SmartPlan Blog
Is Corporate Responsibility for you? 3 factors to consider…
Is your business plan structured to incorporate corporate responsibility? As a business owner has it been on your mind to build a corporate social initiative? How do you build a hybrid model, or create a corporate responsibility initiative within a for-profit model? What factors do need to be considered?
Whether you are an established business or a new business, how do you create a financial business with such a model that is both workable, profitable, sustainable, and will maintain compliance?
If you look at multi-million dollar companies you will find that these top companies most often take action and build a brand identity, and generate recognition and a following with social service as an integral part of the business and philosophy.
An example is Toms the Shoe Company, which donates one pair of shoes for every pair sold globally to populations in need. Then there is Warby Parker, who partners with non profits to give a pair of eyeglasses to a person in need and cannot afford to buy glasses. The corporate responsibility business model a hybrid of profit and non profit has grown in popularity among entrepreneurs and corporate giants.
Many small and medium-sized businesses think about a corporate responsibility model but question where to begin. Business owners may be surprised to know that most actually could successfully incorporate such initiative.
Hybrid business models and corporate initiatives also bring with them great satisfaction, some financial benefits, and goodwill. The question is, how do you do it and what do you plan for?
Tiffani Hollis of Epic marketing, who specializes in helping businesses grow their brand says,
"When entrepreneurs or business owners want to incorporate social responsibility, they need to first consider how they can make the initiative sustainable . A well-crafted cause marketing strategy can create a measurable ROI . Idealism without ROI isn't viable. When Marketing and Finance work together, we can create sustainable social change."
Besides partnering with someone, who does specialize in marketing campaigns designed around a corporate social initiative, such as Tiffani Hollis, who else should be included?
The financial management team. Here are three reasons they need to be included:
First is your business structure. The incorporation of this type of business model can change the business entity. Because not all business models work long term with this type of hybrid business model. The financial management team can map out over the short term changes that will need to be made.
Second is tax compliance. Yes social responsibility has to work within tax laws. Now taking the time to review what guidelines need to be followed can help save you time and money down the road. This will change how bookkeeping is done and the flow of money. This is also influenced by the business structure and type of entity.
Third is projected revenue. A social responsibility company can benefit in an increase in sales and public relations. But besides the goodwill what will sales look like projected six months or a year?
The financial management team can generate a pro forma statement giving at least an estimate of projected sales, operating costs, and additions to staffing.
Robroy Wiley and his team at SmartPlan financial services work with entrepreneurs and small business owners. They can help companies set up the financial side to incorporate social responsibility into their business plan and model.
