In recent years, there has been a growing awareness of the need for businesses to create social value – that is, to do more than just make a profit. This has led to a boom in social impact efforts by companies and brands. But what exactly is social value?
In simple terms, social value is the value that a company or brand creates for society. This can be in the form of environmental protection, job creation, poverty alleviation, etc. It is important to note that social value is different from economic value. Whereas economic value is the value that a company creates for its shareholders, social value is the value that a company creates for society as a whole.
There are many ways in which companies can create social value. We list down ten significant samples of how organizations and brands are making an impact in various industries.
#1 Patagonia
Yvon Chouinard, the company’s founder, has now demonstrated that he is prepared to back up his claims by donating the business to an initiative to address environmental concerns. Nearly 50 years after Chouinard, a rock climber himself, established the company, he has chosen an unusual strategy for doing so. He no longer owns the business that he started 49 years ago. Now, the earnings will go toward combating climate change. Before making this change, Patagonia established itself as a leader in corporate social responsibility by pledging to run its operations sustainably, exploring the creation of sustainable materials, and donating earnings to environmental organizations.
#2 Ikea
By putting people first and expanding its business in a way that is inclusive, Ikea hopes to contribute to the creation of a society that is fairer and more equal. It supports decent and meaningful work so that people may support themselves and their families and respects and encourages equality and diversity. By encouraging social entrepreneurs to bring about long-lasting, good change for those who need it most, it is also improving many people’s daily lives. Making a good difference is the main focus of IKEA Social Entrepreneurship. IKEA works with trailblazers and visionaries who use their businesses to improve daily living for those who need it most in an effort to create a more fair and inclusive society.
#3 Nestle
The lives of billions of people are impacted by Nestle, including the farmers who produce its ingredients, the families who use its products, the communities where Nestle operates, and the environment on which it all depends. Nestle has defined three overarching ambitions for people, communities, and the planet that direct its work towards fulfilling its 2030 commitments and supporting the achievement of the UN Sustainable Development Goals. These ambitions are driven by the company’s purpose, which is to improve quality of life and contribute to a healthier future.
#4 Grameen Bank
Muhammad Yunus founded Grameen Bank in 1983 with the goal of realizing his vision of the world’s poorest people being able to support themselves via the use of low-interest loans. Since then, the bank has served as an example for organizations that provide microcredit in more than a hundred nations. The Nobel Peace Prize was given to Grameen Bank in 2006 in recognition of their work to promote social and economic development. The goal of Grameen Bank extended beyond merely promoting financial empowerment. It aimed to promote social awareness. The trust between the rural women and the bankers was aided by this. The World Bank tested this strategy for reducing poverty, and it currently supports numerous microcredit programs throughout the globe.
#5 Cundall
Global company Cundall reached carbon neutrality in 2020 and is on track to meet its 1.5 degree Science Based Target. Every aspect of the Cundall universe, including industry leadership, projects, the workplace, and its homes and communities, are focused on sustainability. In order to determine how it may have the greatest beneficial effect on both its initiatives and the globe, Cundall created a sustainability roadmap. The UN Sustainable Development Goals framework and the One Planet Living Principles now serve as its foundation. With its Zero Carbon Design 2030 initiative, Cundall is currently on track to complete all of its international projects by 2030 with a net zero carbon footprint.
#6 Klean Kanteen
Quality water bottles and insulated containers are made by the California-based Klean Kanteen firm. The business, however, has also earned a reputation for supporting environmental causes. Klean Kanteen has demonstrated its commitment to decreasing emissions over the past ten years by following Climate Neutral’s three-step procedure to become completely carbon neutral. Klean Kanteen developed a calculated strategy to cut emissions. This included the team’s 2017 undertaking to set up 216 solar panels at the business headquarters. Additionally, the business bought renewable energy credits and carbon offsets, and it donates 1% of its revenues to 1% for the Planet.
#7 TOMS
Founded on the principle of donating a pair of shoes for each pair of shoes sold, Toms has always been a brand that believes in doing good. They provide customers a chance to give, and their business approach is successful. Blake Mycoskie claims that in the twelve years since he began the business, 86 million children have received shoes. TOMS envisions a future with greater equity. To promote long-lasting change, it devotes one-third of its income to grassroots causes, including financial donations and collaborations with neighborhood organizations.
#8 Johnson & Johnson
Johnson & Johnson combines compassion, science, and creativity to radically alter the course of human health. With its life-saving medications, goods, and equipment, it seeks to have a positive impact on patients, consumers, and everyone else it serves, as well as on the well-being of its workers, communities, and the environment. It aims to address some of the most urgent global public health issues currently facing society and progress jointly to better health for everybody. Its ESG approach aims to increase accessibility and affordability, foster healthier communities, and make a healthy environment, mind, and body accessible to everyone, everywhere.
#9 Coca-Cola
The Coca-Cola Company’s ESG objectives and programs are key to its growth strategy and are grounded in the company’s mission to refresh the world and make a difference. Its A-Z advocacy and issues catalog outline a variety of its initiatives to build a more sustainable business and better-shared future that improves people’s lives, communities, and the environment. Since its founding in 1984, the Coca-Cola Foundation has donated more than $1.2 billion and has made a significant impact on the lives of numerous people.
#10 Google
Google’s unique strategy solidifies its value to society. It searches for concepts that have the power to transform the world. It provides community-driven NGOs and social enterprises with support through Google.org Impact Challenges to improve their community and beyond. Each challenge is an invitation to submit concepts that address a particular issue or provide support for a certain community, be it a city, continent, or the entire world. Google pledges $30 million to large bet projects that quicken the pace of technological development in the field of climate knowledge and action. To hasten the transition to a more robust and sustainable future, chosen organizations may be granted access to Google’s technical know-how and products as well as money of up to $5M.
