Accountability In Business: What It Is

What does accountability mean to you as a business owner?

Doing business involves a lot of things and comes with a lot of challenges. To remain in business over time, and increase profitability while maintaining a positive business presence, it is important to ensure you have a reasonable degree of accountability in place.

The word ‘Accountability’ is made up of two other words – account and ability. It could be said to be the ability to give an account. So, accountability simply refers to the ability to take responsibility for your actions and to provide reasons or explanations for them.

As a business owner, you must realize that your business owes many people account of its operations, such as your customers, the government and your employees. And you must ensure that your business remains accountable to these persons.

Accountability To Customers

Your customers are the first persons to whom your business is accountable. This is because every business is set up primarily to create and contribute value to the customer. When a business is not able to contribute value to its customers, it soon goes out of business.

Accountability To Local Authorities

This could probably be seen by some persons as the most important but I believe that the customers come first and should always come first. The local authorities only exist to ensure the interests of the customers are protected. This is why local authorities enact laws, regulations and rules which businesses are expected to abide by. As a business owner, you must make yourself aware of these laws and regulations, and work to abide by them to ensure the continued existence of your business.

Successful businesses are only possible with a committed and accountable workforce. However, it is important as a business owner that why you demand commitment from your employees, you ensure your business is accountable to them. This begins with your hiring process, how do you look out for and hire those who work in your business? When you have hired them, how accountable are you to ensuring that you meet the promises you made them at the point of hiring, including ensuring payment of their salaries as when due?

Accountability To Stakeholders and Investors

The stakeholders and investors in your business are the next group of people that you need to ensure your business is accountable. The stakeholders and investors may be partners, co-owners or just individuals who have contributed to the running capital of your business. You need to ensure your business is accountable to this group of persons as their resources make up an integral part of your business’s continued operations. You do this by ensuring you keep to whatever form of an agreement reached with them and also ensure to provide them with regular feedback on the operations of the business.

Do not be deceived, your business owes a great deal of accountability to the public. This is why it is important that as a business owner, you ensure that your business has a healthy and positive public image. One that communicates the values and mission of your business. There are so many benefits to your business in maintaining its accountability to the public including referrals and purchases.

Closing Thoughts

Keeping your business accountable to those it needs to be accountable to will ensure you maintain a positive image of your business with which you can always attract more sales and investments to your business.