Smart business owners understand the importance of community to their business and act to strengthen the relationship, says Eliza Erskine
Covid-19 has taught us the importance of business as a force for change and how community and company interact. From mask-making to restaurants donating to hospitals and countless other examples, firms have stepped up alongside governments or in place of government action to help communities deal with the pandemic.
The ‘license to operate’ or ‘social license to operate‘ has been a part of sustainability and stakeholder engagement for a while and is the foundation of considering community in business operations. In this method, a business gets a ‘license’ through a broader acceptance from its community, stakeholders and employees to operate a business.
Most companies receive this ‘license’ as a given. But how can an entity take it one step further and benefit the community around it? And receive reciprocal benefits?
Here are some steps business owners can take in a Covid-19 world and beyond to integrate themselves into their communities and improve their business and those affected by it. Understanding who your community is, the role you currently play, your hopes for the community, and how to action are all part of creating and maintaining a community.
What is your ‘community?’
The first step is identifying your community. Where is it located physically and who is a participant? Establishing set boundaries for your community and identifying key participants will help determine how you can help.
Governments, businesses, non-profits, houses of worship, schools, neighbourhoods, colleges and other entities all play a role in the community. To make sure you’ve included key players, list, word bubble or brainstorm these members. Quantify these roles by ordering them by reach or influence. For example, a school board has more power than a single house of worship. Levels of power are essential when considering goals and how to affect change. They also help build boundaries and mould a better understanding of activities.
Consider employees’ communities and how they interact in shared communities
Second, use employees to help define community. Ask them to share what their communities are. Your employees’ communities are your communities. How do employees interact in the community, and what community actions affect them? Are public schools serving their children? Do employees live close to the office or farther away in different neighbourhoods? Considering employee communities as your communities will benefit your employees. Taking additional steps to make their outside work lives happier and healthier will only make them more loyal and engaged.
This data and understanding will be useful for our next part to improve or develop community relationships. Factor in other quintessential stakeholder relationships whose communities you care about, but make sure you’re considering employees.
How are current operations influencing your community?
Once you’ve defined your community, look at how your current operations and mission impact the community. If you’re manufacturing or producing in your neighbourhood, this part might be more robust, but don’t discount it if you’re a service-based business. List these actions and how business decisions, big and small, change the community. Examples of questions to ask or considerations include, are you paying your employees enough to live close to and commute to work? Are employees given time off to volunteer? Are the healthcare benefits you’re providing enough for local doctors? Do you order from local restaurants for catering?
Think about how you, as a business owner, are making changes or empowering employees to do so.
What changes can you make based on your goal for the community?
The third is making changes or planning additional actions to consider or even improve your community. First, create a goal for community engagements. Then, consider steps for that goal.
Talk to employees and other business owners about changes they’d like to see. To determine goals, I recommend surveying employees and brainstorming improvements or plans as a company for ways to improve your community.
If you’re unsure of your vision for the community, look at your company’s mission! What changes do you hope your product or service gives to customers? Consider similar benefits, relationships or improvements for your community.
Once you understand what your goals for your community interactions are, it’s easier to make changes, consider new opportunities or double down on current engagements.
Do the actions you’re already taking align with the goals for your community and your business?
If your business mission focuses on improving healthcare and you’ve never interacted with your community hospital, consider the opportunity.
Create action items and commitments for long term engagements
Once goals, current interactions and vision are set, it’s time to act. What actions can you take on the objectives, both long and shorter-term? Your action items and commitments will depend on the other stakeholders in your community.
Now, review your list of influential bodies and stakeholders. Your commitments’ reach and success depend on those with influence, so make sure you’re considering and informing them of significant plans.
Commitments could include forming or strengthening existing relationships, finding non-profits to partner with, adding employee volunteerism to corporate benefits, or any other obligations.
Make sure your commitments feel loyal to your company culture and how you operate in other areas. Do you like hosting events or highlighting causes as part of existing community commitments? Continue. Is monetary support more your cup of tea? Make sure those commitments align with goals.
To be a good community member, make sure you’re reviewing your existing actions, how employees interact in the community, what changes you could make and a plan for the activities. Community engagement requires consistent, conscious efforts. Having a structure in place will make your efforts more substantial and well received.
Benefits to your business
According to The Ethics Centre, the ‘social license to operate’ establishes legitimacy, trust, and credibility. Establishing yourself within the community strengthens those three things, as well as providing visibility and employee empowerment. Look again at the businesses that took the pandemic opportunity to engage and interact with their communities. Often, the actions necessary for community engagement include thoughtful reflection, listening, and showing up as a voice of many for change. Using the ideas above, you’ll get a good start on adding your voice to the chorus.
Eliza Erskine has a Master’s in Sustainability from the Harvard Extension School and a BA in Business Administration from Boston University. She founded Green Buoy Consulting in 2018 to help small businesses save money, engage employees and gain customers with sustainability. Eliza grew up in the Pacific Northwest and lives in New York City.
