The main goal of any business is to maximize its profit and minimize its costs. In the harsh reality of capitalism, companies struggle to represent and secure every interest of their workers. Giant corporations such as Amazon or Walmart often cut their costs on the working conditions, which, on the one hand, increases the profit for the business owners, and on the other hand, risks receiving massive backlash from the public. However, companies with a serious attitude towards their social and environmental responsibilities gain an important attribute that every business should thrive for – sustainability.
One of such companies is an American corporation 3M that is based in Maplewood, Minnesota. They operate in various fields of worker safety, healthcare, and consumer goods. In its 2021 Sustainability Report, the company demonstrates their operational processes that are aimed to achieve the United Nations Sustainability Goals. The company constructed the sustainability priority matrix where it explains what programs it applies. One of their main goals is “to invest $50 million to address racial opportunity gaps in the U.S. through workforce development and STEM education initiatives by 2025” (3M 2021 Sustainability Report, 2021, p. 54). They also make serious progress in reducing waste, global water usage, emissions, and improve energy efficiency.
The working staff is an essential part of any business. Kucharska and Kowalczyk (2018) explain how practicing corporate social responsibility improves a company’s performance. The company plays a crucial role in shaping the workers’ morale and motivation. The workplace behavior directly depends on the company’s working culture. The workers who feel secure in their workplace experience less stress and emotional instability; therefore, they tend to focus better on their job. For example, women are more likely to experience sexual harassment from their male colleagues, which creates an unsafe working environment.
The management, who immediately responds to the complaints of their female employees in an emphatic manner and makes sure that the offenders receive punishment, develops a bond between themselves and the staff. 3M specifically created CEO Inclusion Council that “focuses on action planning for diversity, equity, and inclusion initiatives” (3M 2021 Sustainability Report, 2021, p. 71). Knowing that their interests are represented, workers are more motivated to provide high-quality performance for the company.
Social corporate hierarchy is a significant factor in establishing a good working relationship between the managers and the employees. Kucharska and Kowalczyk (2018) discuss two types of social hierarchy at work: a high-power distance culture and a low-power distance culture. Companies with a more prominent hierarchy where the superiors have significantly more power and freedom than their subordinates tend to have a weaker problem-resolution environment because inferior staff prefers to avoid conflicts.
At the same time, companies with a low-power distance culture have a less hostile working atmosphere and are more willing to accept insights from the workers with lower positions. In their CEO Inclusion Council, 3M included inclusive leadership feedback tool that helps colleagues to give feedback to their superiors’ inclusive behaviors. Such program ensures that companies have better transparency between their workers, which affects the transparency between the company and the clients.
The ethically responsible business attracts more employees because anyone would prefer to work for companies that positively affect the world. More people are becoming socially aware, and their moral principles are shifting towards inclusivity and diversity. Employers whose company policies conflict with the workers’ interests and morale risk to experiences a shortage of labor supply. That is why any business needs to have a solid ethical strategy that the managers will regularly monitor and update to fit the workers’ preferences. In conclusion, a company with a low-power hierarchy and stable wages significantly performs better than companies without a clear ethical strategy.
References
3M. (2021). 3M 2021 Sustainability Report. Web.
Kucharska, W., & Kowalczyk, R. (2019). How to achieve sustainability? — Employee’s point of view on company’s culture and CSR practice. Corporate social responsibility and environmental management, 26(2), 453-467. Web.