NEVER TOO "LATTE": THE STORY OF A COFFEE SHOP'S JOURNEY TO RESPONSIBLE SUCCESS

An exemplary tale on how managing responsibly is key to brewing long-term success in business

Sarah was ecstatic when she started her own business, a small café that served delicious coffee and homemade pastries. Her passion for baking and her love for meeting new people made it the perfect fit. Soon enough, customers began to pour in and the café became the talk of the town.

As demand grew, Sarah realized that she needed to expand her business. She rented a larger space, hired more employees, and invested in new equipment. But things started to go downhill. Sarah became so focused on profit that she neglected to ensure that her business practices were sustainable and ethical. She began to cut corners, using cheap and environmentally damaging ingredients, and her employees started to feel overworked and undervalued.

Word of mouth quickly spread about the café's unethical practices, and customers started to avoid the business. Sarah's profits started to decline, and she was left wondering what went wrong. It wasn't until she received a letter from a former employee, detailing the ways in which she had neglected to treat her staff fairly, that Sarah realized the error of her ways.

Sarah started to make changes to her business practices, implementing more responsible practices. She started using locally sourced, organic ingredients, and she treated her employees with more respect and appreciation. She also began to communicate these changes to her customers, and slowly but surely, they began to return to the café.

But Sarah's neglect had come at a cost. Her business had lost valuable customers, and it took a lot of effort and resources to regain their trust. She had also lost some of her most valuable employees, who had left the café for better treatment elsewhere. Sarah realized that prioritizing profit at the expense of value was not only damaging to the world around her, but it was also damaging to her business.

The Triple Bottom Line: Why Responsible Management, Ethics, and Sustainability are Essential for Entrepreneurial Success

Sarah's story is a cautionary tale of the importance of responsible management, ethics, and sustainability for entrepreneurs who want to succeed in the long run in today's economic context.

So, what exactly do these terms mean? Responsible management refers to the way businesses operate and how they treat employees, customers, and the wider community. Business ethics are the moral principles that guide business behavior, such as honesty, fairness and liability. Sustainability, meanwhile, refers to the way businesses operate without compromising the ability of future generations to meet their own needs.

Learning about these practices is crucial for businesses to create profit and value. And the triple bottom line framework becomes a precious tool to guide their performance strategy.

The three components of the triple bottom line are:

1. Economic: This refers to the financial bottom line and evaluates a company's financial performance in terms of revenue, profits, and return on investment.

2. Social: This refers to the impact a company has on society, including its employees, customers, suppliers, and local communities. It measures the company's contributions to social well-being and includes factors such as employee satisfaction, community involvement, and philanthropy.

3. Environmental: This refers to the impact a company has on the natural environment, including its use of natural resources, carbon footprint, and waste management. It measures the company's commitment to sustainability and includes factors such as energy efficiency, waste reduction, and carbon neutrality.

All those notions, under the overarching label of "responsible management" should be a necessary guide for all businesses on their way to success. It gives them three main advantages:

1. Social and Environmental Value for all stakeholders

2. Competitive Lead: Implementing responsible management practices strongly positions them in the marketplace, as consumers, investors, and regulators increasingly value companies that prioritize social and environmental responsibility (1).

3. Risk Management: Practicing responsible management can also help entrepreneurs and managers mitigate risks, such as reputational damage or regulatory penalties, and create more resilient businesses.

How to learn about Responsible Management

The field of Responsible Management is fairly new and traces back to the early 2000s (2).To educate entrepreneurs and managers about it, Wave Innoversity considers several approaches:

1. Training and Workshops: Training programs and workshops are designed to teach entrepreneurs and managers about responsible management practices, such as sustainable supply chain management, social impact measurement or environmental reporting.

2. Mentorship and Consulting: Pairing entrepreneurs and managers with mentors or coaches who have experience in responsible management helps them develop the skills and knowledge needed to implement these practices effectively.

3. Online Resources: Online resources, such as e-learning courses, webinars, and blogs, provide easy access to information and guidance on responsible management.

Women entrepreneurs

As women we often face unique challenges in the business world. Wave Innoversity wants to focus on women entrepreneurs and provide specific mentorship that adresses specific topics such as gender bias and discrimination in the workplace. Because we women may also be more likely to prioritize social and environmental impact, we are well-suited to incorporate sustainable and responsible practices into our businesses.

Africa and Latin America

Over the years I have developed special personal and professional bonds with both these continents. Therefore I want to provide African and Latin American entrepreneurs and managers with the tools and resources that cater to their needs. Therefore Wave Innoversity will offer programs that teach practical skills on specific topics such as waste reduction, energy efficiency or sustainable agriculture.

Last Words...

All in all, responsible management is essential for entrepreneurial success. By learning about these practices, entrepreneurs can create positive social and environmental impact while building successful and sustainable businesses. And, by providing entrepreneurs in developing countries with the tools and resources needed to implement these practices effectively, we can create a more equitable and sustainable future for all.

Contact Us!

Visit our website to learn more and please contact us if you need help building your responsible strategy or if you're an expert on a subject related to responsible management and wish to mentor and educate others.

Marianne Vila

Wave Innoversity Founder

(1) Consumer demand: According to a study by Cone Communications, "87% of consumers said they would purchase a product because a company advocated for an issue they cared about, and 76% said they would refuse to buy a product if they found out a company supported an issue contrary to their beliefs".

Regulatory environment: Governments around the world are increasingly taking action to address social and environmental challenges through regulations and incentives. For example, the European Union's Sustainable Finance Action Plan aims to create a more sustainable financial system by mobilizing private capital towards sustainable investments.

Investor demand: Impact investing is on the rise, with the Global Impact Investing Network (GIIN) estimating the size of the impact investing market to be around $715 billion as of 2020, representing a 42% increase from the previous year. Furthermore, a survey by Morgan Stanley found that 85% of individual investors are interested in sustainable investing.

(2) See the excellent book by Oliver Laasch: The Principles of Management - Practicing Ethics, Responsibility, Sustainibility for a deeper dive on the subject