In my own business and in the small businesses of the incredible entrepreneurs I get to support, social impact is a pillar of how we operate. If reporting on your business’s social impact hasn’t been a standard procedure, today I share the why — and the how! — your can share you company’s social impact.

Getting started in social impact

When I started my career, for-profit social enterprises were just emerging as a strategy or concept.

• Ben & Jerry had just launched Cherry Garcia;

• Gary Hirschberg & Samuel Kaymen launched Stoneyfield Yogurt to raise money for their organic agriculture school;

• I got my start doing accounting for Cooperative Home Care Associates: then, a start-up home care agency with 50 home health aides in the Bronx.

​They are very different examples, but each company had a clear purpose from its first day.

In the years since, each company has become tremendously profitable and has led its respective industry with a focus on reducing environmental impact, committing to ethical sourcing, and treating their workers and communities with respect. Through multiple presidential administrations and some harsh policy changes, each company continued to create change in their communities and industries.
 
These companies provide my definition of social entrepreneurship. And their examples reinforce my own commitment to supporting, strengthening, and championing the success of for-profit mission-driven companies. 

Fast Forward to 2021

Now many people want to know that their work is connected to their values. Multiple surveys show that millennials in particular:

• Will spend more on brands that support causes they care about. (Neilson Global Social Responsibility Report) 

• Take jobs and stay in companies that support causes they care about. (Fast Company: What do Millennial Employees Really Want?)  

• Believe that the overall top priority for any business should be “to improve society.” (World Economic Forum via Forbes)

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Entrepreneurs are of course leading the trend; virtually everyone launching a business has a passion and vision for doing good in the world. But there is often a big gap between intention and social impact.

Owners of small companies juggle many important (and competing) demands – how can you spare the time, money, and brain-power to develop, track, and improve your social impact? This is why I work with companies like yours to build profitability: so you can deepen the social impact of your work and company.  

Over 30 years of work in the field has taught me one core principle:

Don't wait for big profits before you stand up for the social problem your company seeks to address.

How your business can create social impact

No matter what stage or size, these 4 steps can put your company on the road to meeting your social goals.

1. Create a company mission statement that makes your values and vision clear, then infuse your mission into your brand and your products or services.

2. Set measurable impact goals for each year and quarter: keep them in view right beside your sales and operations targets.

3. Make social impact part of your culture and processes. Communicate your values, mission, and impact goals to everyone who joins your team, including consultants, contractors, and employees. The most powerful social impact companies offer specific products or services that materially advances the impact you are seeking to create. That way, as your company grows your impact also increases.

4. Join the Club! Pick a social impact business group, join it, and declare your impact.

While the first three steps may be obvious, it’s the fourth step that actually makes the real difference in closing the gap between intention and impact.
 

Report on your social impact

Like any other goal worth pursuing, a social impact target is more likely to be met if it is clear and transparent -- and if you are held accountable by someone (peers, mentors, business partners, a coach, your customers).
 
Joining a group of leaders committed to building companies for both profit and social impact is the best way to sustain motivation, reinforce determination, and find new inspiration for social good.

Annual reporting on the social impact of your business provides the public accountability.

What should be in your social impact report?

Reporting your impact is not as overwhelming as it may sound.

It really boils down to transparently sharing:

• The cause or mission you are dedicated to supporting.

• The specific ways your company tangibly contributed to the change that you seek. For companies where the impact is made directly through your product or service then claim that impact. For example, the companies that I work with that install solar systems keep track of the total kilowatts installed each year; while companies that are high-road employers track how many people gained employment.

• If you also include charitable giving in your social impact then report on the amount or percentage of your profits that you gave to support this cause and the specific organizations you choose to support and why.

• If possible, give examples of the impact your partner organizations have made this year. 

Bonus: You can also include your impact goals for the upcoming year - setting yourself up for future accountability.

Want more support in creating social impact with your business?

 Apply for a free 30-minute meeting with one of our CFOs.  

As always, the focus of our conversation will be on your business, the challenges that are top of mind for you, and the actions you could be taking. But we'll also talk about how CFO on Speed Dial helps companies like yours achieve both financial success and social impact. Its our jam.