Rewards for Being Good Stewards

Companies that are good to the planet, are honest about what they do, and treat people fairly can get special rewards.

You’ve probably read about or experienced some of these exemplars. Nordstrom and L.L.Bean are well known for their exceptional customer service, offering generous return policies and high-quality products. IKEA and The Body Shop exemplify fair treatment of suppliers, with commitments to ethical sourcing and fair trade partnerships. In terms of employee satisfaction, Costco and Southwest Airlines are industry leaders, offering competitive wages, benefits, and strong company cultures.

Organizations that demonstrate that a strong commitment to their ecosystems can earn significant premiums in both tangible and intangible forms.

Tangible Benefits

Companies that prioritize environmental responsibility, social impact, and ethical governance often reap tangible benefits. These include increased financial performance through higher revenues and lower costs. By adopting sustainable practices, companies can reduce expenses, optimize resource use, and potentially qualify for government tax incentives. Moreover, positive measures to address environmental and social issues can help mitigate legal and reputational risks.

Intangible Benefits

Companies that prioritize environmental responsibility, social impact, and ethical governance often cultivate a stronger brand image. These organizations tend to resonate with consumers who share similar values, fostering increased customer loyalty. Moreover, a strong commitment to these areas can significantly enhance a company’s reputation as an attractive employer, drawing top talent to the organization. In industries experiencing talent shortages minor differences matter.

And these good stewards can cultivate stronger relationships with a wide range of stakeholders. By engaging with local communities on sustainability initiatives, businesses can foster trust and support. Additionally, transparent communication about environmental and social impacts can build confidence among investors. Collaborating with suppliers on sustainability efforts makes the supply chain stranger for all parties.

Moving from the traditional bottom line to the ‘triple bottom line’ takes focus and effort. It is a choice. But being really good to people and the planet pays off in long-term benefits and makes you and your organization more resilient.