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Employing social impact strategies to further business goals and growth

Risk management

Businesses are investing a great lot of time, money and resources in fashioning social impact strategies to know what affect them the most. Business is an economic entity; however, it is still a part of larger social community setup. A business cannot and should not turn its back on the views of people. On the similar lines, it cannot ignore any negative impact of its functioning on the lives of people around. In fact,social impact study and strategy have become so much important to businesses that ignoring either of the two can damage their brand image considerably.

Investing in social impact strategies

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There is no scale or formula to measure the level of social impact on the working of a company. Moreover,there are no means to find out whether the opinion of people about a company is positive or negative. Still the benefits of investing in a social impact strategies cannot be ruled out altogether. Having a little idea about the opinion of people/customers can help you shape future course of actions and make strategies about catering to the target market. In nutshell, it might also enable you assess the viability of project you are just to commence.

Social impact strategy and corporate social responsibility

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Social impact strategy is sometimes confused with Corporate Social Responsibility (CSR). Social impact strategy, in fact, stands in between ‘Image Creation’ and CSR. All companies are concerned about their image in public. With this in mind, they indulge in various CSR programs so that they cansend a message to the people that they are not here for profits only, but also to share a part of their money with society.

The economic aspect is of less value here. Companies invest in brand building to enhance their presence in the market. It is purely a business strategy. Social impact strategy tries to converge the two. It provides a feedback channel that informs the management whether the message is delivered or not.

Social impact and business growth

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Social impact strategy aligns itself with the profit making strategy of a business. It helps a business to create alternate and/or parallel strategies for increasing its sales. New companies and startups are viewing social impact strategies as the key to long-term growth and sustenance.

While working on social impact strategies, companies are able to make most feasible choices. They can base their aims and objectives on honest research and analysis to formulate goals and objectives. Many of them go to the extent of involving the members of local community while formulating business goals. The idea is not to look at the public just as target groups, but to see them as participants.By doing so, the management is able to analyze, monitor and manage the unintended social consequences.

Social Impact strategies as a shield

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There are instances that a seemingly calm and positive environment has all of a sudden flared up into agitation and violent demonstrations against the company. If such a thing happens, it would take a long time for the things to calm and settle down.

In the recent times, a number of such unlikely incidents have risen asking business managements to take action on time and make foresighted impact strategies to avoid them in future. Social impact strategy allows a company to have a larger picture and ensure that it is able to serve its customers well.

Social impact strategies enable companies to balance profit making and social change. They help in critical decision-makingupon which depends the growth and survival of company.

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