Today, consumers, investors and even employees are expecting more from the companies they support. It doesn’t take too much browsing on social media to read about brands that have gained widespread resentment for reading less. Nearly half of all consumers openly admit to slanting business. Even if those brands are profitable, they face a potentially devastating loss of reputation that could affect their bottom lines.
In other words, it’s a very new kind of environment. A whopping 62% of chief experienced officers told Deloitte that they were as focused on positive returns as on profit growth. Accordingly, some business leaders are working hard to bridge the gap between doing good and doing good. What they are finding is that through innovative thinking and problem solving, they can take a position without losing financial momentum.
Consider the case of CVS. In the mid-2010s, pharmacy retailers decided to stop selling tobacco products. The company lost an estimated $ 2 billion in sales, but gained in the long run, posting significant annual gross profit growth year after year.
Of course, knowing where to start can be difficult for companies. It is not easy to try to balance revenue with the needs of the community and consumers. Finding out what other successful corporate firms are doing is a great way for companies to get started. The following is an example of how world-class companies are setting objectives to match profits.
1. They are redesigning products to meet the needs of the changing user
An easy way to bring more benefits to stakeholders and end users is by refreshing a product. Redesigning packaging or procuring raw materials from environmentally friendly vendors can be an incentive for buyers to become more sustainable. The point is certainly not to change a product without reason. However, it may be worthwhile to restructure offers so that they meet the needs of modern buyers.
Invest in Instructure and introduce new assessment tools and methods, designed to allow educators to create an equal playing field for students. Instead of forcing teachers to create their own assessments, the instructor did a lot of work. It allows teachers to gain plug-and-play experience when using canvas to conduct assessments.
2. They are getting concrete about the promise of sustainability.
About nine out of every 10 S&P companies have started producing annual sustainable reports. The move is consistent with what consumers want, which is more environmental accountability than corporations. Although not all organizations have built a comprehensive mission or a framework for their sustainable goals. Rather, they are talking but probably not walking. And they’re only raising suspicions among consumers wary of big promises.
Equifax has chosen to block the system of passive promises by setting up real evidence and numbers for its sustainability. The consumer credit reporting giant is committed to hitting net-zero emissions in 18 years, and explaining how. Equifax is not only tracking its impact but it is investing $ 1.5 billion in cloud technology. Equifax leaders have stressed that by moving more practices to the cloud, their company will be able to reduce its energy costs. At the same time, team members will still be able to work efficiently and serve customers.
3. They are using technology to make what was once impossible.
In an effort to “do better”, many companies are relying on powerful technology. In fact, Fintech Leader FIS is exploring new ways to use integrated payment technology. For example, FIS is focusing on cashless options and enhancing the experience of participants in the Washington Nationals Games. Participants can quickly pay for everything from tickets to meals, as well as bet on the BetMGM Sportsbook. Integration provides complete personalization of any in-game experience in real time using data through its unparalleled analysis platform.
Indeed, technology can become a key resource for all organizations seeking to remove the “corporate purpose” needle. When applied thoughtfully, technologies have the potential to reduce the pressure on the average consumer-company. In addition, technology can encourage different ways of thinking. And different ways of thinking can become food for revolutionary solutions that change our everyday experience.
4. They are emphasizing the triple bottom line.
The last decade has seen an uptick in corporations focusing on a “triple bottom line” of “three Ps” – profit, people and planets. Basically, triple bottom line accounting takes a holistic approach to a complete measure of a company’s impact. Yes, earned dollars are important. Yet the triple bottom line shows the waves below the reporting surface as well as what is above.
With 69% of investors interested in putting money behind a socially responsible company, the triple bottom line is all the more important. Some experts believe that this would be the ideal way to evaluate the actual success of a business beyond the raw numbers. After all, triple bottom line accounting allows for measuring a company’s empathy and care objectives.
With the next generation of industry and potential metavers looming, companies are being asked to take action. They always have to make money but now they are expected to repay in a meaningful way. Those who meet this challenge will be rewarded at all levels.