These days, businesses worldwide are becoming aware of their social responsibility and are redefining their roles in society. Mounting evidence shows that the business that uses their power to solve social and environmental problems is the most respectful and thriving in this social enterprise era.
Why Your Business Needs a Social Purpose?
Being socially responsible is not limited to big companies. Even small businesses are also coming up with ways to integrate social responsibility into their business model. Apart from getting the satisfaction of having done something good for the world, consider these 5 reasons why your business needs a social purpose or mission.
Here’s why your business needs a social purpose
1. To Boost Employee Satisfaction
Many studies have shown that a business with social responsibility (aka Social enterprises) serves the purpose of not only to provide a sustainable business model but also to have very satisfied employees. In a Harvard Business Review report called The Business Case for Purpose, 89% of executives that were surveyed said a strong sense of collective purpose drives employee satisfaction.
When youngsters hunt for jobs, good salaries are not their only criteria for working in a company. They look for companies that will provide a meaning to the work they do. So, having a social purpose will be an attractive perk to bring quality talents to your company and retain current employees. It will give satisfaction to your new as well as current employees. They will feel that they are making a meaningful contribution to the workplace and towards society as a whole. Hence, giving a boost to employee satisfaction rate.
2. For Long Term Sustainability
Pursuing your business towards a social mission is a great way to gain the attention of the investors. These days, most investors show interest in companies that share a social cause with them and are more likely to invest in your company. The opportunities are unlimited to help your business sustain for a longer time by having outside funding.
3. To Attract and Retain Customers
Customers are likely to choose companies which have impact stories and are committed to a positive social impact over their competitors. Not only this, but they will also pay more for the product and services provided by you because of your commitment to a cause. Nielsen’s 2014 Global Survey on Corporate Social Responsibility revealed that 55% of global online consumers across 60 countries are ready to pay more for services if they are committed to a social cause.
In the same Harvard report mentioned earlier, 80% of executives surveyed said a strong sense of collective purpose helps increase customer loyalty.
In a nutshell, you need to give your customer a reason to believe in you, and that reason is a social purpose. Once they feel the personal connection with your business, its purpose, they will show loyalty towards you and your business.
4. To Increase Financial Performance
Another reason to have a social purpose is that it can affect the financial performance of your company. Companies that operate with a social cause experience more growth in business than companies that don’t have any social purpose. A purposeful company will definitely outperform other companies in the stock market. The same report by Harvard Business stated that 58% of companies with social purpose experienced growth.
5. To Get Inspiration
Creativity and innovation are the two traits that are welcomed in the business world. When your company will share a cause with consumers, they will share their passion and interest with you. This way, you can receive valuable feedback that can inspire you to make a new innovation. Therefore, the social purpose business gives the future generation an opportunity. They can come into the room and share stories that inspire. Their stories will provide innovative solutions to the social problems to the businesses, and help them grow.
The Bottom line
In conclusion, we can say that a socially responsible business will not only attract new customers but there are other perks of becoming socially responsible. In addition to attracting new customers, their workforce satisfaction will increase, along with customer retention, and enhanced financial performance. Their business will sustain for a longer duration, and they will get inspiration inspired to make innovations.
So, what are you waiting for? Centre your business around social purpose and contribute towards a better world.