The “be good” approach focuses on benefiting various stakeholders like suppliers, employees, and communities. Companies adopting this strategy are 85% more likely to outperform. They engage in sustainable and socially responsible practices, which motivate stakeholders to support them. This support can come through investments, purchasing products, or increased employee productivity.
Investors are increasingly interested in companies with strong environmental, social, and governance (ESG) practices. McKinsey & Company research shows that firms with high ESG ratings grow faster and have higher valuations, outperforming their peers by 10-20%.
Mastercard’s “Beyond Cash” initiative, launched around 2012, is a prime example of the “be good” strategy. Ajay Banga, then CEO, shifted the focus from competing with other payment companies to reducing reliance on cash. This initiative promotes digital transactions, benefiting underbanked populations and reducing the social costs of cash-based economies.
Banga, now president of the World Bank, emphasized that this strategy mobilized NGOs, governments, and other stakeholders. It increased employee engagement and pride, contributing to Mastercard’s stock price rising from $25 to approximately $350 per share during his tenure.
The “be good” strategy is both a moral and business imperative. It aligns with the growing demand for corporate responsibility and sustainable growth, demonstrating that prioritizing social and environmental impact can lead to significant financial gains and a more inclusive economy.
