Business owners and companies have many responsibilities. In addition to offering a positive work environment for staff and high quality products and services for customers, there’s the importance of socially responsible business practices. Learn what these practices are and how they can positively impact any organization.

What are Socially Responsible Business Practices

More companies are being evaluated for how they benefit society as a whole. Social responsibility is a more ethical focus on how companies conduct business. Not only does this influence where customers shop, but it can also persuade investors. Here are some of the factors considered to be socially responsible:

• Ethical Sourcing. Company utilizes fair labor practices and ethically source their materials throughout the supply chain process.
• Diversity, Equity, and Inclusion (DEI): Company promotes and follows through on supporting a diverse environment where everyone is included and treated fairly throughout the organization.
• Community Involvement. Local communities are supported through engaging outreach programs.
• Environmental Efforts. Company offers eco-friendly products and services and limits their global footprint.

It may not be mandatory for companies to prioritize social responsibility. However, there are many benefits to adopting these practices.

Benefits to Being Socially Responsible

While making a profit is important for business growth, it’s not the only thing that can help a company succeed. Companies that consider how they can support the community and environment are more likely to see that support reciprocated.

• Boost Brand Recognition. Want a competitive advantage? Establish a platform built on being a positive force in the industry and attract likeminded staff and customers willing to spread the good word.
• Attract and Retain Employees. Or at least attract people looking for a compassionate company that treats all people, including staff and customers, with respect. Working in this positive environment helps foster greater productivity among those with a shared goal.
• Establish Customer Loyalty. It’s easier to create trust with those who believe in your mission. When a company engages and gives back to the community, the community is more motivated to positively engage and give back to them. As long as a company consistently shows a socially responsible strategy, customers are likely to stick around and refer business.
• Entice Investors. If a company is able to manage their finances and still able to give back, that’s a good sign to investors. It also seems like a solid investment when said company is attracting customers and retaining staff.
• Improve Bottom Line. When you can retain employees, you spend less on recruitment costs. When you attract more customers, sales go up. When investors are willing to back your business, your business can stay in the black.

If you’re looking for alternate business practices that benefit your company and community, use social responsibility as a guide. If you’re looking to join a team that’s already dedicated to giving back to the community and environment, look into the various JDog franchise opportunities.