"Doing Good" Makes You "Doing Well"

Being socially responsible means not only a high level of ethics, but also higher revenue, lower operational risk and lower costs for the company, which means "doing well" by "doing good" ( do well).

Facts speak louder than words! Financial analysts on the Dow Jones Sustainability Indices found that stocks of companies that fully considered these factors outperformed those that took no account of their social and environmental impacts. Innovest Strategic Value Advisors has also found that companies with excellent "environmental performance" also have good financial performance! Research by Vanderbilt University found that 80 percent of companies that do well in environmental protection are also financially stronger than those that pollute.

Practice as a Global Company

If your company has ambitions to compete on the global business stage, there are more barriers to doing so. The World Economic Forum believes that having a sense of social responsibility is one of the decisive factors in determining whether a company can succeed in global operations.

So, how can a globalized business achieve this? For example, under the condition of complying with global regulations, the capital cost of the company can be effectively reduced by raising funds in the regions with the most capital and the lowest raising costs in the world. Through savvy global financial management, the tax burden can be effectively reduced. Taking responsibility for the environment can reduce the risk of violating environmental regulations, and similarly, being socially responsible can reduce the political risk of selling and operating in overseas countries.

How do the world's leading companies practice social responsibility? New Statesman magazine cites the following examples:

Computer giant IBM believes that only with a strong education system can businesses thrive and achieve long-term growth. Through the implementation of the "Reinventing Education" program, IBM has contributed technology and know-how, thereby enhancing the long-term effects of a series of company initiatives.

Diageo, an international consumer goods company, actively encourages employees to participate in community work. The company offers Brazilians the opportunity to acquire new skills, and provides training and job opportunities to young unemployed.

Tesco, a supermarket chain, has also adopted new packaging technology, resulting in a 25% reduction in packaging waste.

Shell is also actively involved in social affairs. For example, providing energy awareness materials to schools; partnering with the London Symphony Orchestra to provide performances to those who rarely have the opportunity to enjoy a symphony; providing summer camps to students and supporting young entrepreneurs.

The shareholders of these global companies are very satisfied with these plans. Statistics also strongly support this conclusion. According to a survey, more than 70% of respondents said they would not buy anything from companies that are not socially responsible; and more than 50% said that under the same conditions of product quality, service and price , they are more likely to shop from socially responsible companies.

Small companies are moving too

Socially responsible moves are not limited to the big global corporations. In fact, many small businesses are also not far behind and are doing their best.

Charlie Wilson is trying to run an "ethical business," according to Entrepreneur magazine. The company, called SeaRail International, is a shipwreck rescue company with a registered capital of $1.6 million. Wilson added social responsibility to the company's mission statement, not only for higher ethical standards, but more importantly for the successful operation of the business. As Wilson puts it, "In business, ethics creates trust, intimacy and predictability. There are a lot of people in our industry looking for shortcuts. But I don't think it's a good way to run a business, you don't You may gain a good company reputation in this way, and in the end, customers will leave you."

One way to do this for small companies is to establish a code of ethics or social responsibility early on. Like Wilson, many companies include this in their corporate mission statements. By establishing procedures that help employees cope with the dilemmas they face on a daily basis, employees don't just stop thinking about social responsibility, they put it into practice. Or you can think about what type of business to join forces with. In general, companies that match the products and services your company offers and are relevant to your customers should be your picks!

Marketing is also one area where small socially responsible companies can benefit. It is true that improving product quality and increasing environmental awareness can also make your company "different" from your competitors. But in fact, some supply chains have stricter requirements, and their members can only be those companies that have passed ISO 14000 certification, and these companies have a strong sense of environmental responsibility. If your company is not ISO 14000 certified, then you will not be able to market your product to any business in that supply chain.

Attracting and retaining good employees is also one area where businesses can benefit greatly. Paul McDonald, executive director of Robert Half Management Resources, said, "When many companies are faced with the choice of whether to do business or not, and individuals are faced with the choice of whether to accept a position with a company, they are looking for 'good corporate citizenship'. Evidence. Everyone wants their workplace to be pretty good, and social responsibility programs have a very significant effect on enhancing that perception."

Author Jet Magsaysay, consultant for the magazine, translated by Li Jian.