Why you should run a socially responsible business
Mar 06, 2020
These days customers are increasingly focused on sustainability, the environment and ‘giving back’. There is an expectation that big businesses in particular should make more of an effort to make positive changes that benefit society. However, if you run a small or medium sized business then you can make a difference too. And setting business objectives that focus on sustainability and social responsibility don’t have to turn your business upside down – in fact they can be good for your firm.
Enhance your brand
Most customers choose to buy from a brand that they trust or admire. Your firm’s brand is a key driver behind your buyer’s purchasing decisions. Customers are more concerned than ever before about environmental issues, recycling, ethical behaviour, social impact, etc. If you can align your firm’s brand with the concerns of your customers, they are more likely to support your business and buy your products or services.
People want to work for ethical businesses
If you want to attract the next generation of talent to work for you, then your business needs to appeal to younger generations such as millennials and generation Z. These younger employees are increasingly focused on the environment, societal issues and ethical behaviour. A business with a social purpose which aligns with their values will be more attractive to the newer graduates who are starting to build their careers. As we all know, the most successful businesses are the ones which attract and retain the best people. Running a programme of fundraising or volunteering activities can be a great opportunity for team building, as well as supporting local causes.
Customers want to support ethical businesses
Customers are demanding that businesses go green, that they give back to society and support the local community. They want to spend their money buying products or services from socially responsible businesses. Aligning your business to social causes will help to increase loyalty among your customer base, as well as raising awareness with new customers. Those firms which ignore this trend may risk losing valuable customers to their competitors.
Reduced costs from sustainability
Moving to a more sustainable business model can actually help your firm to reduce costs. Over the medium to long term, environmentally friendly business practices can help to reduce both energy use and waste handling costs, and those savings can then be directed to more profitable activities. A number of environmental tax reliefs also exist for businesses such as buying energy-efficient technology – please speak to us if you would like help in this area.
So ultimately, adopting to a more socially responsible approach to your business could be good for your customers, good for the environment and good for your profit margins – all at the same time.