Building a Community-Focused Small Business
04/19/2023
Building a Community-Focused Small Business
Starting a small business is just one step in building up the community around you. Next, you should consider ways to give back to the community that supports you. With so many ways to do this, the important thing to remember is to authentically collaborate with community leaders to have the most positive impact you can in your area.
What is Corporate Social Responsibility?
Corporate Social Responsibility (CSR) is the idea that businesses should aim to improve society in some way using their influence and resources. Many businesses that implement CSR focus on initiatives that benefit the environment, community, or economy. Not only does this help build your brand and reputation, but it helps create meaningful relationships with potential customers. A study by Babson College found that “a strong CSR program can increase market value by up to 6%” (uschamber.com).
Starting a CSR program from the ground up does not have to be hard! Follow these three steps:
Step 1: Research
The first step, like with most plans, is to research. Brainstorm where you see your business’s place in the world. Are you a paper company dedicated to minimizing the paper industry’s carbon footprint? Maybe an environmental cause is right for you! Maybe you run a retail store and your passion is clothing the homeless. The possibilities are endless, just make sure it makes sense for your business.
Step 2: Talk to Employees
The next step is to get feedback from your employees. Your employees are going to be the support for any initiative you take on, so it is important to get their feedback on any plan you wish to implement. Chances are many of them live in the area you are trying to help and can provide important information or connections.
Step 3: Implement a Clear Strategy
This is the most important step. Here you must figure out how you are going to pursue your CSR program. There are many ways to make a positive impact that we will discuss later in the post.
Relational, Not Transactional
Perhaps the most important thing to remember when it comes to building a community-focused business is that it should be relational and not transactional. Community involvement is an inexpensive way to advertise your business. Being out in the community helps businesses get more exposure and connect with more potential customers, but it should not only be about that.
Consumers appreciate businesses that genuinely care about the community they call home, and as such, your community involvement should first and foremost be about authentically connecting with locals. As a small business owner, you already have closer access to your customers, but this is your chance to make a real impact on their everyday lives.
Positive Impact Examples
Donating to Charities – Donating is a good entry point for new businesses, especially if you donate your own goods or services.
Serving on Boards – Serving on a board is a great way to connect with community leaders. There are many different types of boards, such as nonprofit boards or school boards, that help serve the community.
Sponsoring Local Events – Sponsoring events is an excellent way to integrate yourself into the community culture and generate positive public engagement with your business.
Volunteering – Volunteering requires an energetic team willing to go out into the community. However, this team is likely to build camaraderie between themselves and those they are helping!
Education – It’s important to help guide those students entering the workforce or those still deciding what they want to do in the future. Your business can work with local community colleges or high schools to create literacy opportunities related to your industry.
Implementing a successful CSR program has many great benefits for your business and the consumers in your area and should be viewed as an integral part of a successful small business. Remember: when you invest in your community, you let them know that they can invest in you.
Sources:
https://www.uschamber.com/co/start/strategy/small-business-community-involvement-ideas
A Guide to Practicing Corporate Social Responsibility (uschamber.com)