How will companies benefit from being Triple Purpose?
There is strong evidence that companies with ethical values are more successful. Firms that invest in improving their performance on societal and environmental issues, experience better profitability and attract more long-term, dedicated investors. Research conducted by the Institute of Business Ethics (IBE) suggests there is strong indicative evidence that large UK companies with codes of business ethics/conduct produce an above-average performance when measured against a similar group without codes. Additionally, highly sustainable companies dramatically out-performed the low-sustainability ones in terms of both stock market and accounting measures.
In short “Better Businesses do Better”
Employers who value a happy workforce and encourage independent judgment, creativity and decision-making will attract more talented people and, of course, retain them. A happier and motivated work-force will decrease staff turnover and absenteeism and increase productivity.
Encouraging a more motivated and creative environment will improve productivity. Likewise, companies who invest in new product development and R&D will design better products, will remain competitive and will ultimately achieve more sales. Investment in training, R&D and innovation can improve a company’s ability to adapt to new market conditions.
Reduce the likelihood of a serious crisis
There is less chance of costly damage to the company’s reputation where more ethical values are embedded into the core DNA of the business. It would be difficult to refute that the chances of a damaging cultural crisis is much reduced where there is better and more consistent ethical decision-making at every level.
A stronger ethical relationship with clients, one built on friendship, trust, integrity and respect, will lead to more sales. A stronger ethical relationship with other stakeholders including suppliers, again one built on friendship, trust, integrity and respect, will lead to more sustainable contracts and agreements.
A marketing opportunity both internally and externally
Becoming a Triple Purpose Company gives the management the opportunity to communicate the message internally that the company is not just focussed on maximising profit but has concerns for the environment and the welfare of its staff, customers, suppliers and other stakeholders.
In addition to marketing the Triple Purpose strategy internally to staff and other family stakeholders, a Triple Purpose Company may wish to market its ethical values to its customers and to the outside world. The principles of Triple Purpose are easy to explain and can form the basis of a positive marketing strategy. Society at large is now expecting companies to have ethical values and sustainability as a strategic objective. Increasingly, they are choosing to buy from companies they consider ethical.
Start the journey
There will be challenges along the way. Becoming a truly ethical, caring and sustainable company can take many years! It will be a long and winding road.
We accept, there would still be a need, at least initially, for some companies to continue with their prevailing top-down auditing of culture. But after a period of time, this top-down approach could be reduced as there would be a happier work-force, a work-force where a strong, caring and ethical culture is instilled naturally. This will result in a more mutually beneficial relationship with customers, suppliers, the community and other stakeholders – in fact a more sustainable company.
Good Business is Better Business
Triple Purpose means a more motivated and loyal work-force, more competitive products, more loyal customers and suppliers creating a more sustainable company.
Reduce the odds of a crisis
The chances of a damaging commercial crisis would be much reduced for a Triple Purpose Company and were a crisis to appear, it would be dealt with more easily within a caring and ethical culture.