The Evolution of Business: From Bottom Line to Value Creation And Impact

Posted: Updated:

In today's world, consumers want to know how corporations, as a whole, are taking a stand. In fact, customers are 43 percent more likely to purchase a product from a company they know is committed to social value.

It's not just consumers pushing this trend. Financial service industry leaders, like KeyBank's Beth Mooney and BlackRock's Larry Fink, are challenging business owners and the C-Suite to rethink their economic impact, environmental footprint and social conscience. In practice, the number of companies directing corporate citizenship from the C-Suite has increased nearly 75 percent compared to five years ago. At KeyBank, I can tell you our corporate social responsibility initiatives have led to $2.5 billion in small business/farm lending through 2022.

Rethinking a business’s social conscience isn’t confined to financial services or Fortune 500 companies. Small businesses are at the heart of this movement. Not only do they hold unique understandings of their local communities, but small business owners also care. They want to see Main Street booming and add value to the community in any way possible.

Corporate social responsibility is heavily localized. This is another factor that makes small businesses vital. Almost two-thirds of mid-sized companies target their social responsibility efforts within their home state. That includes community fundraisers, disaster-relief, education, youth services and medical aid.

Social awareness continues to be a rising factor for customer loyalty. 55 percent of consumers say they are willing to pay more for products from socially responsible companies. It’s not just about driving revenue, but building relationships and crafting the making for customer loyalty to exist.

Many companies will only go as far as their employees will take them, and corporate social responsibility is playing an even larger role in this too. The Millennial generation has shown, they are committed to doing good and supporting companies that do the same. In fact, 79 percent of Millennials said they consider corporate responsibility when deciding where to work, and 74 percent say their job is more fulfilling when they are provided opportunities to make a positive impact at work.

A big question remains: How can businesses prove to employees they are socially responsible and authentically showcase philanthropic efforts? For for-profit organizations, consider registering as a B-Corp, which can demonstrate to employees how the business is legally recognized as an organization with a duty to serve their community. B-Corp classification can validate a business’s sustainable practices within the market.

While the added economic value of corporate social responsibility is evident, it’s important to remember people care and businesses should, too. If your business can improve on social conscience, your community will thank you.

Juan Gonzalez is central Indiana market president at KeyBank.

  • Perspectives

    • Want Your Startup to Move Faster? Use Two Military Strategies

      Speed is everything at a startup. So is discipline. By that, I mean the discipline to stay focused on the most important objectives, to do the late nights and early mornings when we don’t want to do them, and to see the results of our work as objectively as possible. It’s not easy, especially when speed and discipline often seem at odds. We think about this a lot here at Powderkeg. How do we move as fast as possible while remaining as disciplined as possible? We recently...

    More

Subscribe

Name:
Company Name:
Email:
Confirm Email:
HTML
INside Edge
Morning Briefing
BigWigs & New Gigs
Life Sciences Indiana
Indiana Connections
INPower
Subscribe
Unsubscribe

Events



  • Most Popular Stories

    • Infosys Hub to 'Reskill' Workforce

      India-based Infosys, which today broke ground on a $35 million U.S. Education Center in Indianapolis, says the campus is focused on preparing the American workforce for the technology jobs of the future. "Continuous learning and reskilling are core components of Infosys' DNA," said Chief Operating Officer UB Pravin, adding the company will use the facility on the former Indianapolis International Airport terminal site to train 10,000 new American hires.

    • 'Proven Leaders' to Head New Two-Year College

      Marian University has named Jeffrey Jourdan executive director of Saint Joseph's College of Marian University - Indianapolis, its new two-year institution. Michael Nichols will serve as associate director and dean of SJC@MU. In October, Marian and Saint Joseph's College in Rensselaer detailed a partnership to launch the school near Marian's Indianapolis campus. St. Joe suspended operations in 2017 after massive debt responsibilities forced the school into an attempted rebirth.

    • Renovations Coming to Edinburgh Premium Outlets

      Renovations are coming to Edinburgh Premium Outlets as plans have been announced by Indianapolis-based Simon Property Group Inc. (NYSE: SPG). Construction is set to begin this fall. The multi-million dollar plans include an archway sign, two new courts visible from I-65 on the east side of the property and a food truck plaza on the southwest corner.

    • Crouch, OCRA to Detail Program For Small Businesses

      State officials will Monday announce a new program they say will benefit small businesses throughout the state. The Indiana Office of Community and Rural Affairs says the program will help Main Street organizations in Indiana retain small businesses and entrepreneurs.

    • Senators Tim Lanane (left) and Eddie Melton outlined the caucus' agenda Friday.

      Teacher Pay, Medical Marijuana Among Senate Dems' Focus

      The Indiana Senate Democratic Caucus has unveiled its legislative agenda for the 2019 General Assembly. Senate Minority Leader Tim Lanane (D-25) says the caucus will be focused on three main priorities: raising teacher salaries, protecting coverage for pre-existing conditions and legalizing medical marijuana. The caucus says it will also continue to push for a statewide hate crimes law, as well as legislation to stop gerrymandering. Lanane announced the caucus' priorities Friday...