Eric Grau, the President of Olberding Brand Family (OBF), discusses the role of altruism in business. He believes that while businesses have the ability to create impact, altruism without a clear link to shareholder value is not sustainable in the long run. Grau points to companies that have scaled back on their diversity, equity, and inclusion (DEI) initiatives due to financial challenges or backlash as examples of altruistic initiatives without a clear business justification. However, he emphasizes that businesses can still do good if there is a tangible business benefit involved.
One way for companies to incorporate altruism sustainably is by integrating it into their brand identity. When consumers connect emotionally with a brand that stands for doing good, it can create a powerful impact. Brands like Bombas, which donate an essential clothing item for each item sold, exemplify this model. However, Grau warns that consumers can see through brands that leverage this strategy solely for profit, highlighting the importance of genuine care for the mission.
Even if a brand is not inherently linked to a particular altruistic mission, there can still be ways to do good with a business benefit. Some companies believe in diversity, equity, and inclusion not only for moral reasons but also for the advantage of having a diverse workforce that can understand and serve a diverse consumer base. By leveraging diversity to drive innovation and better serve consumers worldwide, businesses can reap the benefits of inclusivity.
There are also examples of closely held businesses following personal beliefs and principles to do good, regardless of an obvious positive business impact. Chick-fil-A, for instance, remains closed on Sundays as a belief in prioritizing what they value above all else. While this philosophy may not align with everyone’s views, the fundamental principle of driving shareholder value is met. In most cases, however, there must be a clear business benefit for altruism to be sustainable.
Before implementing an altruistic strategy, it is crucial to ensure that both employees and leadership genuinely support it. Aligning the initiative with the brand essence, communicating its importance internally and externally, and continually evaluating its impact are essential steps for success. By finding ways to align altruism with business benefits, companies can create lasting impact and thrive in the long run. Grau believes that people are attracted to businesses that do good and that corporations can have a significant positive impact on society through strategic altruism.
