How Businesses Can Lead on Public Policy—and More
Purpose-Driven Companies Can Create Strong Bonds with Like-Minded Customers
As climate change becomes a pressing issue, more companies are beginning to have a change of heart when it comes to their policies and processes that have a negative environmental impact. Not only is this shift better for the planet, but it is also proving to be better for business.
Millennials and Generation Z have different spending habits than other generations, and they generally like to give their business to companies that share their values. This symbiotic relationship is influencing public policy in many situations, and it is starting to look like a turning point for the better.
Public Administration vs. Public Management
Sustainability, corporate responsibility and transparency are becoming valued characteristics in modern business. While companies historically have been kept in relative check by rules, regulations and policies put into effect by institutions, these old policy structures are no longer enough to stymie the damage being done by large corporate entities. Some say that the only way we will really see sustainable public policy enacted is if corporations are the ones who kick off the process.
While the U.S. has its fair share of public managers and public administrators doing their best to coordinate efforts with elected officials to help with long-term sustainability, they can only do so much. The public sector is indeed charged with developing appropriate policy. However, that policy can be easily affected by public opinion, which in turn can be affected by the actions of any given business. If companies decide to become the torchbearers for environmental activism, public policy will surely follow suit.
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Businesses around the world have much more power to improve the lives of the public at large than they may recognize. By acting on environmental concerns and lifting underserved groups, businesses can change public perception on any given issue if they go above and beyond to affect change.
While government bodies have limited resources that are often tied up in bureaucratic gridlock, private companies have much more leeway in how and when they spend their money. If they choose to, they can do an immense amount of good in a short amount of time. Purpose-driven businesses like Certified B Corporations consider the impact of their decisions on their workers, customers, suppliers, community, and the environment and adjust their business practices to create positive impact.
Communicating Company Values
Corporate social responsibility has become a factor in not only a consumer’s choice of whether to engage with a company’s product, but also whether municipalities consider a company for contracts in local communities or abroad. Consumers want to know exactly how a business operates and what their values are before they let them into their community. Because of this, a company’s ability to communicate its values effectively and efficiently has become a desired trait.
There is a certain art to simultaneously communicating business strategy and company values that many companies fail to grasp. Getting it right is especially important now that we are in an unprecedented age of information-sharing capabilities, where any misstep can be quickly broadcast across the internet. Conversely, positive aspects can also be widely spread in a way that was previously not possible.
The line between the private and public sector is blurring more and more, and while some might see this as a dire warning for the rise of a global corporatocracy, there is massive potential for positive change. Communities need to be involved in how companies do their business. It is no longer a viable option to ignore the public’s interest in a company’s goals and values, and this change has the potential to make economies work more fairly.
With the recent rise in global communication, interested has grown in looking at how successful businesses approach corporate social responsibility. With Twitter, Instagram and Facebook all disseminating information at lightning speed, the magnifying glass can make some companies a bit uncomfortable. However, there is an upside to social media’s constant eye on how companies conduct their business.
Responsibility as an Employer in the Gig Economy
In the age of the gig economy, more people are becoming disillusioned with their prospects of retiring in the traditional sense. While the gig economy does provide a lot of opportunity for flexible work, it can hurt workers to lose health insurance and other benefits. Companies can serve as champions for these gig workers and eventually turn public policy to the point where benefits and health care are tied to the individual as opposed to the company.
Business owners have many responsibilities. They must ensure that their business is successful and maintain a positive relationship with the public at large. One of the best ways to do that is to embody the change that you as a business owner would like to see in the world. Once you do so, you’ll see that you have much more sway in public policy affecting the world than you may have thought.
B the Change gathers and shares the voices from within the movement of people using business as a force for good and the community of Certified B Corporations. The opinions expressed do not necessarily reflect those of the nonprofit B Lab.
