We’ve talked before about consumers and their affinity for businesses that do good in some way. This concept, often called social good, is not only a great way for businesses to expand beyond caring about the bottom line, but it can also be good for business.
C.C. Chapman, a professor, marketing consultant, author, and photographer (he’s a jack of all trades!), talked to the hosts of The Growth Lab Show about his belief in the triple-bottom-line and social good.
Listen to C.C.’s episode of The Growth Lab Show on iTunes or our website for more.
What’s the Triple Bottom Line?
The triple bottom line is the idea that instead of focusing on the bottom-line, which is solely profit, businesses can measure success by focusing on three P’s: People, Planet, and Profit.
It’s essentially a way to measure the social good your business is doing.
Speaking of, What’s Social Good?
Social good, according to BusinessDictionary is “an action that provides some sort of benefit to the general public.” So, this is any philanthropy you do through your business, sponsorships you participate in, or anything you’re doing to support your employees or community.
Basically, it’s anything your business does that’s not serving just your business and going above and beyond delivering your products or services.
Is Social Good Good for Business?
Remember when we talked to Hillary Weiss about how she chose her cleaning company: She went with the company whose mission is supporting a specific group in their community. We often like to spend with businesses that stand for more than making a profit.
“I support the businesses that I see supporting the community,” C.C. said on his episode.
And, it’s true – a lot of us do like to see businesses in our communities supporting the community. I personally would prefer to do business with a dry cleaner’s that I know is committed to sustainable practices rather than one that isn’t (or that I don’t know is). And business owners are seeing this trend as well. One study found that 80% of business executives believe that social good in business increases customer loyalty.
Social good and the triple bottom line can become a key differentiating factor for your business.