Today’s conscious consumers are looking for something more meaningful than a bargain. In fact, surveys have shown that many would spend more on an item whose manufacturer or producer’s vision and values align closely with their own – a product made in an environmentally responsible way, or by a company that supports causes with which the consumer identifies.
Modern businesses, including retailers, are expected to show that they not only focus on financial success but also prioritize purpose and responsibility towards the communities in which they operate. This includes ethical sourcing of raw materials, fair treatment of employees, and a balanced approach to their impact on the environment. This creates a measurable record of social responsibility that consumers are increasingly demanding to see.
But not all CSR activity is visible to the consumer. Much happens ‘behind the scenes’ unseen in the public domain, recorded only in the company’s annual report or on a website.
Please change to ‘Retail businesses have a simple way to communicate their values to customers – through the products they choose to sell
“21st-century consumers have come to expect socially responsible options in their grocery shopping, such as dolphin-friendly tuna, ethically raised cattle products, and minimal packaging,” says Dalit Shekel, Brand Consultant for Relate Bracelets.
Many companies support specific causes by contributing a portion of the sales from certain products to non-profit organizations or charities, which is often advertised on the product packaging. Additionally, some NGOs produce and market products to generate income for their cause, which requires retail outlets to sell their products and make an impact.
Relate Bracelets, a 100% South African non-profit, creates beautiful beaded bracelets, the proceeds from which support organizations working in health improvement, wildlife protection, education and literacy, social development, and human rights and conservation programs. Additionally, the beadwork and bracelet creation provides employment for senior members of the community in the Western Cape. These bracelets can be found in prominent retail locations such as Woolworths and Poetry.
For NGOs and retailers, partnerships can be mutually beneficial.
For an NGO, the benefit of high visibility in a leading retail store obviously has the potential to boost sales significantly. Using the retailers’ extensive distribution network, a lot of the ‘heavy lifting’ in terms of getting the product to market is done for them, leaving more time and resources that can be plowed back into the core work of the organisation.
Relate currently allocates one-third of its profits towards supporting its partner causes, one-third towards skills training and a portion towards purchasing materials for bracelet production. However, with a larger and more extensive network, even greater income and impact could be created,” says Shekel.
By stocking products like Relate bracelets, retailers are publicly showcasing their dedication to social and environmental causes. This demonstrates their commitment to responsible business practices, enhancing their reputation as socially conscious companies.
Partnering with NGOs is a way for both retailers and non-profits to attract and retain customers who are increasingly seeking out brands that align with their values. Conscious consumers make purchasing decisions based on a brand’s values and its commitment to making a positive impact.
Relate, with its beautiful bracelets and credible model of raising funds, have raised over R68 million to date and supported over 100 causes globally. Shekel suggests that supporting organizations like Relate represents an untapped opportunity for businesses to attain profit with purpose.
