Business have a responsibility to adopt responsible business practices that take into account both the bottom line and the impact their activities on society may have. Social initiatives are not just about giving back; they’re about building bridges of trust with employees, customers and communities.

But what does being a Socially conscious business  really mean, why does it matter, and what steps can you take to authentically improve your business’s social responsibility standing? Let’s explore.

The Rise of Socially Conscious Business Practices

The rise of conscious consumerism and stakeholder activism has heightened expectations for organizations to uphold ethical standards and actively address social and environmental challenges. Consider these statistics:

• According to a recent PwC survey, consumers willing to pay 9.7% sustainability premium, even as cost-of-living and inflationary concerns weigh.
• More than half of individual investors say they plan to increase their allocations to sustainable investments in the next year, while more than 70% believe strong ESG practices can lead to higher returns.

Consumers aren’t the only ones drawn to businesses that give back. Today, people want to work for ethical employers. The next generation of workers is seeking out employers that are focused on the triple bottom line: people, planet and revenue. Some 83% of employees are willing to rethink their career choices if corporate social responsibility is not upheld by their employers.

What Do Socially Conscious Businesses Look Like?

Socially conscious businesses are ones that have a purpose beyond profit. Their overarching strategies aren’t informed solely by top and bottom-line revenue growth. They’re invested in the communities in which they operate and are committed to driving positive social and environmental change.

Let’s take a closer look at the various types of corporate social responsibility:

Environmental Responsibility

Environmental responsibility involves behaving in a manner that shows consideration for the natural environment. Examples of environmentally responsible practices in a business include:

• Reducing pollution and greenhouse gas
• Minimizing water consumption and general waste
• Exploring renewable energy solutions
• Using recycled materials
• Planting trees
• Donating to environmental research projects

Ethical Responsibility

Ethically responsible businesses operate in an honest, transparent, and ethical manner towards their employees, investors, suppliers, and customers. There are many ways to demonstrate ethical responsibility, such as offering employees liveable wages and never purchasing or using products that are associated with child labor.

Philanthropic Responsibility

Philanthropic responsibility is about making an active effort to uplift society and communities. Examples of philanthropic behavior include donating a portion of the company’s profits to charitable organizations and non-profits.

Economic Responsibility

Economic responsibility involves always making sure that, as a business, you make all your financial decisions in ways that support the areas listed above.

Why Is Corporate Social Responsibility (CSR) Important?

The days when social responsibility was reserved for non-profit organizations and volunteers are long gone. One reason is that employees (especially millennials and Gen Z) have a keen eye for responsible business practices, particularly when it comes to the environment.

How Social Responsibility Influences Consumer Behavior

Consumers are more inclined to choose brands that they believe are committed to sustainable and ethical business practices – even if the price of their products and services is higher than their competitors. Clearly, socially responsible companies have a differentiating edge.

Over the past five years, there has been a 71% rise in online searches for sustainable goods, according to The Economist Intelligence Unit.

Strategies for Implementing Socially Conscious Initiatives

Now that we’ve established why it makes business sense to elevate corporate social responsibility to the top of the boardroom agenda, let’s consider some approaches and actions you can take to move your organization forward.

1. Formulate a Plan

Effective social responsibility starts with a plan. What does your business stand for? Where are there opportunities to make a difference in your local community? It’s a good idea to involve your employees in your planning – they’ll be more inclined to support and participate in your CSR program if they’ve been involved in establishing the direction and their voices have been heard. Once you’ve established the scope of your program, set ambitious yet realistic goals.

2. Set Up a Committee

There’s a good chance that there are certain people in your business that are particularly passionate about social responsibility. Given that you want your program to be long-lasting and impactful, it’s a good idea to establish a dedicated CSR committee to ensure you sustain your momentum.

3. Adhere to Environmentally Responsible Business Practices

There are a number of ways to demonstrate your commitment to operating in an environmentally responsible manner. Here are some of our favorite ideas:

• Participate in recycling programs
• Use renewable energy sources
• Deploy eco-friendly lighting
• Reduce your use of paper
• Encourage employees to carpool, cycle, or walk to work
• Invest in online learning solutions – these will reduce your energy consumption and CO2 emissions by reducing transportation costs and paper usage
• Consider publishing an annual sustainability report that details and quantifies your commitment to the environment

Making just a few small changes to your work environment can make a large difference.

4. Treat Your People Right

Social consciousness starts from within. Your employees are your most valuable asset, so treat them fairly and ethically. Here are some ways to do so:

• Recognize achievements
• Offer health and wellness benefits
• Provide opportunities for growth and advancement
• Pay fair wages
• Ensure a safe and healthy work environment

5. Embrace Equality and Diversity

Diverse organizations actively seek out and welcome employees from all backgrounds and walks of life. Moreover, they adopt a zero-tolerance policy to any kind of discriminatory behavior in their workplaces based on:

• Race
• Religion
• Gender
• Age
• Disability (including mental health)
• Marital status
• Sexual orientation

Part of embracing workplace equality and diversity involves paying close attention to your recruitment and selection policies and procedures. Look at the language you use in your job postings and application forms to ensure they don’t include any form of unconscious bias. During the hiring process, make sure that interviews include a diverse cross-section of interviewees.

6. Encourage Community Volunteering

Being charitable makes most people feel satisfied and happy. So, encourage your employees to participate in local causes. Volunteerism within an organization brings together people from different parts of the business and encourages teamwork, which, in turn, leads to greater levels of internal cooperation and teamwork.

Employees often report learning new skills from their volunteering experiences, which can lead to better on-the-job performance. So, why not give your employee paid time off to assist at your local school, help out at a homeless shelter or soup kitchen, or clean up a local park?

7. Adopt a Code of Ethics

A company code of ethics will set out the expected attitudes and behaviors that you expect your employees to uphold and demonstrate. Be sure to involve stakeholders from all parts and levels of the organization when developing your ethics code and communicate it widely and regularly.

8. Involve Your Suppliers

Make sure that all your suppliers understand and abide by your expectations of socially responsible behavior with respect to issues such as fair pricing, labor practices, and environmental impact.

9. Establish Partnerships

There’s no reason you have to travel your CSR journey alone. To increase your chances of success and maximize your impact, consider partnering with local and global stakeholders. Perhaps you could work collaboratively with charity leaders, local recycling companies, or council members.

10. Measure Your Progress

There are several ways to monitor and measure your CSR progress. For example, how have you managed to reduce your carbon footprint? How many employees participated in volunteering opportunities, and how many people’s lives were touched by their efforts?

In Closing

Today, consumers don’t just expect businesses to be socially responsible, transparent, ethical, and inclusive – they demand it. But a final word of caution: never use your CSR program as a marketing tool. Any efforts that aren’t authentic and sustained are likely to backfire. Employees and customers will react positively to businesses that embrace long-term social consciousness.

How Payactiv Can Help

As we’ve explored, there are many ways to become socially conscious in business. At Payactiv, we help businesses with one of the most critical elements of social consciousness – looking after their people.

Payactiv is the partner of choice for businesses seeking to help their people participate fully in both work and life. Our all-in-one Livelihood benefits platform takes a holistic approach to improving financial wellness and increasing employee satisfaction. Our attractive, flexible workforce rewards and benefits cost nothing to your company but deliver immense value to your employees.

Learn more about Payactiv’s Service, or book your demo now.