Why every business - even start-ups - should have CSI built in as a core value.
Creating a business is exciting.
Not only do you get to follow your passion and be your own boss, but you also get to design an organization that reflects your character, your ideals and your aspirations for the world. For many, this means using the success of their business in order to give something back to others.
A CSI (Corporate Social Impact) plan - sometimes known as strategic philanthropy, corporate citizenship or social responsibility - is the result of an organization being conscious of its impact on all aspects of their wider society: economic, social and environmental. Leaders of such businesses understand that the role of business is to not only create economic value for its shareholders, but to do so in such a way that also creates value for their community and wider society.
These leaders have a win-win mindset.
Regardless of the size of your business, your organization will benefit by having a CSI strategy built into its foundation, reflecting your values and strengthening your relationship with the community you inhabit (and upon which you ultimately depend).
Here’s why:
You send a clear message as to your purpose.
It has been said that if you want to know what someone values, you should ask to take a look at their calendar and their checkbook.
By including CSI as a foundational piece of your organization - into your calendar and your checkbook - you’re sending a clear message to everyone who comes into contact with you:
‘We are here for something greater than our paycheck.’
‘We are grateful for the good things that have come our way.’
‘We value people over profit.’
You will attract like-minded employees, partners and customers.
You’ve heard of the term ‘Birds of a feather flock together’, right? This 16th century saying describes the social phenomena of how people with similar values, ideals and interests will tend to find one another - and stick with one another.
The business endeavor is largely a relationship endeavor: we build relationships with employees, partners and customers who appreciate and value the very things that we do.
In other words, if you’re seeking employees who want to be open and generous with their skills for the benefit of others, if you want to trade with partners who understand they too play a part in fostering well-being in their community, and if you appreciate customers who are prepared to put their loyalty behind a brand with a bigger cause, then you need to show that their values would find a welcome home in partnership with your organization.
You’re supporting the community, upon whom you ultimately depend.
‘No man is an island…’
So wrote the Englishman John Donne, in the early seventeenth century.
The same can be said for your business. Yes, you incubated a novel idea; yes, you turned that idea into a product or service that people were willing to pay for; yes, it was your blood, sweat and tears that kept customers coming back each day, wallets open.
But none of us operate independently of the community around us, and none of us can have any form of prosperity without partnering with others.
Ultimately, the success of your business depends on the success of people around you. By finding a way to support and encourage others - especially those in your local community - you are sowing the seeds for communal prosperity and creating a win-win scenario for everyone.
There may be financial incentives.
Using your business to foster social well-being frequently has one strong motivation: increased profit.
Not only does a company with a clear social goal typically attract more paying customers, but there are usually favorable tax and organizational incentives that accompany charitable giving.
We’ve left this until last, however, and that was intentional. Please: enjoy the customer loyalty that comes with increasing social good and make the most of the tax breaks that you can legally and ethically claim (we do). But don’t use social profit solely for increasing financial profit - because that’s just the wrong way around.
By embedding CSI into your organization, you’re demonstrating that your business is about creating something of value that goes beyond just another line on a spreadsheet.