IT seems every business has a different approach when it comes to corporate social responsibility.
For some this may involve spending thousands in community programs and for others it may define their commitment to recycling scrap paper every Tuesday.
Traditionally, corporate social responsibility (CSR) has been used as a tool to enhance a company’s reputation in the eyes of the customer; a nice way of saying “we’re not just here to take your money”.
However, according to the latest research from Chartered Accountants Australia and New Zealand, businesses are now beginning to rethink their relationship between social purpose and the bottom line.
Losing its position as a token add-on, social purpose is now driving businesses, with a flood of people demanding more meaning from their work.
Together with the rest of the modern world, Tasmania has experienced significant changes in the labour market over the past 10 years with the increase in contractors creating a large, independent workforce completely in control of its own professional growth.
This new, independent workforce is motivated by more than a company’s bottom line, the workers want to make an impact and they hold the power to choose their clients based on social purpose. For our younger generation, this independent workforce may be all they have ever known.
The growing millennial population seeks opportunities where sales, profits and business efficiency are intrinsically tied with the social purpose of the business.
This does not mean transforming your business into a soup kitchen. Employees simply need to feel that what they are doing has a meaning beyond keeping the lights on.
Take a successful Tasmanian business such as the well-known Hill Street Grocer, which started off just like any other corner grocery store.
On the surface, Hill Street may seem like any other growing business, making decisions to streamline efficiency and grow profits, but there is a clear reason the local grocer has blown its competition out of the water.
Hill Street has a social purpose – a commitment to high-quality, local produce.
This purpose creates jobs for Tasmanians, supports local farmers and directly benefits our economy.
Motivated by a positive purpose, Hill Street attracts employees in the hundreds and retains a committed workforce of hardworking individuals. The social purpose not only supports pure business operations, it’s precisely what brings customers to Hill Street’s door.
As the weight of our ageing population begins to drag on the Tasmanian economy, there has perhaps been no better time to support a strategy that meets the needs of the millennial population.
In contrast to the ageing workforce, Tasmania continues to prove its validity as a hot travel destination for millennials.
We were even recently voted Australia’s number one destination among respondents aged 18-34 in a survey conducted by food and popular culture magazine The Urban List.
With our comparatively tiny cost of living, this influx of young, big-city travellers may even want to stick around.
Supporting a business culture that values social purpose will not only attract the fresh expertise of millennials, it will inspire and empower staff to succeed.
Punit Renjen, Deloitte Global chief executive and social purpose advocate, says a culture of purpose should define what a business is and why it exists.
A culture of purpose should extend beyond profit — it should also guide strategy, behaviour and leadership.
New research conducted by leading business advisory firm Deloitte indicated that with as many as 91 per cent of employees who said their company had a strong sense of purpose, it also had a history of strong financial performance.
Despite the overwhelming support for the strategy, uptake appears to be slow with 68 per cent of employees and 66 per cent of executives stating their businesses did not do enough to create a sense of purpose.
To reap the benefits of social purpose, business leaders must lead by example.
Leaders must clearly communicate the business reason for being to all members of the organisation.
They must join the dots between doing good and profit, rather than choosing one or the other.
By moving social responsibility from the margins of business and creating a shared value between purpose and profit, Tasmanian businesses can lead the transformation into a dynamic workforce.
Our best and brightest need not be tempted by the opportunities of the mainland if their work in Tasmania has value, meaning and purpose.
This article was taken from here.