Just like the enterprises that came before them, businesses today are still driven mainly by profit. But compared to their predecessors, modern enterprises have a greater understanding of the role that they play in moving society forward and paving the path for a better future for the world at large. After all, today’s businesses are subjected to intense scrutiny, and it’s in their best interest to consider the impact of their decisions on individual people, the environment, and the community before carrying them out. Otherwise, they risk damaging their reputation and losing the confidence of their stakeholders, which can then have a significant negative impact on their profit margins.
Business for Good: What Is It About?
Companies that are keen on making a profit while pursuing a purpose, more often than not, subscribe to the Business for Good model. This business model aims to provide stakeholders with earnings while making the world a better place. Implementing endeavours that make financial sense while also helping move society forward at the same time is a balancing act. To pull it off consistently, decision-makers within businesses need to have a keen practical sense as well as a solid grounding in the principles and ethics that their company aims to champion. If they are able to do this, then their organisation has a better chance of joining the ranks of successful businesses in Singapore and many other highly competitive and forward-looking jurisdictions around the world where governments and consumers alike appreciate conscientious and innovative companies.
There are certain characteristics that ethical and forward-thinking companies share. Here are just some of them:
Effective and Ethical Leadership
The impact of effective and ethical leadership in a company cannot be overstated. The highest officials of a company are responsible for steering the entire organisation in their desired direction. More than anyone else, these leaders are tasked with balancing the need to turn a profit and make ethically responsible decisions for the company, and they also serve as an embodiment of the company culture and principles.
The leaders of a business that builds itself up as a force for good are examples of excellent conduct in and out of the workplace, and the values that the company stands for should be reflected in the decisions and actions that they are taking for the entire organisation. People in leadership positions are not just there for their character and integrity; they must also excel in the work that they do and effectively lead the entire organisation in meeting their company’s objectives and goals.
A Culture Based on Integrity and Fairness
Many organisations have their own mission and vision statements that demonstrate how their goals can make a positive difference in the lives of their employees, partners, customers, and other stakeholders. These statements often guide the formation and perpetuation of their company culture. There are two values that can always be found in an ethical company’s workplace culture: integrity and fairness.
Integrity or having uncompromising moral principles is essential to making right and responsible decisions. On the other hand, a company that values fairness makes every effort to ensure that their customers, clients, vendors, employees, and other stakeholders are treated with honesty, openness, and decency.
An Ecosystem-Driven Approach to Doing Business
Companies that adhere to the business for good model don’t get carried away by highly competitive business environments. Rather than engaging in cutthroat competition with other companies, conscientious commercial entities choose to create an ecosystem of products and services that benefit their customers and the world at large while keeping their operations profitable.
By coordinating with their suppliers, customers, and vendors—and by setting, adhering to, and updating their standards—forward-looking businesses can create sustainable solutions for everyone. Informed by the concerns and ideas of various stakeholders, the products and services that these companies offer stand to make a maximum impact and benefit as many people as possible.
A Safe Working Environment
Finally, ethical businesses maintain a safe working environment for their employees. Their attempts to make their communities a better place start in their own backyard. These businesses adhere to the safety guidelines and procedures that are being enforced in their respective locations, and they are always striving to improve the effectiveness of their processes and safety measures. In addition to equipping their people with the tools, skills, and working space that enhance their level of safety, forward-looking organisations are making every effort to maintain a work environment that encourages open communication, personal responsibility, and a high degree of responsiveness among their employees.
Building a good reputation is a project that requires consistency, commitment, and plenty of time. Businesses that are aiming to paint for themselves a picture of ethical responsibility have plenty of work to do to ensure that they can embody the values that they want to be known for. Making an effort to attain these 4 qualities is a good start for a business that aims to make a profit as well as stand for a cause that is bigger than itself.