The Coronavirus has shown that certain business issues are so daunting that they cannot be overcome. However, it also demonstrated that a competitive edge could be retained to weather even the most severe storms with the correct levels of agility and resilience. But where should a leader start when it comes to developing sharp commercial instincts? Can the enigmatic “gut feeling” be taught or developed?
Whether you’re a business owner or hoping to manage a high-performing team, understanding how your company interacts with the rest of the world will help you properly recognize and make sound decisions. In addition, it will motivate you to always critically analyze your business model when conditions change, which might change consumer expectations or shift governmental environments. So, with that in mind, here’s how businesses play a role in society today for the better.
Protecting the Environment
For decades, companies have profited from externalities by exploiting natural resources. Because it is not for businesses to limit themselves, the government’s regulatory function is sometimes considered an adversary of business.
However, the government constructs important infrastructure, such as gas pipelines and roads, while supporting education and health and investing in core R&D, all of which are critical to the future of any company.
Rather than searching for loopholes, businesses play a role in society today by changing their current business models and key services and products as if they were subject to stringent regulatory constraints. This means they are becoming more conscious of the environment and considering more eco-friendly options to obtain raw materials for their products.
Fair Dealings with Vendors and Suppliers
Like employees, vendors, and suppliers play a critical part while running a company. Trust and openness in your interactions are the foundations of a robust and healthy supplier relationship, which includes fair competition, good procurement processes, and precise terms and conditions.
As supply chains get increasingly complicated, corporate leaders tend to reduce suppliers to numbers and statistics. These days, rather than viewing suppliers as an expense to be reduced, businesses play a role in society by considering vendors and suppliers as partners with whom they can share their success.
Paying Taxes to Fund Public Services
Businesses play a societal role by contributing to a well-functioning government via on-time tax payments to fund government services. Although paying taxes is not its primary function, the International Bar Association has labeled tax evasion a violation of human rights since it denies poorer nations access to resources for healthcare, education, and basic infrastructures such as water and sanitation.
Ultimately, taxes benefit the general public and also assist the government in creating the necessary infrastructure for businesses to succeed.
Everything has changed as our society slowly reemerges in the wake of the Covid-19 pandemic. Environmental, social, and global forces have altered the risks and possibilities businesses face as they manage their organizations’ performance. Leading businesses recognize this and are upgrading their value propositions and their reason for being in response to this new reality. Ultimately, these businesses play a role in society by interpreting and developing roadmaps geared toward improving our society.