The Business Roundtable – a star-studded group of U.S. businesses – on August 19 announced a new definition of what a corporation should be, noting that they should operate for the “benefit of all stakeholders – customers, employees, suppliers, communities and shareholders.” This is a significant policy shift from the hardline definition that a corporation should be focused solely on financial profit. For professional services companies, the move is also meaningful: when you have no physical widget to lure in customers, reputation and messaging are everything. And, increasingly, no one wants to do business with Ebenezer Scrooge.
Scrooge may have been a deft businessman, judging by the wealth he had on hand, but he was terrible to his employees and only cared about money. Scrooge’s money-lending business was no doubt lucrative, but where was his social mission? Where were his progressive employee benefits? Was it a diverse and inclusive business? All-in-all it appeared to be a miserable place to work, helmed by a miser and with a singular focus on profit. It seems unlikely that Scrooge was good at attracting and retaining talent (Bob Cratchit’s misplaced loyalty aside). In a competitive marketplace, it’s quite possible that a “warmer” competitor across the street – even with a 0.001 higher rate – might peel off much of Scrooge’s business. Your business may not be Scrooge’s, but do others see all the good you do, for employees, the community and your clients? If not, it’s time to work on your messaging.
Taking a page from the Business Roundtable, consider pledging and messaging your good. Here’s an adapted set of planks:
Delivering value to our clients. Professional services companies’ raison d’etre is to solve problems and help businesses succeed. (Some might even call this “Bringing Business to Business. See what I did there?) Your company’s messaging should showcase these successes, blending the tools available with examples of their real-world application.
Investing in our employees. Businesses of all stripes have made great strides expanding employee benefits and working toward fostering diverse and inclusive workplaces. These efforts need to be championed. And, if your firm is behind the 8-ball, it needs to get going. Other businesses and consumers are increasingly voting with their wallets in favor of workplaces where employees feel safe, respected and *gasp* happy. Tell the world what your company believes in. Have values and live them.
Dealing fairly and ethically with our suppliers. You’re on your own on this one. However, you can rest assured that failure to do the right thing will ultimately lead to bad PR (or legal action).
Supporting the communities in which we work. Most companies have great, employee-driven initiatives that build houses, feed the hungry and help the world. By telling these stories professional services companies humanize their professionals and showcase their commitment and care to where they are and the good they do.
Generating long-term value for shareholders, who provide the capital that allows companies to invest, grow and innovate. Long-term, mission-focused operations and messaging create a solid reputational base that helps a professional services firm when bad news happens. Taking the steps now to create a runway for regularly messaging positive developments creates intangible but impactful value.
Scrooge’s intervention was drastic. Professional services companies need not travel through dimensions nor commune with the spirits to see how purely profit-driven policies have impacted their image in the past and how they will continue to do so in the future. Just like the members of the Business Roundtable, why not evaluate your organization and ensure you are doing well by your employees, clients and communities – all while remaining focused on business development and profit?
