The demands of new generations -millennials and Gen Z- in the workplace are changing. Today, the youth is looking to work in organizations focused on inclusion, diversity, and environmental care policies, among other characteristics. In this sense, companies need to pay attention to their business models and priorities when hiring new talent. However, there are plenty of organizations whose value is based on sustainability. These are also known as triple or social impact companies.
To be considered a social impact company, the organization has to have the mission to create a positive impact on the social, economic, and environmental aspects of its communities through its values and daily work.
But how can these companies generate community wealth? This includes creating a resilient and inclusive economy in their community. Read on to learn more! 👇
Building Social Value
Social impact companies have the power to drive positive change in the communities they’re part of. Among these multiple benefits, there’s creating social value.
Social value is the benefit gained by a local community. This benefit can be socio-economic, environmental, and in the levels of employment, among others.
To play their part in the building of social value, companies have to support this vision through their supply chain. However, social value is only one of the characteristics of a larger model known as community wealth building, which we mentioned previously in this article. Community wealth has four basic principles. Let’s check them out 👇
💸 Create Wealth Locally
One of the key values of community wealth building is creating local supply chains. Also, to improve local economic competitiveness.
👷 Employ Local
Another characteristic of community wealth building is to employ local professionals or staff members. This will help create a skilled and committed workforce, and provide an example to local businesses.
📈 Encourage New Businesses
Another way to promote community wealth is to encourage the emergence of new businesses. And promote the development of those that already exist locally.
💪 Economic Democracy
A great example of the implementation of economic democracy’s the development of cooperatives. This practice will help citizens feel ownership of their assets and be part of the decision-making process.
But how can social impact companies implement these principles and community wealth building real communities? 💡
Examples of Social Impact Organizations
Each year, more companies are embracing “social impact” as a core value. However, social impact organizations exist since long ago. These organizations are for-profit businesses that prioritize doing work that attempts to solve local or global community needs through a conscious and sustainable supply chain.
Remitee is a platform that seeks to help the world’s migrants and their families by making money transfers easier through a safe, convenient, and easy-to-use app. Therefore, their social value lies in the alliances with multiple organizations in Latin America. For example, now they’ve allied with a Chilean organization to whom they donate part of their income to help immigrants that arrive in Chile.
Bi Media is an Argentinean strategic and creative social impact communications agency. Also, the agency’s certified as a Certified B Corporation. This qualification certifies that the companies that have it work in pursuit of an inclusive, equitable, and regenerative economic system for every human being in a local or global community.
What’s the point of an economy that grows financially and, by its very own nature, generates growing inequality, depletes the earth’s resources, and deepens the individualism and exclusion of thousands of people?Yan De Simone, Founder at Bi Media
Brandless is an omnichannel commerce platform where customers can shop toxic-free home goods, clean beauty, wellness, and more. Therefore they work with natural ingredients, engaged and sustainable partners, and consumers to drive community-led innovation and validation.
Also, the company focuses on collaboration, quality, and people, and states that they are “leading a movement that believes that making better choices should be simple and easy.”
They also have several programs, such as the International Rescue Committee (IRC) in Salt Lake City, where customers can purchase IRC donation bundles through Brandless. That way, the company can match the user’s donation with two families that will benefit from it.
Bombas is a Certified B Corporation that produces and sells comfortable socks, shorts, t-shirts, and more.
However, this company’s differential value is that each purchased product means one donated one. Therefore, they work with over 3,000 partners across the US, including charities, non-profits, shelters, and individuals who dedicate their time to helping the homeless community around the country.
How to Start Impact Investing
Impact investing challenges the belief that positive impact can be generated only by donations, or that investments’ only goal is financial return. It’s important to say that impact investments are made with the aim of generating positive and measurable social and environmental impact, alongside a financial return.
Generally, this type of investment provides capital to address socio-political and economic issues. For example, renewable energy, micro-finance, access to education, healthcare, and housing.
Also, impact investing is possible for institutions, organizations, and individual investors. So how can we, as individuals, institutions, or organizations, start impact investing? Here are some communities that can help us learn more about this practice!
The EO is a paid entrepreneur network with more than 15,600+ like-minded members from across 60 countries. Since 1987, the community’s goal has been to help entrepreneurs achieve their full potential through connections with colleagues, shared experiences, and collaborative learning.
Also, the EO supports the United Nation’s Sustainable Development Goals, which include 17 goals and 169 targets to fight poverty, inequality, and climate change by 2030. Therefore, the Entrepreneurs’ Organization provides members opportunities to make a positive impact in the world.
The membership costs $2,470 per year.
The YPO is a leadership community and has over 30,000 members from around the world. As the name suggests, the community’s goal is to build better leaders. Consequently, they work to achieve their goal through world-class leadership training, networking with other young leaders, and the opportunity to attend conferences with mentors and experts.
The community’s members include top chief executives at organizations and businesses. And all of them share the same criteria: they are leaders who strive to grow in their personal and professional lives and want to make a positive impact in the world we live in.
The paid membership costs $3,975 per year. But to become a member you have to pay a one-time fee of the same amount. Also, conferences and other activities have their own price per ticket.
Global Shapers is a global community aimed at the young generations of entrepreneurs and leaders. Therefore, the community’s mission is to prepare and educate young people in solution building and policy-making, to create lasting change.
The community -which is an initiative from de World Economic Forum- has more than 10,200 members. It works through more than 50 projects to generate a positive impact in areas such as arts and culture, cities and urbanization, civic participation, climate change, gender equality, and access to education. Also, members will have access to programs, networking with peers, conferences, educational resources, and workshops.
The membership’s free for those who want to join a hub in their hometown or a city nearby. However, there’s a paid membership too: The Global Shaper membership. To become part of this second plan, members will have to be ready to commit at a global level with the community.
If you’re seeking to become an impact investor, this will probably be the perfect community for you! The GIIN is a globally recognized community dedicated to increasing the scale and effectiveness of impact investing around the world.
This group provides its members with resources, training programs, and forums where they can learn everything they need to know about this type of investment. In addition, they will have the chance to network with fellow investors and like-minded people.
The membership costs $5,500 per year.
Toniic’s also a great environment for impact investors. Why? This community gathers more than 500 high net wealth individuals, family offices, and foundation asset owners who want to deepen their impact through financial aid and revenue. Also, when becoming part of this network, members have access to peer gatherings, educational resources, online events, and impact journey support.
The membership costs $5,000 per year.
If you’re seeking to learn more about impact investment or become an impact investor, now’s the time. Check out all the communities we mentioned before, or discover new ones at Unita!