Social Value As A New Business Consideration

The purpose of a business is to make a profit. To do that, a business must constantly innovate and market itself. To date, a business has not had to think about it’s “social value” to it’s market or community. I argue that is about to change. Is changing.

There’s enough cases of companies facing corporate culture changing crises from the impacts of Social Media and citizens new power of expression. No industry, no public sector organization is immune. None.

It is an illusion for any business to think it a) can control the message and b) that it is not susceptible to an assault from a disgruntled group of citizens or customers.

If this is in fact the case, then does the concept of “Corporate Social Value” come to be a key consideration for businesses now and in the future? I suspect so.

So what the heck is “Corporate Social Value”? It’s a challenge for businesses since it’s pretty much just pixie dust right now. It’s a term we made up. Here’s why though;

Take away fancy terms like “brand image” or “corporate social responsibility” and what it boils down to is do people think the way a company behaves in it’s community of wherever it operates is fair? Do they treat employees well? Do they destroy resources and do nothing to replace them? Do they make and then support, quality products? Are they damaging the environment in their manufacturing processes? Are they seen as indifferent and aloof?

This is how people may “feel” about a company. I think we’re starting to see anecdotal evidence that a company’s “reputation” or how consumers feel about it can impact sales. That’s not an easy glass of kool-aid to swallow. It’s hard to measure and it’s soft, feel good stuff. Business is not about “emotions” it’s about making a profit and reducing costs to maximize those profits. There’s nothing wrong with that. It’s just the way it is. Otherwise it isn’t a business, it’s a non-profit organization.

Politicians understand this concept very well. How people “feel” about them is an important part of getting and staying, elected. Perhaps businesses will be taking some lessons from politicians. That opens up a whole other, big can of worms.

Regardless, the ability for consumers to express emotions and values and to share them with others, is having an impact on businesses. And consumers are starting to realize that.