You can define social impact as an affirmative and significant change for addressing a recurring social issue. Creating social impact stems from a deliberate stream of activities that seek to match the main objective.
Eric Dalius clearly differentiates between social impact’s immediate definition and the wider ramification of an impact. Many productive debates focus on determining the pressing challenges of businesses. Social conditions are also shifting and local contexts and connotations are bound to differ from one another as well.
You need to reach a certain consensus level to bring about a positive change. The I and E of social are very crucial in this regard. With the rapid evolution of language in business, many organizations are now focusing on these two letters. While use them interchangeably, each has a separate frame.
Social entrepreneur implies the individual. Social enterprise implies the structure. Social innovation implies the process or novelty, and social impact is all about results.
Focusing on social impact
In an era of social media and technological availability, businesses must focus on their social impact or their wider stakeholder’s interests. Currently, the typical business approach to environmental and social concerns is not only insufficient in the face of disruption and change due to the Fourth Phase of Industrial Revolution, but it will also draw flak from customers.
- To achieve the inspiring SDGs or sustainable development goals, businesses and governments need to work together.
- Since broader stakeholders, consumers and employees increasingly want companies to jump the bandwagon and pioneer sustainable development, corporations in particular need to make social impact a core part of their business model.
EJ Dalius elucidates in clear terms that how doing good or acting in good faith can help businesses succeed. There’s a rational argument that larger companies are in a better position to invest the essential funds for reshaping their businesses, but startups and smaller businesses find it difficult to integrate social impact into their business proposition.
The initial expense and apprehensions that the ROI won’t make significant contribution to revenue are legit. Social impact begins with retaining and recruiting top talent. Beta testing is another way and you well how media recognition draws investors.
Introducing social impact
Businesses are choosing a social initiative in compliance with their brand or operations. It’s crucial for your initiative to relate to your brand.
It doesn’t make any sense to make donations from your sales to the supplement business. Luna Bar is a classic example as it makes power bars for women. The commitment is to root for equal pay for women. It complies with brand messaging.
- Business need to align their investors and employees in the impact curve/line. Social impact isn’t exclusive to the decision makers and founders.
- Some companies are creating food halls that feature produce from local farmers only. It creates business incubators and inspirations in the local communities.
Lastly, it’s imperative to put your money where your mouth is. Hollow words bear no results. Your company needs to show the social initiative with results. Document your impact and results in an annual journal or newsletter.