DO GOOD By: Samuel Rosenberg
Whoever tells you that business is all about making money is not entirely correct. Every company, self-employed individual and nonprofit organisation must consider how they are going to interact with their local, national and global communities, to find out the best way to share a significant part of their profits, by doing good. Obsessing with wealth creation and materialism may be the original driver behind most businesses, but modern day activities must blend carefully with “doing good” and giving back while making reasonable profits. Social media reporting and consideration of the social footprint is vital for all forward thinking businesses. There are many great examples around the world where a company consistently gives back and not necessarily into its local community. One fine example is American eyewear company, Warby Parker, who mostly sell glasses online. For each pair of glasses purchased by an individual, the company donates one pair to less fortunate children in developing countries. They have combined innovation of the eyewear purchasing process which also allows free home try-ons, while continuing to demonstrate a keen interest in helping other communities. Business analysts agree that the correlation between business and “doing good” helps a business become stronger in itself, both visually and financially.
BusinessFocus
Sep /Nov
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For a business of any size, from the one-person small business to the largest on your island, it has to consider its long term future and their relationship with their customers and the community. This can be guided by three potential plans written into the organisation’s mission statement. They will consider if they are giving enough back to charity, non-profit organisations and the general community. They will plan to be better managers of the environment and its society. Finally, they will analyse and deliver these targets so that it is also financially beneficial to the owners and shareholders, as well as the customers.
make a good return on the company’s finances. They have flipped the complete calculation by considering how they can do good first and make profits, second. There are already a high number of significant good community causes across our small island states. For businesses, there is a great opportunity to consider what good you can do in the community as well as making significant profits to keep the owner, their employees and their customers happy for many years ahead. How can you develop your organisation to act as a “doing good” company in your community? •
Where a business interacts, through social media, the press and other media, it can build an excellent reputation like Virgin, Sir Richard Branson’s company. Customers consider less about the profits that the company makes and more about purchasing high quality products at good prices, knowing that the company is going to give back in many different ways across communities around the world. Some utility companies only source their power from environmentally clean sources. This attracts individuals who are able to purchase their utilities from green sources while the company continues to make reasonable profits. There are a number of organisations who choose to promote their business by offering to place their marketing through community outreach and the activities of philanthropic behaviour. Only by achieving good sales do they then
Samuel Rosenberg is the founder and CEO of Axcel Finance Ltd., the leading regional microfinance institution. Share your thoughts and email your questions to srosenberg@axcelfinance.com