Must Read | JoyImage/ Natykach Nataliia/ cgterminal / Shutterstock.com Strategic Spending Success With Promo 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 Required-spend programs give companies a chance to walk the talk when it comes to CSR and ESG practices. By Audrey Sellers 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 52 • JULY 2024 • PPAI
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