Why Doing Good is Good Business
Here’s why doing good is good business:
If your company operates sustainably, it’s more cost-efficient in the long-run — especially now that clean energy is cheaper than fossil fuels.
If your products are made from quality, ethical ingredients, people will pay more for the premium (see: organic, fair-trade, LEED-certified, B Corps).
If your factories are safe and have workers who are fairly treated and compensated, you’ll have fewer scandals and crises that distract your focus.
If your employees are fairly compensated and motivated by your higher purpose, they’ll work harder than if it was just to make a quarterly earnings target. Especially if you ensure that women are paid equal pay for equal work.
If you have a workforce that is not only diverse but truly representative of the 7 billion people on this planet, you’ll be better positioned to gain market share: true diversity is the only global growth strategy.
If your customers believe in your higher mission, and the great products you make because of it, they will not only be fiercely loyal but will become your biggest advocates — meaning you’ll spend less money in sales and marketing (see: Tesla, Patagonia, Warby Parker, Tom’s).
And if your company saves money and generates revenue because of all of these initiatives, it will attract the right class of shareholders — whether its impact investment funds or individual shareholders- who want to invest in long-term growth. In fact, socially responsible companies have consistently outperformed their competition on the S&P 500 for decades.
Doing good is good business. Don’t let anyone tell you otherwise.
#goodisthenewcool #conspiracyoflove
Afdhel Aziz is the founder of Conspiracy of Love, a purpose-driven brand consultancy, the co-author of ‘Good is the New Cool: Market Like You Give a Damn’ and a keynote speaker on business as a force for good.
