This document discusses how giving back and social responsibility can help businesses thrive. It provides the example of TOMS Shoes which donates a pair of shoes for every pair sold. This "one for one" model helped TOMS grow to $250M in revenue by 2013. The document advises businesses to select a relevant cause, understand their target market, and enhance their image through community involvement. It argues that market trends now favor social media and businesses must support initiatives that improve communities to gain customer loyalty.

1. How to Build a Thriving Business by
Giving Back
Humblicity.com

2. Give to Receive
Purchasing decisions are becoming increasingly influenced by the impact a
business has upon society as a whole.

3. Consumers consider a company’s social and environmental
commitment before making important decisions:
What companies you want to see
doing business in your community
Which products and services to
recommend to people
What to buy or where to shop
VERY/SOMEWHAT Important (net)
VERY Important
Giving Gets Results

4. The Impact of Giving Back: Case Study

5. The Concept
• Started with $500,000 in funding
• “One for One” model
– Inspired by personal call to action
during trip to Argentina
– Product goes back to impoverished
communities
– Combats basic apparel and health
issues for children

6. • Sustainability
– No matter the business, it needs to be sustainable
• Publicity
– Reliance on word of mouth, social media, and viral marketing
– Promotional events to support the cause in question
• Offering & Impact
– Emphasis on something unique and rewarding for the
consumer
– Inspiration and motivation for action by consumers
How it Works

7. The Impact and Result
• Over 45M pairs of shoes donated
• Loyal following, especially Millennials
• 2013 estimated revenue of $250M
• 2014 Reuters valuation of $625M
• Expansion into Eyewear, Coffee, Bags, and Backpacks

8. Tom Shoe’s Business Model Impact
• Confirms the importance of community
involvement
• Customers loyalty increases when businesses link
their profitability with community improvements
• Validates the hybrid philanthropic for-profit
business
• Sets precedent for corporate social responsibility
as vital for all businesses

9. “It takes 20 years to build a reputation and five
minutes to ruin it.”
- Benjamin Franklin,
Founding Father

10. Putting It In Focus

11. Selecting Your Cause
• The organization you support is the foundation
for your image
– Identify the community/group you want to support
– Examine the cause/issue you want to resolve
– Partner with those that will assist in your work
• The goal needs to be:
– Relevant
– Tangible
– Realistic

12. Understanding Your Market
•Convey your business goals and intentions to
consumers through mediums they use
•Analyze your market and identify your
demographics
•Focus your advertising and branding towards
your largest potential customer groups

13. • According to the National
Restaurant Association survey:
–80% of consumers agree
that restaurants are good
corporate citizens
–72% of consumers agree
that operators give back to
their community
–9 in 10 restaurants are
involved in community
service
–94% of restaurants make
charitable contributions
–$3 billion is donated by the
restaurant industry annually
Enhancing Your Image

14. Movement of Market Trends
• Market Trends in
recent years have
shifted towards
social media
platforms due the
success of
reaching multiple
crowds at once
• Business have to
rely on these new
market trends to
enable them to
stay in business

15. The Importance of New Market
Trends
• New Millennials are setting the standard for modern society
and dictating how businesses will market to them
• The future of what market trends they want to see happen

16. “{While} its primary purpose is to serve society, a
social business has products, services, customers,
markets, expenses and revenues like a ‘regular’
enterprise ... It is a no-loss, no-dividend, self-
sustaining company that repays its owners’
investments”
- Muhammad Yunus,
founder of Grameen Bank

17. Corporate Social Responsibility

18. Shifts of Corporate Philanthropy
Corporate giving relies upon the decision making of higher management, which
creates a disconnect between who the customers support and the efforts that
are funded.
Corporate Philanthropy = Competitive Advantage

19. How can solve this issue?
• Look to alternative advertising channels that
appeal to customer interests
• Understand public opinion and support
community initiatives
• Fund charitable activities that inherently
improve the local community and consumer
base
Support the Community & Gain Customer Loyalty

20. The Movement towards Corporate
Social Market
CSM Programs can help build brand equity:
• Building brand awareness
• Enhancing brand image
• Establishing brand credibility
• Evoking brand feelings
• Creating a sense of brand community, and
• Eliciting brand engagement

21. Final Thoughts
• A thriving business is built upon
strong community support and
customer loyalty
• Community-focused businesses
command the support of
consumers and prominence
within society
– Prioritize establishing strong
customer relationships and
involvement within the
community
• Success, customer loyalty, and
long term profitability are
rooted in a business’s ability to
become a part of the community