9 Tips for Socially Responsible Businesses
Visit our Small Business Center for more tips.
Josh Friedman and Mark Grimes launched Better World Media Network to help find the right advertising partners for Web publishers whose aim is to improve the world. The business owners want to do right by society, but they also don't want to limit their vision of financial success.
Says Friedman, "We want to build a for-profit business and do good in the world." Here are nine tips for the small-business owner who wants to be socially responsible while still growing that bottom line.
What's Important to You?Before taking up a cause or adopting any platform, examine what is important to your business. But also keep in mind the needs of your company. Being socially responsible and operating a successful business are not mutually exclusive.
"The best definition of social responsibility is a phrase that isn't exactly original: doing well by doing good," says Phillip Gordon, director of the Center for Socially Responsible Business at Mills College's Lorry I. Lokey Graduate School of Business. "Figure out where your business intersects with society. Then sit down and think where you have the most impact and if you have a high impact, where can you get some benefit for your business."
Clean It UpAccording to Giving USA, one of fastest-growing charitable areas is the environment. Do your share by streamlining your packaging and going paperless. Lower your company's energy bill by investing in energy-efficient equipment. Offer to plant trees for every product or service that gets bought. For every customer who elects to receive quarterly statements electronically via email rather than on paper via snail mail, TIAA-CREF plants a tree.
Find Like-Minded PartnersMore and more customers and investors are looking at the supply chain, says Scott Budde, managing director of Global Social & Community Investing at TIAA-CREF. So although your product may be eco-friendly and your company has a strong social responsibility policy, you must hold your partners and suppliers to the same standards. Otherwise, your promise of social responsibility can be seen as an empty one.
Pitch InTime is money. Allow employees to volunteer during company time. Donate your time, as well, but perhaps do it within your area of expertise. For example, in 1990 Marriott (MAR) started Pathways to Independence, a program that helps people get off welfare by training them in jobs in the hospitality industry. "Marriott gets two things," explains Mills College's Gordon. "They reduced turnover because the people they hire know how to do the job and they're grateful. They have also been able to develop the low-wage entry level workers so they've reduced turnover in general." Volunteering is free and will engender good will within the community and the workplace.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV