Businesses need to look beyond profits, performance; perception of ‘Good Business’ changes with time

Gone are those days when a good business was determined by only balance sheets and financial statements. The company’s social and community impact is being discussed as loudly and frequently as its balance sheets; and by more people than ever before, said Anand Mahindra, Chairman, Mahindra Group. The term ‘good business’ is associated with having ethical standards, caring for the community, and inclusivity, ahead of traditional business metrics such as financial performance, market leadership, profitability, or growth. While 62 per cent of respondents believe that ‘good business’ constitutes more than a financial return, 14 per cent associate the term with qualities such as environmental consideration and community commitments (CSR), according to a survey conducted by Mahindra Group.

Also, there has been a significant gap between the perception of young and adults. More than 45 per cent of young Indians aged between18 and 25 give priority to ethical standards, caring for the community, and inclusivity, rather than just profits. Conversely, transactional and performance metrics like profitability, growth, and market leadership tend to increase among older respondents aged over 46.

‘Good business from employment perspective’

From an employment perspective, nearly half of the respondents chose salary and employee benefits, career & growth potential, and climate change policies & environmental commitments as the top 3 considerations for a ‘good business’. 35 per cent of respondents would always reject an offer to work for a company they didn’t consider to be good. This is more true for women.

Sales & Investment perspective

The survey highlighted that 60 per cent of people believe that it is important or fundamental for the company to be ‘good’ in their opinion if they were purchasing a product or service from it. On the other hand, most respondents (70 per cent) would never invest in a business they did not consider a genuinely ‘good business’. Furthermore, 20 per cent consider the lack of leadership and vision as the top barrier preventing the business from becoming truly ‘good’