In today’s scenario, every business is participating in public stands on several issues like the environment, human rights, fair trade, and even ethical practices. While earlier “cause-based” companies missions were only related to smaller corporations and brands, but now large companies are taking advantage of their power and are trying to communicate social responsibility and their duty towards society.
Companies are taking initiative towards the social causes and because of their power and positions their acts are quite effective in various matters. During this proactive stance, big businesses are not just reacting to it but are also driving social changes.
Recently from the last few years the purpose of business has been shifting from creating wealth to being purpose-driven.
Practice of social accountability in businesses:-
Social accountability doesn’t mean that you have to sacrifice success. It means valuing something that is good for society above short-term profit. In this era, where every move that a business person makes is under a microscope. People are knowing every small thing that a business person for the benefit of people or society. Practising social accountability is a long-run brand-building strategy, not a detriment. Businesses can practice social accountability, simply by being aware of how their actions can affect the world. Any action that directly goes against the public good should be avoided, even if it’s profitable.
The goal isn’t to impede success but to build a connection with customers so that they can trust each other. It may be a tougher relationship to build than one based on exploitation, but in the long run, everyone will benefit.
There are several ways through a business that can play a major role in social change just by investing their time and money if they wished to do something for the public. Here are some methods:
- Creating meaningful partnerships
Companies can make a contribution to the community that has been related to corporations donating a sum of money to non-profit organizations and putting their logos on glossy brochures. These businesses have to create meaningful collaborations with the community. Also need to invest time and effort to come up with real solutions that can bring profit to both and can be helpful to society.
- Teaching the public entrepreneurship
Entrepreneurship can empower those who organisations or communities by giving them the means to be self-employed. Starting and managing a business requires problem-solving ability, innovative thinking and management skills. If any individual is having all these skills, then they are able to reach their potential and contribute to the community. At last, businesses, government and academia can work together with entrepreneurial skills to bring a change to society.
- Invest in both social returns and financial returns
Investing strategies have a huge impact and now the strategies have turned the main focus on the social benefits of investments, without losing any emphasis on financial success. Impact investment companies have assessed returns in both profit and measurable, global impact. This is mainly a new form of investing. Moreover, impact investments are targeting and achieving market-rate returns at 80%.
- Merge the mission
Usually startups have only 1 thing in their mind that their main focus will be on finances. But as per the experts, a company’s business model should be focused on making a profit, going public, achieving all of its missions, perfecting a product or maximizing social impact. All these strategies will give a long-term profit to companies. If an organization makes changes to become financially stronger, constant check-ups should be taken to make sure that none of its social goals is abandoned, and vice versa.
The success of companies depends on the social and financial benefits, so it is important to balance both of them properly.
- Effective social assessment
To most effectively measure social returns, companies need to use the resources that are available to them. Companies need to take valid measures that can directly lead to social impact and indirectly bring profit to them. Also, internal monetization standards and tools should be created to complement these external resources, whether through information tracking or effective polling of a target population. By using these tools, leadership and investors will gain an accurate image of a company’s ability to gain social “returns” together with financial returns.
These tools set a standard for a company and are important in providing company leadership with a deep understanding of their performance.
- Mobilizing students to create social good
It’s time for business to play a major role in bringing about social change because the cost of leaving people behind is very high , as we have witnessed in recent months. These days, public role models play a major role in conveying messages to the public related to social change.
Nowadays, Populism is on the rise. To bring any change in society, it is needed to bring that issue on a bigger level so that more and more people can know about it. This can only be possible when everyone including businesses, entrepreneurs and other major people who can bring a change with the help of their power and positions come together.
