Tara Milburn is the founder of Ethical Swag, a company helping brands achieve their ESG goals through sustainable onboarding initiatives.
Failure stings, and when we feel we’ve done something wrong, we respond accordingly in order to diminish the chances of repeating the error. Nothing stings more than making the same mistake twice; we know this and usually do anything to avoid it.
Failure in our corporate system works in the same way. When things go wrong, the collective recruits resources to reduce the risk of a repeat. As it stands, 69% of consumers are actively concerned about climate change. Only 50% of executives feel their organizations’ strategies are reflective of their purpose, according to a study by Harvard Business Review and EY. The health of our planet and the purpose of our work are too important to get wrong twice; somewhere, our collective brain is recruiting some serious resources.
The impact of those resources is already taking effect. The twin crises of meaning and climate have quickly changed how we do business, and stakeholders are rewarding the effort. Companies that have established that clear, shared purpose within their organizations are seeing success—a 10% increase in growth in three years, according to the same HBR and EY report.
Similarly, consumers, investors and employees have all turned climate anxiety into action. According to findings from Gartner, 85% of investors prioritize ESG factors in their due diligence. Moreover, 66% of consumers pay more for responsible and sustainable products. Sixty-six percent of Gen Z employees opt for lower-paying jobs at more ethically and environmentally responsible companies.
Failure motivates us, and our societal shortcomings motivate profound and meaningful change in our businesses. Failure is a painful education, but finding these solutions could be worth every second. Here are a few ways business owners can follow the wisdom of failure toward a better way of doing business.
P&L&G: A New Kind Of Corporate Accounting
As business owners, we’ve learned to let the numbers do much of the talking. Profit and loss statements guide most of our decisions from hiring to business development to pricing. But stakeholders are making it clear that our “giving” is just as consequential to our corporate accounting, and it’s no longer just the thought that counts.
Before they make a purchase or an investment, individuals and institutions evaluate the social efforts of organizations. They’re looking for transparent ESG metrics, developed reporting, evidence of social impact and substantial long-term goals. Internally and externally, stakeholders hold organizations to higher sustainability standards, ESG transparency and social responsibility. They’re expanding the old definition of success as shareholder value; it makes good business sense for companies to take these fundamentals as seriously as they take their profit and loss (P&L).
Stronger internal cultures, heightened purchase motivation and improved long-term loyalty are proven outcomes of well-developed corporate impact programs. We can add better profit to that list; 82% of consumers “prefer a brand’s values to align with their own.” The support and the cause can take different forms. Many giants—Patagonia and TOMS come to mind—have made corporate responsibility famous with campaigns like 1% for the planet and “buy one, give one.”
Giving can also mean improving compensation and benefit structures, donating time to your immediate community, and supporting sustainability efforts across your supply chain.
Thoughtful Products Can Speak Louder Than Pledges
As companies put more resources into corporate responsibility, the impact will come from their actions. Stakeholders know it’s not what we say but what we do that matters. Small and actionable fixes reflect the larger aims of the corporation.
Employee gifts, customer outreach, and promotional products embody a company’s values. Opt for sustainable products, support small businesses and partner with thoughtful suppliers to walk the walk.
Sharing The Sharing: How Busy Teams Find Meaning
With a plan for giving and gifting, it’s time to delegate. Sharing the lift reduces the chances that a campaign is sidetracked. More importantly, delegation empowers your team to make the difference they want to see.
Choice-based gifting—offering your team ahead-of-time selection for their onboarding or holiday packages—can decrease waste and extend the chance to have a hand in supporting sustainable suppliers, small businesses and ESG leaders. Similarly, a recent study shows 86% of employees want to weigh in on their company’s corporate giving strategy by self-selecting charities or collectively deciding on the focus of a more extensive campaign.
When we make a mistake, we mobilize; we naturally make every effort we can to do things differently next time. In the same way, the failures of our societal and corporate structures are directing our next steps, showing us the improvements we can make. If we pay attention, the natural selection of our stakeholders could reduce our chances of committing the same collective errors and put us all on the path to a better kind of business.
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