When women start their businesses, the key goal is usually the same as men's – to further self-interest and thrive economically. However, the way women approach entrepreneurship is usually entirely different from men, and this is not necessarily a bad thing.
Women entrepreneurs are detail-oriented, sensitive, and willing to listen to alternative viewpoints. But what really sets them apart is their compassion and kindness, making them sensitive to the needs of peers, colleagues, subordinates, and even customers. When you’re thinking about running a successful business, this soft approach may not seem wise at first. Eventually though, kindness might be the perfect ingredient to take your business to the next level.
‘When clients consider patronising a business, there are key factors to consider such as price, quality of product or service, efficiency, and delivery timelines among others,’ says marketing and social media manager D Arun Kumar, who handles key clients for an agency in Chennai. ‘However, when all these factors are met, the client looks above and beyond for a value framework that matches their own. That’s where the kindness economy plays a vital role. How a company treats people, and its social and environmental impact, are some of the elements they look for when making a decision. When you put other things before your own self-interest, it demonstrates values of trust and honesty, which in turn translates into better branding and sales.’
Last year, global management consultancy firm Baringa conducted a study titled The Economics Of Kindness. Surprisingly, 57 per cent (more than half) of those who responded said that they bought products or consumed services only from companies who were considered ‘kind’ and displayed qualities that exemplified it. Some of the values they took into account included integrity, honesty, fair play and treatment of staff, transparency, giving to the community, and workplace diversity and equality. Baringa also highlighted the idea of a ‘triple’ bottom line – people first, then planet, and lastly profit – believing that people who follow this model are more likely to succeed in their ventures.
‘Kindness is often confused with being too nice or too soft, but in reality, these are completely different from being kind,’ says Srushti Reddy, who handles personnel management for an SME firm in Bengaluru. ‘When you’re kind, you’re laying down the foundation for correct behaviour that eventually trickles down to every last person in an organisation. It isn’t easy to balance kindness with your need to create revenue but look at it as an investment into the wellbeing of all your stakeholders. For instance, if you want the best for your clients, you will ensure they get quality products without being shortchanged and this ensures repeated business. Similarly, if you demonstrate kindness towards your employees, you have lower attrition and higher staff loyalty. If you find genuine ways to reduce your carbon footprint, then you’re enabling a better community around you, which is the best form of positive branding you could ask for.’
According to Aldrich, Reese, and Dubini (1989), women entrepreneurs place more emphasis on building interpersonal relationships than men do. Their ‘reality’ is characterised by connectedness and relationships rather than autonomy and logic, which is more typical of men's reality. This makes them ideally positioned to apply the economics of kindness organically, without trying too hard.
Zeno Group, a communications agency, conducted a survey of brands among more than 8,000 people across countries including India, the USA, UK, France, China, Canada, Singapore, and Malaysia. The findings revealed that people were four times more likely to purchase from a brand that demonstrated a clear purpose, and were 4.1 times more likely to trust the brand as well. 83 per cent of the respondents also added that companies should earn a profit only if they also delivered a positive impact.
‘Kindness is not a one-time initiative,’ says Srushti. ‘The customer is smart, and every industry is dynamic. Twenty years ago, terms like DEI and carbon footprint did not really figure among many companies. Today, it is essential for even the smallest of entrepreneurs to focus on these aspects to leave a positive impact on the minds of customers. Of course, you’ll have to make tough decisions on the odd occasion, such as letting go of staff for instance. Kindness is very nuanced and you can’t please everyone all the time, so don’t confuse the two. But how you execute these decisions and deal with people is important, and that is what the economics of kindness is all about. This requires far more than just EQ and training – it needs the right intent.’
As the former Prime Minister of New Zealand Jacinda Ahern said, ‘In the face of isolationism, protectionism, racism — the simple concept of looking outwardly and beyond ourselves, of kindness and collectivism, might just be as good a starting point as any.’