A certain vicious view of capitalism has emerged with the rise of American democracy and economic power from the early 20th century through the present. There is an immense belief that far too many companies will do whatever it takes to turn a buck, with little to no regard for the health, well-being and general welfare of the employees who make that profit possible. Some CEOs and companies are turning the traditional concept on its head by focusing more on people, than on profits. Read on to learn more about the CEOs behind this movement and why more are jumping on board.
Reputation is Everything
From the smallest local businesses to global enterprises, the reputation of a business is everything when it comes to success. Companies with a reputation and sense of character that is viewed negatively will struggle to attract new customers. There are countless statistics that back up the importance of a good reputation:
- 92% of consumers read online reviews to learn more about businesses
- 80% of consumers change their mind about a purchase based on a brand's online reviews
- 67% of consumers will not buy from businesses that have 1 to 3 bad reviews
Social Media Takes Issues Viral Globally
Social media gives like-minded individuals the opportunity to retweet, post, and share information with their friends and family online. This information can quickly go global when others then retweet, comment on, share, or repost that information themselves. USA Today notes that a company could have 10 positive reviews and just one negative review, but if that one negative review is mishandled it can have a disproportionate impact. Increasing positive information on social media is great for your business, but minimizing the negative views delivers greater bang for your buck.
People Create Profits
A business on its own cannot turn a profit. Computers, robots, equipment, and office space are not active producers of true value delivered to consumers. Without the people working those machines and occupying those spaces, a business is just a hollow entity. Taking care of the people that make it possible for the business to thrive is essential. Richard Branson, CEO at Virgin, stated it best to Forbes when he said:
"I think if the people who work for a business are proud of the business they work for, they'll work that much harder, and therefore, I think turning your business into a real force for good is good business sense as well."
It's the Right Thing to Do!
At the end of the day, taking care of the people who push the business forward and help it generate profits should be taken care of because it is the right thing to do. This is plain and simple, and CEOs are increasingly recognizing this feature. Irene Rosenfeld, CEO at Mondelez, put it accurately when she said, "our business success is directly linked to enhancing the well-being of the people who make and enjoy our products, and to supporting the communities where we grow our ingredients."
Remember, businesses do not exist on their own in a vacuum environment. The people who power those businesses should be rewarded in kind for generating profit and held in higher regard than the singular pursuit of money.
If you need assistance planning for your business or with any other financial matters, call your advisor at Manhattan Ridge Advisors.
The views expressed are not necessarily the opinion of Social Advisors, and should not be construed directly or indirectly, as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed.