IMPACT SOURCING: DOING WELL BY DOING GOOD
Long gone are the days of organizations finding a cause to support… something to throw a few dollars at, pat themselves on the back and go about their day, business as usual until they have to write another check. No more throwing dollar bills at a charity – they simply can’t get away with it anymore. In today’s global economy, buyers want to do business with companies serving a greater purpose… consistently. As such, more and more organizations are incorporating a social responsibility purpose or mission into their overall business strategy.
Something we hear about more and more these days—but for years has been transforming business for the better—is Impact Sourcing, an inclusive business practice that happens in the outsourcing industry when organizations intentionally hire and provide career development opportunities to people who otherwise have limited prospects for sustainable employment.
If you’re sitting in your office right now thinking this doesn’t affect you, well, think again. Impact sourcing is not just a corporate social responsibility (CSR) initiative; it has substantial business benefits as it not only presents enormous opportunity for professional advancement of marginalized communities through training and steady, fair-wage employment, it is a business practice that, when done right, maximizes business outcomes.
According to a Nielsen survey, two-thirds of global consumers (and a whopping three-fourths of millennials) are willing to pay more for sustainably made products. Why? Today’s consumers are trying to be socially responsible and they expect the same from corporations. Therefore, when it comes to buying, they are doing their research – checking labels, searching websites, reading reviews, and watching news and social media outlets.
Economic inequality is one of the most threatening global challenges of our time, jeopardizing stability and social progress worldwide. The World Bank estimates 2.1 billion people in the developing world are surviving on less than $3.10 (US) a day, and more than half of the world’s poorest people are in sub-Saharan Africa. For these individuals and their families, income inequality creates a cycle of poverty that can persist for generations. One of the most sustainable means to reduce such inequality is to ensure poor and vulnerable populations have access to formal employment and training, allowing them to lift themselves and their families out of poverty. (Source: BSR.org)
This is where impact sourcing comes into play: impact sourcing can provide the start of a meaningful career path leading to a lifetime of full employment and it can happen in any geography: the global community. For this reason, more and more organizations are incorporating a social responsibility purpose or mission into their overall business strategy – not just throwing dollars to a cause. In the words of Microsoft’s Tim Hopper: “Impact sourcing is about knocking down artificial barriers to employment and allowing high-potential individuals to bring their strength to the marketplace.”
Economic inequality is one of the most threatening global challenges of our time, jeopardizing stability and social progress worldwide. The World Bank estimates 2.1 billion people in the developing world are surviving on less than $3.10 (US) a day, and more than half of the world’s poorest people are in sub-Saharan Africa. For these individuals and their families, income inequality creates a cycle of poverty that can persist for generations. One of the most sustainable means to reduce such inequality is to ensure poor and vulnerable populations have access to formal employment and training, allowing them to lift themselves and their families out of poverty. (Source: BSR.org)
This is where impact sourcing comes into play: impact sourcing can provide the start of a meaningful career path leading to a lifetime of full employment and it can happen in any geography: the global community. For this reason, more and more organizations are incorporating a social responsibility purpose or mission into their overall business strategy – not just throwing dollars to a cause. In the words of Microsoft’s Tim Hopper: “Impact sourcing is about knocking down artificial barriers to employment and allowing high-potential individuals to bring their strength to the marketplace.”
About the Author: Kate Tulloch-Hammond is IAOP’s Director of Media & Communications; Kate is also founder of CheekySkirt Media.
