Consumer Price Index SummaryTransmission of material in this release is embargoed until 8:30 a.m. (ET) Wednesday, September 13, 2023 USDL-23-1972 Technical information: (202) 691-7000 * email@example.com * www.bls.gov/cpi Media contact: (202) 691-5902 * PressOffice@bls.gov CONSUMER PRICE INDEX - AUGUST 2023 The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.6 percent in August on a seasonally adjusted basis, after increasing 0.2 percent in July, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 3.7 percent before seasonal adjustment.
Full Report: https://www.bls.gov/news.release/cpi.nr0.htm
By Michael Lodge - The Business Advisor - www.lodge-co.com: There are times I sit down and mediate financial disputes between partners. Business partners and significant other partners in life. Money is one of the biggest issues that can create stress, fights, name calling, and finger pointing. I always like to have people who are contemplating marriage to sit down and understand their finances before they say "I Do". Many bring in a lot of out of control financial baggage into the marriage and in a few months they are pointing fingers and fights are created, and then I get the call for help. Let's start at the financial side of our financial lives right up front so both parties understand what they are getting into. So let's talk about budgets.
Mastering the art of budgeting is a crucial step towards achieving financial stability and peace of mind. When you create a budget, live within its constraints, and monitor the safety of your bank, you take control of your personal finances and lay a strong foundation for a prosperous future. In this article, we'll explore the importance of budgeting, the significance of bank safety, and the benefits of working on your budget together with your partner. If you have a partner, don't do it alone. One of you may be better in understanding and putting numbers together. But you both need to understand the money coming in and how you will use the money. If it is just one person then they tend to hold that over the other person. Do it together.
Creating a budget is the first and most essential step in managing your personal finances effectively. A budget provides you with a clear overview of your income and expenses, allowing you to allocate your money wisely. By tracking your spending habits, you become aware of where your money is going and can identify areas where you can cut back or save. It helps you prioritize your financial goals and ensures that you have enough funds for both essential and discretionary expenses. A well-crafted budget also acts as a roadmap for your financial journey, enabling you to plan for the future, such as saving for emergencies, retirement, or major life events.
Living within a budget requires discipline, commitment, and a conscious effort to make financial decisions aligned with your budgetary constraints. It means avoiding unnecessary expenses, curbing impulsive buying, and being mindful of your financial limitations. While it may take time to adjust your spending habits, living within a budget empowers you to make intentional choices that support your long-term financial well-being. It helps you avoid debt, save for the future, and build a strong financial foundation.
A budget it really quite simple:
Income (wages and other income)
Priority Expenses - rent/home mortgage, utilities, phone, food, car payment, insurance
Debt - car, mortgage, student debt, other
Other Expenses - cable, internet, fun, movies, gifts, travel, eating out, etc
Net Cash (Income minus all expenses)
Note - net cash is what is left over to attack debt. Priority - pay down your debt.
Monitoring the safety of your bank is another crucial aspect of managing your personal finances. Banks play a pivotal role in safeguarding your money, and it's important to ensure that your funds are secure. Credit agencies periodically evaluate and rate banks based on their financial strength and stability. Downgrades by credit agencies serve as a warning sign, indicating that a bank's financial health may be at risk. Such downgrades could be due to factors like poor financial performance, high levels of debt, or inadequate risk management. It's essential to stay informed about the ratings of your bank and consider diversifying your funds if you have concerns about its stability. You have the right to ask questions about your bank.
Sitting down with your partner in life and working on your budget together is a powerful way to strengthen your relationship while improving your financial condition. By collaborating on budgeting, you both gain a comprehensive understanding of your financial situation, goals, and challenges. It fosters open communication about money matters and allows you to align your values, priorities, and spending habits. Working together also means sharing the responsibility for financial decision-making, reducing the burden on one individual and promoting a sense of teamwork. It enables you to support each other in times of financial stress and celebrate achievements together.
Being proactive in managing your personal finances is essential for long-term success. Regularly reviewing and adjusting your budget ensures that it remains relevant and effective. As your income, expenses, and financial goals evolve, your budget should reflect these changes. Additionally, when you have a strong cash flow, it's advisable to prioritize paying down your debts. By tackling your debts from smallest to largest, you can build momentum and motivation as you see progress. Eliminating high-interest debts and freeing up cash for savings and investments will pave the way for a healthier financial future.
Creating and living within a budget, monitoring bank safety, and working on your budget together with your partner are all vital aspects of managing your personal finances. By taking control of your money and making informed financial decisions, you will create a less stressful life. Less fights. More understanding on how you both work together on your finances.
By Michael Lodge - The Business Advisor - www.lodge-co.com: The Employee Retention Credit (ERC) has been a lifeline for businesses affected by the COVID-19 pandemic. Designed to provide financial relief to companies that continued paying employees during government shutdowns or experienced significant declines in gross income, the ERC is a refundable tax credit. However, recent reports have highlighted the rise of third-party companies making extravagant promises of large credits without adequately informing businesses about the rules and qualifications associated with the ERC. In response, the Internal Revenue Service (IRS) has issued a warning about potential fraud and emphasized the importance of understanding the credit's requirements. This article aims to shed light on the ERC rules, caution against fraudulent claims, and encourage businesses to seek guidance from qualified tax professionals.
Understanding the ERC and Its Rules: The ERC was introduced as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020. It was later expanded and extended by subsequent legislation to provide additional support to businesses. The credit is available to eligible employers who retained employees and continued to pay wages during periods of significant disruption caused by the pandemic.
To qualify for the ERC, businesses must meet specific criteria. These include experiencing either a full or partial suspension of operations due to government orders or a significant decline in gross receipts compared to the same quarter in the previous year. Eligible employers can claim a percentage of qualified wages paid to employees during the mandated shutdown by government, subject to certain limitations, for specific periods determined by the IRS. If you take the credit, you will need to file an amended business tax return to apply the credit. You may owe corporate taxes at that time if it increases you net income. The IRS will examine the credit that you took for ERC, they will also look at any PPP money you took to see if you are double dipping. If they deny you the credit later on there will be interest and penalties do. You will need to document the time you were shut down, copies of the shut down mandate by the government. This is just a brief overview, please talk to your tax accountant on the issue of qualifying.
The Role of Third-Party Companies: Unfortunately, some third-party companies have sought to take advantage of the confusion and financial distress caused by the pandemic. These companies often make enticing promises of substantial credits, with claims as high as $26,000 per employee. However, they frequently fail to inform businesses about the eligibility requirements, the necessity of filing an amended return, and the risks associated with improper claims.
IRS Warning on Fraudulent Claims: Recognizing the potential for abuse, the IRS has taken action to warn businesses about these unscrupulous practices. On IRS.gov, the official website of the IRS, a renewed warning has been issued regarding employee retention credit claims. The agency highlights the compliance risks associated with making improper claims and emphasizes the importance of understanding and adhering to the ERC rules.
IRS Web Site: irs.gov
Protecting Your Business: To avoid falling victim to fraudulent practices and potential audits, it is crucial for businesses to exercise caution and due diligence when considering third-party services related to the ERC. Here are some essential steps to protect your business:
1. Consult a Tax Professional: Engage the services of a qualified tax accountant or advisor who can guide you through the ERC rules, determine your eligibility, and assist you with the necessary documentation and filing requirements.
2. Educate Yourself: Take the time to read and understand the guidelines and notices issued by the IRS. This will enable you to make informed decisions and identify any red flags or misleading claims made by third-party companies.
3. Be Wary of Promises: Exercise caution when approached by third-party companies guaranteeing substantial credits without adequately assessing your eligibility. Remember that if a deal sounds too good to be true, it probably is.
4. File Accurate and Amended Returns: Ensure that you file accurate and complete tax returns, including any amendments required to claim the ERC. Failing to report the credit properly or including false information may result in potential audits and penalties.
The ERC is available - if you qualify for the ERC credit and have complied with the rules of filing, you should be ok. But you want to make sure you qualify and not have to face any IRS questions and determinations down the road. Compliance will make sure you are protecting your business. Again, talk with your accountant.
For business advisory / coaching - schedule a confidential session online at: http://www.lodge-co.com
By Michael Lodge - The Business Advisor - www.lodge-co.com: Many times I have sat down with partners in a business and they have gone way off course and then a conflict is created. Two friends get together and say, hay, let's start a business but forget to have the important talk about what their roles will be as partners. They go in different directions and can't understand why the other partner is doing what they are doing. Now we have to sit down with both partners and see if we can resolve the issues and define the roles of the partners. A successful business partnership requires careful planning, open communication, and a shared vision. At the outset of a partnership, it is crucial for the partners to define their roles and responsibilities within the business. By clearly establishing who is responsible for what, partners can avoid ambiguity and potential conflicts that may arise from overlapping duties.
Ethics play a vital role in any business partnership. Each partner should possess a strong ethical foundation and a commitment to shared values. When partners have different ethical standards or principles, conflicts are likely to arise, which can have a detrimental impact on the partnership and its reputation. Therefore, it is important for partners to align their ethical values and ensure they are committed to maintaining high ethical standards in their business practices.
Inevitably, conflicts may arise in any partnership. When faced with heavy-duty conflicts, it is advisable to seek the assistance of a business mediator. A mediator can help facilitate effective communication, identify common ground, and guide partners towards finding mutually beneficial resolutions. Engaging a neutral third party can prevent conflicts from escalating and potentially damaging the partnership irreparably.
Regular and structured communication is essential to the success of a partnership. Partners should make it a priority to sit down frequently to discuss the progress of the business, identify challenges, and plan for the future. By maintaining open lines of communication, partners can build trust, address issues proactively, and ensure that they are on the same page when it comes to the direction and goals of the business.
Understanding the financial aspects of the business is crucial for all partners. Each partner should have a clear understanding of the financials, including revenue, expenses, and profit margins. Financial transparency fosters trust and accountability among partners and enables informed decision-making. Regular financial reviews and reports should be conducted to ensure partners stay informed about the financial health of the business.
A partnership should also have a well-defined succession plan in place to address the possibility of a partner leaving, retiring, or passing away. By establishing a plan ahead of time, partners can minimize disruptions and ensure a smooth transition of ownership and management. The succession plan should outline the process for transferring responsibilities, ownership shares, and any other relevant considerations.
To avoid misunderstandings and disputes, it is crucial to put everything in writing. A formal partnership agreement should be drafted, outlining the roles and responsibilities of each partner, the decision-making process, profit distribution, dispute resolution mechanisms, and other important details. This legal document serves as a reference point and provides clarity on the expectations and obligations of each partner.
A successful business partnership requires careful planning, effective communication, and a commitment to shared values and ethics. Defining roles and responsibilities, resolving conflicts through mediation, regular communication, financial transparency, a well-defined succession plan, and a comprehensive partnership agreement are all essential elements for a thriving and sustainable partnership. By investing time and effort into these aspects, partners can build a strong foundation for their business and increase the chances of long-term success.
By Michael Lodge, The Business Advisor - www.lodge-co.com: I know that I normally write my blogs about business, but today it is about our spiritual needs of faith and forgiveness. Two vital areas of our spiritual life that makes us better people and leaders. I believe that in order to be good at whatever you do, especially as a leader, you have to have a spiritual base and path.
The concept of faith and forgiveness holds immense significance in various religious and spiritual traditions worldwide. It serves as a guiding principle for individuals seeking personal growth, peace, and reconciliation. Luke 6:37 beautifully encapsulates the essence of this profound connection, reminding us of the transformative power of forgiveness and the importance of cultivating a non-judgmental attitude towards others. The verse reads, "Do not judge, and you will not be judged. Do not condemn, and you will not be condemned. Forgive, and you will be forgiven" There are three messages in that verse, but today we will focus in on "forgiveness".
Embracing Non-Judgment: When we refrain from judging others, we create an environment of acceptance and compassion. By recognizing the inherent complexity of human nature, we open ourselves up to understanding and empathy. This practice allows us to transcend our own biases and preconceived notions, fostering deeper connections and enhancing our spiritual well-being.
Abstaining from Condemnation: Condemnation can be detrimental to our spiritual growth and hinder our capacity to forgive. When we condemn others, we often fail to acknowledge their potential for change and growth. By abstaining from condemnation, we create room for personal improvement and encourage a collective environment that nurtures forgiveness and growth.
The Transformative Power of Forgiveness: Forgiveness has the power to liberate both the forgiver and the forgiven. It allows us to release the burden of anger, resentment, and pain. When we forgive, we let go of negative emotions that can poison our hearts and minds, offering an opportunity for healing and redemption. Moreover, forgiveness enables us to break free from the cycle of resentment, paving the way for healthier relationships and personal growth.
Prayer: A Pathway to Forgiveness: In our prayers, we seek forgiveness from a higher power, acknowledging our own fallibility and imperfections. We ask for guidance and strength to navigate the challenges of forgiving others, particularly when wounds run deep. Through prayer, we find solace and support, enabling us to extend forgiveness to those who have wronged us. It is in this sacred space that we cultivate the humility, compassion, and courage necessary for true forgiveness.
In your private times through your daily prayer, ask for forgiveness and ask that God will help you to forgive.
Embracing faith and forgiveness as integral aspects of our lives allows us to experience personal growth, healing, and reconciliation. Luke 6:37 serves as a profound reminder of the interconnectedness between the forgiveness we seek and the forgiveness we offer. By fostering a non-judgmental attitude, abstaining from condemnation, and striving to forgive, we embark on a transformative journey of compassion, understanding, and spiritual enrichment. Through prayer, we find solace and strength, enabling us to extend forgiveness to others and experience the liberating power of forgiveness in our own lives.
By Michael Lodge, The Business Advisor - www.lodge-co.com: Starting and running a business can be a challenging endeavor, filled with uncertainties and complex decision-making. In such situations, having a knowledgeable and experienced mentor by your side can make a significant difference. Hiring a business coach-advisor, particularly one with firsthand business experience, can provide invaluable guidance, support, and expertise. In this article, we will discuss the importance of hiring a business coach during the startup phase and when you're running a business, and highlight the benefits of working with a coach like Michael Lodge of Lodge and Company.
Expert Guidance in the Startup Phase: The startup phase is a critical period where entrepreneurs face numerous challenges and decisions that can impact the future success of their business. Hiring a business coach during this phase can offer several advantages:
a) Experience: A business coach with actual experience in starting and managing businesses has likely encountered many of the hurdles you're facing. They can offer insights into the best practices, potential pitfalls, and effective strategies for overcoming challenges.
b) Strategic Planning: A business coach can help you develop a comprehensive business plan and set realistic goals. They can assist in identifying target markets, refining your value proposition, and establishing a roadmap for success.
c) Financial Expertise: Understanding the financial aspects of your startup is crucial. A business coach can provide guidance on financial planning, budgeting, securing funding, and managing cash flow, ensuring your business remains financially healthy.
d) Networking Opportunities: A business coach often has an extensive network of contacts in various industries. Leveraging their connections can open doors to new partnerships, potential clients, and opportunities for growth.
Confidential Support for Established Business Leaders: Once your business is up and running, the need for guidance and support doesn't diminish. In fact, it becomes even more critical as you face new challenges and responsibilities. Hiring a business coach as a CEO, CFO, or manager can provide you with a trusted confidant to discuss ideas, solve problems, and navigate through uncharted territories. Here's why it's beneficial:
a) Unbiased Perspective: A business coach offers an objective viewpoint and can provide unbiased feedback on your ideas, strategies, and decisions. They can challenge your assumptions and help you see the bigger picture, ensuring you make well-informed choices.
b) Personal Development: A business coach can help you identify and enhance your leadership skills, communication abilities, and time management techniques. They can provide valuable guidance on personal and professional growth, enabling you to become a more effective business leader.
c) Accountability and Motivation: Running a business can be overwhelming, and it's easy to get sidetracked or lose motivation. A business coach will hold you accountable for your goals, ensuring you stay focused and motivated on your path to success.
d) Problem-Solving and Innovation: When faced with complex challenges or seeking innovative solutions, a business coach can serve as a sounding board. They can help you brainstorm ideas, evaluate options, and provide practical solutions based on their experience and expertise.
Michael Lodge / Lodge & Co.: A Trusted Business Advisor and Coach
One exemplary business advisor and coach with a wealth of experience is Michael Lodge of Lodge and Company. With a track record of starting and managing five successful businesses of his own and advising client businesses in various industries, Michael brings a deep understanding of the entrepreneurial journey. Since 1984, he has advised businesses in finance, taxation, business planning, compliance, management, and HR issues. Mr. Lodge has written five books - on ethics, how to build a business, mediation, kids and money for parents, and knowing how to manage. Books by Michael
To benefit from Michael Lodge's expertise and guidance, schedule an appointment online at www.lodge-co.com and if you have a business question, send it to: firstname.lastname@example.org
By Michael Lodge - The Business Advisor - www.lodge-co.com: Across the United States, a growing sentiment of disillusionment and mistrust has taken hold among the American people towards their government. Citizens believe that politicians, once elected, frequently ignore their constituents' voices and pursue self-serving agendas that fail to address the needs of the people. Politicians ignore their oath of office to protect and defend the constitution. From unchecked government spending to questionable foreign policies and a perception of corruption, a series of grievances has eroded the trust Americans have in their government. This article aims to explore the reasons behind this lack of trust and the urgent need for change to restore faith in the American political system.
Disconnected Politicians: One of the primary reasons for Americans' waning trust in government is the perception that elected officials no longer prioritize the will of the people. Despite promises made during campaigns, politicians have been accused of disregarding the concerns and demands of their constituents. This disconnect between politicians and the public has left Americans feeling voiceless and disempowered, leading to frustration and a sense of betrayal.
Out-of-Control Spending: Another major source of frustration is the perception that the government continually engages in reckless spending. Despite public outcry for fiscal responsibility, politicians often ignore these demands, resulting in a ballooning national debt. Americans witness their hard-earned tax dollars being squandered on projects that do not align with their priorities or benefit the nation as a whole. This disregard for responsible financial management further erodes trust in the government's ability to make sound decisions.
After politicians are elected they go to their capitals and forget they have people they are representing, that they should be protecting by abuse of the pocket book. Instead they follow their political party and they spend on political issues, not what is needed by the American people. They create more debt and a financial burden on the American people. Americans do not want more spending, they have seen the damage it has caused during the pandemic and currently on bills passed that were lies to the American people. Inflation reduction act had nothing to do with inflation. Debt reduction act had nothing to do with reducing debt. These bills get passed and then the American people hold the bag for these things to get paid. These bills do not help the American people.
Questionable Political Agendas: A significant factor contributing to Americans' mistrust is the perception that politicians prioritize political agendas over the well-being of the American people. Citizens witness policies being pushed forward that seem to serve partisan interests rather than the common good. This divergence between the needs of the people and the actions of their elected officials deepens the skepticism and reinforces the belief that the government is not working in their best interest.
Foreign Policy Concerns: The involvement of the U.S. government in foreign conflicts, such as the situation in Ukraine, has also strained Americans' trust. When citizens perceive that their government is engaging in activities that do not directly benefit the American people, they question the motives and priorities of their elected representatives. The perception of corruption and the alleged acceptance of bribes by high-ranking officials further contributes to the skepticism surrounding foreign policy decisions. The country of Ukraine has even corrupted the Biden family, placing the president in a weak compromised position. We did not have an issue with Russia. Russia nor Ukraine are on our borders. Billions of dollars and war machines have been sent to Ukraine with no system in place as to how the money is being spent. Sending our own weapons and war machines has depleted our own military strength. Biden said the other day, stupidly, we ran out of bullets.
China is a threat to America and yet we have no strategy to deal with China. Biden says he knows the leader, has traveled with him several times, and yet the leader of china doesn't even want to talk to the United States. They see, smell, weakness and they are going to take full advantage of this weakness. And here we sit today with a threat of war with China. The Chinese saying is - muddy waters make it easy to catch fish, "-that is, that it's possible to use a crisis or period of chaos for personal benefit. China has muddied the waters and American leadership is falling for it. Americans see what is going on.
Protection of Political Elite: A prevalent sentiment among Americans is that the law protects the political elite while disproportionately targeting ordinary citizens. Instances where politicians seem immune to the consequences of their actions, while everyday Americans face legal repercussions, deepen the feeling of injustice. This perception reinforces the belief that the government operates under a double standard, where the powerful are shielded from the consequences of their wrongdoings.
Growing Social Issues: The deterioration of safety and security within American cities has only added to the erosion of trust in the government's ability to protect its citizens. Rising violent crime rates in many urban areas have left Americans feeling unsafe and abandoned by their elected officials. The lack of effective responses to these challenges further fuels a sense of frustration and impotence among the populace.
Politicians shout for gun control but never address the issue as to what is going on in these communities. They turn away from the problem and politically blame guns or other politicians. Instead of focusing on Ukraine, look at the problem in these communities of violence. Don't throw money, it never works. Find the cause and effect of the problems in these communities and then work on them. Instead of pushing trans rights, focus on the schools that need help, our students have fallen in their education. Because of the pandemic and lock-down, students are way behind and need help.
Economic Impact: The economic consequences of poor policy decisions, such as inflation resulting from weak economic policies, have significantly affected the American people. As they witness the diminishing value of their hard-earned wages and the rising costs of goods and services, Americans rightly question the competence and effectiveness of their leaders. The economic burden placed on the populace further amplifies the demand for change and fuels the growing discontent.
Even with the bragging from Biden on his bidonomics, the economy remains weak. High prices are still hurting the American family. Gas prices have started to rise again. Americans are having a hard time paying for their cars with interest rates so high and car prices are out of control. The price of cars are no longer affordable to Americans. Interest rates are too high for purchase a car, especially on used cars. Car repossession climbs daily, banks are taking back the cars they funded because American's can't afford the high payments. Then if we look at the commercial real estate market, banks are now calling in their loans for non-payment. Interest rates have risen so high that the payments grew, and commercial buildings are basically empty with no tenants to pay the mortgage. This is now hitting the banks and it will make them even weaker. Owners of commercial real estate are walking away, handing the keys back to the bank.
We can go on and list even more red flags that have been created by bad government. Congress has members who lie, create chaos, are socialist in belief, who push an agenda harmful to the American family and businesses. Americans see this, they talk about it at their picnics, they read about it on social media, they express their concerns, and they are not happy with the direction that America is going. If you remember the reason why America was formed was to get away from a over bearing taxing king. They came to America and started a new government. England said no, we want your taxes. America had taxation without representation. American's see that happening now, taxation without representation, and it is killing America. Americans are asking for change, they want their voice to be heard, they want government to stop spending and cut costs (Americans do it every day with their budgets).
Where will this mistrust of government lead us? America has revolted before, will they do it again? How close are we to that boiling point? That is the questions on American's minds.
By Michael Lodge - The Business Advisor - www.lodge-co.com: In recent times, the rise of wokeness and cancel culture has sparked heated debates, heated arguments, across various industries. The entertainment sector, in particular, has been a breeding ground for controversies, with the recent controversy surrounding country singer Jason Aldean's music video for "Try That in a Small Town." The song is doing very well on the country music charts sitting at number 1 & 2, depending on what chart you read. It's a hit. Corporations such as Target, Disney, Bud Lite, CocaCola, CMT, and others have faced backlash for banning conservative authors from their book and music sales. This article aims to shed light on the ethical implications of wokeness and cancel culture, the potential damage they can cause to businesses, and why we should prioritize free speech and core business values.
The Alleged Racism Controversy Surrounding Jason Aldean's Video: Recently, Country Music Television (CMT) faced criticism for pulling Jason Aldean's music video, "Try That in a Small Town," after allegations that it contained racist elements. It is important to note that there was no evidence to support these claims, and both the video and lyrics were devoid of any racist content. The decision to remove the video based on unfounded accusations only perpetuates the harmful effects of cancel culture generated by the entertainment industry.
Boycotts and Consumer Backlash: Wokeness and cancel culture in corporate America have opened the floodgates for consumer boycotts. Consumers are becoming increasingly aware of the power they possess to influence the actions of corporations. When businesses succumb to cancel culture and make decisions based on ideological biases, they risk alienating a significant portion of their customer base. This can result in severe financial consequences and damage to their reputation.
The Case of Bud Lite and the Danger of Wokeness: One example that highlights the negative impact of wokeness on businesses is the case of Bud Lite. In 2020, the beer company embraced woke messaging in their advertising campaigns, which received widespread criticism from consumers who felt the brand was pandering to a specific political Trans ideology. As a result, Bud Lite faced a significant decline in sales and had to reevaluate their marketing strategy. This serves as a cautionary tale, demonstrating that businesses that prioritize social justice issues over their core products and values risk alienating their customer base and suffering financially.
Ethics and the Importance of Free Speech: Wokeness and cancel culture pose ethical concerns as they undermine the principles of free speech and open dialogue. While it is essential to address social issues and promote inclusivity, silencing opposing viewpoints stifles intellectual diversity and inhibits progress. Instead of focusing solely on social justice causes, corporations should prioritize their core business functions and the interests of their stakeholders, including investors, employees, and consumers.
Balancing Social Responsibility and Core Business Values: Maintaining a balance between social responsibility and core business values is crucial for corporations. Businesses should be mindful of the potential consequences of embracing wokeness and cancel culture without considering the diverse perspectives of their stakeholders. By fostering open dialogue, respecting free speech, and focusing on their primary business objectives, companies can create a more inclusive and sustainable environment for all. Business, focus on business because wokeness kills brands, creates conflicts with consumers and clients, and corrupts business ethics.
Wokeness and cancel culture have permeated various aspects of society, including the entertainment industry and corporate America. While addressing social issues is important, it should not come at the expense of free speech, ethical practices, and core business values. Nor should it create a dangerous conflict with their core customers. To create a more equitable and prosperous future, it is imperative that we strive for open dialogue, intellectual diversity, and a balanced approach to social responsibility. Business are to run as businesses. Their responsibility is to generate revenue for their investors. They also have a responsibility to look at the communities they have plants and offices in, what are the community needs. We have seen great success with mentor programs, food banks, special training, tutoring for students, and many more. These are the areas you can make a difference as a business. Wokeness and cancel culture will never get you to a place where you are making a difference. But it will create conflict.
By Michael Lodge, The Business Advisor - www.lodge-co.com: One of the parts of my job that I enjoy is sitting down with family, partnership, and other types of business and working through, mediating, the succession plans of businesses. It's like putting together the will, but in business form. Succession planning, often overlooked by businesses, holds immense importance for both small and large enterprises alike. It involves strategically preparing for the inevitable departure of key personnel, such as senior executives, business owners, or partners due to retirement, death, or other unforeseen circumstances. While family businesses have long recognized the need for succession planning, it is equally essential for non-family businesses to ensure a smooth transition of leadership. This article highlights the critical reasons why every business should have a comprehensive succession plan in place.
1. Maintaining Continuity and Stability: A well-designed succession plan ensures the continuity and stability of a business during times of transition. It enables organizations to seamlessly fill leadership positions when key executives depart, retire, or pass away. By identifying and grooming potential successors well in advance, a business can mitigate the risks associated with sudden leadership vacancies and maintain its operational and strategic momentum. With a clear succession plan, the business can effectively navigate through the uncertainties and challenges that arise during times of change.
2. Preserving Business Values and Vision: Succession planning allows a business to preserve its core values, vision, and culture. When senior executives retire or pass away, their institutional knowledge, industry expertise, and leadership acumen are at risk of being lost. By identifying and mentoring potential successors, businesses can ensure a smooth transfer of knowledge and values, thus preserving the organization's identity and strategic direction. A well-prepared successor can continue to build upon the foundation laid by their predecessors, maintaining the business's reputation and competitive edge.
3. Minimizing Disruption and Risk: The absence of a succession plan can lead to significant disruptions, both internally and externally. When a key executive departs without a designated successor, power struggles, internal conflicts, and a decline in employee morale may ensue. Externally, the absence of leadership can raise concerns among stakeholders, including customers, suppliers, and investors. A well-executed succession plan mitigates these risks by ensuring a smooth transition, minimizing disruptions, and providing a sense of stability to all stakeholders.
4. Talent Development and Retention: Succession planning goes beyond identifying a successor for top leadership positions. It also involves developing and nurturing a talent pipeline throughout the organization. By offering growth opportunities and training programs, businesses can attract and retain high-potential employees who aspire to advance their careers within the company. A well-structured succession plan demonstrates a commitment to employee development and encourages a culture of continuous learning and upward mobility, fostering loyalty and motivation among the workforce.
5. Facilitating Partner Transitions: In partnerships and professional service firms, succession planning is crucial to ensure a seamless transition when a partner leaves, retires, or passes away. Without a clear plan in place, the departure of a partner can lead to disagreements, client attrition, and potential legal disputes. By establishing a framework that outlines the process for transferring ownership and client relationships, businesses can mitigate these risks and facilitate a smooth handover. A well-structured succession plan helps maintain client confidence, preserves relationships, and safeguards the firm's reputation.
Succession planning is a vital component of any business strategy, regardless of its size or structure. By proactively identifying and developing future leaders, businesses can ensure continuity, stability, and growth during times of transition. From family businesses to non-family enterprises and partnerships alike, having a comprehensive succession plan in place enables businesses to preserve their values, minimize disruptions, and have a plan for the future. Sit down with me in the near future and lets put a succession plan together.
For succession planning mediation, make an appointment by sending me an e-mail to: email@example.com or go online and schedule a confidential appointment at: http://www.lodge-co.com
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Michael Lodge is a Nationally Certified Professional Mediator specializing in business disputes, as well as family conflicts. He has written three books and hosts an international podcast on IHeartRadio and other podcast media stations.