How marketers can put social purpose into practice
The concept of corporate social responsibility (CSR) is under the microscope like never before, as consumers are increasingly adept at seeing through insincere attempts by brands to appear to be doing good.
One such example is Volkswagen, which has been widely criticised for its response to last year’s emissions scandal, where it was found to have systematically manipulated tests so its cars’ emissions appeared lower than they really were.
In an attempt to restore faith, the car marque stated a renewed commitment to “transparent and responsible corporate governance” in its 2015 annual report, claiming that it would use its CSR initiatives to permanently boost “the company’s reputation and value in the long term”.
In reality, the approach highlights the widening gulf between CSR initiatives and a genuine social purpose that also fulfils the core objectives of a business. If the social purpose is not linked to the company’s overall strategy, products or services, the long-term benefit to the business will be minimal and the efforts will inevitably lose internal support.
Research last year suggests the companies most capable of consistently growing profit are those that stand for more than simply making money.
For social purpose to be credible, brands need to think about how their values and skill sets can contribute to society, while making sure senior leaders are on board and that the concept is economically sustainable.
Microsoft’s social purpose – set out by CEO Satya Nadella – is to empower every person and organisation on the planet to achieve more.
No mean feat, but the tech giant has a number of initiatives under way to achieve this aim. This year, for example, Microsoft worked with the BBC on the development of its ‘micro:bit’ project: a pocket-sized, codeable computer with motion detection, a built-in compass and Bluetooth technology, which is being given to every year seven pupil in the UK to encourage digital creativity.
Over the past five years the tech company has also run an apprenticeship programme helping 25,000 UK businesses fill technical skills gaps and become more efficient using Microsoft technology.
Use purpose to attract talent
Having a credible social purpose can also help companies recruit new talent and retain staff.
In a war for talent, it is essential that you appeal to people through the purpose of your company. Everyone, young and old, wants to work somewhere that aims to create a better world. Simply taking money from society is just not that exciting.
Whether it is attracting new talent, driving business growth or increasing consumer trust, brands that identify a genuine social purpose and implement a strategy to support it at all levels stand to benefit greatly and ultimately increase profit.
How does social purpose differ from CSR?
Social purpose has to be relevant to the company’s core business. All companies have to think about how to engage radically with society.
This means engaging with stakeholders on their agenda and adapting your business strategy accordingly.
The strategy should not just think about the supply chain or sourcing; it also needs to relate to all the people you interact with, both inside the company and outside of it.
How will this benefit businesses?
You can see a difference with companies that engage with their stakeholders in this way and include them in their decisions. Companies that do this make better returns in the long run. Studies have shown that the most inclusive companies achieve abnormal returns of more than 20% over a 10-year period compared to competitors.
How does connecting with society give companies a tangible competitive advantage?
Research has shown that the value at stake for companies in their relationship with society is roughly 30% of their value. Therefore a good relationship with society is not just nice to have – it is a key determinant of competitiveness. Connecting effectively can set companies apart in many ways, from reduced regulatory risk to enhanced reputation.
Does social purpose need to be driven from the top down?
It is essential that social purpose comes from the top, from the CEO, board and C-suite. They need to think about social purpose and to make this commitment to engagement clear throughout the organisation.
Here at Graffiti Recruitment, as part of our promise and passion, we work with the local community on various different projects to support those people that need a little help in hand getting back to work or taking the first step on the career ladder. To find out more about our social purpose, click here.
– Charlotte Rogers
