Linkage Between Good Corporate Behaviours & Final Results

Not understanding that there is a poor linkage between good corporate behaviour (via socially responsible corporate policies or community projects)and good financial results (Joshua Margolis et al, 2008). On the other hand, if there is a public misdeed, there is significant negative impact.

. Not realising that the best learning occurs in an environment that encourages interaction, collaboration and is participant-driven.

. Not realizing that well-trained and well-treated staff provide superior performance. This is particularly strong in the knowledge economy where people capital, expressed as intellectual property, etc, is regarded as the difference between the net tangible assets at fair market value and the market capitalization of the organisations. For firms, like Microsoft and Google, people capital is the dominant element of their value. This means looking beyond the financial accounting practices to such factors as systems of recruitment, workforce planning, strength of the internal labour market, leadership development across an organisation, money spent on training as a proportion of net profit or net payroll, performance management systems, career development pathways, occupational health and safety issues, staff turnover, employee engagement, etc. These are additional to environmental, social and governance responsibilities,

. Not realizing that you have to get beyond the thinking that involves analytsis and decisions which are numeric and logic-based to a broader level where there is the ability to shape and mould entirely new experiences, cultures, business models and systems, ie thinking creatively.

. Organisations in the private sector can learn from the not-for-profit sector (The Economist, 2010b). Some examples

- they can learn how to motivate staff from the not-for-profit sector. The private sector tends to focus on financial rewards which does not guarantee success as evidence by the GFC. While in contrast, the not-for-profit sector depends on volunteers (unpaid staff) and generally does not pay staff well; however, its staff and volunteers have a personal commitment to a clear and distinctive purpose.

- staff in the not-for-profit sector are passionate about a cause and they want to come to work.

- the management structure in the not-for-profit sector is relatively flat with staff and volunteers helping each other when necessary

- staff in the not-for-profit sector are given real responsibility

- the successful not-for-profits have good marketing prowess as they have to persuade people to part with money for goods or services that are used by others and they need to convince people that they are getting value for money

- encourage people to have fun at work

- build long-term relationships based on frequent contact including repeatedly saying thank-you and continual communication updates through newsletters. This is different from the one-off transactional approach to customers which is common in the business world.

- many not-for-profits stay in contact on a long-term basis with past stakeholders including past staff, volunteers, clients, etc. The business world would benefit from cultivating their networks of past stakeholders, including staff and customers.

 

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