All entries for Sunday 27 October 2013
October 27, 2013
I have read an article on HBR (Harvard Business Review) which explains how Walmart (world’s second large public corporation according to Fortune 500) has an achievement on society results.
With respect to EFQM, excellent organisations achieve and sustain outstanding results that meet or exceed the needs and expectations of relevant stakeholders within society. Generally companies hire PR people in order to prevent awful headlines. Then, CEO shows up and tells “We are misunderstood and we should need to tell a good story”. Do not tell a good story! The public can embrace company if CEO shows up and makes pretended press-conference instead of criticizing company according to mistakes.
After the deadliest and destructive hurricane Katrina hit many houses and killed 1883 people, Walmart provided meals, cash, emergency supplies by trucks. Those were the right things to do.
And Walmart set big goals in areas such as sustainability, women’s economic empowerment, and more-healthful food. So giant companies don’t achieve enormous revenues or market-share incidentally, they take 360-degree approach to the work, engaging entire supply chain, customers and communities. The multinational big companies take on high risks, because their sales. It means that negligible failures can create terrifying outcomes from the society’s perspective; they can lose great revenues suddenly. According to article, taking on large social issues can be compatible with building a stronger business, and I agree with. Instead of telling a better story to public, be a better company in terms of society like Wal-Mart.
EFQM has 4 results which are customer, people, society, and business results. Especially in the retail stores like Walmart or Home Depot, society results have a high impact on customer’s choices, because they address with end-users who care about environment and humanity. EFQM measures could include perception of environmental impact, image and reputation, societal impact, workplace impact, and awards and media coverage. Those measures give trust company to reach more people and sell more products.