It has become clear that socially conscious business practices are often perceived as an option rather than a critical component to business strategy. Here are 5 reasons why you may want to rethink that notion.
· Growth: according to Ethisphere, the World’s Most Ethical Companies have seen a growth rate twice that of the S&P.
· Cutting costs: Sun Microsystem's new datacenter in Broomfield CO saves over $1,000,000 in electrical costs and reduces Sun's corporate carbon footprint by 6%.
· Differentiation: you need to make your business stand out from the crowd. Whole Foods did this in the grocery market, Clorex’ GreenWorks did it in the cleaning isle and Seventh Generation has done this in numerous areas.
· Customer loyalty: Goldman Sachs referenced studies that show consumers identify "being socially responsible" as the most likely factor influencing brand loyalty at 35%, compared with lower price (20%), easily available products (20%), product prestige (3%), company shares your values (14%) and quality (6%).
· Workforce loyalty: 77% of Americans consider a company’s commitment to social causes when deciding where to work (Marketing Charts). See my article “Being socially responsible for employees” for more information and statistics.
There are many more reasons to develop, implement and advertise socially conscious business practices. One of the most important reasons to do it…because it’s the right thing to do.