware of the impact they have on society and they take their responsibility seriously. Third, they prioritize employee satisfaction. They know that happy employees lead to a more productive workplace. And fourth, they’re innovative. They’re constantly looking for ways to improve their products, services, and processes. Recent examples of businesses that fit this category are Warby Parker, Amazon, Ben & Jerry’s, and Patagonia.
What’s driving this shift? It’s simple: customers are demanding it. In an era where social media gives everyone a platform to speak their mind, customers are increasingly vocal about the kinds of businesses they want to support. They want to know that their hard-earned money is going to a company that shares their values.
I’m not running for sainthood. I just happen to think that in life we need to be a little like the farmer, who puts back into the soil what he takes out.
– Paul Newman
So what does this new corporate culture mean for CEOs? It means that it’s no longer enough to run a successful business; you also need to be a socially responsible business. Here’s what you need to know about this new breed of business.
The Importance of Being a Socially Conscious Business
As a CEO, you have a lot of responsibility. Not only do you need to run a successful business, but you also need to be socially responsible. But what does that mean, exactly?
Being a socially conscious business means being aware of the impact you have on society and taking steps to mitigate any negative impact. It might mean investing in renewable energy sources or using recycled materials. It might mean partnering with local organizations to give back to the community or supporting employees in their efforts to lead healthy lifestyles. Whatever form it takes, being socially conscious is no longer optional—it’s expected.
And there’s good reason for that expectation. Consumers today are more informed than ever before— thanks to social media, they have instant access to information about the inner workings of businesses and the people who run them. As a result, they’re more selective about the businesses they choose to support. If they don’t like what they see, they’ll take their money elsewhere. That’s why it’s so important for CEOs to focus on being socially responsible businesses—because it’s what customers expect and demand.
What Does Being a Socially Conscious Business Look Like?
There’s no one-size-fits-all answer to this question; every business is different and will therefore have different priorities when it comes to social responsibility initiatives. However, there are some common themes among socially conscious businesses:
A focus on environmental sustainability: This means that businesses are taking steps to reduce their impact on the environment. This might include investing in renewable energy sources, using recycled materials, or reducing waste.
A focus on social impact: This means that businesses are focusing on making a positive impact on society. This might include partnering with local organizations, supporting employees in their efforts to lead healthy lifestyles, or investing in education initiatives.
A focus on employee satisfaction: This means that businesses are focusing on creating a workplace that is enjoyable and fulfilling for employees. This might include offering flexible work hours, providing opportunities for professional development, or offering perks and benefits that appeal to employees.
An innovative spirit: This means that businesses are constantly looking for ways to improve their products, services, and processes. This might include investing in research and development, partnering with other businesses to create new products or services, or adopting new technologies.
For organizations to become truly sustainable we believe it is essential to create a new organization model: a more cooperative leader, a new way for people to cooperate inside the organization and a new way for organizations to be measured by society.
– Miguel Reynolds Brandão
These are just a few examples of what being a socially conscious business can look like. It’s important to remember that there is no one-size-fits-all approach; each business will have its own unique priorities when it comes to social responsibility.
A quick survey of the internet turned up the following relevant articles for additional reading:
- The 10 Most Socially Responsible Companies & Brands to Model. (Grow Ensemble)
- 50 years of thinking on the social responsibility of business. (McKinsey)
- Socially Conscious Shoppers. (McKinsey)
- 6 Strategies for Building Socially Responsible—and Profitable—Companies. (HBR)
- Doing Business in the Age of Conscious Capitalism. (Rajendra S. Sisodia)
- 5 Tips to Creating a Socially Conscious Business. Writing a check is nice, but it doesn’t mean you’re making an impact. (Inc.)
Socially Conscious Professional Services Firms
A lot of my clients are professional services firms whose products are specialized knowledge. How does a firm like this become more socially conscious when they are selling knowledge-based products vs physical or electronic goods or services?
One easy way is to offer free programs or workshops to your community to educate people on an aspect of your firm’s work. This serves to not only create awareness for your firm and its capabilities but also to help individuals or groups in your community that might not have otherwise had access to this information. It’s a great way to give back and also to create new potential clients or customers who are now more familiar with your brand.
Another way for a professional services firm to become more socially conscious is by considering the social implications of the work they do. For example, if a law firm is working on a class action lawsuit against a pharmaceutical company, it might consider donating a portion of its winnings to a charity that helps people afford medication. If an accounting firm is helping small business owners with their taxes, they might consider offering them a discount if they can prove that their business is having a positive social impact. There are endless possibilities for how businesses can use their knowledge and expertise to make a positive social impact.
There’s not a one-size fits all approach to how a business should approach becoming a socially conscious business. For most people, it’s helpful to start by thinking about your business model and determining how time and money can be directed into making a positive impact on people’s lives in one or more of the following areas: employees, customers, the local community, or the environment. Most of all it’s not just about firing off a check to an organization and forgetting about it, rather it’s about working to stimulate actual change in people’s lives or their community that transcends selling your products or services.
The bottom line is that there are many ways for businesses to be socially responsible, and the best way to find out what works best for your business is to experiment and see what resonates with your employees, customers, and community.
