Building a business case for doing good
An issue that often arises among our clients is around the business case for doing good and how to convince stakeholders.
Alongside the multiple competitive advantages to doing the right thing, at AstraZeneca they view the real competitive advantage as investing in and shaping the society and environment they want to do business in. Their not-for-profit Covid-19 vaccine, for example, helped ease a crisis to enable them to keep doing business in the long-term.
At Schroders, it’s all about long-term thinking. As shareholders themselves, they consider the responsible practices of the businesses they invest in and aim to support long-term decision making for things that may be a competitive advantage later down the line. In turn, their own stakeholders also take a long-term view. They are fortunate that 46% of their business is owned by a family, which provides a level of stability and longevity. But additionally, all staff were recently made shareholders, which brings people together with a sense of purpose and collaboration, and encourages more long-term thinking.
Paul added that even considering long-term horizons, it’s important to be clear about any interim benefits or milestones, not just to deliver for shareholders but to ensure you know you’re on the right path. Identify the short and medium-term wins within a long-term horizon. This is critical within AstraZeneca UK’s: 'purpose led partnership' approach which focuses on absolute clarity on a shared mission and the prospect of evidencing benefit and scaling solutions.
Another key point raised was the need to focus your areas of impact and not respond to every crisis or societal issue. Identify the core issues in the markets where your business is present or those that your people truly care about. You’ll be far more likely to get senior leadership buy-in if you choose your cause areas in line with your corporate purpose and not overstretch your resources or stakeholder attention.
We’ve witnessed some truly innovative and bold actions from our clients in recent years and this discussion demonstrated the depth of thinking, creativity and bravery that is required to really lead in tackling societal issues.
If you would like to attend our events in future, sign up to
our newsletter for the latest updates.