What Goes Around, Comes Around

In today's interconnected world, the relationship between an organisation and its community is more than just transactional, it's symbiotic. The way you take care of your community is the way your community takes care of you. This holds true on every level from individual to corporate and everything in between. There is no way of getting around it. 

However, when organisations only pretend to care, sooner or later, people will sniff it out. The truth is simple: genuine care for your community is the only sustainable path to mutual prosperity. 

Why Should You Care? 

In a networked society, helping others ultimately helps us all. As people and organisations alike, we are nodes in a complex network. All our actions affect the people around us, and their actions, in turn, affect us. In these interactions, you can do one of two things: add value or subtract it. Adding value to the network gives it the capacity to return the favour. 

For instance, local businesses that supported their communities during the COVID-19 pandemic received overwhelming support in return. Restaurants that pivoted to feed frontline workers later saw a surge in customer loyalty. These examples demonstrate that value-added interactions ripple through the community, benefiting all involved. 

Nice Idea, Doesn’t Work in Practice. Or Does It? 

Organisations that meaningfully engage with social impact outperform their competitors. Consider the following: 

• 86% of people are more likely to purchase from purpose-driven organisations. 

• 75% of Gen-Z will research if companies can substantiate social impact claims. 

• 90% of employees in purpose-driven companies are more loyal and motivated. 

• High-purpose brands double their market value four times faster than low-purpose brands. 

These statistics highlight a clear trend: purpose-driven organisations are winning. And companies are catching on. A 2019 report from Unilever showed that the mega corporation’s sustainable living brands grew 69% faster compared to the rest of their business and were responsible for three-quarters of the company’s overall growth. 

But this also exposes an issue: if an organisation like Unilever, which has been accused of greenwashing, backtracking on social commitments, and even human rights violations, can still use socially responsible product lines to drive growth, why bother making sure the impact you have means something? Because people want to do better. 

Social Washing: A Race to the Bottom 

Social washing is a race to the bottom. And when we’ve reached the bottom, there is only one way to go: up. The first step after everybody claims they’re doing the right thing is to substantiate those claims. 

From fair trade labels to ethical AI development to fast fashion, organisations that have claimed to do the right thing without substantiating it have faced backlash, reputation damage, and lost revenue. In none of these scenarios are we anywhere close to true social responsibility, but societies all over the world have demanded that organisations start the climb. 

The examples of big corporations and global issues make it easy to forget that smaller organisations have a big part to play, especially when we zoom in on social impact, meaning the impact we have on our social environment. 

Local Communities, Unique Needs 

No two communities are the same, and each organisation within them plays a crucial role in ensuring local well-being. The unique needs of different areas, such as London’s varied boroughs, demand tailored approaches to community engagement. 

For instance, a tech company might offer digital literacy programs in under-connected areas, while a retailer supports food banks in regions facing food insecurity. To strengthen social capital and resilience, we need solutions to problems, not solutions for solutions’ sake. Research shows that communities with higher social capital, where organisations actively contribute, are better equipped to thrive. 

Therefore, organisations must take responsibility for their local communities, as their prosperity is inherently linked to the community’s (w)health and success. 

Towards Genuine Engagement 

In a world where actions speak louder than words, the responsibility of organisations extends beyond their immediate business goals. The fabric of our society is woven with the threads of countless communities, each unique and deserving of care. By genuinely engaging with and investing in these communities, organisations not only contribute to the common good but also create a resilient network that supports their long-term success. 

When companies prioritise social impact, they cultivate trust, loyalty, and a sense of shared purpose. This is not merely a strategic advantage; it is a moral imperative. As we've seen, the path to true social responsibility is fraught with challenges, but the rewards are immense. When organisations commit to adding real value, they don't just elevate their communities, they elevate themselves, ensuring a future where both businesses and society can thrive together. 

As leaders, the choice is ours: to either embrace the challenge of true social responsibility or risk becoming obsolete in a world that increasingly values genuine impact over empty promises.