WHY DOING GOOD IS GOOD FOR BUSINESS

“Never has there been a more exciting time for all of us to explore this next great frontier where the boundaries between work and higher purpose are merging into one, where doing good really is good for business.” – Sir Richard Branson

We are in a new era where businesses are increasingly driven by purpose and meaning. Companies are no longer just competing for profits, but also looking to make a positive impact in areas they care about. Many businesses are now embracing models like the ‘triple-bottom line’ and actively engaging their teams and customers in missions that benefit society.

This shift is transforming how success is measured. High profits are no longer the sole benchmark; now business owners are beginning to ask, “is it good for the company?” when considering charitable initiatives. This is because the sincerity and commitment of businesses to making a difference in the world is becoming a top priority for both employees and customers. In fact, a study by Edelman and Young & Rubicam found that 87% of UK consumers expect businesses to care as much about their social impact as they do about profits. More than 70% also said they prefer to buy from companies that align with their values.

For business owners questioning, “is it good for the company?” when deciding to pursue social impact, there is strong evidence that it is. Studies show that businesses that invest in social impact can command higher premiums, increase their valuation, and build goodwill with customers and stakeholders. In a survey we conducted with 340 business owners, 7 out of 10 said doing good helped strengthen their connection with customers, half believed it differentiated their brand, and over a third reported increased team engagement.

Creating A Lasting Connection with Your Customers

For business owners who are considering if they should embark on a similar trajectory, the chief question in their mind would probably be this: how is doing good good for my business? There are already countless studies that show how doing good improves a business’ key metrics – in terms of the premium that customers are willing to pay, or the increased valuation of a company due to the goodwill it garnered with its stakeholders.

We are happy to highlight some of the benefits that doing good can have on various aspects of your business and we are not alone in thinking so! Our survey of 340 business owners revealed that 7 out of 10 of businesses believe doing good increases their connection with their customers; half of them recognise it would differentiate their business and build a strong fan base, and over a third of the businesses see that doing good increases the engagement of their team.

Let’s have a look at some of the benefits that doing good brings to your business.

Differentiating Your Business and Attracting Loyal Fans

When you involve your customers in your giving efforts, your business becomes more than just a provider of goods or services. It becomes an enabler of positive change. A June 2018 survey in the US revealed that two-thirds of consumers are more willing to forgive companies that do good when they make an honest mistake, and they’re also more likely to defend those companies in public. They are also inclined to share positive stories about these companies, increasing the business’s exposure and reputation.

In competitive markets, doing good can be a powerful way to stand out, attract loyal fans, and build a community of advocates.

Building a Meaningful Organisational Culture

When a business has a strong sense of purpose, employees feel that their work has meaning beyond profit. This sense of pride and connection is a powerful motivator. Employees are more engaged when they know their efforts contribute to making the world a better place, and they are more likely to stay with a company that aligns with their values.

Purpose-driven companies also attract like-minded individuals who are eager to be part of the mission. In fact, purpose-driven companies experience greater market share growth and expand at three times the rate of their competitors, all while enjoying higher levels of employee and customer satisfaction.

What The Numbers Say (and Don’t)

There is no shortage of data showing how doing good benefits a business, from higher customer premiums to increased company valuation. Businesses today are finding that they can compete not just on price but on purpose. Beyond the metrics, however, doing good brings less tangible benefits—like access to a powerful network of like-minded businesses.

For instance, the B Corp movement has created a global community of companies committed to responsible and ethical practices. Similarly, B1G1 works with over 2,500 purpose-driven businesses, creating a network where members share ideas and opportunities for collaboration. This generosity and shared purpose often lead to meaningful partnerships that benefit both the businesses and the causes they support.

Adding Purpose to Your Business and Life

As Sir Richard Branson notes:

"How we treat our world is a reflection of our humanity, our intelligence, our conscience, and ultimately, our very survival."

When you begin to incorporate doing good into your business, it doesn’t just change your company - it transforms the culture of your team and, ultimately, your own life. Doing good is not just good for business; it's good for you, the business owner.

Taking The First Step

Many business owners are excited by the idea of incorporating giving into their operations but are unsure how to get started.

If you have ever found yourself asking, is it good for the company? and want to add a greater sense of purpose to your business, we’ve curated an Impact Guide filled with practical tips and examples to help you incorporate effective giving into your business. Download it today and start transforming your business with purpose.