A few years back, we wrote a blog post on whether having passion for a community can be the basis for starting a company. Because that post still remains one of our most visited, we wanted to expand on this topic by talking about the rise of social enterprises and corporate social responsibility, or “CSR.”
What’s the difference between the two? Workforce Opportunity Services, a leading nonprofit committed to developing the skills of untapped talent from underserved and veteran communities, defines it most aptly: “A social enterprise is proactive in its approach to social change, while CSR is reactive. Doing good is a permanent fixture of a social enterprise’s business model. It is weaved into the corporation’s fabric and is part of the organization’s foundation. On the contrary, a CSR program is how corporations create positive social impact through their existing practices.”
By the way, it might be surprising to know that while many social enterprises are nonprofit, they can also be for profit. One isn’t mutually exclusive of the other.
Regardless, both social enterprises and CSR practices are becoming increasingly important. The Nielsen Global Survey of Corporate Social Responsibility found that more than half of people surveyed “are willing to pay more for products and services provided by companies that are committed to positive social and environmental impact,” and two-thirds would rather work for such a company.
Investors are taking notice, too.
According to a Corporate Social Responsibility Survey from Aflac, FleishmanHillard Research and Lightspeed GMI, more than 80 percent of professional investors prefer to invest in a company known for its social responsibility.
This importance to investors was underscored earlier this year in Atlanta at the inaugural “Siggie” Awards which honor early-stage investors and is named after local investor Sig Mosley. Included among the awards categories was a “Conscious Capital” award created to recognize those investing in solutions that are achieving a measurable social impact in communities. This first-ever award went to Emory Impact Investing Group (EIIG), whose aim is to close the microbusiness gap in traditionally high-poverty areas by increasing the number of successful small businesses.
As investors continue to recognize the value of “social good” to a company’s brand, hopefully it will be easier for benevolent startups to gain funding.
Start Doing Good Now: 3 Tips
Unless you feel an inspirational calling to some social or environmental cause, you don’t have to launch a brand-new organization to make a difference. For most of us, simply integrating social responsibility practices into our current organizations is the way to go. Here are three quick tips for getting started:
1. Find something the whole team believes in. If you want everyone in your organization to take CSR to heart, pick a cause that resonates with the majority. Consider holding an open forum or asking employees for suggestions about what exactly your business could do. Gauge program participation to ensure you’ve picked the right cause or causes to support.
2. It’s okay to start small, especially if your company is small. Don’t feel as though your business has to go from zero to 100 MPH overnight. It’s perfectly fine to start off with something that requires little extra work, like making a donation to a chosen charity. You can slowly add other CSR practices over time based on your team’s bandwidth and interests. Our own agency donates annually to Children’s Healthcare of Atlanta and has provided pro bono services to several nonprofits.
3. Make it a recurring practice. There is so much need in our world that if your business resources allow it, practice CSR regularly so that it becomes ingrained in your company culture. This article takes a look at what some of the better known for-profit companies are doing as part of their social responsibility efforts.
There’s no end to the things companies can do to make a positive social impact. Are you planning to instill social responsibility practices in your business?