Why Impact Businesses Are Urgently Needed?

In today's rapidly changing world, the urgency of addressing pressing social and environmental issues has never been more apparent. Impact businesses, which prioritize social and environmental impact alongside profits, have emerged as a powerful solution to these challenges. Here's why impact businesses are essential in addressing the needs of our time:

Promoting Environmental Sustainability:

It is time we make use of Earth's resources circularly as against the linear consumption patterns that are everywhere today. At the rate at which we are consuming the Earth's resources, there will be nothing left of future generations.

Impact businesses lead by example in promoting environmental sustainability. For instance, Patagonia, a renowned outdoor apparel company, not only produces high-quality outdoor gear but also emphasizes sustainable sourcing, uses recycled materials, and advocates for environmental conservation. Another example is Tesla, which revolutionized the automotive industry by prioritizing electric vehicles, reducing carbon emissions, and advancing renewable energy technologies.

Empowering Marginalized Communities:

A world where there is rampant wastage in one place and starvation in the other cannot run a long way. It will implode due to the stress created by such disparities. We need to ensure that the basics of life are within the grasp of all people who are ready to endeavor for it.

Impact businesses prioritize social equity and inclusion, empowering marginalized communities and promoting economic opportunities for all. TOMS Shoes is a notable example, as it pioneered the one-for-one model, donating a pair of shoes for every pair sold to children in need. This initiative not only provides essential footwear but also supports local economies and empowers communities worldwide. Similarly, Grameen Bank, founded by Nobel Laureate Muhammad Yunus, provides microloans to impoverished individuals, particularly women, enabling entrepreneurship and economic self-sufficiency.

Catalyzing Positive Social Change: Impact businesses serve as catalysts for positive social change by addressing systemic issues and promoting innovative solutions. One such example is Warby Parker, which disrupted the eyewear industry with its affordable and stylish glasses while simultaneously providing free vision care to underserved communities. Another example is Ben & Jerry's, known for its commitment to social justice and advocacy on issues like climate change, racial equity, and LGBTQ+ rights, using its platform to drive meaningful change.

Enhancing Corporate Accountability:

It is an accepted maxim that "stronger shoulders bear more load". Corporates need to be more participative, both directly and indirectly, towards to the causes of social and environmental welfare.

Impact businesses raise the bar for corporate accountability and transparency, inspiring traditional corporations to prioritize social and environmental responsibility. For instance, Unilever, a global consumer goods company, sets ambitious sustainability goals through its Sustainable Living Plan, aiming to reduce environmental impact while improving health and well-being worldwide. Similarly, Danone, a multinational food company, became a certified B Corporation, committing to balance profit with purpose and meet rigorous social and environmental standards.

Driving Long-Term Sustainable Growth:

Long-term sustainability cannot be achieved outside the area of "money economics". Money is the reality and the most chased goal of most human beings. We need to open paths to making money while balancing environmental and social welfare goals. The unidimensional growth of business at the cost of destruction of the environment and social welfare is no longer sustainable. If there is any adverse impact on the environment or people due to the business activity, then it must be made up for by that business itself.

Impact businesses recognize that long-term success depends on social and environmental sustainability. Interface, a leader in sustainable flooring, demonstrates this principle by setting bold goals to achieve zero environmental footprint, pioneering sustainable manufacturing practices, and inspiring industry-wide change. Similarly, Seventh Generation, a household and personal care product company, prioritizes transparency, sustainability, and social responsibility throughout its operations, leading the way in the green cleaning movement.

In conclusion, impact businesses are not just a trend but a necessity in addressing the urgent challenges facing our world. By prioritizing social and environmental impact alongside profits, these enterprises demonstrate that business can be a powerful force for positive change. Now more than ever, impact businesses are the need of the hour.

Impactplusmoney.com encourages micro, small, and medium enterprises to embark on this journey, taste success, and then scale up.