DO GOOD, BE GREAT

Social impact is much more than just a catchphrase – it’s critical for any business that wants to retain customers and talent and boost the bottom line.

Dale McCarthy knows the main reason why women buy from Bondi Born, her luxury swim and resort wear brand, is because they want to feel great on the beach. But about two years after the brand launched in 2015, she began exploring how Bondi Born (bondiborn.com.au), which is sold at more than 80 retailers around the world, could be about more than profit. “Work’s exciting and challenging and of course you want to make money,” she says. “But why can’t you also turn all those hours into something that’s a force for good?”

To that end, she moved her production line from China to Australia and now has all her garments made by small, family-run businesses using top-quality, certified sustainable fabrics. She has eliminated plastic from the packaging, commits to working with local, mostly female-based agencies and donates 1 per cent of revenue to non-profits, including Seed Indigenous Youth Climate Network and the Great Barrier Reef Foundation. And Bondi Born has B-Corp Certification to show for it.

“It’s a subtle part of who we are – we don’t rant and rave about saving the world. But I also know that, in the future, brands that don’t [incorporate social impact] into their business model won’t survive.”

The company’s bottom line certainly backs this up. Despite the necessary price rises that came with its commitment to ethical production, Bondi Born grew 114 per cent YOY from 2020 to 2021 on its Australian ecommerce site.

For McCarthy, the path to bringing social impact into her business was clear – she sourced the right fabric in Australia first and the rest snowballed. But for many SMEs it can be difficult to know where to start.

Lil Barac-Macey, managing director of Q Social Impact (qsocialimpact.com.au), says assessing your cohort is a good first step. “We often suggest our SME clients review what listed companies in their industry are reporting on from an environmental, social and governance [ESG] perspective because in a few years they’ll likely be doing the same.”

Another option is through your industry association, she says. “Look at its position on social and environmental matters and align where it makes sense. But don’t be afraid to step out and lead in your industry on an issue.” And back up your claims. “‘Greenwashing’ is easily spotted by consumers today. There are many helpful resources online for SMEs. We recommend Carbon Trust and SME Climate Hub as starting points.”

When in doubt, outsource. A social impact expert can spot what you can’t, like how to avoid slavery when using overseas suppliers, or give advice on measuring carbon emissions in freight and logistics.

Your business will thank you for it. “Social impact can help strengthen your stakeholder relationships, improve the company’s reputation and make your employees feel good about working for a brand that wants to build a better future. There’s really no downside.”