Big Idea 2015: Bringing Social Responsibility Back to Business

People are demanding more from the companies they buy from beyond price and convenience. Over the past several years we’ve seen a new wave of fresh thinking on the social responsibilities of business with the emergence of new frameworks like B Corps and Conscious Capitalism that goes much deeper than traditional CSR. The specific frameworks themselves are less important than the core idea behind them: that businesses can and should integrate social responsibility into their business models. The increasing pressure on private enterprise to create social good is only going to grow, and in 2015, the expectation that business will contribute meaningfully to society will become the norm. Companies that just give lip service to integrating their business purpose with social purpose, with no real action behind it or business models that reflect a commitment to social purpose, will be called out and held accountable.

Three forces are coalescing to make this so. The first and most obvious force is a global audience with rising expectations. In a world of transparency and real-time response, people are demanding that companies act ethically and responsibly and they are quick to call companies out when they don't. In fact, according to a recent Edelman goodpurpose study that explores attitudes around social purpose and business, an overwhelming majority of global consumers -- 87% -- believe that society’s interests should be at least as important to business as commercial interests. The cycle of public accountability is faster than ever when companies don’t live up to the social responsibilities expected from their customers.

The second force is the growing clout of millennials as they rise through the workforce. This group is eager to make a difference no matter where they live, and they want to support businesses that share that view. A recent Deloitte survey of 7,800 millennials around the world found that they believe the success of a business "should be measured in terms of more than just its financial performance, with a focus on improving society among the most important things it should seek to achieve." In 2015, we’re going to see more consumers align their hearts with their dollars.

The mindset that business should have a social purpose isn't a radical new concept. It was the norm in the era before mass commerce, when most companies were local and business leaders had a vested interest in helping their communities flourish. Local bankers wanted the shopkeepers they lent to to prosper; they understood the need to literally invest in the community for the benefit of all. Take that mindset to the global, connected world, marry it to the expectations of millennials, and soon every business will need to integrate social impact into what it does day to day.

The third and final force that will change what people expect from the companies they patronize is the desire for a genuine personal connection. After all, the Internet is made up of individuals who want to connect. And the easier it is to connect, the more people crave meaningful contact, a backlash against instant but soulless gratification provided by a faceless corporate entity that you can't interact with.

The principle that companies should have a social purpose that is inherent to their business lies at the heart of Etsy, which enables people around the world to connect offline and online to make, sell and buy unique goods. We help creative entrepreneurs start, scale and enjoy their businesses, and we connect them to buyers who care about where they spend their money. Etsy is a global platform, but the proceeds from these transactions flow locally, largely going back to the communities where our sellers live. We’ve made it easier for sellers to grow responsibly, with an application and approval process we put in place a year ago that helps makers partner with local manufacturers that share their values. With Etsy’s support, sellers like TM1985 in New York and Vespertine in Toronto are partnering with small production facilities nearby to produce custom goods and share the stories of how their items are made with buyers on Etsy’s marketplace. Fostering an ecosystem that empowers and encourages people to create personal connections in the marketplace is baked into our business, and fully aligned with our mission to re-imagine commerce in ways that build a more fulfilling and lasting world. In our Values & Impact report, we detail Etsy’s approach to being a values-led business and our commitment to transparency.

In an era when people are more selective about the businesses they support, Etsy is proud to be a part of what I see as the defining trend of 2015: we're going to see more companies articulate the social purpose of their business. As businesses consider their growth strategies, they should also be asking themselves what they’re doing to maximize their benefit to people and the planet.