Being a responsible business starts with strong leadership

A RESPONSIBLE BUSINESS POLICY FRAMEWORK SETS OUT THE EXPECTATIONS AND REQUIREMENTS

SWINDLES, Royal Commissions, Phoenixing, worker exploitation, overpromising and underdelivering, substitution of inferior materials, manipulation and blackmail in the gig economy, sexual harassment, and dumping of older employees despite loyal service.

This list goes on. None of these are the marks of responsible business practices. So what has gone wrong in terms of the conduct of business and management in this country?

The answer is the vast majority of businesses actually conduct their activities responsibly and ethically, which means “doing business” in accordance with the law, with honesty and fairness at the heart of relationships between the business and its employees and customers. In other words, in accordance with the expectations and requirements of Responsible Business.

So how can a business or organisation ensure that it operates in accordance with the requirements and expectations of Responsible Business?

The prerequisite for Responsible Business is responsible leadership setting the example, shaping expectations, guiding performance and dealing effectively with transgressions of responsible business management and practice. Responsible leadership will ensure three things are central to the operation of the business:

1. A Responsible Business policy framework sets out the expectations and requirements for doing business responsibly in a particular organisation at a particular time; for example, to always be respectful and listen to customers; to treat employees with respect and in accordance with the law; to provide a positive and constructive working environment; and to be honest in business dealings.

2. Management, supervisory and staff training in the requirements of Responsible Business to ensure that exploitation and manipulation of workers, customers and other stakeholders is not an acceptable business practice and that requirements of the law are understood and complied with. This training goes much deeper than mere slogans and catchphrases. It should seek to ensure that doing business responsibly is part of the DNA of the organisation;

3. Checking and auditing on a regular basis, especially ensuring that proper compliance with legal requirements is being met and that the policy for Responsible Business is being implemented at all levels.

While all parts of the business must be committed to the principles and practice of Responsible Business, the Executive has a clear leadership role in enunciating and modelling the requirements and practice of Responsible Business in their organisation.

It is also clear the human resource management (HRM) function has a particular role in supporting the executive, and to provide the training and auditing functions that ensure the practice of Responsible Business.