Socially responsible businesses and social enterprises are building the future by creating systems that contribute to change. They operate with ethical goals that enable them to make business decisions considering the community, economy, and environment.
The Multiple Benefits of Socially Responsible Business Practices
There are many advantages to practicing socially responsible business, including improving brand image, increasing employee satisfaction, and enhancing revenues. Whether it’s the issue of climate change or low energy consumption or social justice, many socially responsible companies strive to create a better world.
What is Corporate Social Responsibility (CSR)?
While traditional companies view corporate social responsibility as an additional venture outside their main profit objective, socially responsible companies maintain sustainable relationships with nonprofit partners and social institutions that work towards goals based on social issues. Why is corporate social responsibility important?
People want their time and money to go to companies that are trying to make a positive impact on the world. Owning a socially conscious company will help achieve three things. It enhances the company’s image and brand. The CSR programs you choose to invest in will help your customers and investors trust you. By building a business image that shows you care about more than just profit, you will attract customers who wish to use their purchasing power to make a positive change in the world.
Fifty-five percent of consumers in the United States believe it is important for companies to take a stand on key social, environmental, and political issues. Seventy-seven percent of investors say that socially, environmentally, and government responsible factors of the company are a contributing factor considered when making investment decisions.
In fact, consumers are willing to pay more for products if they know the brand shares their social views. For example, environmental sustainability is a major issue among millennials and older generations. A study by First Insight showed that 90% of millennials said they are willing to pay more for sustainable and eco-friendly products.
Attracting Good Employees and Improving Productivity
If you want to hire the best employees for your company, you should invest in corporate social responsibility initiatives. According to a study by communication consultancy firm Porter Novelli, 90% of employees working in companies with a strong vision say they feel more inspired, motivated, and loyal. Another study found that 57% of employees would leave a company within two years if they were dissatisfied with the social impact the company is making.
Your corporate social responsibility efforts should also include the well-being of your employees and treating them as people, not just cogs in the wheel. In the Porter Novelli study, 95% of employees believe companies should benefit all stakeholders, not just shareholders. This includes employees, customers, suppliers, partners, and the communities in which the company operates.
By taking corporate citizenship seriously and providing sustainable materials and healthcare for your employees, you will attract a workforce that shares your vision. Not only will you have enthusiastic employees, but they will also feel more allegiance to your company and be more productive and motivated.
Improving Profits
You may think that dedicating your time and energy to corporate social responsibility means you will have to sacrifice profits and resources. But 75% of consumers prefer to purchase products from companies committed to making the world a better place. By fundraising and advocating for the causes you care about, you will actually attract more customers who will be more loyal.
Instead of profits being negatively affected by the company’s activities, they will actually improve, as people will seek out your brand and be willing to pay more if it means supporting a company that aligns with their social, environmental, or political principles.
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example, look at Nike’s advertising campaign for the 30th anniversary in 2018 featuring Colin Kaepernick. The campaign was fraught with controversy due to his peaceful protest for black lives. Although some people posted videos of themselves burning or throwing Nike products, Nike’s online sales increased by 31% in the weekend following the ad’s airing.
13 Socially Responsible Companies to Admire
1. Sweet Beginnings
Beelove is a line of organic and natural body care products made by Sweet Beginnings, a social enterprise based in Chicago. Sweet Beginnings sources its honey from urban farms in the heart of the North Lawndale community and employs individuals returning from incarceration, providing a new opportunity for civic life.
Sweet Beginnings was founded by Brenda Palms Barber as a social enterprise to address the 40% unemployment rate in North Lawndale, Chicago. Sweet Beginnings works closely with the North Lawndale Employment Network, an organization that provides cognitive behavioral therapy and training for reintegration into the job market, and Sweet Beginnings acts as a potential employer for program participants. As Daphne points out, employing individuals who have been incarcerated “is about giving people confidence that they can actually go out and look for a job on their own” once their time with Sweet Beginnings ends. Sweet Beginnings is alleviating the fear of bees and individuals who have been incarcerated by pairing bees and individuals who have been incarcerated as a means of breaking down the stereotypes of both.
Sweet Beginnings initially started by selling Beelove products in the same community that it was serving. Local farmers’ markets and events proved to be great places to showcase Beelove products and reconnect employees with the public. The demand from the community also led to Beelove products being available in cooperatives and stores. Daphne says, “It’s really about being in alignment and recognizing the work we’re doing in the community that gave us the opportunity to be in these business spaces.” She adds that with greater business opportunities and expanded production, Daphne and her team are focused on finding the right balance between mission and commerce, keeping the community in mind first.
2. ChocoSol Traders
The richness and depth of ChocoSol chocolate reflect the social impact this educational organization is achieving. However, the bean-to-bar chocolate company was an accident for founder Michael Sacco.
Michael says, “I was working on solar energy technology for roasting coffee and cacao with indigenous communities in Oaxaca, Mexico. But everyone was more interested in chocolate and coffee than renewable energy technology.” The shift from technology to food allowed Michael to utilize chocolate and coffee as tools for environmental renewal, education, and economic impact.
The ChocoSol team works directly with farmers in indigenous forest gardens in Oaxaca and Chiapas to improve the diversity of natural ecosystems by focusing on “agroforestry,” where diverse crops are planted together, unlike traditional commercial farms that only grow one profitable crop.
Michael states, “It’s built into a common land cycle allowing for the three sisters (winter squash, corn, and beans) and forest and semi-wild gardens. This cycle takes about 100 years.” This long-term perspective – with future generations in mind – is how Michael implements all aspects of the business. From functioning as an educational community to share knowledge and pass on the art of chocolate making, to ensuring that packaging materials are biodegradable and sustainably sourced.
Working directly with independent farmers is also Michael’s way of providing economic opportunities for indigenous communities in Oaxaca and Chiapas. Michael says, “Both fair trade and organic certification are barriers to entry when you’re not dealing with a large farm but rather with 150 independent producers in one area.” These smaller farmers often lack the financial and linguistic resources to obtain certification, even though their products are already grown organically. ChocoSol has always paid more than fair trade requirements to ensure its farmers and their families are compensated fairly.
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In the future, Michael and his team are working on local projects to renew agricultural land in Canada. Food waste from cocoa roasting, including jute bags, is being used to produce biochar that can be used as a natural fertilizer. Michael says, “We will work with a local farmer near Hamilton, Ontario to grow a series of regenerative ecological crops.” He adds, “We will plant a tree on the northern part of the hill, an annual crop at the top of the hill, and a permanent crop of strawberries or mint or sorghum or sweet grass on the southern side of the hill.”
3. TAMGA Designs
TAMGA Designs is a sustainable clothing brand that produces apparel from trees. Life and business partners Erik and Wiana Dalis are not only creating fashion pieces but also a sustainable lifestyle movement, sharing the lessons they learn to inspire change in the industry.
Erik and Wiana worked as humanitarian aid workers in Bangladesh, where they were in contact with communities highly affected by the impacts of the fast fashion industry. Erik says, “We were seeing many social and environmental issues. We had to start TAMGA to prove it could be done better.”
The initial mission for Dalis was to create a socially and environmentally responsible supply chain that goes beyond traditional corporate social responsibility measures. Erik and Wiana spent a lot of time researching alternative fabrics with low environmental impact.
TAMGA pieces are made using Lenzing Modal, made from sustainably managed European beech trees, or Tencel made from eucalyptus trees, a renewable source that does not affect agricultural land. Tencel fabrics are also processed into fibers through an award-winning closed-loop process, where 99.8% of the water and solvents used are recycled.
Every part of TAMGA’s supply chain, from fabric mills to cotton farms, sewing factories, and packaging manufacturers, is listed on their website, not just for transparency but also to share knowledge with others in the industry.
TAMGA Designs also shares the process of being a carbon-neutral company. By intensely tracking their carbon footprint for shipping to different countries via various methods, they purchase offsets from Gold Standard. Erik says, “These projects will not only restore carbon absorption capacity to the environment but will also create jobs and benefit the communities that manage those projects.”
Erik and his team remain committed to the main reason why they started TAMGA Designs: sharing knowledge is at the core of their effort to motivate other brands to adopt more responsible business practices. Erik emphasizes that “it is important for businesses to understand that investing in sustainability, if done right, is a good investment in their entire business.”
4. Satya
Satya is a natural skincare company that produces plant-based, fragrance-free, and steroid-free products. The Satya product line, made from just five organic ingredients, provides relief and restores dry skin.
Patrice Musso started founding Satya in 2013, after the birth of her daughter Esme and her severe case of eczema. After being prescribed steroid ointments and learning about their dangers for infants, Patrice used her research skills as a journalist to find a natural alternative. Patrice says, “I made the first batch in a slow cooker, and Esme’s eczema was cleared up.”
With many leftover formulas, she offered some to friends on Facebook. Friends and friends of friends came back asking for more. “I had to make three additional batches in the pot immediately because I couldn’t keep up with people’s requests,” Patrice says.
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Patrice never thought she would start a company and wondered if she would fit into the traditional business world. But through increasing demand from friends, she continued to sell Satya salves on the side.
Eventually, she started selling at farmers’ markets and events, which caught the attention of larger retailers. “We ended up in about 70 stores in the lower area surrounding Vancouver, just through word of mouth, and Whole Foods wanted to start carrying our product,” Patrice says. This relationship led to an increased presence for Satya and Patrice’s recipe being featured in over 400 stores.
As the brand’s retail presence grew through the Satya online store, shipping began to play a bigger role in the business. “Instead of going to a fulfillment house, we hired moms working in different areas,” says Patrice. “We ship products to them, and then they ship to their own areas, which reduces shipping costs, employs them, and gets products to customers faster.”
Thinking sustainably
Source: https://www.shopify.com/blog/socially-responsible-companies
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