The Value of Social Impact

“Nearly nine-in-10 (88%) employees believe it is no longer acceptable for companies just to make money; companies must positively impact society as well.” (Porter Novelli, 2020)

Corporate social responsibility (CSR), corporate citizenship, community affairs, responsible business, corporate conscience, corporate accountability. We hear social impact called by a lot of different names, but at the heart of it all is a company’s commitment to positively impacting people and the planet. Making a difference beyond the confines of the office walls and contributing time, efforts, and resources to social good.

There is so much value in having a give back program at your company. No longer a nice to have, social impact is now a need to have. It is increasingly important for companies to give back to society and set goals that positively impact their community. Business can and should be a force for good and there are many incredible benefits to consider as you develop or strengthen your programming.

1. Helps to attract and retain talent
If your company is doing good for people and the planet, that is going to attract potential employees (especially Gen Zers and Millennials) to your business. When employees have opportunities to give back and when they know their company is making a positive impact, they are more likely to be excited about their work, feel like they're making a difference, and feel aligned with and committed to the company's mission.

2. Saves companies money
Social impact saves companies money! Increased employee engagement plus decreased employee turnover equals $$ saved. When employees are given opportunities to volunteer, to give charitably to causes that are meaningful to them, and to work for a company that is values-aligned, purpose-driven, sustainable, and is committed to its employees, there is less likely to be as much turnover.

3. Customers align with businesses that do good for society
Despite common misconceptions, social impact positively affects a company’s profit margin. Even if the social impact team of a company isn’t considered to be revenue-generating in the traditional sense, it is in fact profitable. Social impact significantly increases the appeal of your company to consumers. Now more than ever, customers, especially Gen Zers and Millennials, expect companies to be doing good and making a positive societal impact. Being able to showcase all that you're doing for people and the planet only enhances customer satisfaction and loyalty, and drives more attention to your products and services.

4. Gives you the advantage against competitor companies
Think about it this way. If there are two comparable companies selling the same shoes, but one company's shoes are made from sustainable products, more customers than not are going to align with that business and purchase their shoes. EVEN if they cost a bit more than the non-sustainable shoes. Social impact keeps those customers loyal to your company as opposed to a competitor that does not see impact as a core priority of their business practices.

5. Improves collaboration and provides team-building opportunities
Employee engagement (volunteering and workplace giving) gives employees the opportunity to get involved in their community, feel empowered philanthropy, and join together with their colleagues to make a difference. Whether it’s mentoring high school students, providing skills-based support to a nonprofit team, or deciding as a group where to allocate company charitable funds, social impact brings employees together in unique ways that create bonds and strengthen teamwork.

6. Increases brand awareness and recognition
Consumers align with companies that are values-aligned, purpose-driven, and committed to social good. When your company showcases their commitment to making a positive impact, that strengthens your brand and enhances recognition, as well as consumer alignment and satisfaction.

Never underestimate the importance and value of a social impact team! All companies, regardless of sector or size, should prioritize purpose, giving back, building a diverse, inclusive, and accepting culture, treating its employees well, and being rooted in values. It’s invaluable to support the greater community and make impactful commitments that reflect your employees and your consumers. Social impact is the key to business success.

A few other things to consider as you develop or strengthen your social impact programming:

1. Get executive buy-in
Get executive buy-in so that social impact becomes a priority and pillar of your company. If your social impact program does not receive immediate executive buy-in, take that as an opportunity to refine your strategy and pitch and bring it up again the next quarter. Education on social impact is vital, so continue to educate and advise leadership on what it's all about.

2. Involve your employees
There is nothing more impactful than seeing your employees as a key component of your giving back efforts. When building out your social impact programming, be sure to involve your employees to understand the causes that they care about so that your community engagement efforts reflect the company as a whole. Engage your employees at all stages of building out your programming, and understand what social impact could look like for their particular job function, team, or division. Your employees will be the ones out there in the community, and involving them in creating your social impact strategy will only make them feel more engaged, supported, heard, and committed to your company and brand.

3. Consider where social impact will sit within your organization
When social impact is brand new to your company, it's important to think about where it will be housed. For example, social impact could be a division of its own, or it could sit within HR, Marketing, Communications, an already-existing Corporate Culture/DEI/ Sustainability team, or it could sit within the Office of the CEO. Ownership of social impact is very important, so it's vital to house it within a team that is committed, ready to get the ball rolling, and has the capacity to run this type of programming. Where it sits can also influence the focus of your social impact efforts and the related activities. Be sure to have conversations with the executive team to determine where social impact is best suited based on your company's goals and priorities. Running give back programming is quite involved, and in order to ensure that it is prioritized and successful at your company, it must be given the time, resources, and commitment that it deserves.

4. Tie your social impact to your mission and brand
Social impact should be intentional. As you think about your company's impact, it's important to be thoughtful about the causes and organizations you associate with and support, the way in which your employees get involved and give back, and how you communicate your commitments to your customers and stakeholders. There should be a clear connection between your company's mission and brand and the social impact work you're doing. As you think about the areas you want to support, dive deep into your company's values and purpose. Rather than haphazardly choosing a cause area or volunteer project or funding opportunity, really take the time to ensure it is values-aligned, relevant to your work, reflective of your company's culture and community, and of course, is a vetted opportunity.

There is so much value in social impact, and remember that there is no one-size-fits-all strategy. Take time to determine your company purpose, your philanthropic goals, and the type of impact you want to have. Remember the many benefits of a give back program and continue to prioritize social impact in all that your company does—you won’t regret it.