Why being a ‘good’ business matters

Business leaders must work with colleagues and customers and ensure that the path ahead is the right one, writes business advisor Kate Hardcastle

Being ‘good’ – what does that really mean for a business? It’s such a generic term. In the past ‘good’ would have meant an organisation’s financial health, customer retention or maybe even its website traffic statistics.

But now that four-letter word adds up to so much more: it’s about our corporate environmental standing, how much support we offer for the mental health and wellbeing of colleagues, and what impact we make as a stakeholder in our community.

The pressure is on for organisations around the world to stand up and be counted. Green washing just will not cut it anymore. Nor will the notion of a ‘spokesperson being unavailable for comment’. Leaders of today must make a difference for the future and accept that it is not always about the immediate wins. This is a longer term but critical mission.

With the consumer having more information at their fingertips than ever before, they are not afraid to use it. They can and will find your email address in seconds if they wish to talk directly to you about any perceived challenges.

Internationally, many companies have experienced service issues due to the pandemic, and the customer is still feeling the pain and their tolerance is much lower than it used to be in this instantaneous world.

Unlike in the past, when you would have a stern letter of complaint to the CEO from the determined few, many people now use the public platform of social media to vent their frustrations, and in doing so, often find kindred spirits who have experienced similar issues.

Hence it is a challenging phase for business leaders. As a client recently told me: “We have just used all the fuel in the tank to serve throughout the pandemic, and at the same time we have to take on climate crisis and so many other issues with the same budget as before. How?”

And it’s a fair reflection as Covid-19 has churned up a seabed of issues that need to be tackled – greater diversity and inclusion being a significant focus and rightly so.

However, this generation of leaders will be the baton-carriers for the next – and we must realise that it may not be about us reaching the final glorious lap. It is up to us to be the change we want to see and to take our whole organisation with us. We must work with our colleagues and customers, include them, and ensure that the path ahead is the right one for the greater good.

BETTER CONNECTION

Being a better organisation and making profit ethically should be a basic value for any business. Yet some companies feel great concern about making any grand statements on progress and developments – as it is feared that this will never be enough for the customer.

Unfortunately, a real disconnect can occur between customers and CEOs. I have interacted and engaged with thousands of consumers around the globe in research and development programmes, and one of the reminders I take is that a consumer is very unlikely to understand or have any grasp on how your organisation works, and what is involved in getting that product or service to them. And without that, it’s near impossible for a consumer to have a detailed understanding of what is achievable in the steps towards being better.

Companies often talk from the inside out, which means that statements on measures of improvement can be too detailed, filled with jargon and sit in wordy statements on corporate sections on the website.

It is time to find a common language to have an ongoing conversation with our customers as we further our journey to be ‘good’ and then great. Easy and understandable measures should be regularly published and be easily accessible. Brand values and promises are as relevant on the receipts we send and behind the counters we serve at. The wallet for the hotel key could enlighten the guest on what improvements are being made as well as inviting them to be part of the conversation. ESG is not about limiting the conversation to a page on a website.

The path to greatness is never an easy one, but it will be enhanced with the first step of accepting that this is a time for collaboration, honesty and working from the outside in. On new paths it is more than acceptable to ask for guidance, take time to reflect on where we have been and reaching our destination.