There’s no denying the importance of taking your social value seriously. Between making you a more profitable, resilient organisation, helping you attract top talent, and allowing you to become a more environmentally sustainable business, the positives of elevating your approach are endless.
Let’s dive in!
Social value as good for business
While it’s about so much more than profits and business success, there’s no avoiding that these are inevitable benefits of becoming a more socially conscious organisation.
73% of investors state efforts to improve the environment and society play into their investment decision-making.
An estimated 90% of companies on the S&P 500 index published a CSR report in 2019, compared to just 20% in 2011.
25% of consumers and 22% of investors cite a “zero tolerance” policy toward companies that embrace questionable practice on the ethical front.
Nearly 99% of CSR professionals believe COVID-19 has impacted their CSR efforts and initiatives.
When a company leads with purpose, respondents were:
In terms of purchasing decisions:
78% of respondents are more likely to remember a company with a strong purpose.
85% of consumers want organisations to solve their own problems, while 80% want them to solve society’s problems.
With a strong purpose, consumers are 4 times more likely to purchase from a brand, 4.1 times more likely to trust it, and 4.5 times more likely to champion the brand and recommend it to friends and family.
One-third of all consumers will stop buying their preferred products if they lose trust in the brand, and one-third have already stopped purchasing longtime, favorite brands in 2019.
Effective CSR strategies can increase market value by 4-6%.
Companies with a clear, defined sense of purpose are 50% more likely to successfully expand into a new market.
68% of online consumers in the UK and US would or might stop using a brand because of poor or misleading CSR. Nearly half are willing to pay a premium for socially conscious or environmentally friendly brands.
In the wake of COVID-19, consumers want brands to focus on:
Up to 54% of consumers have stopped buying from a company due to its public position on an issue, while 48% of investors have decided not to invest for that same reason. 38% of investors have gone a step further and sold shares.
Over a 15-year period, dedicated social value strategies can increase shareholder value by £1.28 billion.
CSR strategies can help companies avoid revenue losses of roughly 7%.
Having social value is not only important for your customers and profitability, but it’s also a key way to attract and retain top talent to ensure your organisation continues to grow and thrive.
When a company leads with purpose, respondents were 78% more likely to want to work for that company.
93% of employees believe companies must lead with purpose.
70% of employees wouldn’t work for a company that lacked purpose.
95% of employees believe businesses should benefit all stakeholders – including employees, customers, suppliers, and the communities where they operate.
90% of employees who work at companies with a strong sense of purpose say they’re more inspired, motivated, and loyal.
Engaging in socially valuable projects can reduce employee turnover by approximately 50%.
The importance of diversity and inclusivity – gender and beyond
Diverse businesses are strong businesses. Tackling your organisation’s diversity and inclusivity is a key issue to consider in your social value strategy.
41% of managers say they are “too busy” to implement any kind of diversity and inclusion initiatives.
Just 1% of Fortune 500 companies have Black CEOs.
Only 3.2% of Fortune 500 companies release race and gender data.
Black candidates are 50% less likely to receive call-backs than white candidates.
Almost one in five LGBT staff (18%) have been the target of negative comments or conduct from work colleagues in the last year because they’re LGBT.
10% of Black, Asian, and minority ethnic LGBT staff have been physically attacked because of their sexual orientation and/or gender identity, compared to 3% of white LGBT staff.
18% of LGBT people who were looking for work said they were discriminated against because of their sexual orientation and/or gender identity while trying to get a job.
One in five trans people (21%) wouldn’t report transphobic bullying in the workplace.
The gender pay gap still stands at 12.5%. And more than three-quarters of companies have delayed their 2020/21 reporting.
Of both men and women, 40% believe there’s a double standard when it comes to hiring men and women.
Women ask for pay rises at the same rate as men, yet receive them at a 5% lower rate.
And this is why your business should actively challenge these inequalities…
Diverse companies benefit from 2.3 times higher cash flow per employee.
43% of companies with diverse boards noticed higher profits.
Highly inclusive companies see 1.4 times more revenue.
The GDP could increase 26% by equally diversifying the workforce.
67% of candidates seek out diverse companies.
78% of people believe diversity and inclusion offer a competitive advantage.
Sales revenue increases 15 times in organisations with high racial diversity.
Gender-diverse executive teams are 21% more likely to outperform on profitability.
Gender-diverse companies are 15% more likely to have higher performance.
Organisations with equal men and women earn 41% higher revenue.
32% of consumers consider themselves highly engaged in adopting a more sustainable lifestyle.
84% say a poor environmental track record would or might cause them to stop buying from a brand.
70% of purpose-driven shoppers pay an added premium of 35% for sustainable purchases, such as recycled or eco-friendly goods.
In the past year, 1 in 3 consumers claimed to have stopped buying certain brands or products because they had ethical or sustainability-related concerns.
And there you have it! All the facts and figures you need to support future social value strategies and help refine your approach to best meet current client and consumer demands. Why not bookmark this page to revisit anytime you’ve got to submit a pitch or presentation?
At Impact, we empower organisations to take their social impact to the next level, make it easier than ever before to measure, evaluate, and report social value initiatives. To find out more about what our platform could do for you, schedule a demo or get in touch with the team on 0161 532 4752.