What is Social Impact in Business and Why it’s a Must-Have

If your company hasn’t integrated social impact into its business plan, listen up!

Consumer culture is constantly changing, and the most successful businesses change with it. Customers expect their favorite companies to give back and make an impact that will last for generations to come. Additionally, they are more inclined to invest in a company that reinvests in the community.

With corporate social responsibility (CSR) on the rise, your organization’s social impact initiatives will play a huge role in your company’s success.?

What is Social Impact?

Social impact is a significant change that positively addresses a pressing injustice or challenge, such as climate change, human rights, or the education gap. When businesses and organizations establish social impact initiatives, the difference is felt beyond the communities the efforts or activities serve. It impacts their workforce, consumers, and brand reputation.?

Why Social Impact Matters for Your Brand

You may ask, “Is social impact really that important for my business?” The short answer – absolutely.

A company’s social impact encourages employees to do their very best work. It’s what prompts customers to push the “pay now” button for an online sale. Brands that don’t center this concept in their business strategy are at a disadvantage to those that do.

An article by Duke University further speaks to the significance of social impact within a business’s framework by specifying the four types of impact (clear, high, wide, and deep) sustainable businesses can create.

Organizations are beginning to realize the numerous benefits that derive from social impact as they scale their strategy.?

Benefits of Social Impact in Business Plans

Maintains an Engaged Workforce?

Employees are the backbone of successful companies. If your workforce is not engaged in the company’s initiatives, the company suffers.

Your employees want to feel like the work they do is meaningful and contributes to society. Companies that partake in such initiatives usually have more engaged workers.?

An effective way to get your employees excited for the work your company is doing is through volunteerism . It’s one thing to inform your employees about the new social ventures your company is partaking in, but it’s drastically different when they get to experience it for themselves.

Get your workforce involved in corporate impact initiatives through YourCause from Blackbaud to see a significant boost in engagement and morale.?

Increases Consumer Trust?

It’s no secret that consumers put more trust into companies that align with their values. For this reason, it makes sense that socially responsible companies have seen the biggest return on investment in the last decade.

A recent article by Deloitte states the importance social impact plays in creating and protecting value within a corporate framework, and that this trend is “driven largely by millennial consumers.” With millennials making up a big part of consumer culture and opting to buy from brands that make a difference in communities, centering social impact is a fool-proof business strategy.?

Consumers care about your organization’s social impact and will gladly advocate on behalf of the companies they trust.?

Will your organization increase trust amongst its consumers this year?

Improves? Brand Reputation

A key element that can make or break a company. A company’s brand rep precedes its goods and services and is usually the first thing consumers think of when they hear the name of an organization. Consumers are more inclined to invest in organizations that invest in social impact .

As consumer culture continues to shift, it’s imperative that your organization stays abreast of the changes. Set your company up for success by putting an emphasis on brand reputation when fine-tuning your business plan.?

How You Can Improve Your Organization’s Social Impact

The state of the economy has changed forever, and your organization will always have a leg up if it invests in social impact. Your employees, stakeholders, and community pay close attention to how your company integrates this concept into your business plan.

Some ways your company can improve its social impact include:

• Choosing corporate values
• Aligning CSR activities amongst company departments
• Forming strategic partnerships

To learn more ways to maximize your social impact, check out our Investing in Impact white paper.? This definitive guide to CSR strategy shares best practices and trends that will help ensure your success in making an impact.