The Connection Between Social Responsibility and Startup Success

$41 Billion. $15 Billion. $11 Billion. These are the valuations for Uber, Snapchat, and Pinterest.

That’s a lot of pocket change.

With valuations like that, no wonder everyone under the sun is clamoring to start a business. In fact, entrepreneurship is on the rise in the U.S. according to Inc.

But often lost in the discussion is a topic that touches every business, responsibility. Not just any kind of responsibility, but the responsibility organizations have to the care of our planet and the inhabitants living in it.

Some call it social responsibility. Others call it philanthropy. No matter what you refer to it as, giving back is something that should be a priority for all companies.

But what does this have to do with the success of a startup? Glad you asked.

As Alicia Lawrence mentions in her insightful Entrepreneur.com article:

Case studies show social responsibility can have a positive impact on a startup’s growth and profits.

There you have it. Social responsibility can affect a startup’s growth.

Social responsibility can have a positive impact on a startup’s growth. Click To Tweet

But the question is, why?

The social responsibility effect

Whether it’s money or time, people want to give back. That’s a fact.

If you don’t think it’s true, just look at the $15 million dollars Facebook’s donate button generated to aid the community in Nepal.

Giving back gives people a sense of purpose. It elevates them beyond the traditional focus of business, money. When it gets to this point it’s no longer about collecting a paycheck and going home.

Companies that understand this and have social responsibility built into their culture (Salesforce and Zendesk for example) attract people who are not only talented but driven by purpose.

A team driven by purpose is a powerful force that fuels a company’s success.