The “Right” business decisions Vs “Profitable” business decisions

Resilience and agility in supply chain have been imperative in 2020 and after investigation to potentially mitigate risks many gaps in the business processes were identified. Findings from an ABBYY survey showed that 

60% of senior decision-makers said there are exceptions and deviations to complete processes, meaning employees must find workarounds to ensure successful outcomes” 

Based on this it is important to distinguish between making the “right” business decisions, versus making ‘profitable” business decisions.  

The “right” business decisions 

A common business goal across multiple industries is to remain competitive and the supply chain industry has to support this with efficient processes and effective technology. This will be fundamental to future growth. The world’s nations have committed to following the UN 2030 Agenda and sustainable development goals by considering ethical and social business decisions. This creates the need to identify the difference between the “right” business decisions and “profitable” business decisions and what if these aren’t mutually exclusive scenarios?

Profitable business decisions 

Some key feedback from a McKinsey study conducted globally found that 

  • Companies with more gender-diverse leadership teams were 21% more likely to outperform on profitability and 27% more likely to outperform on value creation
  • More ethnic and culturally diverse companies were more likely to attain higher profitability
  • Companies with executive teams that are more diverse perform 33% above average
  • Companies with a diverse board perform 43% above average 

Globally, consumers are more likely to identify social issues that affect their purchasing decisions. For example, supporting black and minority-owned companies has been on the rise especially in the rise of the BLM movement. In addition, the more environmentally conscious generations are gaining purchasing power. To support this a recent survey brought back results showing that less people consider price as the most important factor when compared to environmentally friendly business practices, social responsibility and giving back to the local community. 

For the supply chain industry, there is significant room for growth in terms of diversity, inclusion, ethics and social responsibility. To ensure the balance between making the right business decisions and profitable business decisions and furthermore to gain the competitive advantage discussed previously, supply chain leaders need to invest in development in new guidelines, strategy, and responsible decision-making framework. 

Excerpt from


Leave a Reply