For a long time I thought that business simply existed to make as much money as possible. While that’s still true, I believe that it’s only part of the story. The impact a business has on society is fundamental. It employs members of the community, drives the housing market, and fuels an enormous support organization of small businesses (grocery, dry cleaning, banking, insurance, etc…). Now that I’m a little older, I realize that making money isn’t the core issue. What you do with the money is the real key to happiness.
There is a growing trend in business to give back to society in a more measurable way than mentioned above. Businesses are no longer just in the business of business. There is more to success than shareholder value. They can leverage their knowledge of supply chain, communication, productivity gains to leave the world a better place. They can affiliate with causes that are complimentary to their mission that enable profitable growth and societal influence. And guess what, consumers love it.
Today’s consumers are savvy. They are looking for more than just the next widget. They understand that we live in an increasingly smaller world, and want to do their part to make it better. Companies and organization that take advantage of that desire will grow. Product (Red) has taken this approach to new level. Spearheaded by Bono, Product (Red) isn’t asking anyone to change their buying behavior by purchasing conflict-free diamonds or fair-trade coffee. They make a fair assumption that given a choice of the same pricing and availability, consumers will buy “Red” products over non-Red products. For instance, if you’re in the market for a new iPod, chances are that you’ll buy a “Red” iPod over a regular iPod once you understand the value proposition. And a percentage of each product goes to anti-viral AIDS medicine in Africa. Even though the campaign is new, Red products seem to be selling well.
The University of Oxford, Harvard Business School, and Columbia Business School now have programs for entrepreneurs that want to be profitable and make a difference. The latest report from McKinsey says that 87% of global executives surveyed “agreed that their companies should pursue not only shareholder value but also broader contributions to the public good”. Conversely, according to PRWeek, 87% of surveyed consumers believe that it’s important for companies to support causes and charites. Fast Company magazine give away Social Capitalist awards.
My question to you is what are you doing to make the world a better place? It’s easy to come in and slave away at strategy or the latest marketing campaign. But are you really making a difference? Are you really standing out from your competition? Do you stand for something more in the eyes of your customers?
There’s more to business than business. It’s all about finding a way to the hearts of your audience. It’s about elevating your brand above your own widgets. It’s about standing up for the people that cannot. And I believe your customers will stand with you.
Nick Rice
Cre8tive Group
Thoughtful post Nick… It’s my belief that the Web 2.0 media out there today, kind of acts as a power leveler between individuals and institutions. No longer can businesses take so much money from society – they need to take some social responsibility in their communities.
Technology has become the great denominator. I wonder what that will mean for marketers and small business owners in years to come…
Rob, you’re right social media tools have enabled businesses of all sizes cost-effective ways to market themselves freeing up profit dollars for social improvement.
Cre8tive Group gives 10% of our profits back to the charities of choice for each employee. It’s nice to know that we’re part of something bigger than ourselves. Our hard work not only rewards us financially, but also our community.
The whole thing is another signal in the shift among consumers. They gravitate towards value. If they can raise money for cancer research while continuing to purchase their favorite yogurt, it leaves a good feeling – and they remember the brand that enabled that feeling.
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Danielle, that’s awesome that you put that much focus into that side of your business. It really does make it easier to put in long hours and make sacrifices knowing that your efforts help a greater cause. On top of the personal benefits, customers appreciate your efforts to go beyond pure profit.
Nick, I was going to write a post on exactly this topic 🙂 I may still write it because I was going to discuss a slightly different angle.
That’s terrific that such prominent universities now have programs for entrepreneurs who want to make a difference.
This was a critical element on my list when creating my business structure, essentially because I do want to make a difference. In fact, my concept came about because of that. And, given that my business concept has a broader purpose and “message”, I wanted to put my money where my mouth is, so I chose to support a charity that specialises in helping children with communication problems. $1 from every t-shirt I sell goes to this unique little school renowned for their ground-breaking work. In addition I also chose to use organic cotton t-shirts.
I think it’s an exciting topic and you’re right, there’s a very noticeable shift towards this trend so it’s likely we’re going to hear more and more about it.
I was all over the Red blog/website like a cheap suit at a disco, but could not find out how a small company could join in their efforts. Looks like a ‘don’t call us, we’ll call you’ deal.
Some of what I already sell are red. I’d be willing to track those sales and donate from the gross profit because I think it would boost my over all sales.