---
title: What does it mean to be a social enterprise?
description: Blog contributed by Danielle South. There’s no doubt that COVID-19 is demanding the private sector to respond to our most pressing economic and social issues. The focus is no longer on ancillary corporate responsibility programs. Organizations are now challenged to be true social enterprises. What’s the difference, you might ask? CSR is a business model...
---

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Blog contributed by Danielle South.

There’s no doubt that COVID-19 is demanding the private sector to respond to our most pressing economic and social issues. The focus is no longer on ancillary corporate responsibility programs. Organizations are now challenged to be true social enterprises.

What’s the difference, you might ask? CSR is a business model that encourages organizations to be socially accountable. However, a social enterprise prioritizes both financial success and social impact equally. It recognizes that while businesses must generate a profit and deliver a return to shareholders, they must do so while supporting their employees, customers and communities.

At the most fundamental level, consumers are drawn to products and brands that drive social change or have shared beliefs and values. According to an Accenture survey, 62 percent of consumers want companies to take a stand on the social, cultural, environmental and political issues. Nearly 75 percent said they want more transparency from companies on issues like product sourcing, safe working conditions and policies on animal testing.

While direct-to-consumer brands are at the frontline of engaging with consumers and driving socially conscious messaging, B2B companies also have a responsibility to be a voice for social change.

The COVID-19 crisis appears to be an accelerant, however companies were already undergoing this transition from the top down. In Deloitte’s 2018 Global Human Capital Trends survey, responses indicated a major shift in the importance of social capital and its influence on an organization’s purpose and mission. This shift is believed to have been driven by social, economic and political changes following the global financial crisis, and a general lack of trust in these institutions.

As a result of the pandemic, we’re seeing an increase in conflict among political leaders at all levels, creating further opportunity for corporations to step in and fill the “trust” gap. This doesn’t mean an opportunity to increase market share or product sales—what an organization does now for its employees, partners and community is critical and highly scrutinized.

Consumers are taking note of the way companies are leading during this time.

## Here are a few tips for companies looking to drive social impact:

ASK YOURSELF, WHAT IS THE MEANING BEHIND OUR WORK?  
 When evaluating your social impact strategy, understand the meaning behind your work. Why are we taking this approach and who does it benefit? You want your purpose and mission as a company to align with the needs of your internal and external stakeholders. COVID-19 might even force you to re-evaluate your strategy and what issues should take precedence over others.

LOOK BEYOND YOUR ENTERPRISE  
 There is a lot of power in the collective. Leverage your complete ecosystem, including corporate partners and those throughout your supply chain to maximize your impact and create new opportunities to provide transparency to stakeholders. Align on efforts that will benefit your employees and extended communities. The more we lean into the “we can’t do this alone” mentality, the greater impact we’ll have.

BE AUTHENTIC  
 One of the most important aspects for any brand is authenticity, which in my opinion, is highly underrated. You might be doing a lot of good for your employees and your community, but if you aren’t communicating it in a way that feels honest, your message won’t be heard.

Companies should be speaking to the public in a way that is truly authentic, in both content and tone. At the end of the day, COVID-19 is a human issue so keep that in mind when you’re evaluating your communications strategy. Speak with empathy, understanding and real facts.

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