This commentary is by Everfi from Blackbaud. Tom Davidson is the Founder and CEO of his Everfi at Blackbaud and Executive Vice President of Corporate Impact at Blackbaud.
In recent years, there has been a clear shift in how companies think about and implement corporate social responsibility (CSR), also known as corporate social impact. Gone are the days when a CEO's passion project was buried in an adjacent foundation, disconnected from important corporate goals. Today, top-performing companies and organizations are taking a highly strategic and operational approach to social impact efforts by using software, AI, and data to identify needs and measure results. We are hiring.
Forward-thinking organizations such as the NFL, Accenture, Edward Jones, Guardian, CAQ, and HCA Healthcare are aligning C-suite high-profile social impact initiatives to key business metrics such as customer acquisition and retention and workforce. I am creating a program. recruitment and retention, brand building, and regulatory requirements.
These companies know that far from being a “philanthropic act” or a noble side hustle, their social impact efforts have become a business imperative.
Those with an outdated understanding of how social impact initiatives can achieve core business objectives are not only wasting an opportunity, but also knowing that in the coming years, younger consumers will Their costs can rise as they become more of a decision maker.
Purpose-driven businesses achieve better results
A company's purpose is more than just making a profit. However, companies with a strong sense of purpose perform better on several key business metrics.
For example, consumers are four to six times more likely to buy from, trust, champion, and champion companies with a strong purpose. Purpose-driven companies capture higher market share and grow on average three times faster than their competitors, while achieving higher employee retention and customer satisfaction.
These trends are likely to accelerate in the coming years, as Millennials and Gen Z will soon become the largest spending power and make up the bulk of the U.S. workforce. After learning that a brand supports a social cause or is socially responsible, 85 percent of Gen Z consumers trust the brand and 84 percent are more likely to purchase that product. Consider that 82 percent are likely to recommend the brand to a friend or acquaintance. family. Alternatively, 64 percent of Millennials won't take a job if their employer doesn't have a strong CSR policy, and 83 percent would prefer a company that helps contribute to social and environmental issues. I think they will be loyal. Additionally, nearly eight in 10 Gen Z workers say it's important to work for an organization that aligns with their values, making purpose the number one driver in their career decisions.
Companies are getting the message.
Industries such as the financial sector are discussing and strategizing how to leverage CSR to rebuild trust and transparency, meet regulatory requirements, facilitate more wealth-building opportunities, and of course increase profits. More and more people are coming together for this purpose.
Companies that continue to ignore CSR initiatives are simply missing out on a huge opportunity to achieve their core business objectives.
Start
If your company's CSR program isn't aligned with core business metrics, here's how to ensure your efforts have a measurably high impact both internally and externally on the causes you support. indicate.
First, understand your company's core goals related to brand, reputation, regulatory requirements, employee engagement, and recruiting top talent. Think about what values you want to convey to your customers and the broader public, and how these connect to the products and services you sell. Understand what issues are real to your business, yet focused enough to make an impact. Determine which of these issues are of interest to you and likely to resonate with various stakeholders, including employees, customers, regulators, and executives.
Next, look at your industry peers to determine if there are opportunities to collaborate. Many companies within the same industry are partnering to assess what the real needs are on the ground in the communities in which they operate. These assessments take into account the views and voices of local charities who can best represent the real needs of their communities. By conducting this type of evaluation upfront, companies can ensure a more meaningful impact with programs that actually make a difference in their communities. Whatever program you decide on, make sure it is consistent with the broader corporate strategy you initially identified.
Next, understand where the program fits within your company. Do you have distinctive social impact programs that address specific community needs, such as education or mental health? Do you provide a platform for employees to choose and contribute to initiatives that impact society? Even with the best intentions, many companies have social impact efforts spread across the organization, making it difficult to understand who is responsible for what and the overall impact of the company's efforts.? I feel that it is difficult. It's best to think of social impact efforts as a portfolio, with visibility and preferably executive management. By centralizing and strengthening social impact programs, companies can deliver better results and gain greater visibility into their success.
Finally, be purposeful about what exactly is being measured and reported. It is often these very indicators that determine what gets completed. Make sure the solution you choose effectively tracks the impact of your investments against the core business metrics you define at the outset. Technology can help here, and today’s advances in AI can simplify and even automate measurement and reporting. That's why we created Blackbaud Impact Edge, an AI-powered social impact reporting and storytelling solution for teams of all sizes.
rare business opportunity
The next step in corporate social responsibility is here. Businesses of all types have an incredible opportunity to achieve their core business goals through purposeful corporate social impact programs.
Companies across industries are taking a highly strategic and operational approach to corporate social impact to increase profits, comply with regulatory requirements, strengthen community trust, cultivate new customers, and improve their brand. I realized that I could achieve all these enhancements at the same time. Now, these forward-thinking organizations are proving that focusing on community needs can lead to profits and more.
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