Make sure you pick the right battle
The Times, July 2007
It’s a bit like the Charge of the Light Brigade. Climate change is to the right, to the left and in front of businesses. At least 600 are boldly riding on. They’re announcing their move to carbon neutrality, their decision to open “green” stores, the sustainability of their procurement policy and more. They’re launching advertising campaigns to drive the message home. They’re galvanising their stakeholders into concerted action. Now may be the time to ask: have some of them blundered?
When we ask concerned consumers whether they think it is more important for banks and building societies to address social issues (such as debt, money management and pensions) or environmental issues (the impact of their operations and investment choices), the answer is loud and clear. Eighty per cent think that social issues should come first.
In many ways, this is unsurprising. Financial services organisations are no different from any other sector. Concerned consumers want organisations to focus on the area most directly relevant to core business. Their primary responsibility is to address any issues that exist and then make the most of their ability to effect positive change. This is where they can make a real difference.
Does this mean that financial services organisations should ignore climate change? Of course not. There is a growing expectation that all businesses – and all other sectors of society – will do what they can to address environmental issues. It’s something they will need to do simply to remain relevant.
But they would be wise not to be blind-sided by the issues, nor to
think that the environment will be a source of potential competitive differentiation.
It makes far more sense for a financial services firm to take a stand on an issue
such as debt or financial education. Not only would this be more “ownable”, it
would also enable it to demonstrate its core expertise and what makes it different.
It’s not just about fighting a battle bravely. It’s about picking the right battle
to fight.
Giles Gibbons is the managing director of Good Business www.goodbusiness.co.uk
