Doing good and growing a business

Leaders used to think they had to be laser-focused on profits and margins to succeed. But many leaders are realizing that isn’t necessarily the case and are committing their companies to do good in the world through charitable donations and partnerships. The growth of corporate social responsibility (CSR) is transforming businesses and the lives of people around the world and showing that companies can take a stand and do good without sacrificing profits.

Focusing on corporate social responsibility has many benefits, including the following:

• Increase employee morale and productivity: When employees feel connected to a mission and understand the impact of their work, they are naturally more engaged and motivated to put in their best work. They feel part of something bigger than themselves, and it shows in their attitude and output.
• Boost in customer loyalty: Customers want to support companies that do good in the world. In fact, they’re up tosix times more likely to purchase from and champion purpose-driven companies. Given the choice between a company that positively impacts the world and one that doesn’t, customers will choose the company committed to social responsibility — and keep coming back.
• Increased revenue: While the goal of doing good in the world isn’t just to make more money, it’s a nice perk for many CSR-focused companies. With increased productivity, a strong reputation, and loyal customers, purpose-driven companies often see a boost in revenue.

But how can companies ensure their efforts to do good are successful? The best results come when social responsibility is integrated into a business from the beginning.Davis Smith, founder of Cotopaxi, says the company had a plan for how it would impact the world before it made a dollar. “We've integrated it into our supply chain, into our giving strategy, into the way we make our product. Every little piece of the business is tied back to that mission and purpose, and it's wonderful.”

Even existing companies can see substantial benefits from integrating social responsibility efforts into all areas of the business instead of it being an afterthought. Deeper integration drives a stronger purpose and mission at the company and shows that leaders and employees care about doing good, not just using it as a PR stunt to bring in customers.

It also helps to find a cause that relates to the company or is something leaders and employees are passionate about. Starbucks commits to using fair trade practices to source its coffee beans and other ingredients — materials it would already be gathering but that can now be done sustainably. Bombas donates a pair of socks to people in need for every purchase — connecting its products to charitable actions worldwide. Target donates to organizations within its communities — supporting groups in the areas where its customers and employees live.

Social responsibility also requires transparency to be effective. Customers and employees are more likely to want to be involved when they know a company’s charitable goals and progress. Plus, showing progress and sharing stories of your impact helps people realize that a company follows through on its word, which builds trust. Share updates with employees and customers through social media, regular updates, marketing campaigns, events, and more.

Doing good doesn’t have to cut into your business’s profits. In fact, it can actually help them grow. Committing to social responsibility and doing good in the world can improve your community and build a strong business.