Today’s shoppers don’t buy products solely for their usefulness. In modern consumer culture, they’re looking for products that also reflect their identity and values — and that’s why it’s important for businesses to not only deliver value and functionality, but also ensure their wares come with a compatible value system.
This concept is called corporate social responsibility and for serial entrepreneurs like Alejandro Betancourt López, CSR has become an essential component of building successful businesses.
“When I launch a new product, in the very next breath, we’re discussing the percentage of the proceeds we’ll announce that will go toward a particular foundation, which foundation will participate,” he said. “Social responsibility is a big thing.”
But imbuing a product with values isn’t simple. In a turbulent and troubling world, consumers don’t want the apps they click, the clothes they buy, and the devices they use to negatively affect the world. They want to do more than contribute to a CEO’s net worth. Successful CSR speaks directly to that feeling.
Make Doing Good Feel Good
Corporate social responsibility can’t simply pay lip service to a cause. Today’s businesses need to provide concrete proof of how they’re trying to improve the world, whether by donating to good causes, creating a foundation to support people or animals, or using ethically sourced materials.
“The customers demand that companies incorporate CSR into their strategy and into their business plan,” observed Betancourt López. “It’s the very DNA of doing business.”
For some companies, CSR is a way of life. Brands like Tom’s of Maine, for example, are built around the concept of giving back or making better. For others, CSR is a chance to signal their values to internal and external audiences.
But not all initiatives are created equal. The best kind of CSR feels organic and honest. That happens when a company invests real resources in solving problems related to some concrete aspect of their business practice, Alejandro Betancourt López said.
Think of Ben & Jerry’s commitment to social justice, Patagonia’s efforts toward sustainability, and Starbucks’ use of ethical sourcing. Each of these CSR examples ring true thanks to the longevity of the campaigns and their full-throated delivery. These companies realize their views may not match the personal goals of every potential customer. The risk of alienation is a sign of authenticity.
Examples in Action
At Alejandro Betancourt López’s firms, CSR takes many forms.
When he first founded Auro Travel, a ride-sharing service in Spain, the company was small and fighting against juggernauts like Uber and Lyft.
As part of its CSR plan, Auro Travel committed to transitioning its fleet of vehicles away from carbon emission-spewing gas power toward more environmentally friendly electric power. By 2026, Auro Travel will be home to a fleet of all-electric cars.
For Auro Travel, transitioning to an all-EV fleet will not only provide a differentiator for riders, who may choose to book a ride with the company as a reward for its pro-environmental stance, but also demonstrate a value system the company firmly stands behind.
Opting for a ride with Auro also allows consumers to cut down on their own carbon footprint, something that can resonate for environmentally minded users.
Noted Betancourt López, “In the world now, everything is faster, including awareness. It’s a big thing today. Not only social responsibility and environment but everything.”
Fitting the Audience
In addition, Alejandro Betancourt López serves as president of the eyewear company Hawkers. As a lower-cost luxury alternative to brands like Gucci and Ray-Ban, Hawkers typically appeals to price-conscious young consumers.
Fitting with its youthful vibe, Hawkers’ sense of CSR aligns well with what many of its target audience rates as one of their major concerns: sustainability.
Toward that end, Hawkers has created sunglasses made exclusively from plastic pulled out of the ocean. Consumers could proudly tell their friends that their purchase made a direct impact on the state of marine life without creating unnecessary refuse.
“We always have been conscious about sustainability, and we know that the market is shifting toward that direction,” Alejandro Betancourt López said. “Everyone is getting more conscious and wanting to understand how the product they buy impacts their life, but also the world and environment as well.”
For both Hawkers and Auro Travel, the CSR matched the value systems of the target market and made logical sense for the business to support, making it easy to align the mission and ethics. That’s the key for any successful charitable initiative — and savvy entrepreneurs like Alejandro Betancourt López are fully aware and on board.
