Understanding Social Good: Definition, Benefits, and Corporate Examples

Key Takeaways

• Social good benefits the largest number of people possible and involves programs that support things like clean air and literacy.
• Corporations use social responsibility to strengthen employee loyalty and brand image.
• Social media enhances advocacy and fundraising for social good initiatives.
• Oil companies invest in renewables to improve environmental responsibility.

What Is a Social Good?

Social good benefits the most people in the largest possible way, such as through clean air and clean water programs. Corporations can enhance consumer and public trust and loyalty by aligning with social good initiatives. Social good can increase productivity and innovation by giving companies a sense of purpose. It also provides the basis for charity or philanthropic work. Social media effectively promotes, advocates, and fundraises for social good efforts. Companies like Total and Equinor invest in renewable energy to bolster their environmental image.

The Role of Social Good in Modern Business

The capitalism-based definition of business states that companies exist only to provide the maximum possible return to shareholders. This has often not run parallel to serving the common good in ways such as promoting clean air and water or financial independence for all citizens.

As corporations focus more on corporate sustainability efforts and social responsibility in recognition of a de facto social contract with the public, their business models may expand to include more work to promote social good in their day-to-day strategies and operations.

How Corporations Incorporate Social Good

The decision of Microsoft founder Bill Gates, the sixth-wealthiest person in the world (as of July 18, 2024), to allocate a significant sum of his wealth to solving some of the world’s most intractable problems is an example of work benefiting the social good. The Bill & Melinda Gates Foundation runs programs to alleviate and cure diseases such as HIV, malaria, neglected tropical diseases, and more in developing countries.

Corporations keen to promote an image of themselves as socially conscious and responsible have created programs that seek to highlight their work toward social good. Aside from the positive feelings such programs generate, doing work that benefits the social good can give a company a sense of purpose and passion.

That can help with productivity, innovation, and growth, as employees who believe in their company’s mission tend to invest more of their effort and passion into their work. Working toward a social good also has the effect of building bonds with the community. In helping a community or group of people, a company may hope that their effort is rewarded with sales.

Corporate investment in the social good can also help a company build and maintain its brand and its identity, as well as loyalty. A good example of this is the Newman’s Own brand, which discloses clearly on its label, “100% Profits to Help Kids.” The company’s own foundation is dedicated to feeding children with serious illnesses, indigenous food justice, nutrition education and school food.

The Impact of Social Media on Social Good

Increasingly, social good has been connected with social media in that its definition has expanded to include a shareable deed or sentiment. Social media platforms are becoming a part of the social good because they are an efficient way to educate the public, and advocate and fundraise for programs that support the social good. It also means that individuals, not just governments, corporations, or charities, can advocate for social good.

Aristotle described the common good as “proper to, and attainable only by, the community, yet individually shared by its members.”

Corporate Initiatives for Environmental Social Good

As climate change becomes a mainstream issue, oil companies have increasingly come in for criticism due to their role in polluting the atmosphere. Many responded by creating separate divisions to promote their environmental image. For example, Total, France’s biggest petroleum major, reportedly allocated 4.3% of its budget to investing in renewable energy technologies from 2010 to 2018.

Meanwhile, according to the same report, Equinor, Norway’s biggest publicly traded energy company, plans to spend between 15% and 20% of its budget on renewable energy by 2030. Plenty of other big oil companies, including British Petroleum, are also investing heavily in renewable energy ventures.

The Bottom Line

Social good is synonomous with the common good and involves providing benefits to the greatest number of people possible. Corporations engage in social good to strengthen customer loyalty, gain new customers, and improve their brands. It can also can increase employee productivity and innovation and serve as a foundation for philanthropic work. The work of the Bill & Melinda Gates Foundation exemplifies a focus on social good, as does an oil company investing in renewable energy.