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People Before Profit: Why CEOs are on Board

| September 11, 2015
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American capitalism and democracy may have won the Cold War in the last century, but it set the stage for an economic battle at home between the haves and the have-nots. Income inequality has become a big issue across the country, but some CEOs are on board with a shift in social beliefs that has seen businesses put people before profits.

Reputation is Everything

In the modern age, one smudge on the reputation of a business or its leaders is enough to destroy its character. With Facebook and Twitter allowing consumers the ability to spread dissatisfaction and disappointment in products and services, it is all too easy for the reputation, character, and brand of an entire business to suffer irreparable damage in the blink of an eye.

This type of instantaneous backlash isn't strictly limited to the realm of products and services either. When consumers who feel for the plight of low-wage employees learn about the circumstances of the hardest working individuals in a company, they side with the employees, not management. The simple truth is that today's consumer is socially conscious. If your brand's reputation and character are viewed negatively, your company will struggle to attract new customers.

Social Media Takes Issues Viral & Global

As just alluded to above, social media plays a critical role in the interaction between customers and companies. It doesn't matter what the circumstance is, from low wages for fast food workers to poor service in a retail store, social media allows consumers to express their outrage before they've even gotten home.

The proliferation of smartphones through all levels of society means that every customer has a video recorder and access to the Internet on demand. When they don't like something, they can capture video, take photos, and instantly upload that information to social media. The toughest factor for businesses to combat in this instance is the mindset of consumers. There's no more car ride home to cool off. They can access the Internet from inside a store or right outside a business and post before they have a chance to wind down from an experience.

Once that information is out on the web, likeminded individuals will retweet and share the information, sending it around the globe before your company is even aware of what is going on.

People Create Profit

Getting on board with the "people before profit" movement isn't about mitigating the damage, it's about taking care of the people that make it possible for the business to thrive. Whether it is a bump in annual wages or expanded healthcare coverage, providing for the employees that work the long hours, do the manual labor, and represent the face of your company to millions of employees is an investment in the future of your company. You are taking care of the people that are your boots on the ground every day, working to generate more profit for the company.

It's the Right Thing to Do!

There are two primary benefits that underline this social more. First and foremost, taking care of your employees is the right thing to do. Business owners may be the individuals who helped build the brand in its early days, fostering their own idea into a mature product or service that provides jobs for employees, but the employees ensuring quality and brand consistency each day who deserve respect and acknowledgement. It is a culture of admiration and recognition that will trickle down into the way your employees do business.

 

Additionally, doing right by your employees empowers them with confidence. A confident employee is more likely to put in the extra hour or go the extra mile for a customer because they know their actions are valued by the company. That value is reflected in higher wages, more paid days off, or greater access to healthcare.

CEOs are getting on board with the people before profit concept because it is the right thing to do, and also because it is an investment in the company that will provide returns in the future that benefit everyone. Building a better company means building a better community and local culture. What are ways your company is ensuring mutual growth and dependability for the future?

 

These are the views of Social Advisors, and not necessarily those of the named representative, Broker dealer or Investment Advisor, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer or Investment Advisor gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

 

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Richard L Farrar is a registered representative of Lincoln Financial Advisors Corp. Securities offered through Lincoln Financial Advisors Corp., a broker/dealer (Member SIPC). Investment advisory services offered through Sagemark Consulting, a division of Lincoln Financial Advisors, a registered investment advisor. Insurance offered through Lincoln affiliates and other fine companies

 

CRN-1297413-090915

 

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