It was traditional that large companies gave back to society because they reasoned that “we have been successful; now let us give something back." But in today’s business climate, it must be, "we want to be successful, so we have to give something back." This is because all customers expect companies of every size to have some level of social responsibility in order to attract their businesses.
In addition, small business owners are missing out on a huge benefit of having corporate social responsibility:
It attracts better talent
With more than fifty percent of the workforce now being millennials, many of them want to work for a cause more than for a business. This means, they need to be able to say to their friends and family that they are working for a company that practices social responsibility and not just selling products or services.
A 2003 Stanford University study found that MBA graduates would actually sacrifice an average of $13,700 of their annual salary to work for a socially responsible company. It seems that now some people prefer a purpose over just a paycheck.
It bonds team members together
While the small business may not change the world in the services or products it provides, it still can by getting involved in local causes. Most employees want to support their city so they can feel proud they are making a difference in their local community through their company’s social responsibility program.
Harvard Business Review shows that inspired employees are almost three times more productive than dissatisfied ones. This could mean that more people will be willing to work for less money if their company somehow benefits society.
It’s good marketing and attracts more customers
Serving the community helps a company because it gives them visibility and increases goodwill without trying to sell anything. Surveys show eighty five percent of customers are more likely to buy a product that is associated with a charity they can support.
It’s the right thing to do
At Nextiva, supporting local community charities is critical for their mission and team. In 2017, they helped sixteen different organizations by donating over $60,000, 498 pieces of clothing, and 504 toys. Most importantly, 500 employees volunteer 1370 hours at these charities. With it being such a large part of their culture, Nextiva hopes to exceed these achievements in 2018.
What is your company doing in social responsibility?
Barry Moltz helps small businesses get unstuck. He applies simple, strategic steps to facilitate change.
Barry has founded and run small businesses with a great deal of success and failure for more than 20 years. He is a small business speaker, radio host and author of four books. As a member of the Entrepreneurship Hall of Fame, he has spoken to audiences of up to 20,000 people. He is a regular guest on business radio and cable TV programming.