Do you remember that guy Mr Burns on The Simpsons? He was Springfield’s resident millionaire, living in a mansion on the hill and making a killing from his nuclear plant while his many employees worked in less than awesome conditions.
The image of Mr Burns and his corporate creepiness is one many people have of big business owners. The shrewd businessman, living in his big home on the hill, rubbing his hands together and counting his millions by hand, not caring about the minions who are running his business and making it a success.
It’s no wonder so many people recoil against the thought of big businesses or corporates. It’s hardly an endearing connotation.
So I can absolutely see why “doing good” can be good for the bottom line. Yes, it may cost you more. Yes, it may mean you have to say no to some opportunities. BUT it can endear you to the general public who will become loyal and raving fans of yours because it. DOING THE RIGHT THING CAN BE PROFITABLE. Make a call to be good and fans will follow.
I read a great piece in StopPress last week that outlined why “doing good” is a good business move. Let’s call it business karma.
They shared The Warehouse’s “good citizen” moves, which include not selling R18 games and DVDs and introducing a ‘living wage’ for 4100 of their retail staff (going over and beyond legal requirements, at a cost of $6m to the business). These aren’t their first “non profitable” warm-fuzzy moves – they’ve always had a real focus on sustainability and recycling in their business, and a proud tradition of fundraising for local and national causes. Even though they knew that withdrawing the popular R18 games and DVDs from sale would lose them some customers and good sales, chief executive Mark Powell said the decision was driven by the company’s guiding principles and purpose, which include “making New Zealand a better place to live”.
It went further to say that research by Jim Stengel shows the world’s fastest growing brands are the ones that have built the deepest relationships with customers. People like being friends/fans with people who are genuinely nice, right?
In fact, Stengel (in his book Grow) said that investment in these 50 companies would have proven 400 percent more profitable over the last decade than an investment in the S&P 500. Being community minded = profit growth.
His research found the fastest-growing 50 brands touch on these five fundamental human values:
· Impacting Society: Affecting society broadly, from challenging the status quo to redefining categories.
· Evoking Pride: Giving people increased confidence, strength, security and vitality.
· Enabling Connection: Enhancing the ability of people to connect with each other and the world in meaningful ways.
· Inspiring Exploration: Helping people explore new horizons and new experience.
· Eliciting Joy: Activating experiences of happiness, wonder, and limitless possibilities.
So what are your plans for doing good? Can your business “give back” in some way? Can you help the causes that are important to your customers? Can you do business ethically and morally and go over and beyond in how you do it? Like everything else in business, do 10% more than your competitors and you’ll reap the rewards.
For ideas on how to get profit growth through doing better business, contact us for business coaching, business advice or consulting or to get onto our impressive bootcamp intensive. firstname.lastname@example.org or businesschanging.com