We are living through an era of digital social revolution. How a company decides to take on the new business environment which is based on transparency, speed and trust, will determine the most successfull companies in the future. Common sense and verified international trends proves this statement, says Prydz.
Imagine a world where the ones that do most good in society are the companies generating most profit. It`s quite a nice dream. Almost like a Disney fairytale, where the "doing good" always wins. Can that be the future?
Shouldn`t companies just maximize profits on behalf of it`s shareholders? Shouldn`t companies limit it`s social responsibility to operate within the ethical norms and laws in our society? Shouldn`t that be enough?
The answer to those questions are NO if your objective is to create a lasting and succesfully growing corporation ensuring a dynamic organisation able to innovate and renew itself all the time with great talented people.
Social responsibility and whether the social impact is good or bad is already an important part of the matrix of creating competitive advantage, and it will just become more important in the coming years, says Prydz. It`s not any longer enough to just create an image by establishing a CSR department. It has to be authentic, and in order for it to be authentic it has to be part of the company`s heart. It got to be part of the core strategy, says Prydz.
Consider how long an average company from the S&P 500 stays in the index. In 1995 it was estimated to 45 years. 26 years later, and in 2009, the average was 17 years. At this rate, half of the companies that appeared in the 2010 S&P 500 Index is likely to have left it before 2020. Do also not forget that many former houshold brands have fallen not just out of the Index, but out of existence: Enron, Lehman Brothers, Arthur Anderson, Digital Equipment Corporation and British Leyland. Which of today`s brands will have ceased to exist in 2020?
Success is about winning not just in the marketplace for customers, but also in the marketplace for talented people. Today, both talented people and consumers are challenging the business world with new demands regarding ethical behaviour, positive social impact and meaningfull work.
