Soul Economy

This is a critical question in the current climate. Is it REALLY possible to be socially responsible and become a large and successful company at the same time? I have finally had the chance to take some time out and read a couple of very inspiring books that confirm that YES it is possible! You can grow a very large and successful business by focusing on both a profit and a social mission. The books that I have been reading are “Business as Unusual – My Entrepreneurial Journey Profits with Principles” by Anita Roddick, Founder of The Body Shop and “Ben & Jerry’s Double-Dip – How to Run a Values-Led Business and Make Money, Too” by Ben Cohen and Jerry Greenfield, Founders of Ben & Jerry’s. While the former is well-known the latter may not be known to all but they began as an ice-cream shop and have built it into a multi-million dollar business.

While The Body Shop started in the UK and Ben & Jerry’s in the US, they both refer to themselves as values-led businesses. In Ben and Jerry’s book this is described as:

“VALUES-LED BUSINESS is based on an idea that business has a responsibility to the people and the society that makes its existence possible. ….values-led business seeks to maximise its impact by integrating socially beneficial actions into as many of its day-to-day activities as possible.”

There are many great messages and learnings that I took away from reading these books but the 5 key ones that I would like to share for socially responsible companies are:

1/ Use a different measure of success – not just profit but look at the positive impact you have made on the community, both locally and globally.
2/ Be open – a SOCIAL AUDIT is a great way to achieve this but you will need to highlight your shortcomings and what you are seeking to improve (so be prepared for bad publicity from the critics and cynics who will use this information to highlight only the negative).
3/ There is no need to use traditional marketing – in fact both The Body Shop and Ben and Jerry’s used creative selling methods via their packaging, in-store promotions, community events such as festivals and many more!

In Ben and Jerry’s book they made the point that companies who are not values-led run one traditional advertising campaign after another and if it is really well done people say “Great ads. I like those ads.” With values-led marketing people say “GREAT COMPANY. I LOVE THAT COMPANY.” Personally, I would rather people say the latter.

4/ People aspire to more than money – so promote your social objectives as it helps to maintain and recruit staff.
5/ Top Down and Across Approach – the combination of profit and social values and objectives needs to flow from top down and be integrated across the entire organisation to be effective.

With examples of companies such as these being successful and with ethical consumers on the rise, why are there NOT MORE truly socially responsible companies? While both books highlight that there are difficulties in having more than just a financial bottom line, they also stress that by being socially responsible gives them a far greater competitive advantage. I think that a lot of it comes down to what companies are being measured on – and that is PROFIT!

There is clear evidence of The Body Shop and Ben & Jerry’s companies, and others, that are achieving multi-million dollar revenues combined with achieving positive social and environmental outcomes for communities locally and globally. And the more they make, the more they can give back! With business becoming more and more powerful, I agree with what Anita Roddick quotes in her book,

“Never be seduced into believing it isn’t the role of business to tackle the big issues, because it absolutely is.”

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