A world driven by social consciousness means that the effects we have on the community are at the forefront of our purchasing decisions. Where was this coffee bean grown? Who made this t-shirt? How is my donation actually going to make a difference? Are all questions we have begun to ask ourselves in an effort to live more consciously and be aware of the impact we have on the world.
Here are 3 key people concerned with your sustainability practices and social impact:
Today’s consumer wants to be a responsible citizen of the world and they expect the same of the businesses that they buy from. However, appealing to the belief-driven buyer is not as simple as donating money to charity. Instead, consumer loyalty can be earned through employee giving initiatives such as corporate volunteering, payroll giving and fundraising.
The 2019 Edelman Trust Barometer indicates that buyers are more belief-driven than ever with 69% of respondents contending that a business’s social impact was their main reason to trust brands.
An effective CSR endeavour earns the loyalty of consumers by showing them that your company’s social concerns align with their own. The effects of CSR programmes are mutually beneficial; a consumer is able to support a corporation that meets their socially conscious needs while your business is able to boost customer retention.
While belief-driven buyers create an obvious incentive to implement effective CSR programmes, the impact that employee giving can have on brand perception is also not lost on the employee. Maintaining employee loyalty must be treated with the same urgency as maintaining customer loyalty. A study by Gallup supports this statement, finding that businesses in the U.S. lose $1 trillion each year as a result of voluntary employee turnover.
Effective employee giving programmes that include corporate volunteering and events like charity runs prove that companies have a genuine concern with social responsibility. Peter Baines, founder of Hands Across the Water, in his book Doing Good by Doing Good contends that these programmes are valuable because of their ability to cultivate shared experiences among your employees.
Shared experiences allow employees to engage with giving in a manner more meaningful than simply donating a sum of money. Deloitte finds that 70% of millennials consider a companies impact on the community when deciding on who they should be employed by.
Evidently, your company’s impact on the local community has the ability to build a positive corporate image which is important to ensure that employees are loyal and engaged.
The belief-driven buyer and employee is the millennial. The Deloitte Global Millennial Survey 2019 found that millennials and Gen Zs value making a positive impact in their communities or society over having children and starting families.
The millennial has changed the way change occurs. Social change drives a millennial’s actions and traditional philanthropy is no longer making the cut.
The Case Foundation claims that even when it comes down to volunteering and donating, a millennial will only do so if the charity or organisation has earned their respect and affiliation. This fastidiousness highlights a larger trend of dissatisfaction among millennials.
A 2019 study by Deloitte finds that only 55% of millennials believe that businesses have a positive impact on society, 6 points down from 2018. Therefore, a business with an effective employee giving strategy will be able to improve brand perception for prospective millennial and Gen Z consumers by separating themselves from corporations who are not as socially conscious.
Employee giving initiatives and CSR programmes are at the forefront of solutions to ensure that your business has consumer retention and employee engagement. Ultimately, the secret to achieving long-term financial success and profitability is within social consciousness.