The powerful and complete meaning of positive social impact
When the complex topic of sustainability and renewable energy is discussed, the term “positive social impact” is always part of the deal. But what does positive social impact really mean? In the business world, positive social impact refers to the ability of companies to generate favourable changes in society, improving the quality of life of people and their environment.
This commitment goes hand in hand with sustainability, as industries today seek to integrate social and environmental values into their business model, not only to strengthen their profitability but also to contribute to a fairer and more equitable future.
To achieve this, companies are moving away from a focus on short-term profits that can have a negative impact on society and the environment and adopting responsible strategies to ensure long-term sustainable growth.
However, positive social impact also offers short-term benefits such as enhanced reputation, community engagement and loyalty. This drives strong growth in line with social expectations. As Bonnie So, Chief Executive Officer of the Hong Kong Red Cross, points out, this is a win-win strategy that combines business success with collective well-being and promotes mutual benefit.
Results of positive social impact are achieved through the collaboration between a company and local communities. This can come in many forms:
- Environmental investment, such as reducing waste and improving risk management and compliance
- Cash donations and philanthropy
- Corporate social responsibility activities
- Strengthening of relationship with external stakeholders
- Raising ESG performance
- Promotion of education (training programs that improve working skills and community employment opportunities)
- Hiring local provider (hiring small local business to strengthen regional economy)
It is always essential to determine the main goals in the company, in order to adapt these according to the environmental and social needs of local communities. For instance, when a new construction project is being initiated, the company in charge of such project can engage with the individuals of the local communities near the site to identify their current situation and how the corporative activities can affect them, as well as carry on studies that help to acknowledge the environmental requirements that must be taken into account in order to avoid any negative impact in the physical space of said community and reinforce the relationship with the local community.
Moreover, this approach helps to ensure sustainable long-term outcomes. For example, both, companies and local communities, can mitigate significant risks, prevent unexpected impacts and reduce adverse consequences of natural hazards, such as an earthquake, if they have taken appropriate measures to protect the physical environment of a business construction project.
A company that puts importance on positive social impact now only shows good business hygiene, but also communicates that corporate ethical actions are not just a cultural trend, but an ethical need that ensures that progress and development go in the right direction