Are Consumers Voting For You?
What does your business stand for? What does it stand against?
We live in a deeply interconnected world, and consumers have more power than ever when it comes to spending and doing business with companies around the world. In a matter of minutes, with just a few clicks, prospective clients can clearly articulate what they stand for and what they value.
“Voting with your dollars” is a concept that has become increasingly relevant over the last few years. This phrase alludes to the idea that consumers have the power to influence how businesses do business and the economy through their purchasing decisions. Practically, this means that when individuals buy products or services from a company, they are “casting a vote” in favor of that company and its business practices.
The data backs this up.
According to a survey by Accenture, 62% of consumers globally want companies to take a stand on social, cultural, environmental, and political issues, and are more likely to buy from companies that share their values and beliefs.
In a Nielsen global study, 81% of consumers feel strongly that companies should help improve the environment, and 73% said they would either definitely or probably change their consumption habits to reduce their impact on the environment.
And GenZ consumers, born between 1996-2014, are even bolder. They are three times more likely than older generations to say the role of business is to "serve communities and society," 60% are willing to pay more for products that were produced in ethical and sustainable ways, and 50% believe that companies have a greater responsibility than government to address social issues. On the surface those numbers may not mean much, but when you factor in that GenZ comprises 42% of the world’s population, all of a sudden what they think and care about really matters.
And that influence is only going to increase as they continue to age.
We are officially in the era of socially and environmentally conscious consumerism, and companies that are unwilling or unable to meet the demands of consumers will not survive.
So, what can you do to improve your environmental or social impact?
ENVIRONMENTAL IMPACT
Conduct a sustainability audit. Identify areas where the business can reduce its environmental impact, such as energy consumption, waste management, water usage, and carbon footprint. On the surface, this may seem relevant only to product-based businesses, but service-based businesses have an environmental footprint as well. This audit will provide a baseline for the business to track its progress towards reducing its environmental impact.
Set clear sustainability goals. After identifying areas for improvement, the business should set measurable sustainability goals that align with its overall strategy, mission and values. This might look like reducing energy consumption by a certain percentage, increasing the use of renewable energy sources, reducing paper waste, or community engagement that leverages your team and impacts your local area.
Integrate sustainability into business operations. Sustainability goals are not enough to make a difference. They have to be integrated into all aspects of the business’s operations. This can include using sustainable materials and products, implementing energy-efficient practices, minimizing your carbon footprint when traveling, and reducing waste. You can also prioritize partnerships with suppliers and vendors who share your commitment to social and environmental responsibility.
SOCIAL IMPACT
Give back to the community. Your business can make a positive impact in the communities in which you operate by giving your time, energy, and resources. This might look like volunteering, donating to local charities, and sponsoring events hosted by non-profits that are in alignment with your values.
Support diversity, equity and inclusion initiatives. Prioritizing diversity, equity, and inclusion in your hiring and business practices is a powerful way to increase your social impact. Creating a more inclusive workplace, supporting minority-owned businesses, and advocating for social justice issues help level the playing field for disadvantaged communities and ensure they have a level playing field.
Invest in your team. Investing in your team’s development can make a big impact in your employee’s lives, their productivity, and the success of your business. Practically, this might include providing funding for training and educational opportunities, offering mentorship and coaching programs, and legitimately prioritizing work-life balance as a core company value.
Partner with social impact organizations. By partnering with social impact organizations, businesses can leverage the resources and expertise to make a greater impact on social issues. Of all the ideas above, this is one of the easiest, fastest ways to make a difference. Align and support non-profits and community organizations through donations or in-kind contributions, and collaborate with organizations that are already on the ground, doing work that matters to your organization, to develop new products or services that address social issues.
The sky's the limit when it comes to making an impact. Here’s what you need to remember: you don’t have to eat the entire elephant all at once. Small, incremental improvements make a difference and pave the way for bigger initiatives and bigger impact down the road.
Regardless of what you do, make sure you are open, honest, and transparent about the work you are doing. People want to be on the journey with you, so communicate often about your sustainability and impact efforts. This is one of the best ways to differentiate yourself from others in your industry.
As I often say, your mission is your competitive advantage, and that includes the work you’re doing to positively impact the environment and society.
Consumers are actively looking to support businesses who are doing good in the world, so give them a reason to “vote for you with their dollars.”
RESOURCES
Impact Strategy Brainstorm Session
10 Questions to Align Your Big Idea And Your Business Strategy
