What Is Social Good in Business & Why Does It Matter?

Jan 12, 2022 — Markerly Editorial Team, 3 min read

Reading Time: 3 minutes

In business, social good can be thought of as something a company or corporation does for the betterment of society, such as making strategic decisions or launching campaigns that will positively affect the world, and thus the people who live here.

When businesses prioritize social good, the majority benefits. This is already a massive “win”, but it gets better—keeping social good in the mind when making business decisions can also help your brand succeed by giving you one of the most genuine competitive advantages over less thoughtful businesses.

How Prioritizing Social Good Benefits Your Brand

It’s never the wrong time to do the right thing for society, sustainability, the environment, or any other initiative that helps the world or the people that live in it. Doing the “right” thing can also have some pretty incredible benefits for your business and your brand. Here are a few of them.

Increased Visibility in Your Industry

If you take the time to consider how your business decisions will affect those around you and then take those considerations into account when running campaigns, making innovations, and strategizing for the future, people will notice. 

Leads might even make their final decision between you and a competitor based on your actions towards social good. For example, 81% of millennials expect a pledge of corporate citizenship from companies, and 75% of modern-day consumers expect companies to “give back”. People like feeling good about themselves, and they like doing good things for others.

More Effective Marketing

All companies can benefit from participating in basic social good initiatives like using environmentally friendly practices and donating to charities. Thinking about how your business fits into your specific niche in the market can help you make an even more significant impact on your target audience. Consider the following examples and their social good counterparts:

  • Cosmetics industry. Some of the main focal points in this industry revolve around vegan products, cruelty-free safety testing methods, and eco-friendly products and packaging. The vegan cosmetics industry is expected to reach $21.4 billion by 2027.
  • Social media and marketing. Brands in this industry often practice social good by prioritizing social and human rights issues, inclusivity, mental health, environmental justice, and much more. Campaigns in this industry can revolve around nearly any topic. For example, YouTubers MrBeast and Mark Rober recently teamed up with The Ocean Cleanup and Ocean Conservancy team for a fundraiser.

The above list is not a guideline regarding which industries should participate in which social good projects, but an example of how a business in a specific niche can appeal to a target audience.

By putting extra focus on your efforts for social consciousness and social good within your particular industry, you can build more trust and mutual understanding with your audience and develop more loyal and dedicated brand followers.

The Monetary Benefit of Social Good

Depending on your industry, your social good strategy, and the size of your business, you may be able to get a tax break for the charitable work you do. Many small to medium-sized businesses can benefit from this. According to Wessel & Company, a qualifiable deduction includes “cash donations,” and “sponsorship of local charity events,” among other “in-kind contributions.” 

Understanding the limitations and regulations surrounding charitable-giving tax breaks is essential, so do your research and keep thorough records of all donations. It’s also a good rule of thumb not to donate haphazardly just for the tax implications. After all, the whole point of social good is to help people, so do research into charities that are aligned with your brand and your mission.

Conclusion

Though this article focuses on how prioritizing social good can benefit your brand, the real question at the front of your mind should be “how can my brand benefit the world?” All of the good business-related things that come from your efforts are just icing on the cake.

The bottom line is that being a “socially good” business is a win-win situation. When you do your best to help the world become a better place, people recognize that and want to be associated with your mission. No matter which industry you’re in, consider what you could be doing to affect positive change, and you might find yourself with an unbeatable competitive advantage to boot.

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