Social Responsibility in an Online World, Interview with Jamie Welsh of 10% Solution

November 29, 2008

SES (Search Engine Strategies) Chicago is coming up in a couple weeks and I’ll be there to check out some of the sessions, but I wanted to share with you a pretty unique company called 10% Solution which focuses on certifying companies as being “socially responsible”.

Jamie Welsh is the founder and CEO of the company and agreed to chat with us about what her company does and why it is important to be socially responsible.

What is the benefit of being “certified” as being socially responsible to businesses, especially ones that may be struggling just to make payroll right now? Are there real quantifiable benefits, or is it mostly just the value of being a good part of society?

There are several ROI factors and cost savings to consider when looking at being a certified company.
• Consumers - Research shows that when consumers are given a choice between two like products or services, they consistently choose the one that demonstrates and highlights a social return on investment (SROI) strategy. Consumers make socially conscious purchases by choosing to do business with companies that recognize the importance of transparency and sustainability. Consumers are also looking for 3rd party validation/certification of efforts that companies are taking to be more sustainable.
• Cost savings - Companies see the most immediate cost reduction through the green efforts that they incorporate. There are many ways to engage: from savings through office greening techniques (lighting adjustments, low flow water options, network power augmentation or reduction, HVAC improvements, waste management reduction) to green certifications designed for efficiency and cost saving (Energy Star, LEEDS). There are also options to reduce out of pocket expenses for employees and companies (ride share programs, shorten work weeks, work at home programs).
• ROI - A strategic social responsibility program can also have a direct impact on ROI. By tracking, monitoring and reporting on social efforts companies can quantify and show measurable results from social responsibility programs and initiatives.

Social responsibility - especially in an online / Web 2.0 world - seems to expand well beyond the three areas that are listed on your quiz on the website. How did you pick those three and what are some of the other ideals that a socially responsible company should aspire to?

Social responsibility is a wide and varied topic. 10% Solution focuses on the three key drivers that are part of the core principles of social responsibility. Drivers that can be meaningfully measured, ones with a high impact on the company both internally and externally and ones that can be implemented and integrated in to day-to-day operational practices.

On a personal / individual level it seems that less well off Individuals tend to donate more than those who are well off, does this trend extend to the corporate world as well?

The divide is not necessarily along the lines of better performance, but along the lines of maturity. As a company grows a comprehensive philanthropic strategy is part of a good overall business strategy. However, we do find that younger companies tend to give at higher percentages than more mature companies. This is often due to a desire of these organizations to build a meaningful bridge within their community and get closer to their customers.

Smaller organizations are often the early adopters of sustainable practices because they have the flexibility to enact change and standards quickly. Every start-up could be the next Google and if they can enact a meaningful and transparent practice when they are a young organization (i.e. 10% certification) then it makes the whole marketplace stronger as they grow.

Our company is not in a position to donate “cash” to improve our community, but is a strong advocate of encouraging our employees to donate their talent on their own time, additionally, as well as a company we donate our downtime to help community groups. What ideas can you offer to encourage other businesses to do the same and are there any good resources online where organizations can request assistance like this?

The difference between “cash” and “donating time” is an important point, as many organizations convert time to dollars. Yes, volunteering has a quantifiable value, however, you must look at this strategically. Volunteering is one piece of the overall equation and should be substituted for philanthropic efforts. Volunteerism should be strategically aligned with philanthropy and sustainability. However, they each serve a distinct, yet complimentary, function.

In these tough economic times how can organization do good with maximum impact? Studies show that the impact on those observing others do good works, is the same as those actually performing the service. One key opportunity is for senior management to lead by example. Management can take the leadership role and organize a company volunteer effort. They can lead by example and organize a matching Dollar Drive to assist those in need within their community.

In terms of resources, there are many available, go to www.10percentsolution.com and contact us.

What are some examples of companies that you have helped become more socially responsible?

We have 10 certified companies and are currently working with several more. We are also in the process of building several case studies around the overall impact of being a certified company.
A key point of a successful strategy is having the ability to break down the silos between, philanthropy, volunteerism and green sustainability. As a unit they are then brought under one strategic umbrella to create an organizational entity that not only drives cost savings, but can also increase revenue, support innovation and create operational efficiencies.

What was the reaction from the boards or investors? Did they eventually agree with the transition or what happened?

We typically are working with CEO’s and thus far have had no push back from boards or investors.

Posted in Social Responsibility