10 Ways to Run a Responsible Business Profitably

There is no doubt that the business world is changing. Customers not only expect great quality they also expect that the products and services they buy haven’t harmed anyone or damaged anything on our planet along the way.

Navigating all the different social, environmental and economic aspects of a business can be overwhelming if you don’t understand all the different issues you must address and don’t know how to incorporate them into your daily activity – while still making a profit.  Failing to address one of these issues may not only pose a threat to the functioning of your business but could also be a disaster to its long-term success.

We at the Bizsafe have defined 10 essential elements of a responsible business.  Whether you’re a large established organisation that’s been around for a while or a new enterprise just starting out, each of these essential elements are fundamental to the long-term success of your operation whether you explicitly know them or not.  Not only do they help guide your responsible business activity, they also help you seize new opportunities, avoid disruption, increase your impact and grow your revenue.

Purpose

It’s important that you and your staff are clear about the purpose of your business and the values that drive it.  As a responsible business it is essential that you set your ethical foundations so that all decisions and activity are guided by clear shared values.  This helps you stay on course when the business is faced with all manner of social, environmental and economic challenges that must be addressed in responsible and sustainable way.

Value Proposition

It’s important to think about the customer problems you can solve, or the customer benefits you can create.  All business must develop a clear positioning statement that explains what benefits they provide and how they do it uniquely well.  In a responsible business it’s also about identifying points of difference based on performance quality, social responsibility and environmental sustainability of your products and services.

Customers

Every business should know who their ideal customers are by understanding their needs and wants as well as the values you aim to fulfil for them.  It’s also important to know how you are going to reach them and how you will maintain your relationship with them.   As a responsible business you must also determine what role your social and environmental activity plays in your target market and how to communicate this effectively.  

Sustainable Economic Value

As a responsible business you need to create and deliver sustainable products and services that your customers want and are willing to pay for.  You must consider all impacts across the chain of production and consumption and then undertake a process based on continuous creativity, innovation and adaptation that fulfils and delivers these to your customers in a sustainable way.

Key Human Resource Management

Your staff are your greatest asset and come with individual goals and purposes.  Businesses that really look after their staff reap many benefits including; greater employee engagement, greater loyalty and retention, improved organisation morale and increased productivity.  As a responsible business you need to consider how you will build the health, wellbeing and safety of all your staff.  This includes their physical and emotional wellbeing as well as their technical capabilities.

Key Resource Management

Sometimes the best way to increase your profitability is to not waste time and money on unnecessary materials or processes in the first place.  Doing more with less is the new mantra of a sustainable business.  Therefore, as a responsible business you need to manage your resources and supply chains wisely and consider principles of resource efficiency, whole system design and sustainable procurement.

Business Environment

Keeping your eye on what’s happening around you is essential in today’s dynamically changing business environment.  As a responsible business you need to track external factors such as social, technological, economic, environmental, legal, political and ethical issues and then you must address them all in a timely and appropriate way.

Key Stakeholders

A stakeholder is a person or group that is affected by your business’s operations. This could be investors, suppliers, creditors, partners, trade unions, governments, customers and the broader community.  Different stakeholders have different interests.  A responsible business recognises their stakeholders and takes action to address their different needs and interests as best they can.

Key Business Activities

Every business undertakes key tasks in order to fulfil its business purpose.  These tasks are determined by your business model but usually include; design, production, marketing, sales, distribution and customer experience.  A responsible business plans, tracks, adapts and communicates the key activities that are needed to create and deliver their products and services.  

Adaptation

The goal of a responsible business is to keep an eye on the dynamically changing, complex and interconnected internal and external business environment and continuously adapt as needed to flourish.   It’s therefore important to keep a holistic view of your business while keeping the principles of a responsible business in mind – Purpose, Profit, People and Planet.

 

Bizsafe delivers innovative business management training for small to medium enterprises through engaging face to face and online edutainment.  Our purpose is to build the capacity of business owners, managers and their staff to make a positive impact in the business world.  Contact us at hello@bizsafe.com.au or call 1300 022 257.