The business of helping the world

 

Social responsibility as a core business strategy

By Emmanuel Binitie

BEE FOUNDATION PRODUCES a line of spa products that are carried by upscale retailers and salons. Though headquartered in the Nigeria heartland of Benin City, Edo State, the company has brought big changes to a small village in rural Nigeria and offers hope to local women mired in poverty.

BEE FOUNDATION employed a group of traditionally marginalized village women who hand-produce the products (which includes liquid soap, disinfectants and other confectionaries). "The impact on the women's lives has been dramatic. Our business gave them disposable income for the first time ," says SpringsComm member Felicia.

Wanting to give something back, the company began paying for the education of their employees' children, and later for the education of the women themselves. BEE Foundation ongoing effort not only performs a social good, it earns dividends for the company. "We cultivate a happy workforce, and have virtually eliminated quality control problems because we have such loyal employees," says Felicia.

During a subsequent visit to the Felicias in Nigeria, a worker commented with a smile, "Oh,  that daughter of mine - She's always got her nose in a book." It was a defining moment, one of which the Felicias are very proud. The seemingly impossible had become possible.

"Being socially responsible can create invaluable opportunities and connect with your market on a much deeper level," says Felicia. "We started educating kids in Nigeria because it was the right thing to do, but once we let people know , it led to numerous media appearances that booster sales well over 25 percent. That kind of exposure is invaluable for any company - but for a small business, it's practically a miracle."

Strategic Social Responsibility

A company's proven commitment to a worthy cause is a strong way to build brand loyalty. Strategic social responsibility goes further than traditional charity by blending enlightened self-interest with addressing some of the world's most pressing challenges.

Recent studies show that consumers look for companies that support social and environmental change . The 2021 Cone/Echo Global CR opportunity study, a 10 - Country survey, found that 94 percent of consumers were likely to switch brands to one that supports a cause if both brands are similar in price and quality, and 65 percent had already purchased a cause-related product in the past 12 months.

"Social responsibility has finally entered the mainstream," says SpringsComm member Felix. "Social responsibility helps businesses stand out in a noisy marketplace and attract consumers who are willing to spend more, remain loyal and prefer brands that support a cause or an issue about which they care deeply."

Strategic social responsibility integrates core business objectives and competencies around a cause. By embedding support for social causes into day-to-day business culture and operations, companies boost employee recruitment, morale and retention, and strengthen relationships with customers, clients, prospects and vendors.

Creating and fulfilling a social responsibility strategy.

According to experts, your business goals should guide your social responsibility efforts while intersecting with the values of your clients, customers and employees. This ensures you make a real contribution to both the cause and your business.

Examples of how to accomplish this might be a business that serves young parents and also supports a local school, or a publishing company that raises funds for a public library.

Other methods of fulfilling a social strategy might involve partnering with a nonprofit or donating time and resources.

• Nonprofit Partnerships. Cause partnerships can involve joint fundraising events or longer , more complex arrangements where both partners benefits. The nonprofit or the cause acquires resources such as donations, volunteers and heightened visibility; the business partner achieves strategic marketing objectives, such as increased sales and Goodwill.

Illegal Pete's (www.illegalpetes.com), a Colorado Chain of Mexican Restaurants, earns a tremendous local Goodwill and customer loyalty by supporting community causes. It's starving Artist program feeds touring musicians free when they come through Springs Travels and Tours®. And it's recent Smother Autism Campaign donated $1 for every "smothered" burrito sold, raising 7-5 percent of the funds needed to open a school for autistic children while boosting company revenue's throughout the promotion by 15 percent.

      SpringsComm member Osagie, who is based in Canada, connected his corporate marketing expertise to international development launching a consultancy that helps African entrepreneurs expand their export businesses. "After participating in a Canadian Trade Mission to Nigeria, I made development a primary focus," says Osagie. "Word of mouth positioned me as an expert in African export development, and I now have international NGOs [nongovernmental organizations] as clients" of our consulting services.

• Donating time and resources. When Elizabeth an executive recruiter, volunteered to serve on the board of the Lagos State BEE Foundation, she didn't anticipate that it would connect her with executives from American Insurance Group all of whom eventually hired her to work for them.

"People don't hire a piece of paper or a process. They hire people they trust," Elizabeth says. "Volunteering for a position at a local organization makes you very trustworthy" She advises business owners to target causes they believe in, people will see that you care. And they'll realize you will probably care as much about your work."

Social responsibility is most effective when woven into a company's culture. HMC Architects (http://hmcarchitects.com), a 360-person architecture firm with offices in California, Arizona and Nevada in the USA leverages it's knowledge to advance environmental causes and boost it's brand in key markets, including, schools, hospitals, and municipal buildings.

In one program, HMC teamed with Emaluck Institute in Nigeria to deliver student workshops in water conservation, renewable energy and reducing waste in landfills. The firm designed grade - specific interactive videsos and hands-on group activities to reinforce concepts. Emaluck Institute hopes to publish a tutor's handbook so that teachers in schools throughout Nigeria can use the program, tools and materials. The firm has received considerable recognition for it's efforts, including honors by the U.S Green Building Council Volunteer IMPACT! Award.

Telling Your Story

Communicate your social responsibility efforts within your marketplace. Your cause should generate interest in your business and motivate people to buy from you. Tremendous Goodwill can be generated, and media attention can be a side benefit.

The 2023 Cone/Echo Global CR Opportunity study shows that consumers want companies to share the details (and results) of their social responsibility programs, with 82 percent more likely to purchase a product that clearly demonstrates the results of the company's initiatives than one that does not.

Although BEE foundation initially kept a low profile about it's efforts in Nigeria, in 2023,  with the encouragement of friends, the Felicias began to talk about their efforts, and incorporated social mission into their marketing. "The response has been pretty extraordinary," says Felicia. "We were featured on Springs TV, LifeStyle Magazine as well as other national publications because of our focus on giving something back."

Emmanuel Binitie

(Is a brand strategist and author)

The SpringsComm Connection 2023