A social good aspect is becoming a major requirement for millennial consumers when they are evaluating businesses. Corporations used to occasionally donate a big check to charity to show how much they cared about the community, but today organizations must go further than that today to stand out. They don’t just have to donate through words and money, they must donate through their actions.
Customers care more about social good than ever before, which is why doing good is vital for businesses to be successful today. This guide is going to show you just why a charitable part of your business will get you an ROI.
The biggest business argument for companies doing social good is that it’s a marketable trait. Customers increasingly care about how companies use their profits to improve society and the well-being of others. Companies that cared about social good survived the great recession because customers were loyal to them.
Why were they loyal to these companies during times of economic depression?
They believed in social good. Customers want to believe they’re supporting corporate interests that align with theirs. They want to feel like they’re making a difference with every purchase. It’s down to the great generational shift that came with the millennial generation.
Social good is marketable and can make a huge difference in your brand’s popularity. Utilizing marketing channels such as social media, blogging, and newsletters, you can turn your social causes into a movement.
Those who’re part of the Baby Boomer generation are used to attracting the best talent through offering the most generous salary with the best benefits. Those characteristics are still important, but there’s another side to it. The best talent will happily trade salaries and benefits in exchange for a company that stands for a greater cause. For A players, mission trumps benefits.
The millennial generation, which now makes up the largest part of the workforce, is characterized by a desire for purpose. They want their employment to mean something. Sitting in a cubicle for the sake of pure profit and an occasional profit isn’t on their agenda.
The best talent floods to companies that give them meaning. They care about social good and they care about making a difference.
Committing your company to social good could make you an attractive prospect to the most able workers in the world.
Did you know that over $500 million invested in energy efficiency improvements across the United States created and sustained almost 9,000 jobs?
That’s an example of corporate good creating new markets and maintaining existing ones. It’s well-known that entrepreneurs need to spend money to make money. Sometimes investing in corporate philanthropy can do just that and save you money in the long run.
Think about it like this. If a company invests in an impoverished area and lifts it out of poverty those people are going to have money to spend. That money is likely going to go towards the brands that have always supported them. It’s a subconscious effect that will work to your benefit.
Companies can potentially open new streams of income through helping their future customers.
Corporations with negative reputations, including Nestle, have seen their reputations hit for various reasons. These negative reputations have contributed towards a fall in profits, or at least not realizing their full potentials. Nestle may make billions every year, but with a positive reputation they could make billions more.
The reputation of your company online and offline is a powerful weapon. It can be used to market yourself, as detailed above, and it can be used to passively bring in customers through word of mouth.
As already mentioned, millennials are increasingly buying based on the good names of brands. Develop a positive reputation over time and you’re always going to be at the top of a buyer’s list. That could save you during low periods.
Social good isn’t about throwing money at a problem. Some studies have revealed that direct giving can restrict progress. You need to jump into a project and dedicate both your time and effort. Just giving money is often seen as an empty gesture because many causes have the money but not the talent or expertise.
Show how serious you are about social good by involving yourself directly in a project. It will do wonders for you.
At the same time, you need to be aware of the resources and time dedicated to that project. Ensure that you’re not taking away from your company’s core operations, otherwise you could cause more harm than good.
Planning for social good should be part of your philosophy, but your core operations must come first. Directing your company towards social good will make a huge difference to your prospects, but it must be molded to ensure that you’re getting maximum benefit with none of the drawbacks.
What do you think is the biggest benefit of social good and how will your company do its part for the wider community?