Why become a responsible business?
A simple guide to understanding benefits of being a responsible business.
The way we do business is changing. Customer needs and demands are developing. Emerging technologies are enabling new ways of working. Supply chains are shifting and new markets are opening up. A more deeply connected generation is emerging. Knowing more about the world presents enormous opportunity, especially for business.
Business benefits
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Brand value and reputation
‘Brand value and reputation’ refers to any benefits realised from responsible business that improve the value of the brand and/or the reputation of the brand or organisation.
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Employees and future workforce
Responsible business practice benefits employees, and your business' ability to attract and hold on to talent. This includes employee motivation, productivity, recruitment, satisfaction, retention, engagement, and loyalty.
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Operational effectiveness
There are numerous improvements and innovation in an organisation’s practices and processes as a direct result of being more responsible and sustainable, creating more effective operations and higher levels of efficiency.
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Risk reduction and management
There are benefits resulting from CR efforts that improve the organisation’s ability to identify and reduce exposure to risk, and prepare for and manage risks better.
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Direct financial impact
This occurs when being responsible has a direct benefit to the financial performance of an organisation – for example improving access to capital, reducing costs, and improving shareholder value.
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Organisational growth
This is a business benefit when opportunities for overall organisational growth is created from being a responsible business – whether through new markets, new product development, lateral expansion, new customers, or new partnerships/alliances.
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Business opportunity
The new opportunities or innovation generation created for all stakeholders specifically because of their efforts in being a responsible business. This can result in new business development, but critically it is about win-win opportunities for a variety of stakeholders.
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Produced by Business in the Community and the Doughty Centre for Corporate Responsibility.
