business has been defined as “a company whose enduring reason for being is to create a better world”. Social purpose in a commercial context needs differentiation from the driving force behind social enterprises or not-for-profit organisations. “For commercial entities, developing a strategy around social purpose benefits staff, customers and the company in general.” Commercial entities must remain sustainable and profitable, necessitating the development of strategy around social purpose. The benefits of doing so are threefold: • staff – benefits include low turnover rates, high productivity and a high rate of staff-gen- erated ideas around business activities • customers – they will share your company’s values and feel uplifted by their association with a socially responsible enterprise • company – the benefits of the above two points flow on in the shape of contract exten- sions, successful rebids or new business lines, as well as improved employee retention. There are many common misconceptions around social purpose in a commercial con- text, one being that social purpose and CSR are the same. Within a business, CSR is typ- ically driven by senior management or the marketing division and is usually one of the first activities to be jettisoned when finances tighten. Social purpose, on the other hand,
HIGHER CALLING Pursuing profit while serving a social purpose are not mutually exclusive, says Glenn Keys . Here is why having a heart could be good for business. B usinesses everywhere are looking for a new and different way to engage customers, staff, shareholders and the broader community. Over the years companies have tried to use Corpo- rate Social Responsibility (CSR) to win over these four key stakeholders. Unfortunately, it has tended to fail, principally because CSR was not fundamen- tal to the company’s DNA, but a marketing tool that would be discarded as soon as there was pressure on the bottom line, and customers, staff and the community saw through this veneer. Companies that are serious about contributing to their community have proven that a core social purpose appeals to stakeholders. A social purpose
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