Social impact: We explain what social impact is, both positive and negative. In addition, the social impact of companies and a government.
What is social impact?
Social impact is the degree of affectation or incidence that a project, an event or an organization has on society, that is, how much its presence and actions alter socially, either directly or indirectly. These alterations are evident in the lives of people and the general functioning of communities, and can contribute to the well-being or harm of people.
Human society is an organized but active entity, which responds and adapts to the conditions and events that take place within it. At the same time, it acts as an interrelated system, so that there are no actions without consequences within society. This means that everything has, to some extent, a certain degree of social impact, even if we cannot easily appreciate it. You must read about Everyday life once.
Thus, when planning or approving projects and activities, social impact is an important factor to take into account, and that is why it is usually investigated and measured before giving the go-ahead. An activity may be important or lucrative, but if it has a negative social impact, its effects will be perceived as a detriment to the community, which usually brings problems when it comes to obtaining permits, approvals or financing.
Society will not look favorably on something that it perceives as a threat or a harm, while projects and activities that it perceives as a benefit will always be easier to approve, finance and materialize. This, of course, can be difficult to determine, since the same initiative can have both a positive and a negative impact. And in those cases, it must be decided which of the two has greater weight.
Positive and negative social impact
The social impact of an activity or an organization can be of two types:
Positive social impact:
That which society perceives as a source of well-being, either because it creates new opportunities, meets needs, empowers people or contributes in some other way to the improvement of society. For example, the opening of a factory that generates new jobs in a neighborhood of the city.
Negative social impact:
That which society perceives as a threat or a source of unrest, either because it impoverishes the group, monopolizes resources or has a negative impact on society. For example, the opening of a factory brings noise and pollution to a previously quiet neighborhood. Maybe you should definitely read about Industrial Company once.
Social impact of companies
Companies and corporations, being a source of innovation and new projects and economic activities, often have a considerable social impact in different ways, for example:
Through their management of work:
Work is a fundamental activity in society, through which people provide their livelihood. This means that employers can have an important impact on the community by hiring workers (providing opportunities and wealth) or firing them (causing unemployment). This is particularly crucial in the case of large companies with a large number of employees from the same community, whose decisions to increase or reduce staff can have an immense social impact on the community in which they operate.
Through their economic management:
Companies are economic actors that produce wealth through the sale of goods and services. In many cases, these goods and services are indispensable for society, so the price they have has an important social impact. That is why sudden increases in the prices of certain products can cause a lot of discontent among citizens, especially when there are no substitutes, as is the case with basic services in society.
Through their corporate social responsibility:
By devoting a portion of their money to promoting and financing activities for the community, companies can have a very positive social impact that wins them the affection and loyalty of the consumer public. Sponsoring sports teams, investing in public or community infrastructure, creating scholarship schemes or even organising meetings and festivities can be examples of this.
The social impact of companies often enhances (if positive) or overshadows (if negative) the image of the company in the eyes of the consumer public and can often translate into an efficient brand promotion campaign, or on the contrary it can provoke indignation in the community and, in the long run, cause direct or indirect government intervention in the company’s affairs.
Social impact of government measures
The State and governments are also important actors in everyday life, whose decisions have a great social impact. Ultimately, the State is responsible for laying the foundations of society, and its plans and decisions often alter the course of community life, for example:
Through subsidy policies:
When States subsidize certain essential goods or services, they allocate part of their budgets to artificially lower the cost of these goods, since they are considered indispensable. By doing so, the State is investing a good part of its money in making life easier for people, which normally has a very positive impact on society. But at the same time, when these subsidies are withdrawn, the price of goods rises again and immense discontent is generated in the population, which can take to the streets to express its discontent by organizing protests.
Through laws and rulings:
The State’s handling of legality and jurisprudence are also activities with a strong social impact, since they largely determine what people can or cannot do. Certain prohibitions and certain legalizations can have a considerable social impact, depending on whether they cause discomfort or well-being to the population. Prohibitions considered unjust are often disobeyed, or even openly opposed by the people.
Through their political ethics:
Another aspect of great social impact on the part of the States is their vocation for impartial enforcement of the laws and their respect for legality. A government can have a negative social impact by not respecting the laws it imposes on citizens, or by usurping political power in contravention of due process. That is the reason why mass protests break out against authoritarian governments, for example.
Importance of social impact
Social impact is an important variable for both companies and for-profit organizations, as well as for the government and the State, since it determines how harmonious the relationship of these actors will be with society as a whole.
That which has a negative social impact tends to be a source of contrary feelings on the part of the population, and depending on how it is handled, it can cause simple complaints, protests or even uprisings. On the other hand, the dynamics of positive impact on society can transform it for the better, and make it a more harmonious and peaceful place in which to live.
