Kindness Spends Better Than Money

Companies are in the business of making money. It may not be the first line of their mission statement, but if they aren’t making a profit, they won’t be around very long. 

To make money, a business needs a product and service people want to buy. It also helps if what they have to offer is superior to the competition. There is something more that makes companies successful, though it runs counter to past established business practices. According to a USA Today article, “Millennials Spur Capitalism With A Conscience,” a new breed of young retailers and consumers are demanding a little kindness with their lattes. In fact, according to the article, “…kindness is fast becoming the new currency.”

Take Starbucks, for instance. Long the darling of young professionals, with its own coffee language and laid-back atmosphere, Starbucks is testing out socially-conscious retail stores that donate a large portion of profits to help the needy. At selected Panera locations, patrons hit hard by the economy or just down-on-their-luck can order up a Panini and a side of tomato basil soup and pay whatever they can afford. These socially-conscious business models strike a chord with millennials, the 20- or 30-somethings that grew up with social media, where building a huge network of friends is more important than an impressive title on a business card.

These millennials, who are 95 million strong, don’t just prefer companies doing good, they demand it. And with instant information through Facebook, Twitter and other social media sites as close as their ever-present Smartphone, they know just what companies are doing in real time. As Ben Cohen, a co-founder of Ben & Jerry’s said, “Companies can’t hide anymore.” Hungry for news, everything companies do becomes content for social media sites, Internet browsers and news sites as well. Whether good or bad, an incident in the farthest corner of the world or in downtown Manhattan can be Tweeted around the world in a matter of seconds. No need to call the local media. The story can go out with audio and video by anyone with basic skills on a Smartphone.

In a transparent world, it makes sense to do good. A company’s survival may depend on it. It’s not just the companies like Ben & Jerry’s, Panera or Nordstrom that are recognized as having a social conscience. Ad Age produced a list of companies that were founded on doing good and have stayed true to their mission. On the list—Burt’s Bees created guidelines for what can be considered “natural.” GE has been recognized for using renewable energy and reducing carbon emissions. Method makes cleaning products without the hazardous chemicals found in so many similar products. These products not only make a consumer feel good buying and using the product; they also feel comfortable supporting the company behind the product. 

According to a survey by Edelman, a public relations firm, 47 percent of consumers said they bought at least one product a month from a company that supports a good cause. What’s even more impressive, 72 percent of those who buy those products recommend them to others. Consumers talk to each other, and they do it over Facebook, Twitter and other social media sites. In the past, if a customer had a positive experience, he may tell a few friends. Now, one good experience can go be shared with millions in a matter of seconds. More companies are getting on the kindness bandwagon for a simple reason—it works.

Photo Source: Wikimedia