The rise of values-driven businesses
"these days, consumers really want something that gives them more value." Lisa King of Eat My Lunch
A new generation of businesses are emerging, driven by entrepreneurs who value doing good by the world just as much as making financial returns.
Several of the businesses listed on this year’s Deloitte Fast 50 have a social responsibility aspect, whether it is using ethicallyproduced products or helping to feed hungry Kiwi kids. Deloitte private partner Bill Hale said there has been a growing trend of socially responsible companies in the Fast 50 over the past few years, but this year has stood out in terms of the numbers of businesses with strong core social values. Some of this year’s companies include free-range takeaway food company Bird on a Wire and Fairtrade and organic clothing label Kowtow Clothing.
He said part of the motivation seemed to be driven by consumers, who were starting to consider their own values more deeply.
Social Enterprise Auckland board member and University of Auckland business lecturer James Newman said the past few decades have brought a shift in expectations of how businesses should behave. Particularly among younger entrepreneurs, it was normal for enterprises to have some ethical or social impact and the trend was only going to continue to grow.
‘‘As consumers, we’re increasingly discerning on wanting to understand at the very least the impact of how our product is made, all the way through to those who want socially or environmentally impactful models like social enterprises,’’ Newman said.
BNZ head of partners Shelley Ruha said it was too early to say how sustainable a socially-driven business model was, but given the slow-changing nature of many social issues, it meant socially responsible companies would remain relevant. She said creating a business that allowed customers to feel good about what they were spending money on was both common sense and great business.
For Eat My Lunch, the Auckland startup that gives one lunch to a child in need for every lunch that is bought, giving back to the community is an inseparable part of the business model.
Recognised as a Fast 50 Rising Star to watch, the social enterprise has given 280,000 lunches to children in need across 37 schools since it launched just over a year ago.
When it launched in Auckland last year, the business hit its threeyear target in 12 weeks and when it launched in Wellington in October, it hit its two-month target in two weeks.
Founder Lisa King said the social enterprise business model provided the greatest possible impact from a consumer’s point of view.
‘‘Particularly for Kiwis, we’re a really generous nation of people and everyone wants to help. But quite often, people don’t know how to do it and in a meaningful way.
‘‘So I think in these days, consumers really want something that gives them more value.’’
Eat My Lunch also uses the venue fee from renting out its Auckland commercial kitchen for functions, as well as King’s speaker fees from events, to make more lunches for children.
Little Island was number 27 on the Fast 50 this year and makes its range of ice creams, ice blocks and coconut milk beverages with ethically sourced and organic ingredients.
It also pays all its workers a living wage.
Founder James Crow does not hide the fact that he started the business to make money.
But this did not preclude it from treating its workers fairly and using ingredients that were sourced sustainably.
Little Island products may cost a bit more, but consumers are willing to pay for better quality.
‘‘When buying [our products], you know straight away where that extra money went,’’ Crow said.