3 Social Impact Companies Redefining The Purpose of Business
By Jody Bell
Growing up I assumed businesses had a singular goal: to maximize profit. As someone who was heavily involved in activism, I engaged exclusively with non-profits and resented the business world as a whole. That all changed when I joined Girls With Impact.
I was a sophomore in high school and was incredibly passionate about immigration – specifically surrounding families where a child was an American citizen while their parents were undocumented. I had friends in this exact situation, and spent time planning what their course of action would be if a parent was deported. I had knowledge and research to share that would help children plan for potential guardian deportation, but was absolutely clueless on how to share that with the world. As I discussed my research with Girls With Impact, I was met with enthusiasm and ideas for expanding this information past my immediate community. There were business tools and concepts that provided me with the exact steps I needed to follow to build a philanthropic organization that had national reach. Four years later and I am still involved with that organization.
More and more activists are following similar paths – embracing entrepreneurship and business concepts to build entire movements. Similarly, the rise of social entrepreneurship has created for-profit businesses that consider their social contributions to be at the core mission of the company. Even the world’s biggest and oldest companies are beginning to publish Corporate Social Responsibility reports that cite their social endeavors and philanthropic contributions.
Consumers are beginning to redefine business’ purpose as well – 70% of consumers want to understand a companies’ social and sustainability initiatives, and 46% of consumers will factor this into their purchasing decisions. Generally there appears to be an increasing blending between social impact and business as the world as a whole shifts towards a more sustainable future.
While the importance of social impact is a spectrum that differs for each company, we’ve put together a list of some of the most groundbreaking for-profit companies that make tremendous impact.
1. Patagonia
You’ve most definitely heard of Patagonia – they make outdoor apparel and are well known for their environment sustainability initiatives.
Not only do they pledge either 1% of sales or 10% of pre-tax profits (whichever is more) to environmental organizations, but they also have a number of their own initiatives. The textile industry is a huge contributor to waste, so Patagonia makes as many clothing items out of recycled garbage as possible — they’re most well known are their fleeces derived from recycled plastics.
They also launched Action Works as a platform to connect organizations in need of volunteers with individuals looking to get involved in their communities. Volunteers are able to search by location, campaign, skill level, and more to customize their experiences.
2. TOMS
TOMS was established in 2006 after the company’s founder, Blake Mycoskie, went to Argentina and saw extreme poverty – notably, children walking around with no shoes.
Since day one, the company’s core mission has been to match every pair of shoes purchased with a pair of new shoes for a child in need. Mycoskie, however, wanted to expand on this, and is involved in a multitude of social initiatives. The shoes themselves include hemp, organic cotton, and recycled polyester, and the boxes for their products are made out of 80% recycled post-consumer waste. All of the company’s suppliers are required to certify that they are not involved with inhumane employee treatment (notably slavery or human trafficking laws) on a annual basis as well.
TOMS entire business model is centered around corporate social responsibility – and it was one of the largest and most radically impactful businesses to enter the social entrepreneurship space.
3. Warby Parker
You may not have heard of Warby Parker, however it is one of the largest eyewear brands, and just recently they revolutionized their mission statement and social initiatives.
In 2015, the company launched “Pupils Project” which provided half a million free eye exams and 120,000 pairs of glasses to children in need (notably from BIPOC communities.) While the program was halted, it resumed and expanded in 2020 when education shifted to a largely online format. 70% of parents reported that their children were spending at least four hours a day on electronic devices, and nearsightedness among young children rose up to 3 times higher in 2020 compared to the previous five years. Noting this, the Pupils Project was relaunched in Baltimore and New York City providing eye exams and free eyewear to children in need. The company pledged $10 million to expand the program throughout the rest of the country, and they also partnered with John Hopkins to engage in a 3-year study examining the correlation between pediatric eye care and educational attainment.
There is absolutely no doubt that the blending between impact and business will continue. Consumers are becoming more conscious, the world is becoming increasingly sustainable, and there is a generation of young social entrepreneurs ready to continue to redefine business.
Jody Bell, 20 is Girls With Impact’s Editor in Chief and a program graduate from Greenwich High School. Girls With Impact is the nation’s only online, business and leadership program for girls 14-24, turning them into tomorrow’s leaders, entrepreneurs, and innovators.