Whether you’re a small start-up business or have been in the game for a while, having a positive social impact is not only rewarding – but research shows it’s good for your business’s bottom line.
But what about not-for-profits? The benefits of social impact still apply. In fact, all business types, sectors and models can reap the rewards of engaging and investing in their communities – so keep reading to find out why it’s well worth your time and effort…
1. Social impact matters to your customers
Your customers – especially millennials and Gen Z – are putting their money where their mouth is when it comes to their spending habits and shifting support to brands that reflect their concerns and values.
Research shows that it’s no longer acceptable for companies just to make money – they must positively impact society too.
According to The Deloitte Global 2021 Millennial and Gen-Z Survey, just 40% of NZ millennials think that businesses have a positive impact on society – and this is steadily declining.
The upside of this is that there’s a window of opportunity for savvy business operators to make their mark. By aligning with causes and concerns that connect with your customers on social and environmental issues, you can influence how favourably people view your brand and this feeds directly into customer loyalty.
2. Social impact matters to your staff
Similarly, when it comes to your staff and attracting quality people, potential employees are looking for companies that reflect their values.
People love to work for companies with purpose – that consider social and environmental impact and engage positively with the place or community they operate in.
Research shows that employees who work for companies who make a positive social impact show increased productivity and well-being. They will even take less money in order to find meaning or purpose in their workplace.
Social impact initiatives not only build networks and connect your people with the community they work in, but they also help give your employees the meaning they’re looking for in their work, which improves staff engagement and retention.
3. Social initiatives help your community & the environment
It sounds obvious (because it is!) but engaging in your community and activating resources around a social or environmental initiative can lead to incredibly positive outcomes – for both the cause(s) you support and your business.
Social impact initiatives help your community and expand your brand reach and awareness. They also increase positive perceptions of your business in the places that you operate.
Take this example:
- Dot Two Dot client Kiwi Property knows it makes good business and social sense to play an active role in supporting communities to prosper. They walk the talk with their community engagement programme, including at a corporate level supporting the Mental Health Foundation – a relationship brokered by Dot Two Dot. They also have a staff volunteering programme which provides each employee with a day of paid leave to participate in volunteering. The fact that we’re talking about them now shows how positive publicity from social good makes businesses stand out from the crowd.
4. Social innovation encourages investors
Businesses and not-for-profits with a clear social innovation plan and vision, are much more likely to attract investors who are passionate about helping them achieve their joint social impact and business goals.
- Potential investors will consider what difference you are going to make with the money they lend and are looking to invest in businesses that have a clear purpose.
- Smart investors know that brand perception is linked to social impact. Businesses which engage in social initiatives are much more likely to reap the reputational rewards which result in increased profit.
Then there’s the targeted social impact investors who are specifically looking to provide finance to organisations that address social and/or environmental needs. They do so with the explicit expectation of a measurable social, as well as financial, return. This is another avenue from which to hook potential investment.
And when it comes to the tender process, more and more businesses contracting the services of others are putting considerable weight on environmental and social creds as part of their selection criteria.
5. Positive social impact is good for your bottom line
If you’re not convinced yet, then consider the fact that businesses engaging in social innovation grow faster, attract more customers, and enjoy increased loyalty.
As we’ve already seen, investors are more likely to lend money to these organisations as business reputation and perception is strongly linked to profit.
Finally, socially active businesses are also far more likely to have a more connected, productive workforce who will positively advocate for their brand.
Want more info?
- Elevate your brand’s social impact with Dot Two Dot! Our expert team specialises in immersive brand workshops, strategic advice, and consultative services centered around social impact initiatives.
- Additionally, we excel in crafting compelling communications that allow your brand’s achievements to shine.
- Ready to amplify your impact? Reach out to us and discover how we can transform your brand’s narrative. Let your success story be heard! Contact us now for more details.
