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Purse Strings And Heart Strings Together

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Remember when you had to stop and think about what the term ?socially responsible business? meant? A lot has changed since then. Customers are beginning to expect more from a company than just a good product. They want Businesses to care as much as they do about their neighbors, the people making the products and the environment. Since the mid 90's there have been slow steady changes in consumer expectations for business leaders to take care of the foot prints that they were leaving on the world. Nine/eleven escalated this movement for both large and small companies to become more philanthropic. Boards of Directors and individual business owners are not doing it just as an aside. It is something that is showing up in business plans, mission statements and as an intricate part of day-to-day business operations. Many businesses are going beyond giving money to worthy charities; they are rolling up their sleeves and really becoming involved. Eight years ago I joined this small but growing group of entrepreneurs.



After returning from the Peace Corps as a social worker I decided to start a socially responsible business that would continue to support the cleft palate program I had initiated while in Nepal. With only stars in my eyes, a desire to put a roof over my head and continue our work in Nepal, I created www.MahilaJewelry.com, a web site jewelry store.

My own culture was the first stumbling block. American Puritan beliefs are echoed by popular bible verses such as:

* ?Money is the root of all evil?: Timothy's, chapter 6 verse 10?.

* ?Easier for a camel to go through the eye of a needle than a rich man to enter the kingdom of God?; Mark, Chapter 10 verse 25?

And! Then there is Jesus upsetting the money lenders tables, all subtly suggesting that if we are in business to make money we might be spiritually lacking. I felt that I ?should be volunteering? my time and not imposing on people by asking them to buy from me.

Balancing the fine line between how customers view our motivation, versus desire to merely increase our profits presented another stumbling block. A business owner must be seen as genuinely committed to a cause rather than merely attempting to create a glowing image. Customers are leery with high profile scandals surfacing on the news nightly. They are becoming increasingly savvy in ?the information age?. One of the largest corporations in America recently received bad press about the unethical way they treated their employees, Suddenly, they increased their corporate giving and ran very expensive prime-time commercials to advertise their ?concern for their community and their good relations? with their employees. Many of us would have been more impressed if they had spent the advertising money to make real changes:

* What does an improved customer image cost?

*What if it became a rule of thumb to spend a portion of advertising budget on a cause?

* How would that effect a company's image and how many lives could that amount of money affect?

* And might it be even more cost effective than regular advertising?

* Tithing on a personal basis is regularly practiced, but if tithing for businesses large or small, was the norm, how could

that change the human condition?

There are emotional triggers that can change attitudes. In our case, words like ?Peace Corps? suddenly gave credibility to our company and our cause. It was apparent that our socially aware client base bought more from us when we told them about the children's lives that were being changed. Our work with children provides us with an edge in a jewelry market that is over- crowded and fiercely competitive. People recognize our logo and pair it with a cause for Children as well as distinctive jewelry.

Changing to a socially responsibly business begins close to home. Questions that I asked my self early on are:

How strong is my commitment to the cause that I have chosen?

Will the cause and the product work together?

Am I willing to committing my business to a long term cause?

What causes are my customers drawn toward?

To what causes have they made personal donation?

I learned that owners need to do their research and look at other successful businesses that do well with a cause. They need to find customer's heart strings and make them a partner in the endeavor. And! They should listen to their customers as well as to their own inner voice.

Making donations to a foundation is a simple way to make sure that dollars are well-used. A good resource to evaluate the efficiency of a non profit organization (501C3) is www.star.com. Creating a partnership between a non-profit and a business is also an effective way to allow the players to do what they do best. For example, Wells Fargo and the National Association of Women Business Owners (NAWBO) teamed together to provide loans to women owned businesses. A great way to find reputable charities is to look to charities that are supported by churches, synagogues or other religious organizations as they are generally well scrutinized and efficient with their funding.

Don't be afraid to create your company's individual cause. Most big corporations pick basic needs issues and funnel large amounts of money into that specific area. There are many things that can be done to improve lives on a small scale. Become a volunteer for an organization that is of interest to you. Creating your own unique cause will often generate more press coverage and better services to the cause than just making a large donation.

Tastefully Simple, a successful home party business, has found a way to help local food banks by asking for customers to round off their purchases at the point of sale. If the bill is $26.95 the customer can make a donation by simply writing a check or making a charge for $30.00. Volunteering your time can be as effective as a financial donation. A house painter can offer to paint a local charity thrift store and then write their own press release before the paint is even dry. Creativity is something most business owners use daily for their companys very survival.

There are growing ranks of customers who are concerned with their environment and the human condition around the world. They want to know that the products that they buy do not contribute to child labor, deforestation or a long list of other social ills. Fair trade is a concept that is increasingly understood and supported (see www.fairtradefederation.org) No longer are these folks on the fringe of society, they are your neighbors and customers. A 2002 survey by Hill and Knowlton reported that 79% of Americans take corporate citizenship into account when making a purchase, Since the recent increase in natural disasters there is now a customer expectation that businesses will step up to the plate and ?fill in the cracks? that are left by non-profit and government organizations. These are market trends that a successful business person can no longer ignore. As one of my online customer from Australia commented, ?I want my money to work for me as well as someone less fortunate?.

Becoming a socially responsible business person offers many rewards. No matter what motivates you most;

be it heart strings or purse strings the fact is that it is a smart business decision. For me nothing could be more satisfying than knowing that coupled with my customers we have truly made a difference for many children.
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