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In addition to building a franchise, business owners can be cognizant of all the effects they have on the society around them and choose the “do-good” things that benefit the society around them. Done with good intention, do-good franchising is a win for all stakeholders.
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Corporate Social Responsibility (CSR) broadly refers to the responsibility that a company has to engage in social and ethical issues in its community. The idea is to reduce or eliminate any negative impact that your business might create (at the very least) while also adding benefits that enhance your community.
In the franchise industry, however, it is a bit murkier determining who is responsible for implementing CSR plans. The franchisor might institute initiatives at a national or international level, from the top down. Each franchisee then carries the company brand banner as part of the franchisor’s marketing and social plan.
But “do-good franchising” also grows from dedicated franchisees on a more local level. Depending on your product or service, you might be able to use more sustainable packaging, purchase fuel-efficient delivery vehicles, or support local causes. These activities all fall within the CSR landscape of doing good.
Granted, contributions are not free, and franchisees might be concerned that social involvement might hurt profits. Instead, there are core business values and “wins” as a socially responsible franchise:
- Better people prospects. When a company brand is known for its commitment to improving its community, more people want to work there. Overall, we want to add goodness and progress to humanity’s plights for a cleaner environment and a healthier community. When CSR becomes a franchise priority, the company benefits by attracting more and higher-quality prospective employees and franchisees. Being a good guy is appealing.
- Brand value. Reputation matters, and while it is not the primary goal of doing good, a do-good brand improves reputational value. By following strict ethical protocols or by sponsoring a local youth organization, you give back to the community that supports your business. Your customers understand and will support those brands that give back.
- Stronger communities. Franchises usually operate in a specified area, and those regions are the lifeblood of the franchise. When franchisees dedicate themselves to local causes, it builds a stronger community—a community that can bring loyal customers to the franchise.
- Global thinking. When any business participates in CSR initiatives, it can make the world a better place. Even if a franchisee cannot (yet) provide financial sponsorship, it is still possible to commit to a supply chain of fair-trade suppliers or organize local fundraisers for larger organizations who can do more.
Big or small, a franchisee’s reasonable and sincere efforts to accept responsibility for social issues will have payoffs because doing good will translate into doing well.
CSR policies enhance brand reputation in a supportive community. And that is a do-good franchise combination that earns a win for everyone.
Anne Daniells is a co-owner of Enterprising Solutions, a professional services firm specializing in corporate communication and financial improvement for businesses where she shares decades of corporate and entrepreneurial experience—including franchise ownership—in her writings on business culture. She has authored hundreds of articles for publications including AllBusiness.com, TweakYourBiz.com, and MSN.com. Reach out via her website for more on where corporate culture, communication, and human architecture collide.