Today, business success exceeds brand recognition, profitability, and growth rate. Stakeholders, customers, and employees pass a company as successful based on its positive contribution toward the economy, community, and environment.
In other words, they check whether the company cares about the greater good of the community, humanity, and the environment, not just high-profit margins. Through socially responsible practices, ethical companies demonstrate their stance on the matter. But how can one quantify their impact and success? Here are more details.
1. Employees’ Ability To Express Themselves
An ethical company makes its employees feel empowered enough to speak their minds. Ethical programs should drive fear out of the organization so that staff can raise concerns without retaliation. So, if employees feel safe to ask any question or are less fearful of approaching the top management for suggestions or complaints, ethical programs have yielded fruits.
2. Fewer Customer Complaints
Customers show an outstanding commitment to a brand that meets its ethical standards. The brand transmits trust to its customers where the customer feels the company renders quality and excellent services compared to its competitors. It also shows that customer care service is doing an excellent job of helping customers solve their complaints.
To measure success, ethical companies track and analyze customer complaints. If there are many customer complaints regarding a product or service, the top management reviews the business to see what they are doing wrong. If the complaints are few, the brand hacked ethical standards, and customers enjoy the services while the customer care desk is well-trained to meet customer needs.
3. Contributions To The Community
Ethical companies are integrating ethical programs into their culture to be perceived as genuine and compassionate toward humanity as it boosts brand reputation. The reason is that stakeholders, investors, and employees want to spend their money and offer their services to a socially conscious company.
Through ethical responsibility, ethical companies volunteer several hours of volunteer work to local charities. For instance, they conduct monthly cleanup exercises to protect the community from waterborne diseases.
They also develop programs such as a certain amount going toward helping the less fortunate in society for every purchase. Such efforts are not only right from an ethical standpoint, but they also improve the company’s reputation.
4. Environmental Protection Measures
Environmental protection has been ingrained into people’s consciousness considering the effect damage pollution causes the ecosystem. Stakeholders are keen to associate themselves with businesses that have little or no consciousness toward nature.
An ethical business puts in place measures to ensure its wastes are eliminated safely. They abandon dumping toxic substances into the river (a cheaper option) to establish a waste management system.
Measuring The Impact Of Ethical Practices
People are looking to partner with ethical companies, as they have integrated ethical standards into their core statements. Stakeholders, employees, and investors can measure the impact of the standards through employee ability to express themselves, reduced customer complaints, environmental protection measures, and the company’s contribution toward the community. All these are indicators that the company is socially responsible and looks after the welfare of the people and environment
