What do businesses owe society? Imagine the impact if this question were asked before any new business formed. As founder and owner of Hoan Marketing, I will consider the question in relation to my own enterprise as well as others.
Put simply, I believe that businesses owe society everything, because profit should always be secondary to people and planet. If a business does not tangibly improve these, it is reasonable to ask whether it should exist at all. Of course, operating in a profit-driven society presents extreme (and often impossible) challenges to living as ethically as we may want to. Until we totally transform our economy, then, what steps can businesses take to reduce harm towards society and their own employees?
The first, most fundamental priority of a business should be environmental sustainability. Unfortunately, our society is facing unprecedented environmental catastrophe, including global warming, loss of biodiversity, and pollution. Without a healthy environment, human society—which of course includes human economies—cannot survive or thrive. It follows, then, that it is the responsibility of all people and organizations to address these challenges.
To be environmentally friendly, businesses should consider how they are increasing the health of the land, water, and air they interact with throughout their operations. For example, are company-owned buildings creating pollution in their immediate environment? Could any points on the supply chain be made more sustainable? It is crucial that such changes not be mere lip-service or “greenwashing,” which is the practice of a company marketing itself as environmentally responsible despite this not being the case. Real change should have tangible and measurable positive impacts.
As a primarily online company, Hoan Marketing has a relatively small environmental footprint. Yet, we still strive to be environmentally conscious in three main ways: 1) We work with organizations doing meaningful work for sustainability; 2) We are frugal in terms of our equipment and consumption; and 3) We outwardly advocate for environmental justice.
In addition to their impact on the health of our planet, businesses should also consider how they effect the myriad human rights issues currently plaguing our society. Income inequality, racial injustice, violence against women and LGBTQ+ people, lack of healthcare access—the list goes on, and these issues are a key part of the context in which all businesses exist. The question becomes: are they hurting or helping?
Consider these examples: Does a clothing business source its apparel from a sweatshop or a factory that pays fair wages? Does a technology company funnel resources into STEM education for young women? Does a corporation take a public stance in favor of the Black Lives Matter movement, and then back that up with action?
Hoan Marketing intentionally partners with organizations working across a wide variety of pressing social justice causes. While we play more of a support role than a frontline one, we are not shy about being politically progressive and wanting to transform society—even at the expense of profit. In a truly just and equitable world, our business may not exist in its current form, and that’s okay! Our ultimate goal is to support the social good, not just make a buck.
Businesses have an excellent opportunity to live out their values in how they treat their own employees. While the dynamic between management and workers may never be truly equitable within the current economic system, there are certainly strategies that managers can employ to create a positive work culture. Healthier organizational environments make employees feel valued as human beings, not just as instruments of productivity. Utilizing emotional intelligence and cultural competence to foster positive interactions with managers and co-workers can certainly help in this regard, but such environments are also created through structure and policy. For example, employees should be paid a livable wage, offered excellent benefits, given flexibility in their schedules, feel empowered to take on meaningful tasks, and be treated fairly in compliance with labor laws.
One company known for doing a good job with employee satisfaction is HubSpot. The marketing giant is known for offering flexibility and transparency. A company representative put it this way: “HubSpot has a no-door policy, where everyone has access to anyone in the company.” On the flip side, Amazon is a company known for its many labor relations problems. As one of the largest companies in the world, it has an opportunity to set a positive example, yet it is mired in controversies involving union-busting, denying bathroom breaks, and intense demands on workers’ physical well-being.
As owner of Hoan Marketing, I am constantly considering how to improve organizational culture. I aim to make my employees feel valued as people by setting aside ample time for more personal check-ins before meetings and being sure to dish out compliments more than critique. As far as policy, I offer competitive compensation, unlimited paid time off, regular promotions, and a say in how the business is structured. Still, the business is far from perfect. Creating a healthy workplace environment is truly a never-ending project.
Each element of a business’ impact on society and its employees should start with transparency. In today’s culture, many businesses claim to be model citizens, yet so much of their operations are shrouded in secrecy. Even if society and employees generally agree on what businesses owe us, we require transparency to ensure they are holding up their end of the bargain. When we can determine exactly what impact such organizations have, both externally and internally, we can make sound judgements about whether to support them or phase them out.
