5 Lessons for Family Businesses Giving Back within the Social Media Landscape

It’s not unusual for a thriving business to feel the pressure and responsibility that accompanies growth and financial success. There’s a natural expectation from its audience and customer base, as a company’s profile increases, that the business will also limit its harm and be a benefactor to society. For family-owned businesses, the pressure is even greater — both to give back in real, impactful ways and to run their organizations ethically.

And though social responsibility has always made a difference in companies’ reputations, the advent and growth of social media has raised the bar considerably in terms of what we see as the baseline for businesses’ leadership beyond the boardroom.

It’s no longer enough to “create jobs,” or attend black-tie benefits. Social responsibility is no longer seen as simply a status symbol, or box to check. It has become inseparable from a company’s functionality and brand.  

I’ve learned, in my work with consulting firms who advise large, family-held closed corporations, as well as with the family members in the leadership positions, themselves, that social responsibility, when exercised in a thoughtful way, can be a powerful differentiator. Here are five best practices and strategies you can use to stand out, while effecting positive change.

1. Go beyond writing a check.

While there are problems only money can solve, the donation of a check to XYZ group — no matter the size — is simply no longer enough to sway the public opinion. The story, So and So Inc. donated six figures to cancer research, is no match for: “In an attempt to further scientific research of cures and preventative measures, So and So Inc. engaged in an extended dialogue with survivors and sponsored the construction of a support network that would provide counseling, medication, and in-house care.”

Money may be involved in both scenarios, but a more developed sense of purpose and investment is critical if a family business wants to be seen as a true advocate for a particular cause.

2. Involve the whole company.

A picture with a CEO “working” in a soup kitchen can yield some temporary PR gains, but it doesn’t necessarily convince your audience that you’re in the habit of giving back. In general, audiences are scanning social media to identify those companies that embrace ‘service to others’ as a core value. Fossil’s collaboration with Dallas-based Big Thought, a non-profit dedicated to closing the opportunity gap, is a great example of this.

Employees of Fossil sit on the board of Big Thought, help with marketing initiatives, and even donate their personal artwork for silent auctions that help with fundraising efforts. Just as it isn’t enough to write a check, it’s also not enough to bring the “head honcho” in for a photo opp in an underprivileged community. The new expectation is that family businesses partner with nonprofits and grassroots activists to effect change and take ownership of issues in their local communities.

3. Serve in a way that’s authentic to your family business’s brand.

One of the most widespread misconceptions among family businesses is that the public requires them to be perfect. To the contrary, most people understand that businessmen are not superheroes, and don’t expect heroic efforts so much as they do basic decency and a willingness to “give back.” So, making a difference doesn’t mean ending world hunger, or toppling oppressive regimes. It’s not a one size fits all call to action.

Rather, what audiences on social media will–and do– respond to is conviction, creativity, and candor. What do you care about? What are you capable of changing for the better?

One of our clients at The Marketing Zen Group, BallQube, supports equal opportunities for girls to play sports. This year, they partnered up with Baseball For All, an organization started by Justine Siegal, the first woman to be hired as a MLB coach. Baseball For All champions girls who play baseball, and BallQube supported their annual tournament with free products and promotion to further the cause. Because this gesture is authentic, not to mention on brand, it goes that much further.

4. Leverage the charisma of family leaders to connect legacy with bottom line.

A family business can run into many ethical and functional challenges. How does one ensure fair succession procedures? How can one offset criticisms of nepotism, or mismanagement?

One of a family business’ key strengths, however, is what the Harvard Business Review refers to as “family gravity,” a sense of unique identity and charisma, that endows the business with its dignity and vision. This family gravity, in the context of social responsibility, can naturally propel a business to consider more than its bottom line. It can expand a business’s imagination to consider its larger impact and legacy, and that expansion can align a business’s financial interests with its humanitarian ones in a way that is neither forced nor contrived.

Another one of our clients — Ashar Group — is a strong supporter of the Crohn's and Colitis Foundation. Their personal connection with and commitment to the cause was both tested and proven when they remained its benefactor through the recession — a move that would have been counterintuitive to someone only minding the bottom line, but one that inspired admiration, respect, and loyalty amongst their staff and clientele in the long run.

5. Place the spotlight on the cause and the community, rather than your own contribution.

 There’s nothing wrong with publicizing a family business’s involvement with a cause. After all, the choice shouldn’t be between being anonymous and noble, and being self-involved and public. The finer distinction is between being solely motivated by personal reward, and balancing genuine needs with the integrity of a personal brand. Interestingly enough, leading with one’s passions and commitments — placing the spotlight on the cause and the community — helps bolster one’s personal or corporate brand in a way that simply seeking validation for one’s philanthropic work never can.

With family businesses making up 80% of companies globally, and employing 60% of the U.S. workforce, it’s amazing to think of what could be possible if they were able to internalize certain social responsibility principles, and leverage them on social media to transform the way their brands are perceived by their audiences. As the millennial market grows, this idealistic vision will become more and more the new norm and status quo.

As originally posted on my column for Forbes.