There’s no denying that, at its core, the purpose a business serves is to provide a solution for a relevant problem, all the while turning a sustainable profit from its products and services. However, local businesses are still part of the community as any other group and entity. They would be nothing without the community aspect that breathes life and opportunity into the market.
So today, you’ll learn how practicing social responsibility and giving back to the community can benefit local businesses in the long term and may even introduce more potential profit over time. Plus, you’ll also find the many different ways these companies can practice social responsibility without necessarily breaking the bank during these challenging times.
How Do Local Businesses Benefit?
On paper, allocating profit and resources for expansion, incentives, or any other business process for social well-being and community programs instead may appear contradictory to the goals of a business. But providing for the community and giving back to the people who’ve helped establish your operations today can indirectly benefit you as well—namely, (1) improving brand image, (2) increasing employee retention rates, and (3) creating traffic:
Improve Customer’s Perception And Overall Brand Image
Nowadays, brand recognition is one of the most challenging things to attain for a business given the many prominent and household names in many industries. For example, tech startups can’t possibly compete with Apple or Samsung when they’re still starting from grassroots and barely have any say or share in the markets. However, in the case of local businesses, sponsoring teams and helping with community development improves customer perception and associates positive reinforcement with your brand.
Accountability Helps Attract And Retain Employees
Job positions are becoming ever vacant. The great resignation of employees is changing the world of employment forever as more people move toward self-employment and the gig economy. And while a rebounding global economy does keep hopes up for increasing economic activity, businesses will soon run into a human resource constraint without new talent acquisition filling in roles. But, in the case of local companies, coordinating with community endeavors and giving back builds accountability that naturally attracts new employees and retains the current workforce out of fulfillment and satisfaction.
Generates Buzz And Builds More Traffic
Last but not least, one of the best indirect ways social responsibility and giving back to the community helps local businesses is by generating buzz and building more traffic where quiet streets would’ve won otherwise. People love the idea of a business engaging with customers and the audience that made the brand. The very minimum they provide in return spreads like wildfire, as more people come to find out what everything’s about due to curiosity. Sure, the massive numbers won’t stay forever, but you’ve undoubtedly reigned in new loyal customers in the process.
Start Small but Think Big
In terms of giving back to the community and helping out through simple gestures and sponsorships, you don’t necessarily have to start with something extravagant to establish your foothold as a socially responsible business. What matters most is that you put in the effort and recognize the need to be part of the community, so starting small but aiming for something big in the future is the best approach to take. Here are a few ways to approach this:
Partner Up with Local Nonprofit Organizations
There are dozens of local nonprofit organizations that need the extra funding or volunteer hands. With the alarming rise of omicron cases, every help provided is appreciated. So don’t shy away from partnering up with nonprofits in your community, as this is an accessible way of engagement that already has the plans and systems in place to put that extra money to good use.
Source from Other Local SMBs in the Area
Suppose you want to help liven up the local economy. Simply sourcing from other local SMBs in the area is an excellent practice of social responsibility. Sourcing from local SMBs spreads the abundance throughout the community. Furthermore, building a solid relationship with local SMBs can even net you discounts and bargain deals in the future should the opportunity arise.
Launch Community-Wide Donation Drives
At the end of the day, nothing is stopping you from launching community-wide donation drives for less fortunate families or those affected by natural disasters near you. Yes, it will take more effort and time to set up, but it directly associates the community effort with your brand image and guarantees that your resources are utilized in the best way possible.
Of Course, a Little Security Never Hurt Too
Helping out and giving back to the community is something every business, local or international, should start doing ASAP, especially in today’s context where uncertainty and problems run rampant. But, as a general practice, don’t forget to save some security for your business in the form of a professional legal team, preferred process servers, and accounting experts to keep your papers in check and help operations go smoothly.
Building your business must start with building around your community. Doing so can benefit your company and the people who make your business better.