A recent Reuters article shows at least 25% of Americans are currently boycotting a product or company they had spent money on in the past. Political differences, social issues, and concerns about environmental impact are causing consumers to express themselves with their voices and their wallets.
Amy’s Kitchen is one of the most recent companies facing consumer boycotts after being accused of unethical treatment of employees. The FritoLay strike and customer boycott came before that. And Amazon is all too familiar with how customer and influencer demands for corporate responsibility can take a toll on sales. The way many companies operate must change to keep up with consumer demands, and as a manager it’s often your responsibility to lead the charge.
Mission-based companies have a better chance of attracting customers and making money. According to Forrester, nearly seven out of 10 shoppers take a business’s corporate social responsibility (CSR) into consideration. That’s a significant percentage of prospective buyers that you can’t afford to ignore. Companies must embrace CSR. Here are some suggestions to help you inspire the seeds of corporate altruism.
1. Identify and embrace your purpose.
Research from Harvard Business School indicates that fewer than half of companies have a well-defined purpose. Your role as a leader should be to name and claim your company’s reason for being. If you’re not sure where to begin, look at why your brand started in the first place.
For instance, look at cellular wireless company Gabb Wireless. Gabb’s flagship product offers families a safer (but real) smartphone that younger kids could use.
Nate Randle, CEO of Gabb Wireless, states “our purpose at Gabb is to protect kids and teens with safe technology through our operating system, services and products. We obsess over our mission and purpose because our youth are falling into the trap of smartphones that were clearly built for adults. We have seen over and over again that the dangers and addictions of screen time often leads to social bullying, anxiety, depression, self harm, and even suicide. We believe in tech, but too much too soon is an unhealthy digital experience for this upcoming generation.”
When you have a deep understanding of your corporate purpose, CSR isn’t as difficult. In fact, you may find that it’s easy to match up CSR initiatives once you’ve labeled your purpose.
2. Leverage your CSR as a branding differentiator.
There’s a reason that social media management platform Sprout Social dedicates significant web space to CSR: It’s a selling point. Sprout Social shows and tells readers about its dedication to the environment by posting metrics and goals. For example, the tech company has pledged that by 2050, fewer than half its supply chain partners will be carbon-neutral. These are promises that can separate them from their competition.
No matter what you decide to pursue as your company’s CSR, make sure to highlight it. Write blog posts. Be active on social media. Add values-based messaging into your job descriptions. Never assume that outsiders — or even your employees — know how you’re trying to make the world better.
Remember that when consumers are faced with brands that seem to have equal offerings, CSR can tip the scales. Studies show CR programs can increase revenue by 20% and increase customer loyalty by as much as 60%. Talking about CSR openly gives you the chance to show why your company’s a better choice for mission-minded buyers.
3. Keep evolving your CSR strategies.
As your company grows, your CSR strategies should follow suit. Change is natural and normal, after all. At least annually, reflect on the ways you’re showing that you take your business responsibility seriously. Is there more you should, could, or want to do?
Microsoft is a great inspiration for this type of CSR-related creative thinking. For years, Microsoft has set up an employee donation matching program. They donate time, money, and goods to charities its workers care about. However, Microsoft didn’t begin its journey with this kind of robust initiative; It happened along the way.
Look at CSR not as an end goal but as a journey. You’ll find it easier to branch out and experiment with new ways to support your overarching purpose. Talk to your employees about what issues interest them. If they care about a cause, it’ll be easier to get them involved.
4. Partner with another company.
Could a company with roots in the plastics industry be heralded as a CSR leader? If it’s LEGO, the answer is “yes.”
LEGO has earned a reputation for raising the bar on CSR. One avenue it’s taken has been to form key partnerships. Take its relationship with UNICEF. LEGO is investing financial support toward a specific UNICEF mission to help disadvantaged families in China. Consequently, LEGO gets the opportunity to directly make an impact by working with and through UNICEF.
You may not have millions to become a worldwide sponsor of a vast CSR initiative. But could you possibly link forces with another organization in your neighborhood or community instead? Partnerships can be helpful in stretching the resources you’re able to earmark toward CSR. Additionally, they can be valuable avenues to meet future customers, employees, and investors.
In the digital era, companies don’t have the luxury of operating behind curtains anymore. Whether your business is in the startup or scale-up phase, look for ways to illustrate your commitment to CSR. It’s what the public wants, and it could be the missing ingredient to take your business to the next level.