One of the first questions we hear when we talk to businesses about the potential of improved ethics and sustainable strategies is how these things may affect their profitability.
We do understand the concern because in many ways this is an emerging business opportunity in many sectors. For so long, business has been defined by creation of profit at a lowest cost commitment and using as minimal resources as possible.
The tide has turned and now it’s more about how to create a sustainable profit at the same time as balancing doing good for the planet and society. Reinvestment of profits in ethical initiatives is also being closely scrutinised by every-vigilant customers and supply chain stakeholders.
“A number of factors play a part in making a business profitable, including expert management teams, dedicated and productive employees, consistent consumer demand and careful watch over the bottom line. In addition to these well-known business practices, companies that implement a management philosophy that relies heavily on business ethics are proven to be more successful than those that operate in an unethical manner. Although it may not be the first variable considered in analysing the profits of a company, business ethics is an equally important catalyst to the success of a company.” says Melissa Horton, Investopedia.
“When companies work ethically, they will naturally outpace competition. Why? Simply because customers, as we’ve discovered, will see them as a trusted partner, not only for what they do, but how it is delivered. Commitment from management is a key factor to effectively deal with these situations. As I put it to my organisation: the only business that we do is ethical business. Particularly in high pressure environments, we must make a concerted effort to continuously focus on ethical behaviours.” said Roy Jakobs, Philips.
Mindful Collective is on the search for great examples and case studies of where ethical profit is being consistently made, and especially in situations and markets in which it might not be currently recognised as common place.
Please share links in the Comments thread below.
Profit
Facilitating profit created mindfully, through thinking and behaving in line with a higher purpose that benefits customers, society and the planet.
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Mindful Business Model Explained
In this short podcast, Neil Wilkins explains the Mindful Business Model and what’s behind each of the 4 quadrants: Purpose, People, Process, Profit
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The Business Case For Sustainability
Sustainable businesses are redefining the corporate ecosystem by designing models that create value for all stakeholders...
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We are always on the search for great examples and case studies of where ethical profit is being consistently made, and especially in situations and markets in which it might not be currently recognised as common-place. Please point us in the right direction by posting a comment below.