Most people would say that entrepreneurship is selfish and creates value only for the entrepreneur. I totally disagree and I believe that sound entrepreneurship should create value for and be respectful of all participants in the ecosystem. An enterprise has an important social role, as it affects the lives of many people and can provide an example to follow.
A business ecosystem apart from the customers and the owners comprises 3 more constituents: the suppliers, the creditors of the company (bankers), and finally the often undervalued employees. A company should be respectful and responsible towards all parties for moral as well as for practical reasons.
Starting with its suppliers, even if the company has an advantage being the customer, it should address its suppliers with respect. The situation in the future may change and the supplier may find himself in a position to demand his own terms for cooperation. If the company was unfair in its previous business dealings with its supplier, in the new situation it will not be able to have a smooth cooperation.
The same applies for banking relations. Economic cycles or other unexpected events give the upper hand some times to banks and other times to companies. If in an era of prevalent liquidity and strong banking competition, a company had ruthlessly exploited its advantage squeezing banks and deciding on its banking relations solely based on costs, in an era of scarce funding provided by only a few banking players the company will not be able to rely on good banking relations.
Respectful and fair behavior towards employees has a more direct effect because in the cases discussed above, an abrupt change may never occur and therefore the company may never pay the price of bad behavior towards its suppliers or banks. On the other hand, employees continuously serve as contact points with customers; therefore a positive working environment definitely affects the image the employees project for the company. Employees affect the company’s reputation both when they work and interact with customers, but also in their social circle when they discuss with friends.
At the end of the day a successful and responsible company should create value for all 5 parties involved: owners, customers, suppliers, creditors, and employees.
