The charity Business in the Community will today call on chief executives to reward responsible behaviour in the same way that they reward staff that meet financial targets.
Speaking in London to an audience of over 400 chief executives, Stephen Howard, chief executive of Business in the Community will challenge leaders to incentivise and reward ‘doing the right thing’ at the charity’s Leadership Summit 2014.
Central to the event, which will be attended by the charity’s President HRH The Prince of Wales, will be a challenge to business leaders to take practical steps to integrate responsibility ‘into the DNA’ of their business.
A survey of 215 senior business leaders conducted by Business in the Community to be released today*, will show that individual employee objectives often do not align with the organisations corporate responsibility goals leading to behaviour which goes against those business values.
Mr Howard will challenge business leaders to better demonstrate that responsible behaviour is both valued and adds value. As well as asking them to think about how they compensate and reward responsible behaviour, Mr Howard will also suggest that responsible behaviour should form a central element of staff training and development and urge bosses to actively give staff experiences outside of the business to help nurture their values and decision-making.
Commenting Stephen Howard said: “Without responsibility being truly built into the DNA of companies, trust in business will continue to plateau. It is time for business leaders to think differently about how they create the right culture within their business and the practical steps they can take to turn values into action.
“Business leaders are failing to properly reward responsible behaviour. Changing this would send a powerful message that being a responsible business goes further than CSR reports and values statements.
“Indeed, chief executives and investors must move beyond financial value as the only recognised metric of business success. By adopting an integrated approach, reporting on the added value of responsible practice business, and rewarding responsible behaviour, business can form a new and more powerful contract with society – and re-claim its rightful place as an engine for social change and innovation.”
Business in the Community’s Leadership Report also revealed that:
- 9 out of 10 chief executives believe they have a greater social purpose then simply returning profit
- Over 70% of business leaders think too much attention is given to short term business goals
- 90% of respondents say that experiences outside of the business and experiential learning is an essential part of developing future leaders within the business with the right values and behaviour
- Honesty and a sense of moral compass are the most important personal characteristics of a responsible business leader.
Timed to coincide with the charity’s Annual General Meeting, Business in the Community’s Leadership Summit will bring together business leaders from some of the UK’s biggest companies to explore the new type of leadership and practical actions required by chief executives to establish a new contract with society.
Speakers and contributors will include: Stephen Howard, Chief Executive Business in the Community, Mark Price, Chairman Business in the Community & Managing Director Waitrose, Steve Holliday, Chief Executive National Grid, Helena Morrissey, Chief Executive, Newton Asset Management, Dr Ralph Speth, Chief Executive, Jaguar Land Rover (2013 Responsible Business of the Year) and Saker Nusseibeh, Chief Executive and Head of Investment at Hermes Fund Managers.
*Business in the Community Leadership Report 2014, live from 6 Feb 2014: www.bitc.org.uk/leadershipreport