‘Happytalism’ to drive sustainable business growth

Happiness is a fundamental human goal. The General Assembly of the United Nations had recognised the relevance of happiness and well-being as universal goals back in 2012 and called for a more inclusive, equitable and balanced approach to economic growth that promotes the happiness and well-being of all human beings.

According to a UN resolution, there are three factors that hinder happiness: poverty, inequality, and environmental hazards.  

This famous resolution was initiated by our neighbouring country Bhutan, who acknowledged the value of national happiness over national income since the early 1970s. It was Jigme Singye Wangchuck, the fourth king of Bhutan, who decided to measure the progress of his citizens by their happiness instead of by their wealth.

The king introduced the GNH (Gross National Happiness) in place of Gross Domestic Product (GDP). Eventually, in 2012 the General Assembly acknowledged this concept and launched a project called United Nations New Economic Paradigm (NEP) with an objective to achieve the global happiness and well-being of all life on earth by 2050.

On Earth Day 2019, the NEP project called all citizens and nations to unite in making bold and swift paradigm shifts in their approach to sustainable economic and human development, as well as to daily life - by transitioning from capitalism to 'happytalism', a new economic system, socio-political philosophy, and human development paradigm that places the primacy of happiness, well-being, and freedom at the centre of human development and all life. 

In the backdrop of the paradigm shift of the mindset of the policy-makers and ultimately the consumers, business leaders need to incorporate the principles of happytalism into their policies and strategies to ensure sustainable business growth. From the perspective of the business, happytalism has two key components: happy consumers and happy employees.

It is generally believed that earning profit is the primary objective of business organisations. Not many organisations are so concerned about the emotional, social, or environmental impacts they have on the society they operate in.

However, off late, it is being observed that there has been increasing awareness about these important topics among policymakers and consumers as well. As a result, the regulatory environment is becoming stringent.

New regulations are being framed to protect society and its inhabitants. Corporations are being brought under intense monitoring of the regulators who are more vigilant nowadays.

One such regulatory change took place in France, where the government passed a legislation called PACTE in 2019. As a result, every company should have a corporate purpose and must care for the social and environmental issues arising from their activities.

Besides the regulatory compulsions, there are pure business reasons for which organisations should consider happytalism as the guiding principle for their businesses. A study suggests that a purposeful business and earning profit are not mutually exclusive strategies. As consumers are becoming more socially mindful, they expect the companies from which they buy products or services to act responsibly towards society as well.

Research findings show that consumers are willing to pay more for the products or services that serve greater purposes. 

According to a survey conducted by Nielsen in 60 countries, 55 per cent of consumers worldwide are ready to pay more for products and services provided by companies that are committed to positive social and environmental impact. Another survey shows 81 per cent of global respondents feel strongly that companies should help improve the environment.

Famous management guru Stephen Covey says a human has four basic components: a physical body; a mind capable of independent thought and analysis; a heart that can feel emotion; and a spirit -- soul or philosophical centre. It is quite noticeable that consumers in today's world are not only contented with the functional or emotional fulfilment, they consciously look for the fulfilment connected with the human spirit from the products or services they buy.

Issues like environment, labour rights, and corporate social responsibility are becoming critically important factors that influence consumers' purchase decisions.

Clearly, consumers are inclining towards the companies that are fulfilling the deepest of needs associated with removing some of the anxieties about making the world more livable and happier.

Philip Kotler, in his book titled Marketing 3.0: From Products to Customers to the Human Spirit, suggested some effective measures to deal with the changes in consumer behaviours. He has recommended taking approaches that are more human-centric.

Affection, love, joy, authenticity, empathy, compassion, and soulfulness are some of the most critical and deep-rooted things that, in fact, drive human beings. Companies must take these critical factors into consideration while designing their campaigns or overall strategies.

Studies show that companies with passion and greater purpose are endeared by the customers. These companies are highly profitable as well. Research findings also show that not only do they have happy and loyal customers, their employees are more fulfilled, they have innovative and profitable suppliers, and they also have environmentally healthy communities. All these factors actually lead to sustainability and happiness.

Companies must also focus on the well-being of the employees due to the fact that well-being boosts employee morale radically, fosters teamwork, and enhances productivity and job satisfaction. Eventually, the bottom line improves.

A study conducted by US-based reputed human resources consulting firm QC Tanner suggests that 25 per cent of companies with the largest health promotion budgets have seen an 8 per cent year-on-year improvement in the proportion of employees in good or excellent health and a 16 per cent year-on-year reduction in productivity loss.

Successes of the businesses in today's world would largely depend on two critical factors: happy employees and happy customers. In order to make employees happy, well-being plays a pivotal role. On the other hand, with a view to making consumers happy, companies need to build their organisations around a serious and deep purpose. 

Businesses would certainly play a critical role to build a happier world. The sooner they realise this and incorporate the spirit of happytalism in their policies, the better it would be for them as well as for Mother Earth.

The author is chairman and managing director of BASF Bangladesh Ltd. Views are personal.