I find businesses that have a good social cause and a weak business model, which means their ability to continue the efforts of the organisation, is limited. However, there can be real advantages of being driven by a cause in business:
• Small marketing cost/PR – people talk
• Attracts cause driven employees – high employee engagement
• Attracts cause-driven customers – loyalty and engagement
• Organisations are allowed to take on more risk in a social cause – ask forgiveness, not permission
• Partnership possible alignment around a common cause among many separate organisations.
I am not suggesting that all businesses become ‘Social Business’. A term first coined by Muhammad Yunus to describe cause-driven businesses. Investors/owners gradually recoup their investment, but they cannot take any dividend beyond their original contribution, the profit is solely for the cause. The social business has evolved from being solely based on the cause, to be equally profit driven.
Customer’s Like Cause Driven Businesses.
We First Branding states some cold hard facts that make it clear the future of profit is purpose.
- 87% of global customers believe that businesses need to place equal weight on society’s interest as on business’ interests.
- 76% think it is OK for brands to support good causes and make money at the same time.
It has been said, ‘women must do twice as well as men to be thought half as good’ in many environments this is still true. “More women are obtaining MBAs than ever before in history. Although women in every industry have made strides, there are only 28 female CEOs of the Fortune 1000 companies according to the Catalyst, July, 2011 report”. Women are frustrated with the lack of change; you only have to look at the pay gap debate. Women are captaining their paths in business. The UK and USA are experiencing the greatest number of start-up in history, and Female business owners are the fastest growth sector in the US according to Forbes.
Why Women Business Owners are Better in Cause Driven Businesses?
- Women are better planners and think long-term gain of the whole community of stakeholders rather than the short-term personal gain.
- Women are socially conscious leaders that serve to cultivate innovation and initiative for both themselves and others. Forbes
- Women are better communicators; they listen and are more discussion orientated than action takers.
- Women are better consensus leaders; traditional top-down, authoritarian leader is not conducive to a cause-driven organisation.
- Women are better at reading the emotions and body language signals of others and enticing the passions of others.
Women are driven by social good; make better businesses make better business owners. Noted that there are always exceptions to any rule. What is your View? Please feel free to comment your stories that may or may not support my views.
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