What do popular brands like Allbirds, Puravidabracelets and Tamga Designs have in common? They are all social enterprises using their business to make a difference in the world! What do you have in common with these amazing brands? You have the opportunity to build a business that can have a positive impact on the world too!
Business and social impact are no longer ideas that are mutually exclusive from one another and your business can be a powerful vehicle to support social impact and create change.
Not only is it good for people and the planet, it can also be good for your business’s bottom line and brand building!
Currently, inequitable access to income, education, and affordable healthcare are causing growing concerns and fears around the perpetuation of cycles of economic distress.
At the same time, rates of environmental degradation are increasing, sea levels are rising and unchecked emissions of greenhouse gases are destabilizing the climate.
There’s a lot of negative headlines out there and we believe action by businesses and consumers will be critically important to break the current cycle of waste and exploitation impacting both people and the planet globally.
This is where you and your business come in: you have an opportunity to build a business that incorporates environmental and social impact to help create a more sustainable future for generations to come. What could be more exhilarating??
In a minute I’ll explain what a Social Enterprise is, but first, let me share some pretty compelling consumer information that supports the business case for building a more sustainable business.
The business case for shifting to more sustainable business practices
We know that today's consumers are actively seeking ways to support environmentally and socially responsible businesses.
83% of consumers want carbon neutral products - source GreenStory
88% of consumers want you to help them make a difference by providing them with better purchasing options
83% of people plan to support brands who contributed positively to those in need
It is clear that people care, and care deeply, about where they spend their money and which businesses they choose to support. Each of you have the opportunity to be the kind of business your customers want to support; each of you have the opportunity to become a Social Enterprise.
Defining a Social Enterprise and Sustainability
Now that you understand some of the social and environmental trends, and we’ve shared some consumer research that supports the business case for building a more sustainable business, let me explain what a Social Enterprise is, and what we mean by Sustainability.
So what the heck is a social enterprise?
A Social Enterprise is an operating model for your business that incorporates positive social and environmental impacts. Think Kotn and Mara Hoffman! A social enterprise doesn’t exist for the sole purpose of generating profits, it exists to support, and even improve, our environment and the economic systems that directly impact people around the world.
To explain Sustainability a bit further, to date, the term has largely been synonymous with environmental responsibility. While this is one pillar of sustainability, I will approach sustainability more broadly, with consideration for the equitable protection of the planet and people.
- Protecting people in your business means Embedding, and safe-guarding, human rights like fair wages and safe working conditions throughout all of your business practices to ensure they are treated fairly and with dignity.
- Protecting the planet mean taking Environmental action to address the steps taken in the production of goods, end of product life management and how they are packaged and shipped to customers.
- Sustainability exists at the intersection of these two pillars, the protection of human rights and environmental action.
- It’s at the intersection of environmental action and human rights where your business hits the sweet spot for long term sustainability.
- Sustainability is a journey. It's impossible to do everything at once and some of you might have to focus on one pillar before the other. Narrow down what are the most impactful measures you can take based on your product offering and business model.
- And you should strive to do this while also building a viable economic model for your business, otherwise you can’t bring more of your brand and your positive impact to the world.