E164 – Leadership & Management in 2023: Responsible Business

without question, I would say the role of organizations in wider society has been increasingly a hot topic over the last well, I guess in two senses, firstly, over the last longer period of time, because I think we increasingly have talked about it, but also especially in the last couple of years. I think a number of the ways in which the pandemic and things like war have affected organizational policy and the way in which people look to organizations to see where they're aligning themselves, to make a decision about what they think about that organization has become increasingly important, certainly from our perspective, we find ourselves talking about it more, both at board and at executive level, we're increasingly finding organizations looking to different models of business, so looking at CICS, which in the UK, as a community interest company, or to the B Corp movement, to understand what that might mean. And we also James did some work on one of the first cohorts of the Scottish Government impact economy advisor training program, so, and we're just, we're very interested in a responsible business community, and we keep talking to members of it, because we're trying to understand what organizations outside of that community can think about and learn. And I guess this is a, this is a really complicated one for us to address, because it is so much bigger than the workplace, and it is so much bigger than, you know, our voices. And there are people who know that know this from the impact perspective, far, far more in a far more detailed way than we do. But I guess there are a number of things that we absolutely can recognize the shift of a business to being more responsible for its, I guess, impact output on the on its wider society, is not a quick fix, and that's okay, you know, it's it's The marathon, not the sprint. And there are always simple, cheap, effective ways to improve organizational impact. And sometimes, I think we see organizations go with massive plans and everything they could do, and they're just not always as effective as the organization to say, right? We're going to start with this one thing, and we're going to do that, and then we're going to look at what else we can do, and then we're going to do that. And I think one of the really interesting things is that generally, when you go down this route, you know our experience, of our clients, experience the people we work with, is that there's quite often a lot of employees and volunteers, if you, if you're a charity organization, that want to come on that journey with you, that are interested in Impact Reporting and impact minimization on some of the challenging parts you know, particularly when you think about the environment, when we think about people's well being, things like that. So I guess at its very heart, if you're interested in this as an organization, and you should be, and we think it's going to be increasing an issue. There is a recognition that you might not have done this stuff before, but there are other people who have, and so joining communities that are doing this work already can be really, really powerful and looking for support and others around you, either in your organization or in your industry, or even beyond. That is a way of thinking about and considering what might be a good place to start for you? Yeah,

absolutely. So why don't I share a little bit from some of the reports, and do a little bit more of a framing around this, and we can bring some of this to life, and then we'll dive a little bit more into some of our reflections and takeaways. So we've got, as in each of these many podcasts, we've got. Three, three reports that we've been referencing as well, obviously, is our own work throughout this, but three we want to call out. But first is the the Edelman Trust Barometer that comes out every year. This is from the 2022, Edelman Trust Barometer, and this is based on a global survey of 33,000 people respondents, something like that.

Every year they give the Edelman Trust Barometer, kind of a headline, a catchphrase, and today's, we think, really sorry today. So this year, as we think really kind of sums up a lot of sort of thoughts about responsible and kind business. And so their headline this year is that societal leadership is now a core function of business. And I mean, that's just striking to me, societal leadership is now a core function of business. And that speaks to so many moving parts, back to this sort of poly crisis we're in changing expectations of other parts of society that are maybe abdicating that space a little bit, changing views on how people perceive business and what it's for. So again, just for the last time, societal leadership is now a core function of business. I just think it's a striking, striking statement. There's some other things that come out of this report that are interesting. They say people are making more and more decisions based on their beliefs. So they do some surveys around you know, personal beliefs and values. They say that 50% of the people they contacted think about their beliefs and values when buying something, 58% sorry. They say that 60% think about their values and beliefs when choosing a place to work, and they say 64% think about their values and beliefs when investing. So people are linking back to their sort of set of values and what they think is important and worthwhile when they're making these important decisions about their lives. So when they're talking about buying products and advocating for brands, when they're thinking about choosing where to work and when they're thinking about where to invest and obviously with choosing where to work is super important in conversations about our workplace and about our organizations. Again, linking back to things like employee well being, they'll have higher well being, working for somewhere that feels right for them, thinking about attracting and retaining the skills and people of a future, it clearly crosses over a couple of other things. They say, they say, citizens want businesses to be engaging more on societal issues, including climate change, inequality, healthcare, systemic injustice and more. So you know, there's a sort of expectation amongst the citizen population, but organizations fill this sort of societal leadership role, and then speak out on them. And the report also says about 60% quote, When considering a job, expect the CEO to speak publicly about controversial social and political issues. Quote, I care about right? So people are looking for their leaders to step into some of these difficult conversations from an ethical and moral perspective, and to sort of lead into this space. So the views and sentiment of people in the wider world above the role of organizations and leading in those organizations is evolving and changing, and it means our organizations ought to probably respond accordingly. So that's Edelman next up. Cognizant. We've covered them in other other mini podcasts as well. They say today's employees no longer approach work as only a means of earning a steady paycheck. They now also want to feel a sense of purpose and that their work is positively impacting the world around them. So we get some some phrases in there. You know, impact comes up in a few other places, and purpose and and it's about more than money, right? They go on to say this means top talent will increasingly look for companies that take responsibility seriously and that have governance structures in place for an array of social issues, including diversity and inclusion. So again, back to the attraction and retention of people and skills. People look for the organizations that are responsible. That's a differentiating factor when you're trying to attract people and cognizant. Sum this up quite nicely. They say, in short, they look for companies they're proud to work for. And I guess that's a bit of a takeaway we can we can take back to our organizations. You know, would somebody be proud to come and work with us? If so, that's kind of a boost to our ability to attract and retain and maybe that speaks to our responsibility. Maybe it speaks to something else, but it's an interesting phrase to think about. And last up in terms of reports we're going to touch on Korn Ferry again, and they've got a few statements we think are worth sharing. So to start off, I say your people want to get behind a purpose, something other than profit. I think, you know, we spoke about our sort of poly crisis and the journey that's led us here in the first of the episode. It's on this mini series and and people are looking for a guiding light, some purpose in these disrupted times, something that's not just profit. They want a little bit more. As we've been challenged and disrupted in the past few years, we're looking for something else, something more. The Korn Ferry also said customers won't accept a lack of care for society or the environment, investors, partners, customers, employees, they're all turning their back on businesses that won't commit to sustainability goals, and demand for companies to act will only grow. So this is a little bit on the sort of business case from people who are buying our products, seeking out responsibility. But as it calls out in there, employees are also looking for this. Employees will see a demand for companies to act more on this. Employees will turn their backs on businesses and organizations, but don't commit to some of these things. One for everyone to say it's time to re examine your employee value proposition and make sure it is compelling and differentiating as possible. And the last point that they say is, but it's not enough just to say it. And the sort of unspoken piece in that quote is that it's not enough to just say we're a good organization, or we're responsible, or we're purpose driven, or any of these things we really need to do it. And that kind of goes back to some of the points we talked about in some of our other podcasts about, you know, representing your culture is a real representation of your culture, so that you fulfill that psychological contract with the people that you bring in. I mean, people need to see that you live and breathe these things if they're to be invested in you in the way that you want as an organization, and consequently, to get a lot of the benefits that they seek as individuals. So there are a couple key things to call out there from some of those reports. So societal leadership is now a core function of business. Employees look for companies they're proud to work for. But it's not enough to say it. We really need to live it. So we thought there were some powerful takeaways in there. Jane, do you want to talk a little bit more about some of our reflections. We sort of did some framing earlier, but do you want to build out a few more reflections from us? Well,

I think, I think it would be fair to say this, this theme is probably the one that I personally struggle with the most, not because I think it's any less important, but because I think it's more complicated and it has more moving parts. Might be what I would say, right? I mean, it's all so interconnected. And

yes, it is. I also think it suits some businesses to feel like they're taking societal leadership, because I think we're in a world where globalization is creating some complications, particularly around trade and things like that, and I think that is putting governments in a position where it's more difficult to regulate. And so there's a little bit of me that gets a little bit nervous about this stuff, because I'm a little like, yes, absolutely, I want organization take more responsibility. But that doesn't mean I want organizations. I want businesses running my life. I'm still quite happy having that done by institutions that I have some some Democratic control over. So so there's that, and that's problematic, but I also think there that that last report is having a little hat tip to green washing, Rainbow washing, white washing, all of the things that we see organizations do and get called out For. So the oh, we are absolutely, you know, signed up card carrying pride members. And we are going to, you know, have a float in London and New York. But we're also not going to mention that we have contracts with governments that, you know, work in countries where it's still a criminal offense, or, you know, you could be, you could be going life in prison. So I think, I think it is, it is interesting that they, they call that out, because I think if we think back to the episode we recorded, oh, a couple of years ago, with Russell Findlay, who's a CEO of a charity in the UK, about the complexity of being a responsible business and the choices you make. So do you save as much of your back office costs in order to be able to spend as much money as possible on the beneficiaries in Africa that you're supporting? Or do you pay your staff appropriately and pay national living wage and make sure they get appropriate holidays, and maybe you spend more on paper because it's recycled how, you know, it's not a straightforward we're not good and bad, and we, you know, as much as the media and as much as the world tries to tell us there is a right and a wrong and a good and a bad, it's not, doesn't work like that. And therefore, I think this is a really sticky place for organizations. I think it's difficult for them to figure out what they want to do. I think it's difficult for them to figure out what position they want to hold, and I think it's difficult for them to understand what their employees want from them in this so whilst I absolutely love that it's one of our themes, and I think it's really interesting to talk about, I don't think it's as straightforward, and I don't think I can sit here and say, Yes, this is what you should be doing, except that I do think we can say. I don't ignore it, and I do think we can say, be honest and candid and don't be disingenuous about what you're doing, you know, so do be honest. Do show what you are and aren't doing, and don't pretend, and don't spend loads of money make yourself look better than you are. And I feel like if you just do that, that is a really good start on this stuff. But I think intention is important in all of this, particularly for employees, I think they'll get they'll cut you a lot of slack if they feel like you are well intentioned as an organization, I think particularly for, you know, organizations that don't have huge PR companies and don't have people like Edelman in their in their commercial organization, helping them think this through. I think it's about introducing thoughtful conversation in the employee workplace, right? What are the things you care about as people? What are the things that are important to you? What do you think we should be doing more of in the cost of living crisis? What do you think we should be doing more of in the Ukraine war or less of what matters to you? It doesn't mean you make those decisions based on that, because there are other people as well that need to be involved. Need to be involved in your management decisions, but it is about listening and hearing them and being really clear and consistent and transparent about what your positions are as as an organization. Yeah, I

think, I think that's all very fair, and it is complicated and and trying to decipher what employees or consumers or for broader public think of as a good action is hard and again, back to our sort of poly crisis. We've got this sort of bifurcation in in the way people think, or multiple variations in the different expectations and world views that are out there that are very strongly held. So there absolutely isn't one clear answer for this, but your points about engaging with people, about having good intentions, about not avoiding this, about facing into what you can do to be a little bit more responsible, and what that means for you, I think is really important. I think there's one other thing I'd call out from my own perspective, which is, I think it's important to think about the potential negative impacts that we do have as an organization across all our stakeholders. And I think that's that's a theme that is kind of brought into a lot of thinking already, but I think it's just worth reiterating quite often, we sort of take by proxy the price that we pay is for something, but the financial price that we pay is being indicative of the, you know, doing it goodly, or having a good impact, or things like that. So if we buy something, we kind of think, well, that's okay. That's the thing that I've paid for and and I probably don't need to worry about it too much, but, but around all the things that we do and the purchase decisions we make, there are different sets of externalities, to use an economic phrase, you know, basically sort of broader consequences that occur around us. And I think it's just important, wherever we are in a business, to step back and think about the broader impact that we have as an organization, be it on our suppliers or our customers or our local communities or our employees or people further up and down the supply chain, or whoever it happens to be, just just to try and put ourselves in their shoes a little bit and think through some of those impacts that we have to open up conversations about some of those impacts in our organization, and try and try, and, you know, be able to go home at the end of the day reasonably proud, but you've considered it and thought about the impact that you've had, and you've tried to move a little bit towards having a better impact on on those around you. And I think that's kind of almost all you can ask, right? If you have a good intention and some effort and some reflection and some insight and some support from others, and try and take small steps. I think that's, you know, that's, that's something I would ask, I think, for for us and for others.

Yeah, I think, I think I probably got one more. I don't even know if it's as far as an ask, but one more point suggestion, Hope. Hope might be the right word, hopes a good word.

There will be p if you if you believe that you want the organization that you you have a significant role in to do better, to be more responsible, and you are in conversations where this comes up, I think it is really easy to be convinced that the right thing to do, in inverted commas, is to maximize the financial opportunity for the organization, because it makes them, it makes it the most stable, and it makes it, it secures the most jobs. I think lots and lots of people are not bad people for not prioritizing responsible business issues, right? But I do think they sit in the room and they say, Hey, I'm not sure about this. Maybe we could just, you know, question whether we should be using suppliers from that particular place or that supplier has done this in the past. Maybe we should have a conversation about it. And I think they allow themselves to be talked down. And I understand it's not easy when the whole room is saying, No, the best thing for the organization is to make sure we survive another year, and it's been a tough year. I. Yeah, but I also know that if you articulate that view, and you get shouted down a you walk away knowing you've articulated that view. But I guarantee you, someone else in that room will at least think about it. They may not say it in the room at that moment, but they will be thinking about it. And so sometimes the power of bringing that conversation into the room, even if you know that you are one of 10 of a management team, then nine are not going to be interested. As far as you think initially, still bring it into the room, still have the conversation, because I think the power of that conversation will start to find some oxygen and start to grow in time, yeah,

yeah. I think that's a great additional hope to bring to the table. And I think brings us to the end of this episode. This is the fourth of key themes that we called out for 2023 that we think are important for leaders of people and teams to focus on. This episode has been all about responsible and kind business. The first three themes we talked about were, number one, hybrid, remote and flexible. Number two, employee well being. Number three, people and skills for the future. Coming up next, we're going to have one more episode, and in this follow up episode, what we're going to be doing is we're going to be talking about the sort of broader themes and thoughts that we have in relation to leading and managing in 2023 so what are some things that we can do beyond these core themes that leaders managers can focus on until then? Thank you very much. Thank.