The rise of socially conscious businesses
Nick Goddard
A survey of business leaders from across the globe found that 93% believed companies were more than employers, but societal stewards (1). Although choosing to focus on a purpose-driven business mindset, for doing what's right and making a difference is not new, it has never been more important.
Whether it’s diversity and inclusion or environmental awareness and carbon footprints, more businesses than ever are looking to implement programmes that will benefit their communities and have a positive impact on society. That’s why our aim is to help build modern day businesses fit for today's social objectives.
The rise of millennials
One reason for this socially conscious movement is the generation of millennials who, it's estimated, made up over a third of the global workforce in 2020 (2). Research confirms that they want workplaces with social purpose. Not only have 40% of millennials chosen a job due to the company's sustainability agenda, most would also take a pay cut to work for an environmentally-responsible employee (3).
The business benefits of social consciousness
Choosing to prioritise corporate social responsibility (CSR) won't only benefit a business's community by helping to create a better place to live. It will also benefit both the business itself and its employees in the following ways.
Attract and retain employees
Research into the importance to employees of their employers’ corporate sustainability activities, found that 70% reported that a strong sustainability plan would affect their decision to stay with that company. 30% said that they'd left a job that had no sustainability plan in place, and over a third acknowledged that they'd given more time and effort to their role due to their employee's sustainability agenda (3).
Builds your reputation
As those statistics show, a reputation for being socially responsible attracts employees. It also helps set you apart from your competitors in the eyes of customers, giving them another reason to choose your business. Adopting a socially conscious agenda helps your business act with integrity, which strengthens customer and stakeholder relationships by building trust.
Morale-booster
Supporting local communities and actively being socially conscious helps to create a happier, motivated workforce with a greater sense of purpose. Research has shown that people are happier working for someone with integrity, as employees' perceptions of their manager's behavioural integrity 'positively related to job satisfaction, job engagement, health, and life satisfaction.' (4) Further research has suggested that satisfied employees are more likely to stay with their company for longer (5).
Business growth
Businesses with corporate social responsibility programmes are more profitable than those without a CSR programme (6). Being socially conscious also makes you a more attractive prospect in the eyes of ESG investors who consider environmental, social, and governance factors when making investment decisions.
Larry Fink's 2021 CEO letter
is an example of how investors are shaping the rise of socially conscious businesses. So, from an environmental, cultural, and financial viewpoint, it pays to be socially responsible.
Our mission is to bring about profound positive change in individual and collective behaviour in business. So, if you'd like us to help drive transformative change within your company and embed a diverse, inclusive, socially conscious culture, we'd love to hear from you.
References
Andy Nicol explores how technological innovation, global economic outlook and sustainable finance will be crucial challenges for Financial Services to overcome in 2024.
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We are currently based in Edinburgh, York, London, Northern Ireland and operate throughout the UK, Ireland, Poland, USA, India, Hong Kong and Dubai.
