Increasingly, commercial organisations are seeking to develop strategies to meet social and environmental challenges through their core business activities. There are many reasons why companies are doing this.
(3) Attract employees and customers
(1) Create value through better understanding of impact
There is evidence to show that a company that manages and reports its wider impacts simply performs better across its operations because it has a better understanding of the issues affecting its customers, suppliers, employees and wider environment.
(2) Identify opportunities for new markets.
For example -
- at the 'bottom of the pyramid', new business models based on high-volume, low-margin activities can potentially meet the needs of the poor while achieving acceptable returns for shareholders.
- increasing pressure on resources creates market opportunities for products or processes that use resources more efficiently (detergents that require less water or houses that use less energy to run; or leasing models that ensure that resources are re-used).
The most talented young people increasingly seek employment in organisations that have a clear strategy for creating a positive impact for society, so companies require this to attract the best employees. Customers may also prefer brands that can demonstrate this clear strategy for impact.
(4) Be a part of the solution
The current system has led to the financial crisis and to growing resource depletion and increasing inequality. Some companies have decided to take the lead in developing new approaches. They may not even know exactly how this will evolve, but they know that the private sector must take action.
Impact Value is currently working with several companies to explore how a more strategic approach to impact can generate value for themselves and for wider society. Please contact us to find out more about the work we are doing with these companies.