The world of corporate citizenship can feel like an alphabet soup. From CSR (corporate social responsibility) to ESG (environmental, social and governance), these programs give companies a structured approach to integrate social responsibility into their procurement practices, like promotional product sourcing.
SG Analytics, a global insights and analytics company, believes that ESG practices are here to stay, with supply chains placed at the center of the “E” and “S.”
A key component of ESG initiatives? Required-spend programs. Through these programs, businesses allocate a portion of their spending to specific categories or groups. When it comes to promo, it might mean buying American-made products or union-made merchandise. Businesses might also reserve funds to support certain groups like veteran- or minority-owned companies.
By earmarking some of their spending for organizations led by underrepresented groups, companies help promote diversity and inclusion. They also show their commitment to social responsibility through ethical business practices. This can lead to improved brand reputation and consumer trust.
Studies have shown that consumers are more likely to buy from purpose-driven companies. Research from McKinsey shows that both large and small brands have experienced growth by prioritizing their ESG goals, proving that brands don’t have to choose between higher profits and helping people and the planet.
Employees are also paying attention to their employers’ ESG commitments. In a PricewaterhouseCoopers study, 86% of employees say they prefer to work for and support businesses that care about the same issues as they do. Companies that don’t live up to expectations risk losing support, with 76% of consumers saying they will discontinue relations with companies that treat employees, communities and the environment poorly.
Required-spend programs give companies a chance to walk the talk when it comes to ESG practices. These programs aren’t just about meeting spending goals – they’re about making a positive impact across the board.
Whether businesses choose American-made promos or work with women-owned promo businesses, they can align their brand with their values. Each promo becomes a storytelling tool to communicate their commitment to ESG principles.
Keep reading for some ideas on how to use promo to not only meet required-spend goals but create a meaningful difference.
A Glimpse At Veteran-Owned Businesses
Each year, veteran-owned businesses generate more than $1 trillion in sales in the U.S. economy. From construction to healthcare to professional services companies, more than 5.5 million Americans work for these businesses. When veteran-owned companies support fellow veteran-owned promo businesses in required-spend programs, they create a powerful bond of camaraderie and support within the veteran community. By sourcing promo items from these companies, it also highlights the values of service and loyalty.
Small Businesses And LGBTQ+ Support
A report from the U.S. Chamber of Commerce shows that most small business owners (86%) believe it’s important to provide an inclusive culture and to take direct action to ensure inclusion, whether that’s working with LGBTQ+ owned companies or donating to organizations that support this community. About 2 in 3 small businesses say companies should share their beliefs on social issues like LGBTQ+ rights, with 72% saying they’re OK losing customers as a result of supporting the LGBTQ+ community. By purchasing promo from LGBTQ+ led companies, brands can show their allyship and send a powerful message of support.
The Resilient Rise Of Women-Owned Businesses
The U.S. is home to more than 14 million women-owned businesses. From 2019 to 2023, women-owned companies added 1.4 million jobs and nearly $580 billion to the economy. These businesses can further their impact through promo. Supporting women-owned promo companies in required-spend programs fulfills procurement goals and creates a ripple effect of empowerment. By sourcing promotional items from fellow women entrepreneurs, women business owners can amplify their impact, strengthen their network and foster a sense of shared success.
Boosting Business And Brand Image
Why do companies support supplier diversity? According to the 2023 State of Supplier Diversity Report, it’s not just because they want to “live their values.”
- 81% say they support supplier diversity because it aligns with their corporate culture.
- 66% say it improves supply chain competitiveness.
- 53% say it enhances brand image.
Integrating promo into required-spend programs can amplify these benefits. When companies source promo from diverse suppliers, they not only fulfill their spending obligations but showcase their commitment to diversity.
A Snapshot On Small Businesses
Almost all businesses in the United States are small businesses, and nearly half of all Americans work for a small business. These businesses are also diverse, with 22% owned by women, more than 21% owned by immigrants and 21% owned by minorities.
Finding people to join their teams is a challenge, though. Almost half of small business owners (40%) report having trouble filling open positions. One way to attract qualified workers is to use promo from women-owned or minority-owned businesses. Logoed items like pens and tote bags are useful at job fairs and networking events, and they showcase a company’s commitment to equity.
New Businesses Are Booming
A record-breaking 5.5 million new business applications were filed in 2023, according to the U.S. Chamber of Commerce, with most filed in the retail trade and professional services industries. Black entrepreneurship has doubled since 2023, with Latinx entrepreneurship also on the rise. These new businesses can source their promo from companies that align with their values. Whether it’s from a minority-owned business, veteran-owned business or some other designation, each purchase promotes diversity and social responsibility.
Campaign Collateral
The Redwood National Park Candle is ethically sourced and produced in the U.S. It burns for more than 80 hours and provides an earthy scent of oakmoss, sage and citrus. A percentage of sales goes toward environmental nonprofits.
PCNA / PPAI 113079, Platinum
Use the Universe Premium Microfiber Cloth as a giveaway at tradeshows or conferences. This dual-layer, plush cleaning cloth is made in the U.S. and features a full-color logo.
Logomark / PPAI 110898, Platinum
Corporations can give the AeroLOFT Backpack crossbody sling bag as an employee recognition gift. Designed to be worn across the front or back, it features an adjustable, comfort-padded strap, two mesh side pockets and an interior zippered pocket. It also aligns with companies that want to work with a minority-owned business.
Ariel Premium Supply / PPAI 161650, Platinum
For promos from brands accredited as women-, minority- or veteran-owned, consider the Klean Kanteen Eco Rise Tumbler. Made from 90% post-consumer recycled stainless steel, this sweatproof tumbler won’t chip or scratch. It features an impact-resistant base cap for improved durability and longevity and vacuum insulation that keeps drinks hot or cold for hours.
PCNA / PPAI 113079, Platinum
The Mediterranean Peshtemal Beach Towel makes a perfect promo for resorts and hotels. This lightweight towel is made in the U.S. by a minority-owned company and features a twisted fringe edge and the option to screen print or embroider a logo.
Terry Town / PPAI 230911, Gold
Large Custom Magnets can strengthen team spirit and engage supporters, including fans and alumni. Schools and sports teams can use them in all kinds of ways, from fundraising to season ticket perks. These magnets from a women-owned promo company feature UV-protected inks that are fade-resistant for up to three years.
Magnet America / PPAI 462792, Silver
Recipients hear a brand’s message every time they open the JingleBrella. This made-in-the-USA umbrella plays a sound bite with each open and works with the RainAlertz app to let people know when rain is on the way.
AAA Innovations / PPAI 110972, Standard-Plus
Send a spirited thank you or congratulations with the Rosé Gift Set. This American-made promo includes a custom-etched bottle of rosé wine along with an etched stemless flute tucked inside a laser-engraved wooden box.
A+ Wine Designs / PPAI 173549, Standard-Plus
