For many entrepreneurs, making a profit is the most significant goal for their businesses. While there’s nothing wrong with this mindset, business owners must also remember that their enterprises have a much bigger purpose in today’s society. There’s no denying that the world is in dire straits. Climate change, famine, lack of adequate healthcare, and excess pollution are just a few of the countless social problems that wreak havoc on humanity. Although it may seem quite unlikely, businesses can solve most, if not all, of these social ills.
“Being serious about running a business is not only about the growth and maximizing revenue. It is equally caring about your community and giving it a helping hand at challenging times”, says Gevorg Hambardzumyan, CEO of Front Signs sign company which switched its production to manufacturing face shields and donating them to hospitals in times of COVID-19 outbreak. Similarly, many other companies can follow suit and lend a helping hand in one way or another.
More businesses should get involved in solving social inadequacies because they are the root cause of some. We’ve all heard of companies that operate with poor ethics and exploit customers because of only focusing on the bottom line. Such enterprises repeal the efforts that responsible individuals place in the fight against social defects. For this reason, it’s only fair that companies step up and join in the battle to eradicate the world’s social problems. This article explores the many ways in which businesses can help solve the issues tearing the world apart. Therefore, if you’re a skeptic or an entrepreneur with a passion for making a difference, this article will point you in the right direction.
What Can Businesses Do?
Although the societal ills we face in this day and age can be overwhelming, we have everything we need to ensure we overcome them. The technology and resources within reach of business owners can be of immense assistance in ridding the world of its inadequacies. Here are just some of the many ways that companies can contribute to this cause.
Leverage New Technologies to Solve Problems
There’s no denying that technology has taken a grand leap forward in the last couple of decades. Nowadays, the technology available doesn’t only help entrepreneurs improve their products and services but also find innovative ways of enhancing sustainability. The technology used to solve simple problems within a business, regardless of how small it may seem, can solve global predicaments. The solutions that contemporary technology has produced for companies such as; efficient energy production and remote accessibility can easily find worldwide applications.
The world today is more connected than ever before. Companies can coordinate operations with partners from other countries with incredible ease. With this newfound connectivity, entrepreneurs have access to more impactful resources that can make global differences. For instance, businesses in hunger-stricken countries can develop an international forum with foreign partners to create solutions. In this case, global collaborations can assist in eradicating social ills by providing input from other cultures. Another way to go about this is by partnering companies with philanthropists and donors in fighting social ills. A recent report by The Harvard Business Review highlighted how a company in Pennsylvania made significant strides when battling modern-day slavery by partnering with nonprofit organizations. The review depicts how the collaboration of businesses and charitable institutions can tremendously impact societal issues.
The Entrepreneurial Mindset
Entrepreneurs are natural problem-solvers. The very essence of entrepreneurship is finding a problem in society and providing the solution as a business. Company owners have an unrelenting mindset that embraces audacious goals and is willing to learn from mistakes. What’s more, all entrepreneurs can only attain success by finding a way to use the available resources to solve problems. Better yet, astute entrepreneurs go a step further by coming up with new tools to solve issues. This type of mindset is what the world requires to ensure it rids itself of all social predicaments. While not all enterprises may be financially able to combat social ills, all entrepreneurs can chip in by providing innovative ideas to eradicate these problems.
Due to the influx of pollution and other environmental effects, consumers are becoming more mindful of the products they use. What’s more, nowadays people want to know more about the companies they frequently use. Furthermore, given that modern technology has made people more aware of social issues, consumers have begun being more responsible about what they purchase. For this reason, companies have become more compelled to give back to the community. According to a study, close to 90 percent of consumers buy products from companies that support a cause they care about. This report reflects consumers’ desire to purchase products from companies that positively impact society. Moreover, enterprises that show commitment to sustainability display a higher annual growth rate than their non-sustainable counterparts.
How Businesses Can Benefit
While we have established that businesses can lend a helping hand when solving social problems, some people still cling to the notion that companies profit by causing these problems. Instead, the contrary is true; businesses benefit by solving social difficulties. Companies actively involved in fighting social obstacles benefit from the excellent image they build for themselves and much more. Furthermore, as technology continues to grow and make us aware of pressing social issues, consumers will be more cautious about what they buy. Consequently, we are likely to see more businesses getting involved in solving social inadequacies. In turn, this promotes positive brand perception and increases sales.
However, balancing profit and purpose when running a business isn’t a walk in the park. Given that more than 70 percent of startups fail, enterprises focused on social values and the bottom are at a higher risk of failure. Nevertheless, many companies have done it before, and many more are also yet to do it.
The notion that profit can only be measured by monetary gain is grossly misguided. While businesses need to make a profit for them to remain operational, they also have a social responsibility to fulfill. For entrepreneurs interested in causing a difference, following the tips outlined in this article is a step in the right direction.