Becoming a Socially Responsible Agency

Social responsibility is becoming increasingly important to all agencies, especially for millennials. Whether the social issue is local, national, or global, the concern for some aspect of society is becoming more and more a part of doing agency business.

Many agencies and the owners already are involved with charities and other causes. However, the key is to make it a formal part of the agency plan. In addition to helping a cause you believe in, there are many other reasons why an agency might engage in social responsibility.

Improve Company Brand

A great way that an agency can bolster its image and build its brand is by being socially responsible. An agency that promotes its social responsibility will be projecting a positive image and improving public perception. Agencies, agency owners and employees that are active in the community are also engaging with potential customers, and thereby, indirectly marketing the company in the process. Agencies that are involved in the community will stand out from the competition. An agency that organizes a fundraiser for a local charity will create a noticeable gap between that agency and its competitors that are not socially responsible.

Customer Engagement

Many people enjoy being part of an agency’s Corporate Social Responsibility program. In California, Whole Foods Market Inc. will donate the $0.05 per bag refund if you bring in reusable bags. Such programs help build strong relationships with customers. Some customers will pay more for a product or service if a portion of the profit goes to a charity. An agency that promotes its activities with a worthy cause can retain clients and attract new ones, thus increasing sales and profits.

Employee Retention

Employees typically want to feel that the work they do is meaningful. Agencies that are active with social responsibility issues will provide motivation to employees. It is important that part of a strategy is to engage the employees in the activities. Provide some time during the work day for employees to work on the cause promoted by the agency. This will improve morale and a sense of pride in the agency and the cause.

There are several types of corporate social responsibility initiatives that an agency can follow. These include the following:

Philanthropic Initiatives

Companies’ philanthropic efforts can include the donation of time, money or resources to charities and organizations at local, national or international levels. Donations can be directed to a variety of worthy causes including conservation, medical research, human rights, national disaster relief, clean water and education programs in underdeveloped countries. This is the easiest way for a small agency to become involved with a worthy cause.

Apple CEO Tim Cook developed a program in 2011 to match employee donations, so far resulting in more than $50 million for charities around the world. Google has a deep global reach with offices in more than 40 countries. Last year, more than 6,500 Google employees volunteered nearly 80,000 hours of service.

Most large companies in the U.S. work closely with nonprofits by forming partnerships, offering donations or bringing in volunteers. They understand that nonprofits are out there fighting to make the world a better place, so they institute corporate giving programs that provide funds to more organizations.

Ethical Agency Practices

The main focus on ethics is to provide fair labor practices for agencies’ employees as well as the employees of their clients. Fair agency practices for employees may include equal pay for equal work and living wage compensation initiatives. Ethical labor practices for the suppliers include the use of products that have been certified as meeting fair trade standards.

Fair Trade Certified companies (www.fairtradecertified.org) tend to be food and clothing related. Patagonia is one of the most notable Fair Trade Certified companies.

The premise is simple: for every product made by a Fair Trade Certified factory, companies such as Patagonia choose to pay an additional premium that workers can use to elevate their standard of living and bridge the gap between a minimum wage and a living wage. A worker-elected committee votes on how to spend the money – either as a cash bonus or to pay for social, economic and environmental community projects. However, the idea can be extrapolated to other industries.

Environmental Responsibility

Environmental sustainability initiatives can range from eliminating waste and emissions to maximizing the efficient use of resources and productivity and minimizing activities that might impair the enjoyment of resources by future generations. Agencies can become environmentally responsible by organizing car pools, encouraging biking to work, improving the energy efficiency of the office or recycling waste.

Economic Responsibility

Economically responsible companies focus on practices that facilitate the long-term growth of the company while also meeting the standards set for ethical, environmental and philanthropic practices. By balancing economic decisions with their overall effects on society, agencies can improve their operations while also engaging in sustainable practices.

Crayola created a ColorCycle Program, with a goal of teaching children about the importance of recycling. Schools and families can collect used markers and send them to Crayola for free, so they can transform the markers into clean-burning fuel. This program not only helps the environment, but it also saves Crayola money on fuel by recycling used products. Ultimately, this initiative increases profit for the company by cutting costs of fuel in the factories.

Some states and countries have created a B (Benefit) Corporation status designed for firms that create a positive impact on society, workers, the community and the environment in addition to profit as its legally defined goals.

B Corps are for-profit companies certified by the nonprofit B Lab (www.bcorporation.net) to meet standards of social and environmental performance, accountability and transparency.

Summary

Insurance agencies need to become more socially conscious. In addition to helping society, it helps build a relationship with the community, customers and vendors, and it creates a positive work environment for employees. Consumers, especially millennials, expect to see great products and services and how the company can improve society. Some of the best client prospects are likely to choose a company that is active in the community and dedicates its resources to helping others. Do well by doing good.