Integrating Social Impact: A Blueprint for Small & Medium Businesses

Social impact is more important than ever. Consumers are increasingly drawn to businesses prioritizing social responsibility, community engagement, environmental sustainability, and ethical values. 

In a recent webinar hosted by the American Sustainable Business Network (ASBN), Lydia Kauffman, a Project Manager at CARNEVALE and Director of Tech Collaborative, presented valuable insights on better integrating social impact into business operations. This recap will help overview the major ideas covered. 

Understanding Social Impact

What do we mean by social impact? Social impact refers to the effect that an organization has on society beyond its immediate stakeholders such as team members, clients, and partners. This includes addressing social justice, environmental, and economic issues to create positive change in communities.

Social impact has evolved from merely a PR play to an important part of corporate strategy. Businesses that prioritize social impact from the ground up, and integrate it seamlessly into their operations, are more likely to see a return on investment. According to research by Deloitte, many companies are active in some form of social impact or responsibility, but only a third currently see social impact as part of their core strategy.

When social impact initiatives are not genuinely integrated into your core business values, they become superficial and are often the first to be eliminated when budgets are cut. Integrating social impact initiatives authentically will guide your work and should genuinely reflect your mission. Fostering a deep-rooted dedication helps your business to maintain its core principles, even during turbulent times — which can reinforce trust within your team and community. 

CARNEVALE’s Approach to Social Impact

Our approach is human first, putting the needs of not just our clients at the center of business decisions, but also the needs of the community at large. Since 2001, the CARNEVALE team has diligently assessed the societal impact of the products that we create. As a result, CARNEVALE developed a framework that supports social impact efforts, customizable to fit the capacity and objectives of various organizations. 

In 2019, CARNEVALE established a formal department dedicated to social impact efforts. To better support and enhance our social impact efforts, we helped launch Tech Collaborative, a nonprofit focused on leveraging technology for social good, in Grand Rapids, Michigan. The team has been able to take on several different innovative and meaningful projects that highlight how technology and creativity can drive positive change in diverse communities. 

The Hip Hop Museum

CARNEVALE created a virtual reality space for the Hip Hop Museum in the Bronx in New York City, the birthplace of hip-hop. This space showcases the history of hip-hop culture and highlights the influence of hip-hop on society within a digital space, allowing visitors to move around and interact with the exhibits far beyond physical limitations. 

The Practice of Democracy

CARNEVALE developed an interactive research tool for The Practice of Democracy, which collaborates with diverse partners to drive systemic change and reflect democratic values. The research tool includes an interactive map and timeline to interrogate democratic practices throughout history.

West Michigan Center for Art and Technology (WMCAT)

CARNEVALE partnered with WMCAT to provide students with real-world education experiences that focused on professional development, creativity, and technology. The team provided coding classes and specialized workshops to support BIPOC youth entering the industry, helping them find a sense of belonging and apply their talents with new technology. 

Importance of Social Impact: Why Should You Care?

Understanding the importance of social impact is crucial for any business looking to thrive. Embracing social impact goes beyond profit margins. There are immediate benefits to the community, and integrating social impact into your overall business strategy can lead to significant, long-term advantages.

Societal Change

Social impact is about making a positive difference in the world. By addressing social environmental issues, organizations can contribute to meaningful changes in society. This includes reducing inequality and inequity, improving education, enhancing public health, and protecting the environment.

It’s Ethical

Responsible businesses prioritize ethical behavior and strive to do what's right, even when it may not directly benefit their bottom line. It's your responsibility as an organization to ensure that your mission is considerate of ethical operations, even beyond your social impact initiatives.

Long-term Success

Companies that consider the broader impact of their operations on society and the environment are better positioned to thrive in the long run. On top of that, you create positive community relations. Engaging in social impact initiatives fosters positive relationships with communities, which can lead to an increase in trust and legitimacy and stronger partnerships. 

What It Takes to Develop Sustainable Social Impact Initiatives

Building a sustainable social impact initiative requires thoughtful planning and a commitment to balancing profitability with purpose, among a few other key components.

Define

The first step in developing a sustainable social impact initiative is understanding its scope and goals within your organization or community. Defining your initiative establishes clear objectives, which act as the foundation for everything that follows. Explore where your values meet relevant social problems and utilize the knowledge possessed by your enterprise. Whether it deals with environmental sustainability, making things more accessible, or promoting equity, coming up with measurable targets provides points of reference during implementation. In addition, when these aims are harmonized with business goals, it creates a synergy that attracts various stakeholders including clients interested in such programs.

Integrate

Infuse these ideals into the fabric of your organization’s culture and operations. For integration of social impact into business models,  create accountabilities at all levels of the organization for adherence to your social goals. Moreover, giving employees authority when participating in social initiatives ensures they are motivated to continue the work and that it aligns with what they do towards one common goal. Internal reporting mechanisms help organizations become transparent about their progress, allowing for continuous improvement. Adopting systems thinking ensures every unit contributes towards overall effectiveness.

Collaborate

Partnerships are key for successful social impact initiatives. Joint efforts allow for partners to contribute their unique resources needed to attain desired outcomes. Collaboration with like-minded organizations as well as community groups helps pool resources and speed up achievements. Transparency around shared targets and methods builds confidence among collaborators so that everyone works together effectively. Leveraging networks ensures that your business can do more good work for your community.

Measure

Measuring social impact requires quantifying results to show whether something is working. Setting specific measurables acts as a compass, directing people on where to focus their energy. Quantitative indicators bring clarity around what is done well and areas that could be improved. Data collection plus analysis verifies claims made about impacts furthering transparency with stakeholders. Reporting success stories creates visibility, motivating participants and encouraging further participation.

Drive Social Good

Integrating social impact in your business model is not just about doing good, it’s about fostering sustainable growth and building strong relationships. By defining your goals and initiatives, integrating the ideals into the core of your business, collaborating with key stakeholders to widen your reach, and measuring the results of your impact — you can create meaningful change while simultaneously driving success. Start small, stay committed, and make a difference.

Consider becoming an ASBN member for even more information and access to their regular webinars.