You can be on Entrepreneur’s cover!

Before Incorporating a Social Mission, Consider These 5 Things While more and more companies are weaving a social mission into their vision, it needs to be done correctly. Here are a few things to keep in mind.

By Davis Smith

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

As the world has become more connected, we are afforded a clearer lens into issues affecting the rest of the world. The result is a new wave of digital natives who are socially conscious consumers -- with millennials leading the pack. Indeed, a recent report found that out of any generation, Gen Y is considered the most focused on corporate social responsibility. The research also pointed to the fact that many millennials were more trusting (91 percent) and more loyal (89 percent) to businesses that had an underlying social cause. Eighty-nine percent stated they were also more likely to buy from these companies. These findings are something businesses should not take lightly, as the millennial generation spends about $170 billion and by 2020 will be responsible for 30 percent of retail purchases and make up 50 percent of the workforce, according to a recent ComScore study. It is also important to keep in mind that people grouped under other generations also into social responsibility, but it just seems that the trend is gaining more and more momentum with younger folks.

Related: 4 Reasons Why Startups Committed to Social Responsibility Succeed

If you own a business, or are thinking about starting one, you may be considering incorporating a social mission into your company. As you make this determination, keep these five things in mind:

1. Money comes first. Your first objective is to run a profitable and sustainable business. You will have no positive social impact if your business fails. You will need to be confident that you and your business are capable of balancing the competing demands on scarce resources, by first obsessing over customer experience and product. Your social mission will do little for your business if you don't have a product or service that people can become passionate about.

2. The social mission can't be an afterthought. If you've decided to incorporate a social mission into your company's business objectives, make sure to build that social mission into the core of your company's brand and culture. A mission on the periphery of your brand will soon become an afterthought and will add little value to your company.

3. Everyone should be on board. Find a way to stay true to the deeper mission of performing social good. One of the best ways to do this is to build a company culture that supports and reinforces your social mission.

Related: How Purpose and Social Responsibility Can Set a Startup Apart

For example, having staff volunteer days, sending care packages to the people your company supports, or even visiting these partners can all go a long way toward boosting company morale and helping everyone keep the mission in mind.

4. A social mission does not equate to freebies. Avoid simply giving stuff away. Empowerment is the goal. Handouts hobble local marketplaces and do little to create long-lasting social impact, so make sure that your company is giving in a sustainable way. Warby Parker is a great example of a company doing it right. Instead of simply giving away glasses for every pair of glasses sold, they work with nonprofit partners who train entrepreneurs in developing countries to give basic eye exams and sell glasses in their communities.

5. Use it to attract talent. Most businesses fail in the first five years. Giving away scarce profits may reduce your chances of success, but having a strong and authentic social mission can differentiate you from your competitors. It can also help attract and retain great talent. At Cotopaxi, we had over 300 unsolicited job applicants in the month of our launch. People want to be a part of a company and movement that helps others, and an authentic social mission can turn customers into loyal brand evangelists. Most importantly, building a purpose driven business feels incredible. There are few things more rewarding than serving others.

Related: 3 Ways to Remain Dedicated to Your Mission

Davis Smith

Founder and CEO of Cotopaxi

Davis Smith is the founder and CEO of Cotopaxi, a Benefit Corporation and an outdoor gear company with a humanitarian mission at its core. He is a serial ecommerce entrepreneur, having started and sold several businesses. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Growing a Business

To Achieve Sustainable Success, You Need to Stop Focusing on Disruption. Here's Why — and What You Must Focus on Instead.

Instead of zeroing in solely on disruptive innovation, embrace a pragmatic approach to innovation, recognizing and leveraging the potential within ongoing industry shifts.

Business News

Mark Zuckerberg Says This CEO Is the 'Taylor Swift' of Tech

Meta's CEO posed with Nvidia CEO Jensen Huang on Instagram Wednesday.

Real Estate

3 Emerging Trends Shaping the Future of Real Estate

These three innovations are reshaping the real estate industry — discover tips for effectively covering these trends.

Leadership

What We Have to Gain By Talking About Grief and Loss At Work

I lost my husband to cancer during Covid — here's how it changed how I lead at work.

Side Hustle

This Mom Started a Side Hustle After a 'Shocking' Realization in the Toy Aisle. Her Product Was in Macy's Within the Year — Seeing Nearly $350,000 in Sales.

Elenor Mak, now founder of Jilly Bing, didn't plan to start a business — but the search for a doll that looked like her daughter inspired her to do just that.

Fundraising

Avoid These 9 Pitch Deck Mistakes When Asking Others For Money

Crafting an efficient pitch deck requires serious effort, but at least it's not wandering in the dark since certain rules are shaped by decades of relationships between startups and investors.