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Can meaningful social responsibility really be a powerful tool to directly enhance profit– in addition to attracting millennial employees and consumers? Yes! Value destroyed by social failures amount to trillions of dollars, which are trillions of reasons for business to develop new approaches and deliver solutions.
My four-year old son, Reuben, isn’t focused on value. He loves to have light-hearted fun as he reminded me during a recent carpentry project. “Dad,” Reuben asked, “Can you please cut the wood? Here. Here. And here?” “Sure, bud. So, what are we making?” I asked. “I don’t know yet,” Reuben giggled.
I enjoy watching Reuben’s face light up as the table saw meets the wood, but I like there to be a project behind that collaboration, as well.
A number of companies think corporate social responsibility is a game like Reuben’s: make some statements or take some random actions, and, somehow, it will all work out. In a mid-size holding company’s Corporate Social Responsibility report I read the gem, “[Our] wines are certified vegan.” And a Fortune 500 real estate company brags in their report that “82% of our employees participated in the 2018 employee engagement survey” (although no survey responses nor any follow-up actions were highlighted.) Those companies appear like they are essentially cutting some random pieces of wood and hoping their social impact and profit improves.
In contrast, tool-producer #StanleyBlackandDecker Innovates with Purpose. Stanley’s goal is to improve the lives of 500 million people by filling unmet social needs. Ten percent of company revenues will come from related efforts, such as applying the company’s knowledge of brushless motors to deliver reliable, clean energy– thereby giving the first real taste of electricity to small vegetable farms in India.
When reviewing your corporate social responsibility plan, ask:
- Does the plan leverage your existing capabilities to create meaningful solutions?
- Will resulting expertise become a valuable tool to develop an even more powerful future business and social system?
- Does the value potential warrant this plan becoming a high business priority?
When you have the right corporate social responsibility strategy, the answer is ‘yes’ to all questions.
As a leader, you know that profit is a measure of how effectively you solve problems. And with today’s digital technology, you can solve any problem. So find a creative approach to solve the massive social challenges that surround you, and you likely have an insight that will create value for yourself and your investors, as well.
Did you ever dream that your business could earn money by solving society’s pressing issues?
Please share your thoughts in the comments or by sending me an email: info@RodWallacePhD.Com.
Our society cannot just survive. For the sake of our children, it must thrive.
Rod
Dr. Rod Wallace is an economist, consultant, and speaker who helps businesses make more money by solving society’s problems. A Fulbright Fellow, he has led multi-organization billion-dollar initiatives worldwide and partnered with a Silicon Valley pioneer to explore the impact of Artificial Intelligence on society.
Rod speaks about how to integrate social responsibility into business to maximize profit and purpose. He highlights digital technology’s impact on society and the strategies and tools with which business can solve our big, systemic problems.
Contact Rod at info@RodWallacePhD.com.