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Social problems are company problems
Now, business institutions are evidently being called to take on a greater, more serious role in bringing innovation to the world’s sustainability movement.
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Many studies indicate that companies concerned with social problems can obtain greater economic benefits. Citing Bill Gates, “they can do good and do well at the same time.” (AP/Seth Wenig)
S
tuart Hart, a management professor at the Johnson Graduate School of Management, Cornell University, and founder of the Center for Sustainable Global Enterprise, makes an interesting statement in his 2005 book, Capitalism at the Crossroads.
He says we now bear witness to the onset of a new era where companies have become one of the most important pillars associated with the resolution of major problems facing mankind today. He identifies companies as the primary driving forces behind the creation of sustainable products, technologies and business models that will help solve social and environmental problems, including poverty in developing countries, environmental concerns, economic inequality, low levels of education, health issues and so on.
In the past, all such social problems were seen as responsibility of the state and NGOs. But now, business institutions are evidently being called to take on a greater, more serious role in bringing innovation to the world’s sustainability movement.
Some experts argue that business entities (corporations) are in a more advantageous position to further the cause due to their access to resources, efficiency in carrying out processes, as well as creativity in solving problems. These advantages have given increasing authorization for businesses to participate in efforts to achieve a better world for all.
In this context, Asia seems to be a prime location to launch such projects, as the region, which represents a “big house” for the world’s developing countries, is plagued by all sorts of problems.
Not only industry observers, but also business practitioners are emerging with initiatives to transform companies into “vehicles” for resolving the problems facing humankind.
Bill Gates, founder of Microsoft and poster child of the corporate philanthropy movement making swift inroads in the business world, coined a new term for this phenomenon, “Creative Capitalism,” which could also be dubbed “Creative Corporation.”
