Doing well by doing good
Benjamin Franklin lived his life by the theory that one could do well by doing good. He believed that the good life was achievable in direct proportion to one’s contribution to society, and he dedicated a good portion of his life and his considerable wealth to building universities, hospitals and firehouses. He refused to patent his inventions, to encourage the advancement of all mankind, not just himself. We could learn a lot from Ben Franklin.
Within the last couple of years, AT&T ran a series of television spots that featured Blake Mycoskie, owner of TOMS Shoes. For every pair of shoes they sell, TOMS Shoes gives a pair to a child in need. AT&T positioned itself as helping Mycoskie make that happen by using their communications technology. But I think that nearly everyone who saw the spots came away with the impression that TOMS Shoes was the real hero here — and with good reason. Here was a company designed specifically to help people in need.
Americans have become pretty cynical about trusting the intentions of businesses these days. The American economy is in the tank because of greed. It seems that for many, ethics has become nothing more than a class taken in business school. Doing what is good and decent and right hasn’t been on the agenda for quite some time. It’s become a game of quarterly earnings, and the parasite of greed barely blinks at the notion that it is killing the host.
The average American wants something to believe in. And I think that businesses in general, and particularly small businesses, have a real opportunity to make the world a little bit better, inspire hope, and gain market share in the process. They have the ability to do well by doing good.
Many business owners already subscribe to the idea. Almost every small business owner I have ever met donates time or money or both to a myriad of great causes. Many do it in relative anonymity, and I certainly respect the act of giving selflessly without expecting anything in return. The idea of philanthropic acts done solely to increase profits doesn’t sound particularly noble. But Americans are more than willing to embrace a happy medium. In fact, many Americans are willing to spend a little more for a product or service if they know that doing so is causing some good in the world.
Some larger companies are building from this philosophy with a degree of success. SC Johnson has been working to reduce the company’s environmental footprint, eliminating millions of pounds of pollutants from their products, reducing packaging waste and powering their plant using methane gas from a nearby landfill. Despite the considerable costs involved in this undertaking, they have found that going green is not only good for the environment, it’s good for business.
Imagine that. Being responsible and ethical is better for the long-term bottom line than screwing people over for a quick billion.
Smaller, local businesses may not have the budget of an SC Johnson or even a TOMS Shoes, but they can still have a positive impact in their communities while gaining a positive image among consumers. Here in Kansas, there are hundreds, if not thousands of local outlets for those looking to do some social good. And while a one-time, lump-sum donation to a worthy cause should be applauded and would certainly be appreciated, it might be more beneficial for both parties to, for instance, plan a campaign in which the worthy cause receives a percentage of the profits from each unit sold for an entire month, or year — or forever. Whatever the strategy, it needs to be more than just a marketing tool. Believe in it, and people will believe in you.
Doing well by doing good is a business model from which we can all learn a lesson. Seeking new and creative ways to make it more popular should be our next assignment.