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What Is A Social Impact Business? Why They Are Critical for The Future

by / ⠀Entrepreneurship / June 10, 2022
Social-Impact

If you are one to pay attention to the trends and news of the business world, then chances are you have come across the term “social impact.” In fact, you probably have seen multiple businesses market themselves as embracing social impact. In 2018, a study discovered that at least 78% of American consumers expect businesses to make a positive impact on society. For the past decade, businesses had the corporate social responsibility (CSR) metric as the standard. Every day, more and more companies look to increase their social impact and much of the public has begun to notice.

But, what exactly is a social impact company?

Social Impact

The definition of a social impact company is when businesses or non-profit organizations prioritize working toward serving local and global community needs. Their goals are much different than a normal company. Most companies are the ones that will make public support for certain things. But the CSR is a secondary value for the company. Rather, a social impact company puts all its focus into serving its communities. Additionally, they look to make the world a better place.

So why do they matter? Social impact companies matter for many reasons. Also, they make positive impacts on their community.

These companies offer people the chance to commit themselves, time, skills, and even profits to make positive social change. But, it’s the positive consequences that come out of it that make it all worthwhile. In recent years, our planet has suffered from a devastating pandemic. As the world works toward solving this global catastrophe, much of society noticed the cracks in our foundations of living. For instance, many went from making their local issues into global ones such as women’s rights, access to basic needs such as water, and conservation of the environment. All skyrocketed with interest to improve and make the world better for all.

Social impact companies can sometimes be hard to spot as they do not market themselves with the same ferocity as mega-corporations like Amazon or McDonald’s. Here are a few social impact companies that are making the world a better place.

Aurora Solar

This green-focused tech company has worked to create cloud-based software that enables advanced solar PV engineering design. They have created millions of solar projects a month across the world.

Bombas

An apparel company that, for every sock sold, they donate a pair to someone in need.

Brandless

A company that specializes in house goods. With every order, they donate a meal to Feeding America.

Planet

Planet is a social impact company that focuses on using space to help Earth and all of its life. They design, build, and operate satellites that deliver data to help solve world problems.

Toastmasters International

This international company is an educational non-profit that uses a network of clubs to teach public speaking and leadership skills.

Vida Bars

This social impact company has eco-friendly personal care products that are not made with dangerous chemicals.

Sustainability

These social impact companies make sure that their supply lines are in tip-top shape for their business and that they are sustainable. Sustainability often refers to environmental upkeep, but there is also economic and social sustainability that are quite important. What this means is that social impact companies want to do their best to locate and use suppliers. This is especially important when they have similar views as them.

They also want to make a conscious effort of ensuring that the impact on the environment is minimal. Additionally, they have a focus on ensuring that their employees are paid a decent wage. Moreover, they make sure they aren’t supportive of social policies that can marginalize and oppress others.

As a whole, social impact companies matter because they have taken previous business models and ideas and made them into something more meaningful. As this shift goes further, more companies are jumping on. This can lead to meaningful social change, but it is important that everyone is on the same page and works together to make these dreams a reality.

While social impact companies may not be a solution to some of the global problems out there, they do bring awareness to many people. They work to ensure that policies and economic practices that they support are heard and made mainstream for the rest of humanity to recognize and listen to.

Conclusion

These businesses are changing the world one order at a time. It is built on the hope and dream of building a better tomorrow. With a lot of work and a little bit of luck, there can be hope that we as a society move forward. We could see a future where these social impacts are a positive force in the world and where all businesses begin this practice.

Related Post: 10 Tips to Make a Big Impact as a Social Entrepreneur

About The Author

Tristan Anderson

Hello! My name is Tristan Anderson and I live in Manhattan, Kansas. I enjoy being in nature and animals. I am also a huge geek who loves Star Wars and has a growing collection.

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