In today’s business landscape, consumers are becoming increasingly conscious of the impact their purchasing decisions have on society and the environment.
In today’s business landscape, consumers are becoming increasingly conscious of the impact their purchasing decisions have on society and the environment.
Companies are looking for ways to differentiate themselves and demonstrate their commitment to creating positive change. This is where social impact sponsorship comes in and why social initiatives like the Kindly ecosystem are so important.
Studies have shown that when a company sponsors a cause that aligns with its values, the benefits are substantial. Not only does it create a positive brand image, but it also helps to drive customer loyalty and increase employee engagement. The latest research on cause marketing and the “do good economy” indicates that consumers are willing to pay more for products and services from companies that are doing good globally.
So, what exactly are the benefits of social impact sponsorship? Let’s take a closer look:
- Enhanced brand image: When a company sponsors a social cause, it can help to create a positive image and increase brand awareness. Consumers are more likely to associate the company with the cause, which can lead to increased loyalty and higher brand recognition.
- Increased customer loyalty: Studies have shown that customers are more likely to remain loyal to a brand they feel is doing good in the world. Sponsoring a social cause can help to increase customer loyalty by building emotional connections with consumers.
- Improved employee engagement: Social impact sponsorship can also help to increase employee engagement by providing them with the opportunity to get involved in meaningful initiatives that align with their values. When employees feel they are making a positive difference in the world, they are more likely to be motivated and productive.
- Attraction and retention of top talent: Companies committed to social impact are often more attractive to top talent. This is because employees are increasingly looking for work that is not only financially rewarding but also provides them with a sense of purpose and fulfillment. By sponsoring a social cause, a company can demonstrate its commitment to creating positive change, making it more attractive to potential employees.
- Increased sales and profitability: Lastly, social impact sponsorship can have a positive impact on a company’s bottom line. Research has shown that companies that sponsor causes that align with their values tend to have higher sales and increased profitability than those that do not.
The demand for companies to give back to society and have a purpose beyond profits has grown significantly in recent years. According to a study by Cone Communications, 90% of consumers are more likely to trust and support a company that supports a cause they care about. Another study by Accenture found that 66% of consumers are willing to pay more for products and services from companies with a positive social impact.
Additionally, research from Edelman’s 2020 Good Purpose Study found that 79% of consumers believe that it is the responsibility of businesses to solve societal problems and not just government and NGOs. The same study found that 69% of consumers want companies to take the lead on critical social issues, even if it means sacrificing profits.
This demand for companies to have a positive impact on society is wider than just consumers. A survey by Deloitte found that 74% of millennials consider a company’s social impact when making a purchase decision, and nearly two-thirds of employees believe that it is essential for their company to give back to society.
These numbers clearly demonstrate that consumers are increasingly demanding that companies have a purpose beyond just profits and are willing to support those that do. By sponsoring a social cause, companies can not only meet this demand but also reap the benefits of enhanced brand image, increased customer loyalty, and improved employee engagement, among others.
It is important to note that social impact sponsorship is not just about altruism but also good business sense. Companies that are seen as doing good in the world tend to have higher sales and increased profitability than those that do not. In today’s competitive business landscape, companies that don’t prioritize social impact risk being left behind as consumers prioritize brands with a purpose.
In conclusion, social impact sponsorship is a win-win for companies and society. By partnering with a social cause, companies can demonstrate their commitment to creating positive change and establish themselves as leaders in the “do good economy.”
Resources:
- Cone Communications study on consumers supporting causes they care about
- Accenture study on consumers willing to pay more for products from socially responsible companies
- Edelman’s 2020 Good Purpose Study on the role of businesses in solving societal problems
- Deloitte survey on millennials and a company’s social impact
About Kindly
Kindly is a purpose-driven social enterprise co-founded by one of the largest food relief charities in the world. With its existing infrastructure and strategic partners, Kindly is bridging the gap between social impact and Web3 as it creates innovative consumer and business-related products that help make it easy to generate, track and process measurable social impact.