Take Two: Is Doing Good Really Good Business?

What does “good business” mean to you?

Zhi Zhu: There are various components to doing good in business, including corporate social responsibility (CSR); diversity, equity and inclusion; ethical practices; social impact and environmental responsibilities. It centers on the fair treatment of all stakeholders. It takes work for companies to “be good,” and that’s difficult. It’s easier to focus on near-term profits. The big question is how to move beyond that.

Jonathan White: Doing good means being ethical, intentional, reciprocal — and creating synergistic business models that equally value people, profit and planet. Being a force for good in business embraces a multi-stakeholder business model: Stockholders should be valued, but not more than other stakeholders, such as laborers, throughout the full supply chain, and not at a cost to the planet. CSR can be helpful, but if it comes only at the end of your business model and is not fully integrated, then it is falling short of what good business can and should be.

How are ethical business practices enforced?

JW: Businesses with third-party Fair Trade certifications — from reputable organizations such as Fair Trade Federation and Fair Trade Certified — commit to business practices that support labor, operate sustainably and share profits with those involved in production of the product. There are also green and sustainable certifications that create and monitor environmental and climate standards, and categories such as B Corps that create the highest of standards.

ZZ: Enforcing a code of conduct and ethics starts at the top with leaders who are truly committed to being fair to employees and the community — empowering stakeholders and suppliers. This helps the organization stay on track and committed to ethical business practices.

Can consumers trust the authenticity of socially responsible initiatives?

JW: Unfortunately, too many social responsibility initiatives are either afterthoughts or add-ons to a company’s main drive for profit, or even created for marketing purposes and employee retention. Authenticity begins with leadership that equally values social responsibility and company profits. If they also hire authentic and skilled people to create systems, and allow these systems to be integrated into all levels of company conversation and strategy, then good business is bound to follow.

ZZ: Consumers can do a few things to verify the authenticity of socially responsible initiatives, including looking for third-party recognition and authentication of the company. They can research a company’s efforts through its published reports and verify information through public research, including traditional and social media. Don’t be afraid to call a company out on initiatives that appear to be only window dressing.

Can consumers and employees demand more ethical behavior from businesses?

JW: There is a large, growing conscious consumption movement of consumers actively seeking to buy products from triple-bottom-line companies — those focused on people, planet and profit. And they are willing to pay more to know that the products they use are beneficial to people and the planet. New generations of young people are also making it clear that they only want to work for businesses that share the same values they do — with sustainability being their most visceral concern — but also offer better work-life balance, time given to volunteer or otherwise better their communities, and a general ethic of doing good in the world.

ZZ: The impact of vigilant employees and consumers will be companies — and a broader business landscape — that are more attuned with what people want. It will also reinforce the idea that maximization of shareholder profits should not be a company’s only focus. Companies can now listen to feedback through various channels, so it’s important for consumers and employees to use those channels to share opinions and influence positive change.

Any advice for businesses or employees looking to become more socially responsible?

ZZ: Employees can create communication channels and affinity groups that focus on social responsibility. This will help remind leadership about the importance of the topic, particularly if it’s something workers are looking to change within an organization. Advocate for policies and procedures, as well as auditing and monitoring, that ensure social responsibility. Whistleblowing policies, for example, empower employees to report wrongdoing without the risk of retaliation. Having employees who embrace a culture of transparency and ethical behavior will help leaders ensure that it permeates throughout the entire organization.

JW: I’d encourage young entrepreneurs to start businesses that create new models for doing good in the world, with deep social impact and a broader definition of success, defined equally by profit margins as by creating strong solutions to the world’s great social problems. Bentley’s new Social Innovation Incubator is focusing on creating triple-bottom-line businesses, with missions to create profit by doing good. Good business is simple: It moves with deep intention in strategy, implementation, follow-through and assessment — at every turn and at all levels of the organization — to ensure that people and planet are valued as much as or more than profit.

Interviews have been edited and condensed.