One might think it would be an easy question to answer. When I googled this question it returned 551,000,000 results. As I sifted through some of the results I found many attempts made at defining “Social Impact” as well as company websites talking about their commitment to social impact. I also came across a rather good article that argues that the term is really just overused jargon, to the point that it has lost its meaning.
The fact is that “Social Impact” is a term that is both overused and difficult to define, or at least the wide and varied use of the term has made defining it difficult. You can also add “sustainability” to that list. However, I think we can all agree that the concept of Social Impact is fundamentally about delivering a lasting positive change on society.
The contention arises with regard to the scale of the change required to be considered within the definition of “Social Impact”. For example, in trying to answer the question of “What is Social Impact?” the Center for Social Impact at the University of Michigan declare that it must stand for a “significant shift in society”:
“The phrase “social impact” is increasingly en vogue and often misused to imply even minimalist change. For us to have a potent and persuasive term, we must demand that social impact stands for a significant shift in society”. – Center for Social Impact at the University of Michigan
While I agree that the end goal is ultimately a seismic shift in society – to a more inclusive self-aware society where individuals realise the interconnectedness of the world we live – I believe in the collective power of small changes at an individual level to deliver a significant social impact.
Individual Social Impact
The cracks have been widening in our current economic system for some time now, exacerbated by a culture of short termism that puts profit ahead of people and the environment. An indifference to society, driven by a sense of powerlessness as individuals, has cemented a status quo focused on wealth accumulation irrespective of deepening social challenges.
It is easy to blame “the capitalist elite” but a system can only survive if the majority buy into it. Take corporations for example; they are a dominant force in our current economic system and we have seen a repeated abuse of their power across all industries. While the illegal activity of a corporation – fraud, money laundering, human rights abuse, environment destruction – creates some short term headlines there is a sense that people have almost come to expect it and accept it as part of the system.
However, those individuals feeling powerless need to remember that a corporation can only exist if individuals work there, if individuals buy its product or service and if individuals invest in the company. The point is that it is important not to dismiss the potential social impact your individual decisions can have as an employee, a consumer and an investor.
Change is in the air
Of course many in power are happy to maintain the status quo. However, the social challenges are becoming so obvious that more and more people are starting to ask questions.
The Millennial Generation – of which I am apart of and which will soon dominate the global workforce – are reportedly focusing much more on the social impact organisations are making. This in turn has contributed to the growing trend of Sustainable Investing and most recently Impact Investing. We are also seeing new trends in consumer behaviour and changes within the workplace.
Individual behaviour has the power to drive social change and if millennials continue to push the boundaries on accepted norms – within their respective organisations and all aspects of their lives – corporations will naturally adapt and the momentum will become so strong that the idea of social impact will become a mind-set that pervades the entire system.
Conclusion
Albert Einstein wrote in May 1949 – in an article discussing Socialism and the crisis of humanity – “nowhere have we really overcome what Thorstein Veblen called “the predatory phase” of human development”. Nothing has changed since then; if anything that predatory nature has intensified.
Society cannot exist or evolve without individuals, the innovators who push the boundaries, but we must also remember that individuals cannot exist without society. We need to re-think how we, as individuals, consider the concept of social impact and most importantly our power as individuals to shape the society we live in.
Maybe then we can reach a point of development whereby all decisions are made in a much more socially conscious way for the good of society.