WHILE the countdown to the release of the final Codes of Good Practice continues, many businesses are eager to confirm what the BEE goalposts are and how these relate to their business.

One thing is certain, social investment or social responsibility will continue to play an important role in the transformation of our country and the final codes.

In previous articles I spoke of the importance of transparent and accountable options when making social investment decisions and the opportunities that a social investment portfolio fund affords. Now, I’ll look at what is in it for you — besides of course, the accumulation of residual (social investment) points on your BEE scorecard.

According to recently released market research conducted by UCT Unilever Institute, the majority of South Africans say they would prefer to buy products and services from companies that have a reputation for supporting good causes. Globally, consumers have shown a heightened awareness of self, health, quality of life and the environment, and as a result, consumers expect businesses to be in line with these issues too.

In fact the study shows that if price and quality were equal, 75% of those polled said they would switch to a brand affiliated with a good cause. Reinforcing this, research by Business in the Community, a non-profit organisation based in the UK, shows that companies engaged in social investment benefit from improved company reputation and brand image and increased sales as a result of reputation. Employees are also proud to work for such companies, enhancing loyalty.

Having been involved in the social development sector for more than a decade, I have lived through many different schools of thought around the marriage of marketing and social investment.

My feelings, however, are that social investment, as a sincere strategic focus that aligns business objectives with the social, environmental and economic needs of the community in which it operates, should indeed be promoted. However, there are two key elements to the success of this union.

The first is not to use social responsibility to take attention away from unsustainable business practices — today’s ethical consumers will soon see through this. The second is to keep the ratio between the amount spent on the social investment intervention and the amount spent on promoting the intervention appropriate.

In the past, marketing tended to focus on the single transaction — the sale. Today, marketing is based on relationships. If a business is to ensure repeated transactions, it needs to create a relationship that provides differentiation and value to the customer.

As indicated by research of the Unilever Institute and Business in the Community, best practice in social investment not only differentiates companies, but plays a crucial role in reinforcing companies’ values.

So, what’s in it for your bottom line? How about sustained and increased consumer spending? How about increased customer and employee loyalty? And, how about the impact your contributions are making towards building our communities and our economy?

Marr is director of Social Advantage, a BEE consultancy that focuses on enterprise development and corporate social investment. This is the final article in her series focusing on these areas.