The future of successful products and services rely heavily on the social impact their producers are trying to reach. It’s hard to think about an existing product that doesn’t promote some sort of good in today’s world, since nearly all niches have products that encourage helping others.
Think TOMS shoes, Who gives a crap toilet paper, and Warby Parker glasses. Despite targeting completely different markets, these companies have one thing in common; they are buy-one-give-one companies. They make you feel good about your purchase, but just how much good does it do?
While this sort of help in the developing world initially seems helpful, it fuels the fire of crisis instead of extinguishing it one by one. A 2008 study about used-clothing donations and apparel production in Africa revealed that such donations caused a 50 percent reduction in employment in that sector between 1981 and 2000. It is similar to food aid that harms African food producers. Essentially we, as donors, don’t encourage a healthy economic cycle in the developing world.
Living in a westernized country that is caught up in the media has desensitized the general public. Organizations that aim to raise money for the third world usually use the strategy of guilt tripping – you know, a shoeless meager little African girl staring right into your soul. Compassion is naturally triggered upon watching the effects of an economically troubled and unstable government, yet it has lost its efficiency a while ago. For that reason, firms have turned to a mutual benefit between consumer, producer, and aid. It humbly feels like a direct way of helping.
Alternatively, a more proficient and fair approach would be to support local businesses that produce products locally and sell them internationally. For example, advocate Nisolo shoes sells Peruvian handmade leather shoes to the American public.
Simon Griffiths, founder of What The Crap, said on TedTalks, “Consumers want products that do good.” However, consumers can often be blinded by their king-status as buyers of these products, and consequently, they feel great for having helped a child in need — at least we have begun to re-sensitize and realize our global responsibilities.
Most companies have become socially responsible over time and offered some kind of volunteering, charity work or donations. It’s a necessity because without it, wouldn’t these companies seem utterly selfish with their billions of dollars spent on nothing but themselves? Charitable brands simply have better reputations.
