The Importance of Becoming “A Force for Good”
After my first two blogs this month, you should have a thorough understanding of the phrase “a force for good,” and be equipped with the knowledge of what to do to ensure your business becomes “a force for good.”
I now want to discuss the importance of becoming “a force for good.”
There’s no doubt as to the value of the role businesses play in today’s modern world.
Quite simply, businesses exist inside societies, not apart from them.
Businesses exist within Societies. Photo Sean Weaver Unsplash
It’s important for businesses to contribute to society as well as the economy because it sustains the very conditions that allow firms to operate, reduces systemic risk, builds competitive advantage, and aligns companies with modern stakeholder expectations.
This breaks down into three key areas of importance - strategic, financial, and operational.
Strategic:
Proactive social contribution secures community and regulator goodwill - reducing the risk of restrictive regulation or market exclusion.
Demonstrable social impact differentiates brands, increases customer loyalty, and attracts premium pricing in many markets.
Employees increasingly select employers based on purpose and social responsibility. Evidence clearly shows that companies with established societal contributions retain talent and lower turnover costs.
Financial
Investments in social outcomes for example education, health, and infrastructure expand the customer base and productivity of the workforce which in turn drives sustainable revenue growth.
Addressing social issues such as inequality, environmental degradation, and community health reduces supply-chain disruptions and litigation risk.
Good social performance can lower capital costs and attract long-term investors.
Operational:
Community-focused investments open new markets
Social challenges inspire product and process innovation.
Strong community relations and investments in local capacity increase supply stability and quality.
In conclusion, becoming a “force for good” isn’t charity separate from business; instead, it’s a strategic investment which reduces risk, unlocks markets, fuels innovation, and sustains the macroeconomic and social conditions necessary for long-term profitable enterprise.
Look out for the final article in this series - “The Benefits of Becoming a Force for Good.”
If you need further information about these approaches, or any other resilience topic, please contact russell@theresiliencecoach.co.uk.