A positive impact is not only good for society, but it’s also good for business. In this article, we’re going to take a look at what social impact means, what a social impact project looks like, and why it is so important in business.
Social impact is the effect that an individual or organization has on the well-being of the wider society. It’s a given that no one deliberately tries to negatively impact society, so “social impact” is used as shorthand for “positive social impact.”
A social impact project often targets specific social challenges and employs policies, programs, or events to tackle them. For example, one social challenge might be the need for shoes for children. TOMS Shoes began as a social enterprise that donated shoes to a child in need for every pair purchased. TOMS has since shifted to donating ⅓ of its profits, but its “one for one” model has helped to provide millions of shoes to children in need.
Let’s look at some more ways an organization can create a positive social impact.
Organizations generally employ two types of social impact strategies.
Firstly, they may offer direct support to community projects. Support could come in the form of donations, fundraising, awareness raising, or offering their own expertise for free. This can have immediate benefits for the wider society, and can also help to raise awareness of different causes.
Alternatively, organizations also enable their members to get involved in social work. For instance, they might offer training programs, or even the chance to take a sabbatical to pursue charitable interests.
Business schools are a good example of an organization that attempts to create a positive social impact. Although they can contribute directly to social change, they are also focused on encouraging students to be impactful leaders. One example of this is the SIMagination Challenge course at the University of St.Gallen in Switzerland.
Part of the school’s Master in Strategy and International Management (SIM), SIMagination tasks students with creating a positive social impact over a one-year period. Adelya Nabiullina is a recent graduate of the master’s program. As part of her social impact project, she worked with partners FAB in Malaysia and ClearRivers in the Netherlands to tackle the substantial plastic pollution issues in a Borneo village.
“I would say that SIMagination, in general, gives two big things,” she says. “One thing is about learning how to work in a group on something, working from scratch, building it up a bit like a startup way of working. And creating your own goals, creating your vision, and working to execute that plan together.” (01:35)
The project has a clear 360-degree circular approach. SIMocean recycles the collected plastic and turns it into necessities like bricks for local construction, bag clips, and hair combs. They are not just fighting the symptoms but educating and raising awareness to stop plastic from getting to the ocean. This approach shows the importance of a comprehensive strategy to tackle real-world issues.
But beyond developing these skills, the SIMagination Challenge also acts as a gateway of sorts into further community projects. It teaches students about leadership and collaboration, the importance of the Sustainable Development Goals (SDGs), the valuable work of NGOs, and the difficulty of raising awareness about social issues worldwide.
For Adelya, an additional value of her project came from being able to change people’s thinking. “It’s also amazing when you see that you made the switch; that you convince the person that this is important. And I’m not talking about fundraising itself, or actually doing something. Even changing the thoughts. Changing the thinking is something,” she explains. (02:21)
Now that we understand what social impact is, and how it is achieved, it begs the question: why is it so important? After all, many of the initiatives we’ve looked at don’t have obvious benefits for an organization.
Making a social impact can improve the perception of a brand. That, in turn, makes the company a more attractive workplace and can help them retain existing employees. A happy and motivated workforce can lead to greater productivity for the company.
B Corps are businesses that meet the highest social and environmental performance standards, public transparency, and legal accountability to balance profit and purpose. Businesses that achieve B Corp certification are recognized as leaders in the movement to use business as a force for good and are part of a community of like-minded companies. Additionally, B Corp certification provides a competitive advantage, as consumers are increasingly looking to support businesses that prioritize social and environmental responsibility.
But in reality, the importance of making a social impact in business comes down to one thing; making the world better. And there can’t be anything more valuable than that.
If you would like to learn more about how schools are making an impact, feel free to reach out to one of our master’s ambassadors.
