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Blending profit with purpose: why NGOs and SMMEs should take the SDGs seriously

By Gemma Thompson

What kind of sustainable impact is your small business or non-profit making?

As the world trains its eyes on COP29, it’s worth looking at how and why organisations should embed the United Nations Sustainable Development Goals (SDGs) into their everyday operations – not just for the good of people and the planet but also as a powerful catalyst for profit or fundraising.

A Good Work Foundation hospitality student
A Good Work Foundation hospitality student hones her barista skills.

We run an education non-profit in rural Mpumalanga and the Free State – the Good Work Foundation (GWF) – that offers supplementary digital-led, creativity-fuelled education to under-serviced communities.

Some might think that the global SDGs are far removed from the day-to-day realities of the villages dotted around the Kruger National Park, where we do much of our work, but that’s precisely where they should resonate the most. Rural communities are at the frontline of socio-economic issues such as poverty, inequality and limited access to decent healthcare and education – all critical barriers to prosperity and well-being that the SDGs seek to address. Poorer communities are also more vulnerable to the impacts of climate change, such as severe weather events.

Just as larger corporates increasingly embed environmental, social and governance (ESG) considerations into their business models, so too should South African NGOs and SMMEs consider using the SDGs as a barometer of the sustainability of their operations.

The SDGs provide GWF with a universally applicable framework to work towards as an organisation. We have identified four core SDGs that hold strategic importance for us: SDG 4 (quality education), SDG 8 (decent work and economic growth), SDG 10 (reduced inequalities) and SDG 17 (partnerships for the goals). We also grade ourselves against all 17 SDGs – even the goal relating to life below water – to ensure that our footprint is as ethical, sustainable and mindful as possible.

The UN SDGs also help us keep on track with our own specific mission. There is so much need in often excluded communities, such as children going to school hungry. It’s therefore tempting to add SDGs such as “zero hunger” to our list of priorities. But that’s not our core mission – education is. That’s where we can, and do, have the most impact.

The beauty of using a simple analysis tool (we use the Paragon +Grading system) is that you can track your organisation’s progress towards the core SDGs you have identified – and then fix any shortcomings should your grading fall short of your expectations.

You’d be surprised what comes out of these reports – we hadn’t realised, for example, how we are showing up in SDG 9 (industry, innovation and infrastructure) due to our work with the local transport industry by subsidising buses and taxis to ferry schoolchildren to and from our digital learning campuses. Another pleasant discovery is that we are indirectly supporting small businesses such as cafés and shops that have sprung up around our campuses to tap into our staff and student cohort.

Offline and online learning methods for rural education.
Good Work Foundation blends offline and online learning methods to help reduce inequalities in rural education.

Having such a scorecard shows us where we are excelling and where we can do better to improve our sustainability grading. An example of this would be replacing a generator on campus with solar panels, a renewable power source that will ultimately pay for itself tenfold.

In essence, using such an ESG/SDG impact rating system gives you a pretty good overview and understanding of every aspect of your organisation. Having such global standards to benchmark yourself against adds a valuable component to your strategy and reporting framework.

Crucially, it’s important for us, our donors and our partners to see tangible, objective evidence that our programmes are having an impact.

Apart from providing proof of impact to your direct stakeholders, using an SDG-driven reporting system shows the public that you are transparent and ethical in your operations, and care about the well-being of the planet. Transformative business and social impact practices have become more important than ever to consumers – not least Generation Z – who are increasingly discerning with how they spend or donate their money.

Speaking for myself, I’d sooner support an organisation that takes the SDGs seriously than an organisation that doesn’t. It’s about having a genuine desire to transform the country for the better, rather than just ticking boxes on a scorecard.

And that’s how an organisation can attain certified B Corp status (which recognises private enterprises that create public benefit): by genuinely committing to socio-economic development through its business practices and becoming agents of change. I can almost guarantee that organisations that are passionate about blending profit with purpose will far outlast those that are just paying lip service to B-BBEE, ESG and the SDGs!

As GWF, we have made progress with our impactful education initiatives to empower young people, our inclusive employment practices, our focus on reducing inequalities and our strong partnerships with businesses. But we are hungry to do more to contribute to local and global efforts for positive social change and sustainable development. And we are just a drop in the ocean – can you imagine the ripple effect if more organisations made a conscious commitment to increase, and then measure, their social impact?

The bottom line is that persisting with unsustainable business practices – including those that exploit our natural environment and wild spaces – is unsustainable in itself. Embed the SDGs into every aspect of your operations, and you’ll reap the rewards.

Gemma Thompson 2024 11 22 103117 gbqj
Good Work Foundation’s Gemma Thompson believes that it makes strategic sense for NGOs and SMMEs to track their performance against the SDGs.
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