What Are Social Impact Companies, And Why Do They Matter?

Social impact is becoming increasingly crucial for businesses. As consumers are making a demand on companies to make a difference in society, more organizations are adopting it as one of their core values. But what is social impact? Why is it important? How is it different from B Corporations (B Corps), nonprofits, and corporate social responsibility? And what kinds of challenges are businesses aspiring to transform?


Positively influencing communities, the environment, and society as a whole is gaining momentum, and it’s a common mission and goal taking organizations by storm.

Let’s Look at Some Key Definitions

Social impact organizations prioritize work that intentionally, methodically, and sustainably transforms, influences, and affects individuals and communities. And this primary desire affects everything an organization does. You don’t need a title to be a social impact organization.

B Corps are certified organizations that fulfill the utmost “standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose.” They aspire to reduce inequality, improve the environment, build stronger communities, decrease poverty, and increase quality jobs with intentionality and dignity. B Corps are certified by achieving a minimum verified score on the B Impact Assessment, which rigorously evaluates its impact on their consumers, community, environment, and workers.

Benefit Corporations for Good is an example of an organization that helps businesses be a force for good as benefit corporations.

A benefit corporation, often confused with a B Corp, is a legal framework for an organization, similar to an LLC or a corporation. These corporations are empowered legally to seek profit with a positive stakeholder impact.

A nonprofit organization, otherwise known as nonprofit foundation (NPO), non-business entity, not-for-profit organization, or nonprofit institution, is committed to advancing a specific social cause or supporting a common perspective. The organization’s fundamental goal is not to make a profit. It’s also tax-exempt upon requesting a 501 (c). Nonprofits receive funding from the public, government, and private foundations. 

A social entrepreneur is an individual that creates an enterprise to solve social problems or shape social change.

Types of Challenges Social Impact Organizations Seek to Overcome

Now that we’ve examined some standard definitions in the social change world, let’s look at the various challenges social impact organizations are attempting to overcome. They include:

  • Financial literacy in underserved communities
  • Access to clean water
  • Women and girls’ education
  • Environmental conservation
  • Resource consumption and population
  • Income and labor markets
  • Social inclusion and relationships changes
  • Overall influence on quality of life and physical health effects
  • Work diversity opportunities
  • Mental health and well being

Mental Health and Well Being of Employees

The mental health and well-being of employees are vital to positive work culture. And today’s generation understands the value of taking care of its workers, focusing more and more on growth as a whole and not just earning a profit.

Elements of a more positive work environment:

While your business’s impact is as unique as your mission, there are some key elements that you should include on your impact page:

  • Looking to achieve the four day work week
  • Work hours dictated by workload (not simply aiming for 40 hours a week) 
  • Quality over quantity
  • More extended paternity and maternity leave
  • CEO’s that consider themselves on the same level as their employees
  • Fewer CEO profits and more money back in the pockets of their employees 
  • Outdoor desks
  • Fewer meetings
  • Less structure, more process

Measuring More Than Profit

How do organizations measure the impact they have on their communities and environment?

Triple Bottom Line

Contrary to the standard bottom line where an organization focuses solely on making a profit, the triple bottom line is when businesses dedicate themselves to measuring their social and environmental impact as well. It’s divided into the “three P’s:” profit, people, and the planet.

Social Return on Investment (SROI)

SROI is how an organization understands, measures, and reports its social, economic, and environmental value.

You Don't Have to be a Social Impact Organization to do Your Part

Our society’s growth relies on businesses moving towards a positive change within their community and environment. Suppose we can’t all do our part to make a difference. In that case, we won’t be able to tackle the more significant issues the world is currently facing, such as cultural equality and the climate clock (an online clock that counts down to reaching zero emissions).

How Can You Do Your Part?

You can impact the communities and environment around you with simple, actionable steps, like practicing the “art of neighboring” or sponsoring and donating to local nonprofits.


You can also create sustainable practices in the work environment by:

  • Reducing the turnaround rate from your team (mental instability in society causes a decline in humanities growth as a whole)
  • Providing opportunities to get involved with local social impact groups
  • Embracing remote and digital work (reduces carbon emissions)
  • Encouraging sustainability at home and facilitating rewards for efforts

https://worldshifttech.com/our-social-impact/Tackling a greater good for the community and environment is rewarding and needed for continual transformation as a society. And organizations and individuals can play a crucial role in social impact. Here at World Shift Technologies, we’re doing our part as we continuously strive to influence our community and environment.

If you’re ready to expand your impact, we’d love to help!