I read a great article in online magazine Cosmos today. Apparently, Australian academics have done a study that they say proves that businesses with good perceived ‘corporate behaviors’ can command a sales premium of 9%, compared to those with a lesser reputation.
Here’s a link if you want to read the article in full https://cosmosmagazine.com/social-sciences/good-corporate-behaviour-boosts-sales
In the past few years we have seen scandals of numerous descriptions caused by arrogant and selfish business leaders. Some have put their own profit before those of their businesses and others have abused their positions through harassment and sexual exploitation.
I hope this research will empower both institutional investors and Non-Executive Directors of big businesses to quickly force out leaders that are bringing their organisations into disrepute. Perhaps a review is needed of CxO level employment contracts.
In modern business and in my area (sales) especially, modern traits for success are trust and collaboration. In the digital age where news can be disseminated globally within seconds, the reputational damage is instant.
I mentioned institutional investors above and although they have the power to oust dodgy leaders they are also part of the problem. The constant pressure put on businesses by investors to produce better and better results can drive unethical behaviours to achieve them.
I am surprised that VW have apparently weathered the emissions scandal but at what financial cost? With fines, vehicle recalls and the initial sales dip the figure must be in the billions of pounds ball park!
As I’ve stated in previous blogs “If you MUST win at all costs, then be prepared to PAY the price”.
Thank you for reading!
Stuart Allen ~ MD of The Sales Performance Company Ltd
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