The human resources (HR) profession, in my opinion, has an ethical responsibility to speak up when it concerns corporate accountability. In a previous HRTools.com Insight, I spelled out why it’s very important that business leaders build a culture of corporate accountability.
As previously mentioned, today’s consumers and customers are Internet savvy. They monitor and share information about company products and services on a 24/7 basis. When given a choice, 21st-century “window-shoppers” and customers are much more likely to buy from and support those businesses perceived as responsible, transparent and accountable.
If you are looking to compete in this area, HR professionals have the credentials to provide specialized guidance. Not only can they help you laser in on employee and community perspectives, but they also possess the skills, training and knowledge to help guide you. Meanwhile, I will share some mistakes that businesses will want to avoid making.
In the past, a company such as the Ford Motor Company, for example, ‘ruled the world,’ so to speak. Americans assumed that they would be around forever. In fact, many formerly well-established American businesses that regularly made the FORTUNE lists are nonexistent today.
Take advantage of the attention and avoid making these mistakes.
In contrast, today I see some mistaken-laden business mindsets guiding attitudes and behaviors, one of which is a disposable consumer mindset. I see this attitude becoming prevalent, and I think it is a mistake. Consumers and customers are growing wary and cautious of this trend.
For instance, consumers may view some businesses as projecting a, “What’s in it for me?” kind of attitude. Or some businesses may be coming across as having a, “I need to be doing this so I can get that,” sort of attitude. It’s a short-term and short-sighted strategic approach. As a consequence, consumers get the impression that they are forgotten and disregarded by that company.
What’s even more, your business might be viewed as only caring about one thing— making money—or as one driven by hitting certain financial markets in order to get the share prices at the right point; i.e., a “one-trick pony” kind of organization. An organization may achieve those objectives, and they may attain huge monetary rewards. But there can also be costly fallouts: managers become burned out, employees feel devalued, brands become ruined and ultimately the organization can be ruined.
And speaking of being short-sighted, there may come a time when a business is looking to either acquire another business or sell their business. Make sure you don’t make mistakes that can lead to later embarrassment or possibly be considered unlawful, particularly if they are uncovered during a due-diligence process.
For example, I know of one organization that had shown obvious favoritism to some selected employees by paying out extravagant bonuses over the years. Long story short: This organization suffered major employee burnout to the point where they eventually became unprofitable. They also had to endure an investigation by the Federal Communications Commission (FCC).
During these times of rampant business scandals, and when consumers are becoming increasingly vigilant, businesses can significantly gain a competitive edge by operating in an accountable, transparent and open fashion. Take advantage of the attention.