Companies are being forced to compete for new business based on who has the most ecological and socially responsible operations. Companies that lead in this area will thrive in the age of transparency and find increased customer loyalty and market share by positioning themselves on the “higher ground” of principled business practices. With the business transparency tsunami rolling across the corporate landscape the complacent and turbulent waters of “Business as Usual” have never looked more risky.
Driven by powerful undercurrents, including increased access to supply chain business practice data and a NGO’s ability to create a public relations tsunami with a simple viral video, company leaders are looking to stake out a higher less exposed corporate responsibility beachhead. Business sales data is providing evidence that taking the high road also provides a competitive advantage in winning bids from government and corporate purchasing departments looking to move the needle on sustainability through the power of their purchases.
The lowest price use to be enough to secure a government or corporate purchase order, but now the lowest price, the lowest carbon footprint, the lowest energy and water use, and the fairest supply chain labor practices provide the greatest competitive advantage to secure new business and become a preferred vendor.
The HIP (Human Impact + Profit) Investor Guide contends that higher principled companies enjoy higher profitability and increased attractiveness to hedge funds and institutional investors. The innovative business leaders today know they need to refocus their mission and their message to one that has meaning and power in the world. The goal of true leadership in any organization is to have employees tell their friends and family, “This is who is I am, this is what I do, and I am proud to be a part of our organization’s mission to do something meaningful and worthwhile in the world.” A transparency tsunami of employee engagement and purpose. Now that’s a competitive advantage.
Smart Green 2020 