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whether it is able to act responsibly and meet the reasonable expectations of its customers and all stakeholders.
Acting responsibly and meeting stakeholder expectations is premised on the development of a business culture that is sensitive to both the short-term and long-term needs of the business and its stakeholders, including those of the nation.
Among business stakeholders are customers, shareholders, employees, suppliers, investors, regulators, the nation, communities in which it does business and the natural environment. From the business, customers want quality products and employees want their welfare to be taken care of. Investors want a return on their investment and shareholders want value for their money. Communities want schools, roads and hospitals to be built and the natural environment needs preservation for posterity.
The nation wants to know the business’ contribution towards the GDP and its contribution towards the reduction of unemployment. A responsible enterprise should therefore generate revenue by satisfying customers. It should attract capital by meeting investor expectations and it must increase effectiveness by attracting competent staff.
A responsible business must secure community good will by genuinely involving the community in its operations and should contribute towards national development by providing employment and contributing to the fiscus.
A responsible business should not cut corners and compromise product quality. It should practise transparency and accountability in financial matters and must take care of the health and safety needs of its employees. A responsible business should comply with the laws of the land, industry regulations, and its own policies and procedures. Businesses, whether small or large, should act responsibly all the time because improved business performance and profitability only come to those that foster reasonable expectations of their stakeholders.
Businesses should synchronise their major goals of making profit and increasing shareholder value with emerging business paradigms of sustainability and ethical business practices. While profits made using unethical means may be gratifying in the short term, they clearly don’t guarantee that more profits will continue to be made in future.
Instead, they needlessly expose companies to sudden and painful loss of business and even going under in the long run.
Responsible businesses should therefore see the value of going beyond short-term profiteering to consider long-term growth, the people, the planet and probity. The triple bottom line is in today’s highly competitive business environment the unmistakable cornerstone for sustainable business success, whether the business is for-profit or not-for-profit.
A responsible business must embed in its operational structures a formal Corporate Ethics Programme in order to provide clear behavioural signposts to its employees. An effective ethics programme is the cornerstone for building a responsible business enterprise, and through it, companies are bound to enjoy increased productivity and profitability, increased competitiveness and access to cheap funding, improved reputation and sustained long-term growth.
Equally important is embracing a Corporate Social Responsibility thrust that resonates with all stakeholders. Through CSR, companies are able to build strong brands and secure community goodwill. A good CEP intertwined with an equally sound CSR policy can clearly differentiate a company and encourage people to purchase its products based on a solid belief that the company operates with the interests of customers, the nation, and all stakeholders at heart.
Businesses that choose to be thoughtless and reckless through irresponsible business decisions and actions are bound to crumble in the long run. Company leaders should never concentrate their attention and efforts on merely dealing with everyday challenges because doing so is what wrongly justifies engaging in unethical business practices.
Leaders should instead strive to rise above those circumstances to focus on the future of their firms. A responsible business enterprise holds an enduring purpose that goes beyond profit to define the enterprise and inspire its employees to have a deeper understanding of the intent of the company, stirring them to do more for the firm.
Yes, it really matters how profits are made, and how wealth is distributed in any society. Economic growth and development and the improvement of the people’s living standards must anchor the broader objectives of every business entity. A responsible business must champion equitable distribution of wealth and help fight corruption and other societal misdemeanours.
A responsible business must be inspired to contribute towards national economic growth and development. It should take initiatives and inspire change by contributing to efforts that promote a nation’s evolution towards responsible business conduct and economic development.
This is obtainable when firms take the initiative to sponsor genuine efforts that promote such transformation and when they engage in broader corporate social responsibility programmes that target the entire nation, not just the communities in which they do business.
Companies must engage in the construction of schools, roads and hospitals, providing clean water, and caring for the poor and disadvantaged in the country as a whole. A responsible business should help to protect the rights of every citizen and must be a flag bearer for economic emancipation of the marginalised.
A responsible business is a citadel of hope to many in a sea of unbridled societal misdemeanour. It guards its reputation jealously, and instinctively fends off the corrosive effects of its decaying environment. Like salt in water, it uses its reputable status to bring positive change in households and communities.
It has the power and strength to initiate change that permeates whole societies, inspiring people to refuse to be misled by warped and deceptive change processes and cajoling them to genuinely seek to revolutionise their circumstances.
Responsible businesses are with and for communities, they are with and for societies, and responsible businesses have the power to bring positive change to whole nations.
Bradwell Mhonderwa is an Ethics Coach and Trainer with the Business Ethics Centre. Send feedback to [email protected], or visit www.businessethicscentre.co.zw, or call 0772 913 875
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