What is responsible management?
As part of responsible management, a company’s management considers the environment, social perspectives and good governance when making decisions. The company’s management and responsible manager have an important role in promoting the company’s sustainability goals and success in the long term.
It’s important that responsible management is not only talk. It must be implemented in practical terms. When the company’s management serves as an example and demonstrates responsibility in their own activities, it increases the trust of employees and different stakeholders in the company.
Responsible management in companies
In practice, responsible management can mean open and honest communication about the company’s operations to different stakeholders. For example, this can involve the active and regular inclusion of stakeholders, compliance with and promotion of ethical values, aiming to achieve the company’s sustainability goals, and considering responsibility overall in business.
Responsible management generates benefits for companies
Responsible management can bring benefits to a company through the engagement of stakeholders. An ongoing open dialogue between the company and stakeholders can yield innovative solutions for business development. This can open more business opportunities for the company and highlight development areas where stakeholders expect improvements.
Responsible management can also improve the company’s image among different stakeholders. Sustainability and responsibility measures and open communication about them can attract new customers and investors to companies. In addition, the company’s attractiveness as an employer can improve when job applicants seek out companies with a similar value foundation.
