Three ways to make business better in 2023

After almost two years of pandemic restrictions, 2022 proved pivotal in reopening the world and restructuring how we live and work.

Organisations were tasked not just with deciding whether to go back to their traditional pre-pandemic ways of working or to continue to allow flexibility, but to also consider their commitments to prioritising people and the planet, as well as profit.

What has become clear is that the future of business must work for everyone, not just those at the top of our industries. And there has definitely been a shift in attitude. More organisations are offering greater flexibility to staff working arrangements, others are taking action to reduce their environment impact, and many are taking a proactive step forward in their diversity and inclusion strategies.

But not all organisations have been as progressive in their decision-making, with examples of bad practice abound.

How can we encourage better behaviour? There are some fantastic examples of companies that are getting it right. We must learn from those, as well as from academic research, which is an invaluable resource in guiding business decision making and identifying new, more responsible practices, backed by robust data and insight.

As we enter 2023, here are three suggestions based on academic research for how we can build a better business future for all.

Make flexible working policies personal

We’ve seen plenty of companies switch to a blanket policy, such as two days in the office and three days at home or vice versa, but there is more that employers can do to support the work-life balance and mental health of employees. Your people are your greatest asset, and ensuring they have the right tools and mindset to work to the best of their ability, and are happy to do so, is key. Gestures such as offering a set rota for working from home are not as flexible as they may initially seem.

The Covid pandemic highlighted the need to protect employee mental health, and research from Durham University Business School’s visiting professor, Roger Gill, showed how tailoring flexibility to suit individual workers’ needs has benefitted everyone. Switching from travelling to the office every day to a more flexible arrangement during the pandemic actually improved the mental health of workers, especially those who those who previously faced long or expensive commutes, as well as boosting their work commitment. For others, maintaining a greater connection to colleagues and managers was essential to their wellbeing.

A one-size-fits-all policy risks suiting no one at all. Business leaders must understand how employees’ individual differences and resources may impact their work-related wellbeing, and HR policies on flexible working must be personal and adaptable, not rigid and universal.

Focus on inclusivity not diversity

Diversity will continue to be a buzzword in 2023, that’s for certain. And, unfortunately for some companies, it will remain little more than that. Simply hiring diverse people is not enough to support a DEI narrative – it does not ensure staff will feel included or accepted in the organisation, or that their perspectives will be heard. In fact, often, corporate diversity lacks inclusion, making those vitally important voices feel even more “othered”.

Research I conducted with my Durham University colleague, Professor Jackie Ford – together with professors Kathryn Watson and Juliet Kele from the Leeds University and Newcastle Business Schools – found that DEI policies can actually have the adverse effect of alienating employees if they are not partnered with inclusive cultures.

How can employers make sure their organisations are more inclusive in their working practices in 2023?

It’s a hard balance to strike between cultivating practices that effectively support underrepresented staff while also making employees in general feel they are a priority. The trick is to consult all your staff on your inclusion efforts in order to gain an honest view of the company, understand what measures might work best, and encourage engagement.

Make sustainability a legal duty not just a moral one

If we are to truly reverse the drastic effects of climate change, many of which have been caused by previous bad business practices, we need to act. It’s simply not enough to switch to energy-saving lightbulbs, or turn the heating down in the office. In 2023, we must go beyond such minimal commitments. We simply cannot let organisations get away with soundbites or greenwashing initiatives that distract from other bad practices.

If the moral case for doing so is not enough to encourage some organisations to go green, hopefully the impact climate change is having on businesses – and thus their profits – will be. Research by Durham University Business School Professor Guanming He found that the decision-making abilities of companies based in highly polluted areas were negatively impacted when it came to investing, showing a business case for improving air quality.

Organisations should also be conscious of the attitudes of the companies they collaborate with. By including sustainability targets in senior management contracts, and supplier and buildings contracts, organisations can place sustainability at the heart of their work, and enforce a legal duty for others to engage too.

What we know for sure is that we are running out of time to act. We must ensure that 2023 is the year our organisations take practical steps to truly make employees and the planet the most important stakeholders of business.

Cathy Cassell is Executive Dean of Durham University Business School, a Professor of Organisational Psychology and holds fellowships of the Academy of Social Sciences, the British Academy of Management and the Chartered Institute of Personnel and Development.

Durham University Business School, based in the UK, is an internationally focused triple-accredited school. It works collaboratively with academic partners and business globally to deliver high impact research and executive business education.

To find out more please visit www.durham.ac.uk/business