Good Company

About the Author

Laurie Bassi is an esteemed economist known for her expertise in human capital analytics. She currently serves as the CEO of McBassi & Co. and chairs Bassi Investments. With more than 80 published papers, including articles for the Harvard Business Review, her work emphasizes the significant impact of human capital on business success. Co-author Ed Frauenheim is a senior editor at Workforce Management magazine, contributing insightful perspectives on workforce dynamics. Dan McMurrer, the chief analyst at McBassi & Co., and Larry Costello, founder of The Lawrence Bradford Group, bring additional depth and practical insights to the book, "Good Company: Business Success in the Worthiness Era."

Main Idea

In "Good Company," Bassi and her co-authors present a compelling argument that we are entering the "Worthiness Era," a time when ethical business practices are not just morally right but also financially beneficial. The book illustrates how a convergence of economic, social, and political forces is driving businesses to adopt more ethical practices. Companies that prioritize being good to their customers, employees, and the environment are increasingly positioned to thrive. This shift is fueled by the explosion of online information sharing, the rise of the ethical consumer, and the influence of civic-minded Millennials. The authors provide a comprehensive framework for assessing corporate worthiness and demonstrate that virtue in business is now more than just its own reward.

Table of Contents

1. Part I: The Worthiness Era
2. Part II: Evidence and Rankings
3. Part III: Good Employer, Good Seller, Good Steward
4. Part IV: The Future

Part I: The Worthiness Era

Introduction

The Worthiness Era marks a transformative period in business where ethical practices are essential for success. Companies are now judged not just on financial performance but on their overall impact on society. This shift is highlighted by the story of Home Depot's CEO transition in 2007, where the company faced a backlash from customers due to poor service and management practices. This incident underscores the growing importance of being a good company in the eyes of consumers and stakeholders.

Forces Driving the Change

Several forces are driving this change towards worthiness in business. The rise of interactive Web 2.0 technologies has empowered consumers to share their experiences and opinions widely. This culture of participation and disclosure means that companies can no longer hide poor practices. Additionally, a growing global consciousness about issues like climate change and human rights is making people more discerning about the companies they support.

For instance, the backlash against Home Depot was not just about customer service but also reflected broader concerns about corporate responsibility. The company's response, with the new CEO directly addressing customer complaints online, shows a recognition of the need for transparency and engagement in the modern business environment.

Companies Behaving Better

The Worthiness Era compels companies to be good employers, sellers, and stewards. Good employers treat their employees well, creating a positive work environment that fosters engagement and productivity. Good sellers prioritize customer satisfaction and build strong, reciprocal relationships with their customers. Good stewards take care of the communities they operate in and the environment, ensuring their business practices are sustainable.

An example of a company embodying these principles is Disney. The role of Disney sweepers, who not only keep the park clean but also engage with guests, highlights the company's commitment to providing a holistic, magical experience for its visitors. This commitment extends to all aspects of the company, ensuring that even the smallest details contribute to overall customer satisfaction.