Management
The benefits of being responsible |
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| Written by Kim Stoddart, founder of Green Rocket | |
| Monday, 01 September 2008 | |
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Ethical Business: a top priority for your bottom line
With the credit crunch showing no signs of abating and many economists predicting a recession, companies all over the country are looking at what they can do to ride out the storm. In light of this, many commentators have questioned what this means for corporate social responsibility programmes (CSR), sustainability and business ethics in general, with some suggesting that more responsible practices will be sidelined as businesses focus on their bottom line.Whilst there is no doubt that companies will need to plan carefully to get through this difficult period, this kind of short-term thinking is ultimately unsustainable at a time when ethical considerations are more important than ever before. Now, more than ever before it is important for businesses to provide the best possible service they can and to show that they care about their customers and not just their profit margins. CSR is an important part of this. Increasingly, as they reassess their finances, people and businesses will become more selective about the companies they buy products or services from. Therefore, ensuring that your CSR programme or policy is more than just a PR exercise, could actually help you to ride out the economic storm. CSR and your customers Increasingly the British public has been drawn to ethical products and services as concern for the wider social / environmental impact of their purchase has begun to count as much as its cost. Ethical consumerism has experienced a period of unprecedented growth in recent years and with the UK market for ethical products now standing at £32 billion* it is clear that increasingly conscientious consumers are willing to pay a premium to for goods and services that they use. Because of this, these consumers have deeper ties with ethical brands than they would normally associate with a traditional alternative and are less likely to stop buying a product or service even if there was an increase in price. At a time when consumers and companies alike are looking to tighten their belts and cut spending, this brand loyalty will serve companies well during an economic slowdown. Your CSR is key to helping you to stand out from the crowd and effectively and authentically promoting your businesses ethical and environmental activity will build your brand in an increasingly competitive marketplace. The economic slowdown is likely to lead both businesses and consumers alike to make cut backs so positioning your product or service so that it connects with their moral as well as financial values can help to provide some stability for your company in an uncertain climate. CSR and your workforce Being more ethically minded involves looking at every area of your operation and considering how it can become more responsible. Transparency, honesty and authenticity are key to ethical business practice and will be a vital part of your relationship with your clients, new business prospects, the community at large and importantly, your workforce. The workforce is the heart and soul of every company. Who doesn't want a motivated, hardworking team dedicated to your business? This is every firm’s dream as well as a key ingredient in the recipe for a successful practice. During an economic slowdown your people will become more important than ever; responsible for every area of your company’s success from engaging with new clients or customers to the customer service and client facing activity that maintains your current market position. To some extent your success or failure rests in their hands and so during a demanding period of economic downturn having a motivated, hardworking team who believe in your company will be key to your success. Companies can recognise the boost to their public profile and brand position that CSR can offer but many ignore the positive impact that it can also have internally. Just as consumers are turning to ethical products and services the workforce is increasingly drawn to companies that are operating responsibly. So whilst your CSR practices may attract interest from consumers, they will also help to engage with a workforce that wants to be a part of an operation that is genuinely working to make a difference. Building a reputation as a great company to work for will not only help you to attract high quality candidates, it will also lead to high staff retention, which in turn is good for your clients and will ultimately benefit your business. It’s clear then that ethics are more than just a passing gimmick and that your company’s CSR should be a top priority as you seek to boost your bottom line during the credit crunch. CSR is something that is here to stay and the economic downturn could be the time when it transforms from being a movement to a mainstay of business practice. So whether your looking to attract new customers or engage with your workforce it is important that you act now rather than risk damaging your company’s reputation in the long term by being seen as jumping on board the bandwagon. It is much better to be seen as a forward thinking company that is committed to doing what it can to make changes than one that’s stuck in its ways and has its head in the sand. Kim Stoddart is the founder of Green Rocket, an award-winning ethical media relations company and social enterprise that is dedicated to driving social and environmental change. |
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