We are in the era of giving back and social impact. Businesses should understand this and stop using the fact that they are not yet “big businesses” as an excuse for boycotting charitable involvements or social responsibility.
Businesses who do this fail to understand that socially responsible companies have an enormous list of benefit for carrying out social responsibility.
Listed below are some of the reasons for which even small businesses should not ignore social responsibilities.
Socially responsible companies attract passionate talent
Business in today’s world does not mean making money by selling a particular product or a particular service.
The millennials in today’s world are more likely to work for a cause than for a business. What this means is that they want to be able to say that working for a business or a company means much more than just the mundane cycle of the job.
They prefer purpose over a paycheck and thus, charitable involvements and all-around social mindedness is a great attraction point to top talent. It is needless to say that small businesses need top talents and this is one of the best ways is to be a socially responsible company.
A great boost to the morale of the employee
There are a lot of ways to keep the staff happy and productive, and one of them is to add a charitable cause to your business.
Charitable involvement and taking care of the environment can be done according to scale. Even a small amount of charity can help boost up the morale of the employees. They tend to work harder if they know that their company is involved in some social good.
Studies have shown that inspired employees are almost three times more productive than dissatisfied employees. In the near future, more people might be willing to work for less if the company somehow benefits society. Also, the staff could be convinced to work more as opposed to hiring more people, which is the dread of most small businesses.
Social responsibility doubles as marketing
Serving food at a shelter or orphanage with crested T-shirts and bags is a great way to get the word out there about one’s business. Doing good does a lot of good for the company in this regard, because it increases curiosity around the company while increasing goodwill.
This makes the business more attractive and spreads the word about the company.Goodwill may not always be quantifiable, but it does show up on the balance sheet at the end of the day. In fact, surveys have shown customers are 85 percent more likely to buy a product that is associated with a charity.
Brings in more investment
Investors are becoming far more interested in what a company is doing for society in addition to how they are faring in business. It’s called “social impact investing.”
The international community has woken up to what is now being called the “restoration economy,” and businesses that fall into this category have become successful working on the needs in society.
Blake Mycoskie’s TOMS is a great example of this kind of business. Mycoskie started the shoe company on the premise that for every pair of shoes sold, one pair would be donated to a child in need.
The profits from its eyewear sales is used to save or restore eyesight for people in developing countries. In fact, all of Mycoskie’s production lines give back in some significant way. This has attracted massive sponsorship and partnerships over the years.
Last but not the least, it is the decent thing to do
With so many issues troubling the world, any form of help from any corner of the world is worthy of appreciation. For thousands of years, man and businesses have taken from the Earth and from people. Now is the time when we give back. Every business that will be reputable in the next decade would be in the queue to do so.
All these reason point to one thing, a company that thinks about the society and works towards its benefits, gets back a lot more in the form of goodwill, reputation, passionate workers and investments. It’s high time, small businesses pay heed to these tips and work accordingly.