What Really Is Social Enterprise?

Contributed by Diana Verde Nieto of Clownfish Marketing

If “social enterprise” means anything – and to many it does not – it
tends to conjure up images of small businesses and charities. And yet,
the original social entrepreneurs were great philanthropists of the
Industrial Revolution who had the money and power to pursue their
Victorian vision of a better society. Many large multinationals
continue to be guided by values that, whilst progressive and laudable
in their Nineteenth century context, have failed to keep place with
modern society and the evolving understanding of environmental and
social expectations.

Many multinationals have struggled to take their approach beyond
philanthropy. Philanthropy is good at dealing with critical situations,
but bad at building long-term brand and share-holder value. What is
needed is a system that combines the profit motive with strong social
objectives.

Part of that system is already in place. Visionary companies, such
as Unilever and Procter & Gamble, have been guided by inviolable
social values since their inception. However, these values have failed
to respond to their modern context, in which environmental and ethical
issues have greatly risen in importance.

In response to this new imperative, the corporate giants are coming
to realise that their future depends on their willingness to understand
and embed the principles of “responsible business” in all levels and
parts of their organisation, and to communicate their performance to
customers and other stakeholders. It will not be long before all
mainstream brands have to demonstrate their responsible approach to
customers, simply to survive.

The implications of this can, and should, extend beyond operational
issues (such as sourcing, manufacturing and distribution) to the types
of products and services made, and how they are used throughout their
lifecycle.

The realisation that endless consumption rarely leads to greater
overall happiness has prompted multi-nationals to develop CSR policies
setting ethical frameworks that are understood by all stakeholders.
Successful companies have tackled problems such as fatty foods, empty
calories, excessive water and fuel consumption, wasteful packaging and
product longevity, to name but a few, and have implemented strong CSR
policies incorporating ideas of sustainability and well-being,
resulting in huge rewards as consumers become sensitive to these
issues.

As consumers are increasingly driven by brand reputation, brand
success depends not only on the implementation of sustainable policies,
but also on the way in which they are communicated. CSR must be
converted into brand value via communication, marketing, and PR. Social
responsibility must be linked to innovative implementation strategy
which portrays a brand of high performance, yet one that cares about
its customers and communicates on their level.

Successful CSR implementation and communication is in many respects
simply about understanding and aligning values. When brand values,
corporate values and societal values are all aligned, the journey
towards sustainability gains extra momentum and greater commercial
potential. Brands and consumers are, in effect, entering a pact for
sustainability.

Successful marketing strategies have been implemented in a range of
areas. Food markets are concentrating on organic and fair-trade
production; those that have ignored the boom are now lagging behind.
Apparel companies are marketing organic and sustainable clothing
ranges, and as far as possible, trying to promote the working
conditions of their staff. BP and Virgin are using their commitments to
renewable fuel technologies to strengthen trust in their brands;
Richard Branson recently promised to re-invest 100% of Virgin’s profits
from planes and trains into green energy projects. Corporations with
strong CSR policies and communications are riding the new wave of
consumer-driven ethical and sustainable consumption.

It is not usually necessary, or indeed wise, to bombard consumers
with messages about environmental and social issues. CSR reports may be
valuable for business shareholders, but consumers lack the time,
patience and inclination to read them.

Of course, communication without action is dishonest, wasteful and
counterproductive. It is therefore essential to be honest about your
shortcomings and sincere about your intentions. Only then will you have
the license to speak proudly of your achievements.

Social enterprise will continue its shift from philanthropy to good
business, driven by the provision of products and services that really
enhance peoples’ lives.

Sustainability has entered mainstream consciousness. It can act as a
differentiator between mainstream brands, encourage loyalty and even
change consumer’s perceptions of themselves. To unlock this commercial
potential, environmental and social values must be built into the DNA
of mainstream consumer brands, and – as always – great execution is
essential.

Contributed by Diana Verde Nieto of Clownfish Marketing