Why Doing Good Is Good Business

Listen to this episode on the Purpose + Profit Podcast on Apple Podcasts, Spotify, or the podcast player of your choice.

I have long believed that businesses should do good in the world, and this idea was reinforced in me by my mentor, Anna (Anne) Eleanor Roosevelt. When I first met her, I was working at the Boeing Company, coaching and facilitating leadership development programs. She served as the Vice President of Global Corporate Citizenship and was charged with identifying ways Boeing could and should engage with and impact local communities and the world. This included the use of its products and services, its business practices, and its community engagement.

This concept of being a good corporate citizen is rooted in the idea that businesses are uniquely equipped with the people and resources to make a difference in the communities where they live and operate. Over the few years I was in a mentoring relationship with Anne, I truly saw that businesses are well suited, and in many cases better suited, to help close the gap that governments and non-profit organizations can’t or won’t for humanity. As the needs of people and the planet continue to grow and evolve, consumers are relying on, and in fact, demanding, that businesses do more and do good.

In a recent study by Edelman’s 2022 Trust Barometer, 81% of respondents said they expect CEOs to be personally visible when discussing public policy issues and the societal impact of their businesses. Consumers today are paying close attention to which companies align with their values. This is especially true of Gen Z (born 1997 to 2012), the upcoming group of consumers entering the marketplace; their buying power - $450 billion with B - expected to exceed $3 trillion globally over the next decade. This generation is 85% more likely to trust brands, 82% more likely to recommend those brands, and 84% more likely to buy from brands that address social causes or are socially responsible.

It’s no longer enough to just focus on profit. Businesses must also do good in their local communities and beyond. So, how can businesses do better, especially smaller businesses or solopreneurs who are operating on smaller budgets?

Share Your Expertise

If you look around your community, there are always opportunities to share the same skills and knowledge you use in your business to help others be successful. Volunteering your time and creating the space and incentives for you and your team to engage at the local level is incredibly powerful. For example, hosting free webinars, offering workshops to underserved communities, or mentoring emerging entrepreneurs through the Small Business Development Center are simple ways to create impact without stretching budgets.

Build Strategic Partnerships

Who do you know? Look around your network and identify people who share similar values, who have synergies with your core expertise, and are doing innovative things to address issues at the local and global level.

Over the last few years, I’ve done enough reading and talking about my heart for ending period poverty that people are now reaching out and making introductions on my behalf. Not all of these will turn into something, but those conversations open the door for additional partnerships that allow you to tackle problems you might not be able to address alone. Collaboration with like-minded individuals, businesses, and organizations can amplify impact and bring fresh ideas to the table.

Speak Up

I would be remiss if I didn’t add something about using your voice here. Your voice is one of the most powerful tools you have as a business owner. When you care deeply about issues that are affecting people or the planet, speaking up and setting yourself apart as a thought leader is essential. Your mission is part of your competitive advantage, so don’t hesitate to say what you want (and need) to say to elevate and tackle local and global issues.

I often talk about creating “stages of your own making.” Platforms like LinkedIn, Instagram, and Threads provide opportunities to share your values and engage in important conversations, as do traditional stages - in person or virtual - and writing blogs and articles. You’ll be surprised at how many people will raise their hands and say, “I care about that, too! Let’s do something about it.”

Invest Strategically - Use Your Dollars and Your Feet Wisely

Just as your voice is a critical asset, your dollars and your feet are too. The world has seen a surge in consumer activism, with people boycotting products or companies that don’t align with their values. A 2022 LendingTree survey revealed that 1 in 4 Americans were actively boycotting companies due to disapproval of specific corporate actions or donations.

In fact, I’ve had conversations with peers and family members about why I don’t shop at certain stores or restaurants. I - and many others - am looking to support businesses that mirror my values. So, be clear on who and what you’re for (and what you’re not), and invest your time and money accordingly. This might mean participating in or sponsoring events that align with your mission or supporting grassroots initiatives through financial contributions.

Source Ethically

Ethical sourcing is an approach where businesses factor in the impacts their products and services have on the people and communities that create them. Transparency requirements in some industries is a growing area of focus, particularly when it comes to tackling issues like human trafficking and labor standards. Carefully vetting partners, suppliers, and other stakeholders is critical, and more and more consumers will be looking at this over time. 

This principle can also apply to the purchase of products, client gifts, or services—knowing where things come from and ensuring they’re created under ethical conditions is a meaningful step toward building trust with your audience.

Pay a Living Wage

Like ethical sourcing, this one may take some time as you build and grow your business. Paying people a living wage is vital to tackling several of the United Nations’ Sustainable Development Goals, including ending poverty and eliminating hunger. When your employees can afford to live well and aren’t constantly stressed and strained by finances, they become better, more engaged employees.

In fact, one of the organizations that we partner with is Project Fury. For every woman who joins The Big Idea Incubator a portion of her investment goes directly to eliminating poverty and providing living wages for people all over the world. 

Choose Purpose Over Profits

All of these ideas for creating impact are powerful, but perhaps the biggest difference you can make as a business owner is recognizing that there’s power in choosing purpose over profit. This is a long game, and as a result of decisions you make, there will almost certainly be short-term losses. Stay rooted in WHY you’re doing what you’re doing and the IMPACT you truly want to see in the world. It won’t always be easy, but it will make a difference to your employees, customers, and stakeholders… and to your bottom line.

This is the way of the future, and the sooner businesses embrace the importance of making an impact and aligning all aspects of their business strategy to that purpose, the faster you’ll see your businesses grow.

If you’re not sure where to start, I have two resources for you. The first - 10 Questions To Rediscover Your Purpose & Align Your Business Strategy - is an invitation to dig into 10 questions to help you align your mission with your strategy, so you know exactly what you’re doing and why. The second - Crafting Your Impact Statement - is a guide to help you draft what your business’s impact is and to better understand how it fits into your business's vision and mission. 

Here’s to creating an impact!