Socially responsible businesses are a growing trend. Consumers, employees, and other companies want to do business with them.
According to the Grant Thornton International Business Report, based on an international survey of over 7,400 businesses, private companies are adopting policies to promote corporate social responsibility. They are not doing so to save the environment but to ensure their survival and prosperity.
What are the reasons for adopting CSR policy? Cost management and employee retention are two reasons for adopting CSR policies. The conclusion: “Controlling cost is good for both business and business ethics.”
Small Business Owners can take the following steps to use CSR to improve their business and differentiate themselves from the competition.
Partner with a Cause
Your community, no matter where it is, has a cause. It could be a free clinic, Little League, historic restoration project, or coat drive for people experiencing homelessness. Small businesses can help by offering raffle prizes, providing services in kind at a fundraiser, or acting as a drop-off point for the coat drive.
These partnerships are more valuable for smaller businesses. Depending on your actions, you can get good visibility, positive vibes, and new foot traffic.
Do your research first. Inform your customers about the cause you support and ensure they know it. Ensure your partner includes your name on its event program and newsletter. Posters should be placed in front of your window near your cash register.
Donate to nonprofits
Donate some of your profits to a nonprofit or a fundraiser, like Pizza Night for Little League. You’re likely to get new customers amongst the supporters of your nonprofit.
Go Green
Advertising should promote cost-saving measures such as changing lightbulbs, reducing air conditioning, and dimming lights. Shoppers prefer to patronize stores with a social conscience and are environmentally aware. Tell them you can meet their needs.
Employees deserve to be treated well
Social responsibility includes fair employment practices. The employees who feel valued by being paid a living salary or treated as assets in a start-up will better serve their customers and create a friendly environment. They feel like they have a stake in the success of the company. They will also generate ideas and develop relationships with your customers. You can use all of this to your benefit.
Shop with socially responsible companies
Small and large businesses have begun to implement CSR policies. This means they must buy from companies with “clean” supply chains. You can be that person. Retail customers- especially Generation Y and women- have indicated a strong preference for socially responsible businesses, to the point of switching. This includes Fair Trade and organic products, locally grown, non-sweatshop items, and other socially responsible companies.
Communication and Collaboration
Join groups of socially responsible businesses in your area or community. (In New York City, for example, try Sustainable Business Network New York City https://www.sbnyc.org/; members range from contractors to party planners.)
You can also improve your B2B sales by talking to other business owners about enhancing your social responsibility.