One of the primary aspects that millennials are seeking in both startups and longer established companies, is a functional, well thought out social cause which is embedded in a business strategy. Due to an increasing demand on the behalf of the millennial generation to purchase goods or services with a philanthropic cause in mind, it is no surprise that companies are slowly incorporating charities or philanthropic bodies into the way they do business from to day to day. The below are some great reasons to develop a Corporate Social Responsibility program for your new company’s business plan.
Moreover, in addition to consumption evolving across millennials, brands are also taking the necessary steps in order to fill the charity or philanthropic gaps that their establishment might have been lacking previously. An important recent study conducted by The Intelligence Group stated that around 59 percent of millennial customers confirmed that a company or brand’s ethical framework, charitable associations and philanthropic causes all play a huge part in the way they engage with purchasing products. Unlike previous generations that maintained a lesser focus on charity as being the forefront of consumption, statistical data shows how company structure is changing to align with what the emerging demographic in the market is currently demanding.
For example, a famous brand that has been making fundamental strides in connecting with consumers is the Fairtrade brand, which basically demonstrates how to operate a successful business while paying reasonable wages to their international employees. Although Fair Trade products are even double or triple the cost, younger consumers are willingly to go the extra mile because they are certain their dollar is supporting an ethical business that is funding a social cause that matter to them. A well thought out, creative CSR program is not only an effective way to distinguish your business from other startups early on, but it lets both current and potential customers know that they can count on your company to promote philanthropy.
Another good reason to implement a charitable or philanthropic cause in your business strategy is the simple fact that it improves the online presence of your startup. In the age of fast-paced, ever-changing technology, maintaining a solid online brand is just as important as the work you do. Social media and websites create an online platform that complement your social efforts by allowing your brand to engage and grow exponentially. According to a Nielsen research case study, millennials who participate in employer-sponsored volunteer activities demonstrate more pride in their work, while simultaneously expressing increased loyalty for their employers. This in turn, produces a domino effect which then increases overall company productivity. To read more about how to incorporate charity or philanthropy in your new business, click here.