How Being a Socially Responsible and Ethical Company Has its Benefits
As a business owner, you have probably considered the role that social responsibility and ethics plays in your business venture. Hopefully, your pondering helped you realize that running a successful business means more than just big profits. With a properly structured socially responsible business, you truly can change an important facet of the world. Whether you want to tackle a major social issue or just improve your own environmental practices, running a socially responsible and ethical company has distinct benefits -- and some of them even show up in the bottom line.
More and more businesses are choosing to run an intentionally ethical business. Others aren't sure if they can because they only have a few employees and little revenue. The truth is, anyone can do some small part for social responsibility and do the right thing. What are the benefits to “doing the right thing”? Let's take a look at some of the most obvious ones.
Social responsibility in society
The main benefit to becoming a socially responsible company is that you are actually making a positive difference in the world. Just imagine if every company attempted to make ethical decision and be more socially responsible. This would result in a much better world. Even if you are only making a small difference, your efforts combined with the efforts of other ethical companies can help make big changes.
Differentiating business through social consciousness
Becoming a socially responsible business can help to distinguish your company from the competition. How you choose to practice social responsibility is up to you. There are many different ways to do so. You can partner with a nonprofit, offer benefits to your employees, go “green”, or simply be more conscientious in your decision-making process. Being more ethical will likely improve your customer service and possibly your relationships within the industry. These factors will help to ensure long-term success as well as earning you a reputation for ethical business practices.
Gaining credibility through responsible acts
Another benefit to becoming a socially responsible business is that your customers will recognize your company as trustworthy and morally responsible. This trust can be incredibly important when you are trying to build long-term relationships with your customers. Customers who see that a business is attempting to limit its impact on the environment or lend a hand to the needy will be more inclined to remain loyal customers of such a company. These customers will probably pass along their passion and loyalty to friends and family. Word of mouth can be a powerful advertising tool for you. This will help you build a solid customer base that will remain faithful for years to come.
Creating a loyal, happy labor base using good ethics
One way you can create an ethical company is to treat your employees with kindness and respect. This means that you should look after their welfare and do whatever you can to ensure their health and happiness. If your employees are happy with your company, they will be more efficient workers and be more likely to stay with your company. You can offer healthcare, on site gyms, or other support services. Quality employees are hard to find, so you will want to maintain your workforce if possible. Great employees will translate into happy customers and bigger profits.
Help inspire other businesses to greater levels of social responsibility
As a socially responsible business, you set a good example for other business who may be considering becoming more ethical. Over time, perhaps immoral business practices will be eliminated altogether. Your socially responsible business practices may cause other businesses to be pressured to be more ethical. Companies like TOMS shoes, Google, Starbucks and Intel are helping to pave the way for other socially responsible businesses.Less known -- but no less important -- businesses such as Better World Books form their entire business plan around social responsibility.
As you start to change your business practices and become more ethical, you will see that your hard work is all worth it. Nothing can compare to the feeling of knowing you are doing the right thing, and if the right thing helps your business improve profits, then it’s all the better.
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