Business leaders face huge challenges to reshape their organisations for the disruptive and increasingly connected world. The tidal wave of technology innovation and social media platforms in the workplace means that businesses are more open and accountable to public opinion than ever before.
In this new environment of instant information and increased scrutiny, the pursuit of business growth must be met with commitments to social responsibly and sustainability. More than ever the value of a business is measured in terms of its wider contribution to its employees, customers, the environment and sustainability - as well as its profits and growth.
As part of the launch of its Responsible Growth campaign, Ricoh commissioned research from YouGov, which examined the current relationship between businesses and the public. The research revealed a marked disconnect, with just 1 in every 5 people (20 per cent) saying they believe the majority of businesses operate in a responsible way.
Every business leader knows that the public perception of their organisation matters. An organisation which is perceived in a negative light will inevitably invite further scrutiny of its operations and could lose customers and partners if it cannot rectify this image.
Ultimately, corporate responsibility is no longer about just ‘putting a positive spin on things’, it’s about businesses effectively communicating what they actually do for their employees, customers and the overall community each and every day.
Building lasting trust with customers and the public is built on a record not on rhetoric. Customers, partners and employees seek action instead of talk about the aspirations of an ethical business.
Our research also shows that only one in four workers (29 per cent) feel that profitability of the business is important. With nearly 1 in 5 (18 per cent) claiming profitability is not very important. Such insights suggest that business leaders should look beyond delivering an annual company report on the improvements to the balance sheet.
Instead, business leaders should look to create a well-rounded annual report to tell the wider story about how a business has grown. That growth should not be measured in financial terms alone, and should recognise the company’s development in terms of working conditions and culture. This could include more internal training and collaboration workshops between individuals and teams. More sharing and engagement between senior management and workers at a junior level in the company. Such initiatives will galvanise the morale of the workforce and provide a clear vision for the values the company holds dear.
Building a more responsible business will not only improve firms’ relationships with their staff, it can improve brand reputation with customers and the public. It can inspire and engage the workforce, enabling employees to invest their time and energy working for a company of which they can be truly proud.
The importance of a positive external brand perception is critical to a business’s success and development. If a business is seen to be taking advantage of its employees or denying its fair contribution to UK PLC, then it will encounter relentless scrutiny from both the public and politicians.
Our research shows that over half of workers (51 per cent) said they are much more likely to buy from companies that act in a responsible way, even when compared to cheaper competitors. This finding suggests that businesses cannot compete on pricing and service delivery alone, and that there are genuine sales-related considerations to be taken into account when pursuing more responsible growth initiatives.
Therefore, it can be said with some assurance that being a modern responsible business is a good business strategy for the long-term. It is time for businesses to define not only what they do, but why they do it.
According to our research, businesses with a strong, ethical mission statement and commitments to responsible growth will deliver better working practices and more profitability. Business leaders must recognise that the digital revolution has delivered a shift of power away from the senior leaders and to the individual, where every viewpoint counts. Consequently, effectively communicating a business’ commitments to responsible business practices, as well as working with responsible partners, has never been more important to improve performance internally and also stand out from the competition.
The time is now for businesses to step up and show how they can do more than simply make money – and to achieve this real business change, there must be buy-in from the very top of the organisation. A responsible business needs a responsible leader. With responsible growth identified as the a strategy for sustainable success, the sooner CEOs embrace these initiatives, the better.
By Chas Moloney, Marketing Director at Ricoh UK & Ireland.
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