Tuesday, September 15, 2009

Profit by Showing Social Responsibility

An article in this week's online edition of Time Magazine is titled "For American Consumers, a Responsibility Revolution." The article gives evidence of a trend towards consumers aiming to practice social responsibility in their retail purchases. Retailing profits come from anticipating trends, so make contributing to society an integral part of the personality of your business.
     Determine the amount of attention you'll pay to social responsibility by analyzing the values of the culture in which your business operates. Research indicates people with backgrounds in collectivist cultures, like those in many Asian and Pacific Island areas, Greece and Portugal, are more likely to embrace social responsibility than those who identify with individualist cultures such as Great Britain, Canada and the Netherlands. The Time Magazine article about social responsibility among consumers was one of many in the U.S. edition, but it was the cover story in the Asia and South Pacific editions.
     Where to begin? Well, decide how much controversy you want to tolerate. At least at the start, you might choose to take on social responsibility issues that will bring you largely supportive attention. For instance, almost everybody supports reducing the amount of trash we all generate. About half the people responding to the Time Magazine poll said businesses should place more importance on protecting the environment than on economic growth. Your first social responsibility initiatives might involve exploring ways to sell products that use refillable containers, to favor vendors that minimize unnecessary packing, and to accept old products as trade-ins or recyclables.
     Somewhat more controversial is the issue of working conditions. There are employers in the world who think that government oversight of employee rights is excessive. But we've little tolerance for exploitation, so you might choose to tell shoppers the ethical ways in which your fair-trade products are produced.

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