5 Critical Social Impact Skills You Need to Effect Change

Globalization is a driving force in today’s economy. It contributes to substantial economic growth, heightened global cooperation, and increased transnational investments. By embracing globalization, companies have been able to reap these benefits, yet have also become susceptible to its downfalls: increased competition, disproportionate growth, and environmental concerns.

To succeed in today’s market and overcome global challenges, business leaders must understand how to combine purpose and profit by operating sustainably.

Here’s an overview of sustainability in business and five social impact skills leaders need to effect change.

Why Attempt Sustainability?

Companies that value sustainability conduct business without negatively impacting the environment, community, or society. While that may not seem cost-effective, shared value opportunity—the overlap between social and environmental progress and financial gain—tells a different story. It shows that businesses can “do well” financially while “doing good.”

Sustainability is crucial to any company’s long-term success. Here are several benefits of sustainability in business:

• Brand protection: Instituting a sustainability strategy can protect brands from damaging public relations incidents.
• Competitive advantage: It can help attract a younger, skilled workforce motivated by sustainability initiatives.
• Participating in a growing market: Businesses committed to sustainable products and practices can reach a growing market share of sustainably minded consumers.
• Contributing to change: Where governments fall short in addressing global problems, purpose-driven companies can address them with great success.

Social Impact Skills You Need to Effect Change

1. Practicing Corporate Social Responsibility

If you want to make an impact, you need to practice corporate social responsibility (CSR). CSR is a business model that for-profit companies use to create programs that benefit society—environmentally, ethically, or socially—while pursuing goals like revenue growth and workforce retention.

Global events, such as a war or pandemic, illustrate why these initiatives are essential to a business’s success. According to data from Porter Novelli, 54 percent of consumers believe purpose-driven companies have fared better during the coronavirus pandemic. Furthermore, 63 percent expect companies to continue efforts around future social and environmental issues.

There are different types of corporate responsibility that companies can implement depending on their social and financial goals, including:

• Environmental: The belief that an organization should operate as environmentally friendly as possible. Due to climate change, this is the most common form of CSR.
• Ethical: These goals ensure an organization operates fairly and ethically. They apply to all parties involved in a business: leaders, employees, stakeholders, consumers, investors, and suppliers.
• Philanthropic: These initiatives focus on making the world a better place. They typically entail donations and charitable trusts.
• Economic: Many companies make financial decisions paired with a commitment to do good. This is a promise to put pressing social issues above profit margins.

2. Socially Responsible Investing

Money can drive change, yet it’s important to properly leverage it when it comes to social responsibility. For example, sustainable investing is a rapidly growing field that’s enabled companies to drive social change.

Socially responsible investing requires strongly considering environmental, social, and governance (ESG) factors before contributing money and resources to a company.

An investor can evaluate an investment’s sustainability using ESG factors. An ESG score typically consists of three components:

• Environmental: How a company impacts the environment through its carbon footprint, waste, and clean alternative technologies
• Social: How a company advocates for global social change
• Governance: How a company’s management structure and initiatives drive positive change through executive diversity, organizational transparency and disclosure, and corporate political contributions

As more investors adopt this method of choosing which ventures to support, organizations will become increasingly pressured to make changes that improve their ESG scores. In this way, sustainable investing is an effective motivator for corporate change.

3. Managing Business on a Global Scale

While social, economic, and political factors drive change on a global scale, it’s important to understand how they also impact workplace dynamics. Diversity and inclusion initiatives have proven that globalization isn’t confined to a company’s competition.

A recent study on workplace diversity trends shows that companies that embrace diversity improve financial performance by having positive work cultures that inspire employees to work hard. With this in mind, executives must reevaluate how they lead employees in a multinational landscape.

The skills needed to navigate international business include:

• Strong communication: International business leaders must learn terminology in other languages to communicate clearly.
• Emotional intelligence: This is the ability to understand others’ emotions while regulating your own. Emotions can run high when leading change; it’s important to stay composed and use them to your advantage, not detriment.
• Cultural awareness: Many multinational organizations require employees to participate in diversity and inclusion workshops or programs. This is one way leaders can promote other cultures while educating themselves.
• Financial and economic expertise: Making decisions that impact your company’s future requires financial and economic expertise in the global market.

4. Crafting a Business Sustainability Strategy

Business sustainability is more than an initiative—it requires a defined strategy that outlines tactics your company will take when solving the world’s most pressing challenges.

All successful business strategies share one common trait: Understanding a problem. This should be your first step when creating a roadmap for sustainability goals.

Topics you can consider reviewing are:

• Annual waste production
• Carbon emission levels
• Organizational civic engagement

These are the building blocks for the story you create to communicate your vision and garner stakeholder buy-in.

5. Building Networks as Sources of Power and Influence

Power is essential to effecting change, but it can be intimidating to those who aren’t in high-level positions. Remember: Anyone can use power to challenge the status quo, drive change, and make a positive impact—regardless of their current standing.

How does one acquire power and influence? Some say money, while others say notoriety. In fact, it’s often gained through creating strong and extensive networks.

Strategic networks are highly beneficial because they enable you to work through barriers to change. In other words, leaders with a thorough understanding of their team members’ skills can leverage them to tackle challenges successfully.

Consider creating an assessment to analyze patterns or gaps in your network. This can help you understand how it affects your sustainable business strategy. From there, you can productively lead change instead of trying and failing to effect change alone.

How to Successfully Face Today’s Global Challenges

Business leaders shouldn’t solely focus on profit—their companies can thrive and grow while addressing some of the world’s biggest challenges. Companies and individuals must encourage cooperation and collaboration on a larger scale while keeping the greater good top of mind when making decisions.

Want to make a real social impact? Explore our online Business in Society courses to discover how you can become a more effective leader in an evolving sustainability landscape. You can also learn more about Sustainable Business Strategy, Sustainable Investing, Power and Influence for Positive Impact, and Global Business.