Doing Good While Doing Business
“Every firm has an implicit purpose—a unique raison d’être that answers the question, “What would the world lose if this company disappeared?” Companies that embed purpose in their business model not only mitigate risk; they can also create value from their values.”
— McKinsey: “Does ESG really matter—and why?”
“Consumer preferences have pivoted sharply toward those brands and businesses that can demonstrate sustainable practices and products. And employee consciousness is demanding better and more equitable workplace practices, which gains even more significance in a tight labor market.”
— EY: “How to make sense of the ESG conversation”
“Companies must move beyond box checking and window dressing. In a world that increasingly judges them on their ESG performance, they must look to more-fundamental drivers—particularly strategy—to achieve real results and be rewarded for them.”
— Harvard Business Review: “Social-Impact Efforts That Create Real Value”
In today's world, businesses are expected to do more than just make money. They're also expected to make a positive impact on society. But how can you achieve both of these goals?
The answer lies in aligning your business strategy with your values. When you make decisions that are consistent with your values, you're not only doing good for the world, but you're also setting your business up for long-term success.
Change Management for Social Impact
One way to do this is to use change management principles to create social impact initiatives. Change management is a structured approach to transitioning individuals, teams, and organizations from a current state to a desired future state. It can be used to effectively manage the cultural, organizational, and behavioral changes that are necessary to achieve social impact goals.
Key Steps to Create Positive Social Impact
Here are some key steps that businesses can take to create positive social impact through change management:
Access Your Current State: Start by assessing your organization's current social impact activities and performance. This will help you identify areas where you can make the most significant impact.
Discover Your Vision: Develop a clear and compelling vision for your organization's social impact efforts. This vision should be aligned with your organization's overall mission and values.
Set SMART Goals: Establish specific, measurable, achievable, relevant, and time-bound (SMART) goals for your social impact initiatives. These goals should be linked to your organization's overall strategic objectives.
Empower Talent: Empower your talent to become agents of positive change. Provide them with the training, resources, and support they need to make a meaningful contribution to your social impact goals.
Integrate ESG throughout Human Resources: Integrate social impact into your organization's human capital management (HCM) systems. This will help you attract, retain, and engage top talent who share your values.
Create a Culture of Social Impact: Create a culture within your organization that values and supports social impact. This can be done through employee recognition programs, social impact committees, and other initiatives.
Communicate Your Progress: Regularly communicate your organization's social impact progress to stakeholders. This will help to build trust and credibility.
Invest in Social Impact: Invest the necessary resources in your social impact initiatives. This includes funding for staff, programs, and infrastructure.
Govern, Measure, and Be Accountable: Establish clear governance structures to oversee your social impact initiatives. Regularly measure your progress and hold yourself accountable for achieving your goals.
By applying “cultural change principles” to social impact initiatives, businesses can effectively create meaningful, sustainable, social change while also enhancing business performance, brand reputation, and employee engagement.
