When it comes to making major spending decisions, senior executives are just as likely to rely on gut instinct as metrics.
A US study by business communications agency Doremus found that half the respondents regularly invest in projects they believe in even when they can’t make numeric or ROI case for them. Reliance on intuition was more common among people in high margin businesses and larger companies where there may be more room for error.
Other findings – that executives consider their company’s culture when taking risks; think investments in quality pay off, believe relationships make difference when it comes to hiring suppliers (ie, cost, while important, isn’t all) and believe the long-term impact of investments plays bigger role in their evaluation of projects than short-term impact.
Only one third of respondents considered shareholder value as the only yardstick for making major corporate decisions and four out of five believe their businesses are obligated to give back to their communities.
Asked whether ethical decisions lead to profit, more than third thought not, with the over-60s proving most cynical – half that age group doubted that being ethical had much to do with profitability.
Why leaders need empathy during difficult times
Guest Contributor
October 2, 2024
In the current economic climate many employees are worried about their income and job security which can fuel workplace anxiety that leads to wellbeing and productivity issues. Sarah Bills writes that
