Profit Meets Purpose: The Private Sector’s Role in Social Impact
While traditionally there may not have been an obvious allyship between large corporations and social impact initiatives, things are changing. From confectionary giant Mars’ gender-focused #HereToBeHeard campaign to Nike’s #UntilWeAllWin campaign, the line between profit and purpose is blurring. This is because consumers, investors, and even employees increasingly expect companies to do more than sell and generate revenue. Statistics show that people are becoming more conscious of the sustainability and ethics behind their purchases—and they increasingly expect corporations to use their unique positioning, thanks to their influence and resources, to drive meaningful change.
Corporations have a real opportunity because of the power and influence that comes with the kind of money that they are handling. It’s predicted that one TRILLION dollars will be spent in 2025 for marketing and communications. That’s one trillion dollars spent on convincing YOU that a product or service is worth your money. Imagine the impact and reach we could have if we had that sort of money in the nonprofit sector? Especially when you consider the impact already being made with next to no money at all. Many of those working in social impact have, out of necessity, had to become experts at delivering campaigns without anything close to the wealth of support that the world’s big companies are accustomed to.
But it’s not just money that corporations can bring to the table, it’s visibility too. When the likes of Mars or Nike run a campaign, it’s not just those already working in or mobilising around social justice that see it. These campaigns transcend borders, sector, age, and other demographics. They bring the causes to a truly global audience and mainstream the messages that are too often limited to our own echo chambers in this corner of the internet.
Of course, this isn’t all altruism: there is a strong business case for amplifying social impact causes. Consumers are increasingly concerned with the ethics behind their purchases, with 86% of them – 94% of Gen Z – expecting organisations to take a stand on social issues too. Add to that the stat that companies with high trust scores outperform their peers by nearly five times in shareholder value, and it is evident that corporate social responsibility and involvement in the injustices of the world is becoming a necessity rather than a choice.
Overall, from tackling climate challenges to advancing racial and gender equity, the private sector holds resources, influence, and innovation capacity that can accelerate solutions at a scale that is still a pipe dream for most of us working in this space. But joining the push for social impact isn’t just altruism; it’s a strategic choice that strengthens brand loyalty, attracts top talent, and ensures long-term resilience.
Putting it that way may sound overly transactional, but it simply underscores that social impact and financial profit can—and should—work hand in hand. We are not only activists but also consumers. When we see our values reflected in the companies we support, we bridge these two roles in our daily lives – just as business and social impact are increasingly converging on a larger scale.
Stay tuned for more from Comotion in the near future as we dive deeper into how companies can do more to join our push for social impact!
