Wellbeing economy: what it means for business

Building a wellbeing economy: ways to contribute

The ideas suggested below are to be considered alongside each other as part of an integrated approach organisations can take.

Purposeful business models and good governance

Innovative organisations that are built around a social and environmental purpose often find a new way to solve problems in a marketplace. This delivers a benefit to users, customers and communities, while also standing out as distinctive and making a profit. Inclusive and democratic business models can bring flexibility and the resilience to withstand shocks. They also benefit from maintaining public trust in an environment of increasingly volatile social and environmental changes. 

Good governance is critical. Having clear vision and values aligned to a greater purpose can help business sustainability and growth, and is attractive to potential customers, suppliers, funders, investors and talent. Ways to make a difference are:

• transparency in finances, social and environmental impacts
• setting out purpose as a key element of shareholder priorities

There are many forms of business model. Cooperatives, community interest companies and social enterprises, alongside more traditional shareholder-owned businesses, public limited companies and family businesses. Some models share ownership with employees, or share profit with communities or charity projects. Some unlock productivity in a new way, for example by bringing new talent into the workforce. Engagement with the communities in which they operate, and with employees, is also common in a purpose-led business. They find new and innovative ways to engage with the communities they serve. 

Nature, net zero and the circular economy

A truly net-zero, circular economy is centred around reducing and reusing materials and resources. Sustainable design, using green materials and fossil-free energy, considering innovative environmental packaging and working with consumers to make positive changes all contribute.

Reducing energy and other resource usage and finding new innovative ways to reduce or reuse waste products helps the environment. It also leads to cost savings and can open up access to new markets. Actions businesses can take include:

• improving their environmental stewardship
• transitioning to low emission vehicles
• reducing carbon emissions
• protecting, restoring and investing in nature

Fair Work 

Innovative and fairer working practices, as well as investing in people’s skills to unleash potential, have been proven to improve productivity and staff retention. Organisations can sign up to pay the Real Living Wage, offer Living Hours and Living Pensions, and consider ways to attract, support and retain under-represented groups. For example disadvantaged or marginalised people such as former prisoners or disabled people, who may otherwise struggle to enter the workplace.

Prioritising and supporting employees’ physical and mental health unlocks productivity and reduces sickness leave. Creating a healthy, positive workplace by encouraging employees to make positive choices through benefits programmes is a good investment. Examples of good practice include:

• providing equitable remuneration across the entire workforce
• having employees on the board
• offering generous benefits (improved maternity and sick pay allowances)
• increased holidays
• health and safety enhancements

Being a good, fair employer is a sound business decision that reaps many rewards and supports people and communities across Scotland. Effective employee voice strategies and a commitment to supporting a unionised workforce can open up feedback channels from employees, improve motivation and boost performance.

Supply chain

Many purpose-driven businesses use innovation in their supply chains as a key differentiator. Organisations can have an impact by considering their supply chain and opting to spend their budgets with ethical, sustainable product and service providers. This can include:

• sourcing fairtrade or local produce
• finding new ways to procure and recycle products that may otherwise have gone to waste
• using more sustainable raw materials 

Place - community involvement, procurement, Fair Work, inclusive models

Organisations don’t exist in isolation but have links into their local communities as anchors. Decisions such as investment, how they utilise land and assets and develop relationships, all come back to place and community.

Conclusion

The actions businesses take can have a lasting impact for people across the country, help strengthen our economy, and contribute to protecting our planet for future generations. This description is intended to encourage more businesses to adopt the practices highlighted above and contribute to achieving a greener, fairer, wealthier Scotland.