Title: Good Company: Business Success in the Worthiness Era
Authors: Laurie Bassi, Ed Frauenheim, Dan McMurrer
Publication Year: 2011
Categories: Corporate Social Responsibility

“Good Company: Business Success in the Worthiness Era” by Laurie Bassi, Ed Frauenheim, and Dan McMurrer delves into how companies can achieve long-term success by fostering trustworthiness, responsibility, and a focus on people. As businesses enter the “Worthiness Era,” characterized by increasing attention to ethical and sustainable practices, the book argues that creating value for employees, customers, and society is not just ethically sound, but also leads to superior financial performance. The authors introduce the concept of the “Good Company Index” to evaluate firms based on their worthiness and provide numerous examples and actionable steps for businesses to thrive in this new era.

In the Worthiness Era, business success is redefined to include not just financial performance but also contributions to employee well-being, customer satisfaction, and community impact.

Evaluate and Redefine Success Metrics:
– Start by incorporating non-financial metrics like employee engagement scores, customer satisfaction indices, and corporate social responsibility (CSR) achievements into your company’s success criteria.

Patagonia’s Environmental Initiatives:
– Patagonia consistently emphasizes environmental responsibility. Their “1% for the Planet” pledge dedicates one percent of sales to environmental causes, illustrating a tangible commitment to societal well-being alongside profitability.

The authors introduce the Good Company Index, which rates companies on three dimensions: Employee, Customer, and Community.

Conduct a Comprehensive Assessment:
– Use the Good Company Index to evaluate your own company’s worthiness. Focus on improving scores in the three dimensions by gathering feedback through employee surveys, customer reviews, and community engagement metrics.

Starbucks’ Ethical Sourcing:
– Starbucks invests in ethically sourcing coffee through partnerships with fair trade organizations, which not only supports agricultural communities but also ensures high-quality products for customers.

A respectful work environment fosters employee loyalty and productivity. Companies succeeding in the Worthiness Era often show high levels of employee satisfaction.

Implement Effective HR Policies:
– Develop and enforce policies that promote work-life balance, fair wages, and career development opportunities. For instance, offer flexible working hours or professional development programs.

Google’s Employee Benefits:
– Google offers perks like on-site healthcare, generous parental leave, and vast opportunities for personal growth, which helps in attracting and retaining top talent.

Focusing on customer satisfaction not only drives loyalty but also turns customers into advocates for the brand.

Create a Customer-Centric Culture:
– Invest in customer service training and foster a culture of listening to customer feedback actively. Use tools like Net Promoter Score (NPS) to gauge customer loyalty and make improvements based on insights.

Southwest Airlines’ Customer Service:
– Known for friendly and reliable service, Southwest Airlines has a strong commitment to customer satisfaction, which translates into high customer retention and brand loyalty.

Companies in the Worthiness Era actively contribute to their communities, viewing social responsibility as an integral part of their operations.

Engage in Community Programs:
– Start or support community initiatives, like local education programs, environmental cleanup projects, or health and wellness campaigns. Encourage employee volunteerism and match their charitable donations.

The Body Shop’s Community Fair Trade Program:
– By sourcing ingredients through Community Fair Trade, The Body Shop supports marginalized communities, ensuring they receive fair wages and good working conditions.

Transparency and accountability in operations foster trust with stakeholders, including employees, customers, investors, and the community.

Implement Transparent Reporting Practices:
– Regularly publish sustainability and CSR reports, disclose company practices honestly, and maintain open communication channels with stakeholders. Ensure all marketing materials accurately reflect company values and practices.

Ben & Jerry’s Social and Environmental Assessment Report (SEAR):
– Ben & Jerry’s details their social and environmental impacts through SEAR, showcasing commitments to sustainable sourcing and social justice.

Leadership committed to ethical standards ensures that business practices align with the company’s values, fostering a culture of integrity.

Develop Ethics Training Programs:
– Offer regular training on ethical decision-making for all levels of the organization and establish clear ethical guidelines. Empower employees to voice concerns without fear of retribution.

Timberland’s Leadership:
– Timberland’s leaders focus on environmental stewardship and community service, ensuring these values are reflected in everyday business decisions.

In the Worthiness Era, innovation is directed towards creating sustainable and socially responsible products and practices.

Invest in Sustainable R&D:
– Direct research and development efforts towards products that offer environmental or societal benefits. Encourage a culture of sustainability and responsibility in the innovation processes.

GE’s Ecomagination Initiative:
– General Electric’s Ecomagination Initiative focuses on creating environmentally friendly technologies, such as energy-efficient products, which drive both innovation and sustainability.

Collaboration with other organizations, including NGOs and governmental bodies, multiplies the positive impact companies can have.

Forge Strategic Partnerships:
– Partner with like-minded organizations to amplify efforts in areas like sustainability, community development, and fair trade practices. Collaborative projects often yield greater results than isolated efforts.

Coca-Cola and WWF Partnership:
– Coca-Cola’s collaboration with the World Wildlife Fund aims at water conservation and reducing the environmental impact of its operations.

The authors argue that prioritizing long-term sustainability over short-term profits leads to enduring success.

Adopt a Long-Term Strategic Plan:
– Develop a strategic plan that includes long-term sustainability goals and aligns company growth with societal and environmental well-being. Set measurable, time-bound objectives, and track progress regularly.

Unilever’s Sustainable Living Plan:
– Through its Sustainable Living Plan, Unilever sets ambitious targets for reducing environmental impact while doubling its business, emphasizing long-term sustainability.

“Good Company: Business Success in the Worthiness Era” underscores the importance of integrating corporate social responsibility into the core of business strategy. By focusing on worthiness and ethical practices, companies not only enhance their reputation and stakeholder trust but also achieve sustained financial success. Implementing the principles outlined in the book, such as engaging in community programs, ethical leadership, and transparent reporting, enables companies to flourish in the present and future business landscape. The vivid examples provided serve as a testament to the possibility and benefits of being a ‘good company.’

By following these actionable steps and real-world examples, individuals and businesses can navigate the Worthiness Era successfully, creating a positive impact on society while achieving remarkable business success.