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A List of Statistics That Show the Importance of Social Impact

By May 11, 2022August 2nd, 2022No Comments

You must have noted some drastic changes in consumer behaviour recently. Unlike in the past, consumers today are concerned about the quality of your products and how you present your business to the local and global community.

You probably have some programs on corporate social responsibility, but directing your entire organisation toward social impact is a relatively new aspect of your business. Integrating the interests of social impact into your business goals and objectives and mission fits in the approach the future business is already taking.

If you have already taken the initiative to consider doing good in your business, this article digs deeper into the importance of social impact.

Social Impact and Retaining Top Talent

Want to Motive and Retain Top Talent?

Some of you may argue that businesses are responsible for integrating social impact elements into their business approaches. Regardless, the significance of doing so impacts the type of employees who want to be associated with your company. This is because 64% of Millennials are not interested in working in companies that don’t value social responsibility.

A robust mission and purpose are some of the most effective aspects of motivating your employees. For example, 52% of generation Z and 55% of millennials expressed their interest to work in organisations with a strong purpose and mission toward social change.

Young employees are more likely to participate in local activities, especially those initiated by their companies. For instance, 40% of Gen Z and 35% of millennials expressed their commitment to participate in organisational social media content addressing human rights and social and political issues.

An important and often under-utilised form of employee retention enables employees to participate in volunteer programs. For example, 75% of employees request their companies to develop volunteer activities to give back to the communities and support their cause at work.

58% of employees feel that their employers should lead in initiating higher standards to address various social justice issues affecting their communities. In addition, 43% express dissatisfaction and unwillingness to continue working in their current companies because their employers are not on the frontline to address social justice.

81% of employees feel that the coronavirus pandemic should incentivize companies to act more responsibly than in the past.

97% of past volunteers are more motivated in their duties, while 94% express interest in investing their future in companies that promote international volunteer programs.

International corporate volunteer programs increase employees’ leadership qualities, and 76% of employees expressed their satisfaction and willingness to complete their careers in such organisations.

83% claim they would express loyalty to employers who allow and facilitate their cause in environmental issues, while 88% claim to derive job satisfaction from their participation in social and ecological problems.

72% of respondents feel more empowered than before to share their opinion about brands’ commitment to advocating social justice and environmental issues.

Respondents believe that a brand’s credibility is seen in its ability to deal with issues affecting its operations (31%), employees (40%) and consumers b.

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    Social Impact and Investment

    Investors Lean Toward Businesses That Do Well by Doing Good!

    Your company needs investors who can help you attain short-term and long-term objectives by channeling their resources towards your cause. However, investors now focus on companies that do well by doing good.

    Impact investing grows at a rapid rate.

    Investors want financial returns on their investments and positive social and environmental impacts. According to Mckinsey & Company, sustainable investment increased by 26% between 2012 and 2016.

    86% of investors express their satisfaction in companies that focus on benefiting all stakeholders, not just shareholders, while 69% show their dissatisfaction in investing in companies that only objective is to make profits.

    In addition, 73% argue that organisations requiring their support must first demonstrate how they support the environment and communities.

    54% of institutional investors hold that companies that implement effective environmental, social impact, and governance (ESG) win trust among investors.

    The social impact agenda is now at the forefront of investments, and 84% of millennial investors are interested in investment projects founded on the impact concept.

    61% of investors consider an organisation’s corporate social responsibility (CSR) as an indicator of the organisation’s ethical business conduct. They also believe such steps signify a corporate culture that is unlikely to engage in unethical activities such as financial fraud.

    Social Impact and Customer Loyalty

    Do You Want To Attract New Customers and Promote Loyalty?

    Want to increase customer loyalty? Today, consumers are more interested in companies’ means of production than just the products produced. Hence, social impact attracts new customers and promotes loyalty among existing ones.

    70% of respondents claim that businesses are responsible for improving issues relevant to the community. They believe that being a responsible company surpasses good business operations and observance of the law.

    73% of Americans are willing to stop purchasing from companies with different perspectives on caring for things that matter to communities.

    30% of global consumers are more focused on belief-driven consumption than before. They express their readiness to stop buying a brand and boycott it over a company’s controversial stance on social issues. The new normal requires each brand to declare its stand on social and environmental issues.

    63% of American consumers are optimistic that companies will be on the frontline in spearheading environmental and social change. In that regard, 87% show their commitment to purchasing products because producers advocate for relevant issues, while 76% will boycott the company’s products when they realize the producer advocate for issues contrary to their beliefs.

    65% are willing to research whether a company’s efforts on social and environmental issues are authentic. In addition, 76% of millennials claim to conduct investigations to confirm a business commitment to social impact.

    89% of Gen Z express their commitment to purchasing from companies that support social and environmental impact, while 65% evaluate a company’s CSR efforts before making a purchase decision.

    78% of customers are willing to share negative reviews on social media and in-person about a company that fails to address social issues.

    89% are likely to spread positive information in person or on social media about a brand that commits to addressing important elements such as social justice.

    33% of global consumers choose to show their loyalty to brands they believe have a social impact program to enhance an environmental or social good. In addition, 21% would choose brands whose sustainability marketing and packaging were relevant to them.

    51% of respondents feel that companies can make sustainable products to help them live the life they want. Still, of them are unaware of specific brands that can help them achieve that goal.

    66% of global consumers are willing to pay more for a brand’s products if the brand prioritizes sustainability. In addition, 58% believe that a company must have shown commitment to social values — 69% of the brand’s products or services are environmentally friendly. For this group, their values are essential to promoting their brand loyalty rather than benefits such as convenience and cost.

    When a brand develops a strong purpose in promoting social and environmental issues, consumers are six times more likely to protect the company’s image against public criticism and allegations of failure in social responsibility.

    Social Impact and Growing Your Business

    Do You Want Unlimited Economic Opportunities for Business?

    Social impact opens endless opportunities for your business. There are $1.2 trillion opportunities for enterprises that initiate social impact programs to produce goods and services. However, if your brand has not yet commenced addressing sustainability issues, you will likely miss the array of business opportunities.

    Businesses with social impact initiatives are  growing 30% faster than their competitors.

    Companies whose objectives are directed towards improving the quality of life of the communities outperform the stock market by 120%.

    Brands with a strong mission and purpose experienced a 175% brand valuation improvement in the past decade compared to a 70% valuation improvement for brands with a weak mission and purpose.

    90% of company executives feel that business has the capacity and speed to take up opportunities emerging from solving pressing social and environmental issues.

    76% feel the business has been responsible for perpetuating systemic racial inequality, but there are more lucrative opportunities in committing to action to promote equality.

    74% holds a company’s impact on society plays a significant role in the brand’s expansion and venture into various business opportunities. In addition, 81% confirm that personal vulnerability has enhanced the growth and development of brands invested in doing good.

    71% assert that brands have an active role in addressing social justice, and 56% believe companies that fail to address the issue deny themselves business opportunities.

    66% believe companies that step up for the first time to address social issues promote their brand in communities, while 60% feel brands should be held accountable if they fail to address such significant issues.

    Get Started With Views for Change Now

    Your social impact is important to society’s growth and the expansion of your business. Therefore, advocating social justice and environmental and cultural issues is critical to attracting and retaining top talent.

    You also open doors for investors focusing on sustainable business while attracting new customers and increasing loyalty. In addition, your approach to social and environmental issues can be an avenue to unlimited opportunities for sustainable corporate ethical conduct.

    Showcase your values in your marketing with ViewsForChange.

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