Why Businesses Need to be Mindful of Their Social Impact

Why Businesses Need to be Mindful of Their Social Impact

People increasingly want to engage with businesses that have a “social conscience” – a high level of ethics and social awareness.

While a return on investment is crucial for a business to thrive, the Boston Consulting Group (BCG) says companies and investors are now expected to go beyond profits. Companies need to show that not only is their product good, it is also “doing good”.

There is a good business case for this. Companies that do not consider their social impact could risk being left behind – which may affect their profitability.

How to demonstrate social awareness

Businesses might refuse to sell goods produced through child labour, or work to reduce their carbon footprint and use of plastic.

Another typical example of this is customers wanting to know where a bank or superannuation fund invests, to ensure the company’s activities align with their own values. In other cases, shoppers might choose to buy products that are marked “Fairtrade” or “cruelty-free”. A company might also be known for treating their staff well.

So, if you’re in business for the long term, it pays to think about the ways your business could become a greater force for good!

 

https://www.businessinsider.com.au/companies-now-need-to-pay-attention-to-their-social-impact-or-be-left-behind-2019-7

https://www.bcg.com/en-au/publications/2019/optimize-social-business-value.aspx