Social Innovation and the Three Rs – Resilience, Relevance and Revenue

As we approach the final months of 2023, I’ve been reflecting on all that has changed since the early days of Covid-19. Most people and organizations have turned the page on the pandemic era, but the seismic shifts in business and in life that were a result are here to stay. One trend that was gaining momentum before the pandemic, and has certainly picked up steam since is the role of social innovation as a core value and operating imperative.

Today businesses, nonprofits, and governments are grappling with the 3 Rs – Resilience, Relevance and Revenue. In a world of rapid change, complex global challenges, and constant uncertainty, organizations must answer the questions of how do we build resilience, how do we stay relevant, and how do we grow revenue? I believe social innovation is the key.

Building Resilience

Today, resilience is more than the ability to adjust to or recover from challenges, it is about bouncing forward stronger and more adaptable. Organizations that incorporate social innovation as a core practice, take broader social and environmental challenges into account as they develop new products and services, and design internal systems and processes. Take Intel for example. The company launched the Women In Science STEAM Camps that provide middle-school girls with hands-on technology experiences. Over the long-term, these programs are helping to develop a pipeline of diverse talent that position the company to respond nimbly to the needs of tomorrow’s tech jobs.

Staying Relevant

Social impact and sustainability matter to the consumer, and impact continues to influence purchasing decisions. PWC’s most recent Consumer Insights Survey reveals that 8 out of 10 consumers will pay more for a sustainable product. Organizations can cement their relevance by strategically identifying and responding to social needs through their products and services.  Adidas has partnered with Parley for the Oceans, a global environmental nonprofit, to intercept and retrieve ocean plastic and convert it into high-performance materials for shoes. With their Primeblue yarn, they are creating products that address a critical environmental challenge, while responding to the types of products consumers want to buy.

Growing Revenue

Applying social innovation methods to your strategy allows organizations to identify untapped markets or develop niche markets that help solve a social challenge while also leading to new revenue. Through Start Path In Solidarity, Mastercard is investing in underrepresented founders in fintech to help close the racial wealth and opportunity gap. At the same time, Mastercard is gaining access to commercial engagements that can grow revenue streams, diversify their business, and secure new customers.

Creative strategies to address and manage resilience, relevance and revenue have never been more important. By incorporating social innovation practices into core operations, organizations improve their chances for long-term success.

Unions, AI and a New Role for Corporate Social Responsibility

Have you been paying attention, like I have, to the union strikes that are underway in the U.S. these days? The Writers Guild of America and SAG-AFTRA hit the picket lines this Spring, and as of this writing, the United Auto Workers have been on strike for nearly a week, with no immediate end in sight. As always, better pay and benefits are at the core, but there is something else at play, too. 

The increasing interest in unionizing – Starbucks, REI – and the frequency of union strikes or the threat of strikes – Pilots, Healthcare workers, UPS – in recent years are emblematic of the broader challenges faced by the American workforce in an era of rapid technological advancement. 

Automation and artificial intelligence are reshaping industries and impacting the power and money dynamics between employer and employee. What if these changes demand that we reimagine corporate social responsibility (CSR) and environmental, social and governance (ESG) initiatives as well, to more effectively bridge the interests of both company and worker as we navigate our new AI-powered world?

Fair Wages Are a Corporate Social Responsibility

The 2023 Just Company Rankings produced by Just Capital, revealed that the public considers companies that pay employees a living wage as the top ranked behavior of a “Just Company”. Fair wages and benefits are table stakes but are not typically considered a component of a company's CSR initiatives. As we reckon with the new and evolving workplace, companies have an opportunity to think more expansively about how fair wages and benefits for employees can sit at the center of their socially responsible business strategy.

Preparing the Workforce of Tomorrow

In this era of rapid change, companies recognize the need to invest in reskilling and retraining programs for their workforce. By helping employees acquire new skills and adapt to changing job roles – for example, learning how to work side-by-side with AI – companies demonstrate their commitment to employee well-being and job security, while also ensuring that the business has the critical skills needed to maintain operations. But what if companies thought about the talent pipeline more broadly? More than reskilling and retraining current employees, companies can invest in talent development beyond the corporate walls. By investing in education and skills-building in the broader community as strategic business priority, companies can set the stage for longer-term value creation by building the workforce of tomorrow now.

The New Company Town

Navigating the complexity of digital transformation, artificial intelligence and new models of remote and hybrid work can be challenging for companies and employees. People want community, connection and a sense of purpose, and smart companies are committed to providing it according to Benevity’s 2023 State of Corporate Purpose Report. It is time for a new version of the company town. A unified program of online tools and real-life interactions, the new company town can provide access to support that protects the health and safety of employees and their families, opportunities for diverse stakeholders to participate in community giving that addresses real community needs, and pathways to local volunteering to build relationships and give back. Building the new virtual company town puts community and social responsibility at the heart of the business.

Conclusion

The SAG-AFTRA and UAW strikes, and the broader challenges posed by AI and technological progress underscore the enduring importance of corporate social responsibility. As tech continues to shape industries, corporate social responsibility and ESG must also evolve to better address corporate goals, employee rights and dignity, and the shared commitment to creating impact.