The greatest danger in a recession isn’t (only) your bottom line

Should Kiwi businesses be doing more to fund positive change, even amidst a recession?  Business process automation company GravityLab has funded the rescue of 500+ children from human trafficking since its inception and is challenging businesses to consider the devastating impact on social justice before they pull back on charitable giving.

The hidden cost of a recession
In the face of a recession, businesses across New Zealand are feeling the pinch. With reduced consumer spending and tightening budgets, many companies have taken a hit on their bottom line, and as businesses focus on staying afloat, charitable giving is often one of the first areas to face significant cuts.

Unlike businesses that are often set up to weather a few slow months, charities often lack the reserves to weather economic downturns. When funding dries up, these organisations face not just a slowdown; but a complete shutdown, and the casualty is critical services that support vulnerable populations across Aotearoa. 

Much more than a 'nice to have'
Different economic climates may necessitate different levels of giving, but the core principle remains the same: giving should not be optional. Like the now infamous "50 mile march" ordered by Theodore Roosevelt – it's about staying committed to core motivations while consistently implementing strategies to achieve long-term results. This approach is not just about enduring through tough times but making a significant difference over time. 

Over the past seven years, GravityLab has made a profound impact by funding seven rescue and prosecution agents in Thailand and Cambodia. Despite our own slowdown, we've continued to give and this has enabled the team to continue taking action. Without them working (in 2024 alone), five brothels wouldn't be closed down and their owners arrested - underscoring a crucial point: charitable giving should be a fundamental aspect of your business operations, not just a discretionary expense.

GravityLab integrates its giving into its financial model and as a result, this is a 'must; not a 'nice to do'. This approach ensures that contributions remain consistent, even during challenging economic times. By making social responsibility part of its operating expenses, businesses can ensure that when budget cuts are necessary, they are made elsewhere. 

Looking for ROI? Invest in social responsibility 
In economic downturns, traditional business ROI metrics such as advertising dollars may show diminished returns; yet the social ROI of maintaining charitable contributions buck the trend and remain high - seen in transformed lives, stronger communities and a better, more fair society. 

Social giving allows businesses to achieve a level of meaning beyond mere profit by providing a legacy of positive impact and ensuring that a company's contributions to society are remembered long after economic cycles have passed. 

This doesn't mean it's easy! It's not an easy time to do well in business; and it's an even harder time to help those in need - but do we want to live in a world where children are used as slaves? GravityLab's answer remains the same on the good days and in hard times.

Pay-offs beyond profit
We don't use the words 'peaceful', 'joyful' and 'meaningful' enough when owners set business goals - but that's what happens when you give back in ways that make a difference and have meaning. Starting, scaling and running a business is really hard work, but, when we know our business is involved in doing something far bigger than just making money, it changes the way we interact with customers and the team. Suddenly, we're not only driven by monthly shareholder reports or profit. It shouldn't only be about an intangible, accounting moderated number, eg. profit; but rather - what sort of world we want to live in and how we are making that a reality.

The greatest danger in a recession isn't only to your bottom line; but to the broader social fabric that businesses can help support. Let's not just 'survive to 2025'; but rather 'thrive to 2025'. Let's ensure the world is a better, safer and more whole place to live in at the start of 2025.