The principle is simple.
A company defines a profit ceiling. Any profit above that ceiling is used for positive investment.
This can be investing in better circumstances for employees, mindfulness training for management, lowering the consumer price, decrease environmental impact, improve circumstances of suppliers in third world countries, low environmental impact production, etceteras, you can think of more.
The result is more happiness (employees, suppliers, consumers, stakeholders) and more happiness is the basis for engagement. Engagement will create proud employers and they will talk about it using social media. This will create a positive image for the company, becoming a magnet for new talent (in a market with scarcity), being more able to create better new products and services and probably will result in a higher profit…
So shouldn’t be the title of this blog More Profit, More Happiness?
No, it’s all about the right mindset. Profit is ok, but it is not the ultimate goal (nor responsibility) of companies. Their primary responsibility is to create a good environment to work and create a positive influence on their environment local, regional, global). Companies have the power to do that, and by doing that we can change the world and make it a better place for everybody.
Idealistic you might say? Realistic I believe. It is the only way to move forward. It’s the basis for a good culture, employer branding, good social media, better results, and so on.
If you’re inspired by the Less Profit More Happiness philosophy, join the movement, spread the word or add value by sharing your thoughts.
Let me know.