Introducing discussions about the “social impacts of business” into a corporate environment can be a major challenge. There is a common sense that places strategic needs focused on growth and assessments of the “social” cost of these needs in antagonistic positions.
However, there is no denying it: the company's sustainable development is directly related to the impacts of its operations on the surrounding community.
Now, if the current resource management does not worry about the next ten years, there may no longer be enough inputs to sustain the company's growth. And this is just from an environmental point of view.
In the same way, the company begins to be frowned upon not only by the society around it, but by the entire public, including customers, partners and other stakeholders. Production on a global scale, the purchase of international raw materials and sales with almost no barriers mean that actions that are apparently “geographically limited” have repercussions overseas.
The result? The last domino to fall is the business finances and years and years of effort.
Therefore, it is no longer possible to think about developing a business without considering the social impacts it will generate. That is why we have prepared comprehensive content on the subject. Check it out!
What exactly is social impact?
Social impact is the impact that a company’s decisions, activities and operations can have on society. As mentioned above, even a company with local operations has the potential to shake global social and environmental balances through the value chain in which it operates.
The impacts caused by a company affect different stakeholders, of greater or lesser interest and power of influence, which represent both threats and opportunities for its operation.
First step: identify and evaluate impacts
There is no longer that old story: “what happens here, dies here"If one person, just one, manages to publish a possible failure of their company on the internet, and it is seen by one more person, the "damage" is done.
There are those who only see the bad side of the story. However, you are tired of knowing that great entrepreneurs are those who create another perspective on problems, seeing opportunities where others only see barren land.
The best way to identify the impacts that your business has on society is to search the internet, social networks, blogs and all types of repercussions about your business operations or the products and services you sell.
Talk to those impacted
From there, it is also possible to discover who are impacted by your company's operations, your stakeholders. It is necessary to build a dialogue with these individuals, groups or institutions, in order to elucidate the business's operational processes that can be improved in sustainable terms.
This conversation can provide a better understanding of existing opportunities for reshaping the company’s operations. For example: How many jobs does your company generate for the local community? Has social life improved since the company arrived? Has investment in the local area increased?
You must have the answers to these questions. Only then will it be possible to measure the impact of the business on the community.
Propose open debates to the public to develop projects that reduce negative impacts
After measuring this impact, invite society once again to participate in debates about what can be done to improve any problems and enhance the company's participation in the population's well-being.
It is important not to limit the circle of participation to certain layers. Involve everyone whenever possible.
By following these steps, your company will have made progress in analyzing and incorporating the social impact of its operations into its production routine. In the same way, it will gain more support from society to develop sustainably.
If you want to see complete material on the subject, with cases of companies that have already gone through this process, download our free e-Book Social Impact Business Management.
