Why integrate a social mission into your business?

You’re an entrepreneur with an idea and maybe a business plan, a small-business owner or the head of mid-sized company.  To expect you to add social purpose to your business just because it’s a good thing to do, is foolish.  You have a bottom-line and other obligations to meet.  You don’t have extra resources to allocate to ‘doing good.’

But doing good is a business strategy, not merely a moral argument or trend.  Businesses with a strong social mission have a competitive advantage.

1. People will talk. consumers, competitors, investors, suppliers and the press.
2. Increased productivity and employee morale.  People want to work for a greater purpose and want to know that their work makes a difference. Employees who are happier work harder and smarter because the work has become personal.  These type of employees are advocates for your company, not just employees of it.
3. Consumer preference. Consumers prefer companies that make a positive impact on the world.  Eighty-three percent of U.S. consumers want more of the products and services they use to benefit causes (2010 Cone Causes Evolution Study) and 62% of global consumers will switch brands if one works with ’good causes’ and the other does not (Edelman, 2010).
4. Innovation.  More companies like Nike, GE and Interface are using sustainability to drive innovation. Seventeen years ago, the late Ray Anderson, who served as Interface’s CEO, committed to becoming a zero-waste company by 2020. Since then, Interface has eliminated hundreds of millions of dollars in resource and waste disposal costs, increased sales by more than one billion and changed the way the entire carpet industry does business.
5. Influence.  Your company’s initiatives will be modeled as more companies realize the benefits of having a social mission.
6. Lower marketing costs.  Your mission will help your marketing. A line of grocery products founded and once produced by Paul Newman (Newman’s Own) is a somewhat banal story that merits only a mention in the press. The fact that the company donates 100% of profits to charity is a story that sticks, intrigues and encourages participation through purchase.
7. Talent recruitment.  People want to work for employees that care; a social cause is indicative of a favorable workplace.
8. Attract talent for less. Kevin Jones of Good Capital calls this “meaning premium.”   People want to work for a company that allows them to contribute to a greater purpose and are willing to be paid less for the opportunity (NB: this isn’t an argument for underpaying employees).
9. Attract young talent.  Teach for America is a top employer of exceptional college graduates. Last year 12% of  seniors at Ivy League schools applied to work with Teach for America, vying for one of the most challenging and low-paying jobs out there.
10. Talent retention.  When employees are part of a larger mission and feel their contributions make an impact in the world, they’re engaged, proud and motivated.
11. Savings in resource and disposal costs. You’ll save money by reducing energy, water and material consumption. Producing less waste and reusing water or materials costs you less to purchase and less to haul away.
12. Supplier advantage.  Stonyfield Farm pays its organic suppliers a floor price that won’t ever drop, protecting its suppliers from market swings and production hiccups. In return, when supply for organic milk or sugar outpaces demand, Stonyfield is first on the delivery list and is guaranteed a fair price because it’s built a relationship with its suppliers.
13. Risk management. Being in tune with your stakeholders alerts you to potential risks and helps you safeguard against them. An offshoot of this is that your company is better informed and positioned to identify new business opportunities.
14. Future-bound company.  Successful companies that others evangelize and model represent more than just a product or service. They represent a philosophy, culture or experience. When you channel this back into your business, you’ve made your competitive edge that much more edgier.
15. Fun.  Science proves what most of us know–making a difference feels amazing. We feel happy, enlivened and creative.

Your company (1, 5 or 200 employees) is the ideal size to run a purpose-driven business. Although larger brands get more attention for the resources they can bring to their campaigns your company holds an advantage.

1. You’re more agile. You can plan, execute, track and revise nearly on-the-fly. Less memos, less approval, less internal politicking diluting the programs.
2. You can take more risks with your social mission. You have less of a reputation to uphold. You can be a renegade, a heretic, recognized for your commitment to social change and your willingness to try new ideas.
3. You face less financial accountability. Smaller companies aren’t held to the same monetary expectations as larger ones. Your programs’ strength lies in their impact and effect rather than your company’s financial commitment.  A big brand cosmetic company’s one-time campaign cost $500,000 in an upfront investment to its partner charity, the cost of a micro-site and prize expenses, and delivered just a luke-warm impact. Your cosmetic company can affect people more directly by offering products and makeovers to women re-entering the workforce in partnership with a workforce re-entry program and your local Dress for Success chapter. Cost? In-kind only.
4. You have a fresher slate. Small companies are often seen as more personal, less greedy and less noxious. There’s less initial cynicism of your motives and choices.
5. You entice stronger non-profit partners. Smaller companies are rarely able to attract (nor should they try to) the top crust of non-profits.  With fewer wooers and less brand value, a regional non-profit will be more willing to commit time and labor to the project, as opposed to just a sliver of its name recognition.
6. You can galvanize your employees around your mission more easily. As companies need to convince consumers of their sincerity, they also need to convince their own employees. The smaller a company, the shorter this process. Employees help determine the social mission, shape it and execute it.
7. You have more of your customers’ attention.  Generally, the larger a company is the more we view it as a commodity and the less likely we are to see it as an educator or driver of good. Would you be more willing to support a pin-up campaign at Walmart or your neighborhood cupcake bakery? One of your advantages as a smaller business is the frequency of touch points that you have with customers. Use these opportunities to bring them into your mission through storytelling, contribution and advocacy.

Having a social mission is not a drain on company assets or a tangential program, it is a business strategy that yields a competitive advantage, which smaller companies can better leverage.

This point is often overlooked.  Your do-gooding and good deeding aren’t a substitute for marketing.  Customers can’t love you for what you do if they don’t know you.  At this point you might be thinking:

But Wait!  One of the benefits of a social mission is the visibility it brings to my company.  I’ve even heard–from this very site–that social responsiblity programs can be funded with the marketing budget because they’ll bring publicity.

The whole truth is that a social mission helps, but doesn’t cover it. Even Stonyfield Farm, a virtuoso of guerilla marketing tactics, put effort into its marketing to build its brand 17 years ago.  Here are some ideas you can use to brand your company without robbing your social programs.

Put a face on it
Choose a spokesperson from your company who cultivates his or her expertise in the field.  World of Good did this well. Co-founder Priya Haji speaks* on social enterprise and fair trade and has become the public face of the company.  Zappos’ Tony Hsieh is another great example; while turning Zappos into a marvelous company, Tony talked about how he was doing it, creating an ethos around Zappos that MBA students, employees and customers love.

It doesn’t start with conference keynotes or articles for Inc.  Connect with a community on Twitter that cares about your issue–free trade, landfill diversion, employee empowerment or cupcakes.  Solicit people’s opinions, share what you’re doing and promote their work and thoughts.  This (just basic networking) shapes you as a connector and leader in the space.  Set up search terms that help you flag conversations like ‘recycled paper’ For New Leaf Paper, for example.

Blog (there’s a reason I’m not the first person to tell you that blogging is effective)
Whether you commit to blogging three days per week, once a week or twice monthly, be consistent.  You don’t need to fill your blog with grand ideas.  Sharing how you are building your company and talking about other people, companies, tools or trends in your sector is enough.  37signals’ blog Signal vs. Noise covers design, business, experience, simplicity, the web and culture.  It’s a daily read for the tech community.

Tap your community
Richard Seireeni calls this the Gort Cloud–an abstract network of trendspotters, advocacy groups, business alliances, certifying organizations and social networks.  Seventh Generation, Tesla Motors and Stonyfield Farm used the Gort Cloud as a partial replacement for traditional marketing.

This list is far from complete.  What other tactics have you used or seen other businesses use successfully?

* An excellent podcast from Priya Haji from Stanford Social Innovations.

Most mission statements sound like a sixth-grader’s attempt to write like a grown-up.  They’re overstuff phrases low on meaning and high on syllables.  They’r obligations that were created in the conference room, but are forgotten about on a daily basis.  What they should be–what the best ones are–are a tool to guide your business, motivate your team and inspire your consumers.

“You make money by enforcing precise standards, putting your heart and soul into producing the best product and, above all else, holding fiercely to your mission.”  – Gary Hirshberg of Stonyfield Farm

As a social entrepreneur, your mission is why you’re in business. Articulating what you care about and how your company will help you fulfill it, helps you make decisions that advance your mission.

Forget about the words and remember why you have a statement in the first place.  Lead with an action you want to achieve rather than an idea or feeling. Better World Books’ mission is an actionable goal (which is posted on its website along with the company’s core values), Better World Books is a global bookstore that harnesses the power of capitalism to bring literacy and opportunity to people around the world.

Make it quantifiable if possible.  One Laptop Per Child exists To create educational opportunities for the world’s poorest children by providing each child with a rugged, low-cost, low-power, connected laptop with content and software designed for collaborative, joyful, self-empowered learning.

Stand for something.  Not everyone will care about (or even agree with) your passion.  Not everyone will want to buy your product–and that’s good. We fail when we try to please everyone and end up doing everything poorly.  A mission statement helps you distinguish between new initiatives and demands that fit with your purpose, and those that don’t (no matter how loud or lucrative they are).

Read the mission statements of “the 10 companies you most admire,” suggests Jeffrey Hollender, co-founder of Seventh Generation and author of “The Responsibility Revolution.” It’s helpful to see how established companies have articulated their operating principles and values.

Once you have your statement, put it out there when you present your company to investors, consumers, employees and suppliers. You might want to include it on your website, email signature or business cards.

In Their Words

A strong mission statement gets you through the storm.  If your mission is clear and inspiring and you use it as the cornerstone of your business—you won’t have trouble convincing customers of the superiority of your product or service. – Gary Hirshberg, co-founder, Stonyfield Farm

Stonyfield Farm’s mission statement: We’re committed to healthy food, healthy people, a healthy planet, and healthy business.

It was absolutely essential that we have a very clear mission statement about what it is that we’re doing, and that it had our values embedded in it. We had a very specific mission statement within the first few weeks of our business planning. We looked at whether it’s simple to convey to people. Is it simple to remember for our staff and all of our stakeholders? Is it a clear representation of our values? –Kim Coupounas, co-founder and Chief Sustainability Officer, GoLite

GoLite’s statement: To transform the outdoor athlete’s everyday trail experience with gear that’s light on the planet.

Stay focused and true to your social mission. There will always be peripheral issues you will have to deal with when running an enterprise. Stay passionate about the issue you are trying to solve and the rest will inevitably fall into place. This is not to suggest you should neglect issues as they arise, but don’t get caught up in the little deviations from your marketing plan…. Keep your social purpose in plain view at all times. –Faisal Sethi, co-founder, DoGood Headquarters.

DoGood Headquarter’s statement: Transforming individuals from social and consumer pacifists to social and consumer activists.

Put aside social responsibility.  Forget about best practices or which term best describes what you do.

Much of what I write is tactics, examples and inspiration to help you create and grow your business.  But there’s no edict for social responsibility.  That’s the rad (and at times frustrating) element. It’s a comparatively new idea that’s evolving. And always will. You’re business will never be legitimately sustainable.

So shucking aside unattainable perfection, what can you do that’s fun?  That personally reflects what you care about? Don’t let me pigeon-hole you into creating a business that looks one way and employs a rote checklist of ‘best practices.’

Better World Books gave its nonprofit partners an equity stake in the company and King Arthur Flour is completely owned by its employees.  The people who work at Elemental Herbs love outdoor activities, so they created a team of activist athletes.  None of this is from the Social Responsibility Playbook. Each is unique to the company, a demonstration of what its leaders and employees care about.

Gary Hirshberg of Stonyfield Farm said “Sustainability thrives when you open your mind to doing things that are considered taboo or foolish in business.”  How foolish are you willing to be?

Note: I’ll continue to write about ‘best practices’ and tactics because I think they have merit, but they’re redefinable–by you.

Image credit: Chickenhead 1966

Many of the entrepreneurs I interview and read about talk about shrinking or doing away with their marketing budget to support their social initiatives–Stonyfield Farm chooses to spend more on organic ingredients, leaving them little for marketing. They, along with the other companies in the book, used the concept of the Gort Cloud to build their brand–primarily “because they didn’t have the budgets to do it any other way than by direct outreach to a sympathetic community” explains Richard.

I invited Richard, a veteran in brand development, to Cause Capitalism to talk about how social enterprises can use the Gort Cloud, and whether it’s even as powerful now as it was two years ago. We also talked about a terrific piece he wrote in the Huffington Post, “Drivers of Preference, Why consumers will Buy Green.”

Click the player below to listen or right-click and save for the MP3.

Key takeaways

• The Gort Cloud is analogous to a social network. It’s a “vast and largely invisible network of NGOs, trendspotters, advocacy groups, social networks, business alliances, certifying organizations, and other members of the green community that have the power to make or break new green brands.”
• The concept of the Gort Cloud was a “bonus discovery.” Richard set out to write about how pioneering green companies built their brands and visibility. During this, he started to notice a common thread: most of them spent zero to near-zero money on marketing. If they weren’t paying for traditional media, what were they doing? He found that they were building their brand and getting support through person-to-person networking, both on- and off-line.
• The green socially conscious community that makes up the Gort Cloud can provide great support, from technical assistance and capital, to customers and credibility. Companies should think about how to use the Gort Cloud as they develop their brand and marketing strategies.
• The communal aim of the Gort Cloud is the increased sum production of sustainable and socially responsible products and services. Richard explains that people in the Gort Cloud are “fantastically driven to change the way business is done on this planet. Lots of people [are] collecting together to push this rock forward.”
• During his research and outreach, Richard was amazed by the number of companies willing to talk with him about their trade secrets. He attributes this to their mission for sustainability and social good, which overshadows business concerns.
• It’s critical to understand how the network (Gort Cloud) views your product. It takes legwork, but Richard suggests reaching out to editors and bloggers about your company’s values and services and attending conferences and trade shows. I would add you need to have an online presence and be a producer and a helper.
• It’s important to get your company certified as applicable (LEED, B Corp, Green America, etc.). More on why others feel certification is important here.
• The function of the Gort Cloud isn’t limited to businesses in the sustainability and social responsibility sectors. All industries can tap into some form of it.
• Saving the planet or supporting fair trade is never the only driver of consumer choice. Richard talks about Seventh Generation and Method, both makers of green household cleaning products. Customers choose Seventh Generation because they’re green and their products are seen as safe. A different set of customers chooses Method because they are green and their products are esthetically pleasing. To differentiate itself, a green or socially responsible company can’t rely only on its social merits. It needs to market or develop a second driver of consumer preference.

You should say ‘Hi’ to Richard on Twitter at @Seireeni or take a look at his work with Brand Architect.

Richard explains where the term Gort Cloud came from: “The inspiration for that moniker lies in the Oort cloud, named after the astronomer Jan Hendrick Oort. The Gort cloud is a vast field of stellar debris that orbits the Solar System. We can only detect it electronically and view its effects, mostly in the form of the occasional comet it tosses back into our neighborhood. This seems to perfectly describe the gort cloud, a vast green network made up of untidy bits that is most easily detected through electronic means and that has a huge effect on the evolution of green business.”