Every company has at least one good opportunity that would yield healthy business and social outcomes, Mission Measurement’s Perry Yeatman recently told a group of business and nonprofit executives. Many of these efforts fail, however, because well-meaning partners make a big mistake: they focus on the cause first, according to Yeatman.
Whether improving supply chain efficiencies to save money or generating top-line growth by driving consumer demand, companies that crack the corporate social responsibility (CSR) code insert the business objective into the equation first, not the cause.
Sound cold, callous and calculating? Too corporate?
Moving to Mission Critical
Consider this: whether the business outcome is saving money or generating revenue, social impact efforts must be tied to mission critical activities in order to receive the funding, staffing and attention they need to succeed. Being considered overhead in a corporate environment is the quickest way to ensure your line item is targeted for elimination in the next round of budget cuts.
An Example from Kraft Foods
To illustrate, Yeatman shared an example from Kraft Foods where she once served as senior vice president of corporate and government affairs. As one of largest buyers of branded cocoa in the world, when Kraft foods identified a potential supply chain issue in cocoa production in Ghana (one of only a few countries that grows cocoa in the world), they launched an ambitious 10-year, $70 million initiative called the Cocoa Partnership designed to support these cocoa-producing communities in core growing regions of the world, starting in Ghana.
Kraft soon realized that making a true dent in the core issues of poverty and community in Ghana would require an even larger corporate commitment and dedicated $400 million to the effort. The long-term bet by Kraft has showed early signs of success with cocoa yields increasing in target communities, premiums generated for Ghanian cocoa farmers from sales of Fair Trade products and development projects ranging from solar panels to well creations.
Kraft made such a significant commitment to Ghana because it was a good business decision. Yeatman said it appears Kraft will remain committed to this initiative in Ghana for the foreseeable future because of the mission critical focus.
Gauging the Business Value of Your Social Impact Initiatives
What about your business? How can social impact move the needle on key business objectives for you?
As a starting point, Perry recommends asking the following questions:
- What business outcomes are of greatest interest to company leadership?
- What social outcomes most closely align with those business outcomes?
- In what ways could your team move the needle on those outcomes?
- How does what you could be doing based on the above compare to what you are doing – considering both outcomes and programming?
Then Yeatman counsels that you should consider the many types of resources that your company could direct at the initiative such as:
- Money in the form of foundation grants, employee giving or cause marketing
- Attention/Advocacy through public education, media relations or government relations
- Manpower by leveraging suppliers or business partners or mobilizing trade associations, consumers and employee volunteers
Flip the Equation by Putting the Business Objective First
While it may feel right to start planning programs designed to do well by doing good with the cause end of the equation, that approach can lead to heartache and missed opportunities. Starting with the business end of the equation offers a far greater chance to build a program with lasting impact, both for the company and the cause. To learn more, give a listen to Perry Yeatman's webinar: Using Social Impact to Drive Your Business.
