how can business solve social problems

How Business Can and Should Solve Social Problems

By alex edmans, professor of finance, london business school, and author, 'grow the pie: how great companies deliver both purpose and profit'.

  • Wednesday March 4 2020

The coronavirus crisis is a major and imminent social problem. But, unfortunately, it’s far from the only social problem that the world in 2020 faces.   Climate change, income inequality, population growth, resource usage, the displacement of workers through automation – the list is endless. Who should solve these social problems?

We typically look to governments – or perhaps NGOs and foundations established by wealthy philanthropists.   All play an important role.   But perhaps the most important role can be played by an unlikely source – corporations.

Is it realistic to think that businesses can solve social problems? Isn’t their goal to maximise profit?   But, in fact, purpose and profit are much more aligned than often thought.   Let’s take an example.   In 1987, after 9 years of expensive research and clinical trials, Merck had successfully pioneered a drug, Mectizan, that cured river blindness. But the 34 countries affected by the cruel disease couldn’t afford to pay for it.   Merck approached governments, NGOs, and wealthy philanthropists to do so, but without success.   So, it took the extraordinary decision to give it away for free – “as much as needed, for as long as needed”.

The Mectizan Donation Programme is still running today, and currently reaches 300 million people a year.   Thanks to the programme, four countries have completely eliminated river blindness.   Surprisingly, even though it cost Merck hundreds of millions, its CEO didn’t receive a single complaint from a shareholder.   Merck remains highly profitable, and countless employees wrote to Merck to tell them that they joined it inspired by the programme. Doing the right thing was good for business. 

So is this just a single nice story? Is it wishful thinking to imagine that doing well for society does well for investors? You can find an anecdote to support almost anything – so we need large-scale evidence.   That’s what I gather in my new book, “ Grow the Pie: How Great Companies Deliver Both Purpose and Profit ”.   It presents the results of multiple studies – spanning industries, countries, and decades, on the long-term performance of companies that deliver value to society.   They find that such companies typically outperform – and it’s purpose that leads to profit, rather than profit allowing a company to pursue purpose.

The implications for business are profound.   Many leaders run their businesses with the “pie-splitting mentality”.   This views the value that a company creates as a fixed pie.   Any slice of the pie given to society reduces the slice taken by shareholders.   So they maximise profits by exploiting society – cutting wages, price-gouging customers, or ignoring their impact on the environment.   But the evidence supports a new approach to business – the “pie-growing mentality”. By having its primary objective as creating social value, a company isn’t sacrificing investors’ slice, but grows the pie, ultimately benefiting shareholders. Profits remain important, but are generated as a by-product of serving society rather than the end goal in itself. 

The Pie-Splitting Mentality

how can business solve social problems

The Pie-Growing Mentality

how can business solve social problems

So how does a company actually “grow the pie”?   The starting point is to define its purpose – why it exists, its reason for being, and the role that it plays in the world.   Purpose is the answer to the question “how is the world a better place by your company being here?” Importantly, a purpose should be focused .   Many companies have broad purpose statements, such as “to serve customers, colleagues, suppliers, the environment, and communities while generating returns to investors,” because they sound inspiring.   But a purpose that’s all things to all people offers little practical guidance because it sweeps the harsh reality of trade-offs under the carpet.   Leaders need to make tough decisions that benefit some stakeholders at the expense of others.   Closing a polluting plant helps the environment but hurts employees.   A focused purpose statement highlights which stakeholders are first among equals to guide such a trade-off. 

Of course, a purpose statement isn’t sufficient – it needs to be put into practice.   CVS didn’t just rename itself “CVS Health” but stopped selling cigarettes – even though they were a $2 billion revenue stream – because they were inconsistent with its purpose of “helping people on their path to better health”.   And here again, a focused purpose statement helps it provides clearer guidance on how to implement it. 

Leaders of today’s companies are in a privileged position, as technology and their global reach give them more power to create social value than arguably ever before.   And they can draw from the highest-quality evidence – not wishful thinking – which reaches this conclusion: To reach the land of profit, follow the road of purpose.

Editor’s Note:

To read more posts related discussing social problems click here .

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How Businesses Can Solve Social Problems

How Businesses Can Solve Social Problems

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.

Increased Collaborations

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.

Consumer Influence

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.

Final Thoughts

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.

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How to Create Social Change: 4 Business Strategies

Business Driving Social Change

  • 24 Jan 2019

Monumental challenges, such as climate change, social injustice, and poverty, are inspiring people worldwide to take action and find ways to better their communities and society at large. As efforts to solve these issues have grown over time, so, too, has the role businesses play in driving social change.

According to Harvard Business School Professor Rebecca Henderson, who teaches the online course Sustainable Business Strategy , companies are starting to realize the importance of thinking long-term and considering the social impact of their products and services.

“This realization is arriving not a moment too soon,” Henderson writes in the Harvard Business Review . “The world badly needs a more sustainable form of capitalism if we’re going to build a more inclusive, prosperous society and avoid catastrophic climate change.”

Access your free e-book today.

What Does Social Impact Mean?

Before setting out to drive change, it’s important to understand what the term “social impact” means. Positive social impact refers to the ways that businesses and individuals take action to address issues facing their communities.

To bring about social change, business leaders must identify the core values that motivate them to act. Those values are often focused on issues such as climate change, poverty, and other pressing social and environmental challenges impacting society. With values informing their decision-making and strategy, purpose-driven leaders can feel empowered to make a difference.

Working toward positive social change can mutually benefit businesses and the communities they operate within. Consulting firm Deloitte has outlined six drivers of business value that directly relate to social impact: brand differentiation, talent attraction and retention, innovation, operational efficiency, risk mitigation, and capital access and market valuation.

For business leaders seeking to make a difference, now is the time to act. Here are four accessible ways companies can be more purpose-driven and positively impact society.

Related: How Can Purpose Impact Business Performance?

Business Strategies for Social Change

1. engage in and promote ethical business practices.

To effect change externally, companies need to first look internally and ensure that a commitment to social responsibility is embedded in their business operations.

For manufacturing giant General Electric (GE), a presence in the global marketplace creates conditions that require the company to regularly confront complex human rights issues . To overcome these challenges, GE works to prevent forced labor through its Ethical Supply Chain Program (pdf) , and practices responsible sourcing through a pledge to eliminate the use of “conflict minerals” (pdf) —mined materials that finance armed factions and human rights abuses—in its products. Through these initiatives, the company has bolstered its sustainability strategy and encouraged business partners to follow suit, with the goal of enacting system-level change.

GE serves as a prime example of how working for the greater good starts with leading by example. Companies seeking to do the same should consider how they can be more ethical in their sourcing and production processes, and use social responsibility as a lens through which to reform their business practices.

Related: What Does "Sustainability" Mean in Business?

2. Form Strategic Partnerships with Nonprofit Organizations

Influencing systemic change is no easy task. It requires a deep understanding of the problems facing society and steadfastness to overcome them.

Strategically partnering with nonprofit organizations that directly tackle the world’s most pressing challenges can be an effective way for companies to boost their social impact.

An example is the partnership between Peet’s Coffee and Technoserve, a nonprofit that helps people in developing countries lift themselves out of poverty by building competitive farms, businesses, and industries. Together, the organizations spearhead the Farmer Assistance Program , an initiative that focuses on training smallholder farmers to produce high-quality coffee.

Through the collaboration, farmers in countries like Ethiopia, Guatemala, and Rwanda have been equipped with business skills and knowledge of environmental sustainability best practices, enabling them to improve their lives and communities.

This joint effort illustrates the great strides that can be made when for-profit and not-for-profit firms combine their resources to work for the greater good.

Related: Lessons on Corporate Social Responsibility From New Transportation Partnership

3. Encourage Employees to Volunteer

Being a purpose-driven firm requires an adherence to social responsibility that goes deeper than the organizational level. Employees need to share in the company’s vision for change and feel that their contributions are meaningful.

Encouraging employees to volunteer is a practical way to involve staff in social impact initiatives and boost morale. In a recent survey by Deloitte (pdf) , 74 percent of workers said they believe volunteerism provides an improved sense of purpose.

At organic food producer Clif Bar, volunteering is an integral part of the company’s business model. Through the CLIF CORPS program, employees are encouraged to dedicate their time to issues and organizations that are important to them—and during work hours.

In 2017, Clif Bar achieved a major milestone when it reached 100,000 hours of community service —the equivalent to paying 48 employees to volunteer full-time for one year.

By fostering a culture that inspirits employees to give back, companies can empower their workforce to engage with issues that matter to them and instill a sense of shared purpose.

Sustainable Business Strategy | Unite Profit and Purpose | Learn More

4. Inspire Action with Corporate Platforms

Beyond implementing programs and initiatives to address global problems, using platforms like blogs and social media channels as advocacy tools can be a powerful way for businesses to push for change.

Outdoor clothing manufacturer Patagonia is one example of an organization that uses its far-reaching corporate voice to raise awareness of the challenges facing society, most notably surrounding climate change .

On its blog The Cleanest Line , Patagonia recently advocated for protecting the Arctic National Wildlife Refuge from development and, in the past, has voiced its support for such events as the People’s Climate March .

In addition, the company launched Patagonia Action Works in 2017, an online platform that connects people to nearby environmental activism opportunities. Since the tool’s inception, it’s been used to support grassroots campaigns to defend wild buffalo in Montana and preserve Oregon’s high desert , among other efforts.

Patagonia’s work to combat climate change represents the type of influence companies can have when they resourcefully use their communication platforms to inspire collective action.

Which HBS Online Strategy Course is Right for You? | Download Your Free Flowchart

Taking a Values-Driven Approach to Business

Large-scale change doesn’t happen overnight. Solving the world’s major social and environmental problems takes time and effort. But through a purpose-driven approach to business, companies can help create a more just and sustainable future.

Do you want to help your organization drive system-level change? Explore our three-week online course Sustainable Business Strategy and find out how you can become a purpose-driven leader.

(This post was updated on November 24, 2020. It was originally published on January 24, 2019.)

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Why business can be good at solving social problems

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Michael Porter

Got social problems? Business can help: Michael Porter at TEDGlobal 2013

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Harvard Business School professor  Michael Porter  is here to make the case that business can help tackle social problems. Issues such as healthcare, access to water and climate change are bread-and-butter concerns for TEDsters in the room, who clearly agree with his early statement that we’re all very aware that these problems exist. Many of them also clearly agree with his analysis that business is often seen as the problem, not the answer.

Here’s the problem with the problem. The systems that we’ve developed to deal with social issues, including NGOs and philanthropies, are well-meaning and motivated, but they’re not designed to scale. “The awkward reality is that we’re not making fast enough progress. We’re not winning,” says Porter. “These problems seem very daunting and intractable. Any solutions we’re achieving are small solutions, incremental progress.”

The issue: the current model doesn’t have nearly enough resources to finance the necessary change. We need to confront this issue head-on. “How do we create resources?” asks Porter. His answer: via business, which creates wealth when it meets its own needs and makes a profit. That’s a simple equation that leads to taxes, incomes, charitable donations and so on. “Only business can create resources,” he says. “So the question then is, how do we tap into that?” He shows a slide showing the split of revenue within the United States: Corporations dominate. “Profit is the magic. You might say ‘ugh’ to that,” he says, (Indeed, many of the audience members do just that.) “But that profit allows whatever solution we have created to be infinitely scalable.”

Through his work as a strategy professor and advisor to global multinational corporations, as well as the founder of various nonprofits, Porter has come to see a shift in business processes in recent years, away from seeing social problems as a side project and toward treating them as central to the core business model. This subverts the conventional wisdom that either social performance or economic performance could thrive, but not both. Where issues like environmental sensitivity once seemed like unnecessary frippery or a marketing “nice to have,” now they’re seen as solutions to solve — and drive profits.

“Issue by issue, we have started to learn there is no tradeoff between social progress and economic efficiency in any fundamental sense,” Porter says. Good business and good social practices are not fundamentally opposed. And companies are catching on. He has some examples: Dow Chemical is developing healthier oils that replace transfat or saturated fat products. Jain Irrigation  has brought drip irrigation to farmers–and reduced the need for excessive water usage. The Brazilian company Fibria  has planted eucalyptus to harvest for paper, protecting old-growth forests. Cisco has trained four million people, not to “be responsible” but to disseminate IT technology and grow its own business. “There is a fundamental opportunity for business today to impact and address these social problems,” Porter says. “This is the largest business opportunity we see.”

He’s dubbed it “shared value” (indeed, it’s the topic of a feature article he wrote for the Harvard Business Review ) and he calls it “a higher kind of capitalism.” More and more companies are embracing the philosophy, and more will do so in the future. The key now, Poster says, is to support deeper collaboration between NGOs, governments and businesses, to have all entities pull together in the same direction in the name of progress. “NGOs that are really moving the needle have found partnerships and ways to collaborate,” he says. “Governments that are making progress are enabling shared value in business rather than seeing government as the only player.” Rethinking kneejerk antipathy towards business and fostering collaboration and competition might just provide the scale necessary to solve some seemingly unsolvable problems.

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These Entrepreneurs Take a Pragmatic Approach to Solving Social Problems

In 1908, Harvard Business School’s first dean, Edwin Francis Gay, welcomed the School’s inaugural class of 59 students by saying that HBS was challenged with encouraging its students to have the “intellectual respect for business as a profession, with the social implications and heightened sense of responsibility which goes with that.”

The purpose of business, Gay said, was to make “a decent profit decently.”

In the 111 years since then, many HBS alumni have taken the school’s emphasis on social responsibility to heart by attempting to effect societal change. A recent book, Problem Solving: HBS Alumni Making a Difference in the World —co-authored by HBS Professor Emeritus Howard Stevenson, HBS project director Shirley Spence, and writer Russ Banham—shares more than 200 stories of HBS graduates who have taken steps toward tackling social challenges. For example:

  • As CEO of Curriculum Associates, Robert Waldron turned a company that was in decline in 2008 into a profitable $190-million business 10 years later by developing online learning tools as well as print workbooks for schools. In 2017, the company gifted the majority of its shares, valued at $200 million, to charity.
  • Diagnosed with multiple myeloma, a rare and incurable blood cancer, Kathy Giusti cofounded the Multiple Myeloma Research Foundation, which has helped thousands of other patients with the cancer and has accelerated drug discovery and development for several other diseases.
  • Sir Ronald Cohen left a successful career in venture capital private equity to launch a global movement that has brought together governments with service providers and has attracted private investment to pay for a variety of social programs. One such program in 2010 reached out to help 2,000 young criminal offenders who were released from a UK prison, significantly reducing the rate of recidivism.

The book is the result of four years of research, including a survey of 13 MBA classes, more than 200 interviews, and extensive archival and secondary research.

Stevenson says the research team found that alumni tend to take a pragmatic approach to figuring out their own best ways to contribute.

“Our people feel a moral imperative to act, but they don’t go out and try to solve world hunger,” he says. “They identify a problem where they think their skills and resources can make a difference, and they dive in with an optimism that they can do it, rallying others to their cause as they go.”

Dina Gerdeman: We talk about corporate social responsibility (CSR) today, yet it’s clear from the book that this emphasis on business solving social problems isn’t new. Do you think readers might be surprised to learn that these efforts date so far back?

Howard Stevenson: I think it depends on your perspective. The discussion about the role of business in society and the responsibilities of business leaders has been going on since Scottish economist Adam Smith wrote The Wealth of Nations in 1776. CSR is a relatively new movement espousing a triple bottom line of people, planet, and profits, rather than a single-minded focus on shareholder value. People of my vintage recall when business leadership was about serving customers at a profit and giving back to your community was expected. And many of today’s business students arrive with a commitment to social impact through or alongside their professional careers.

Shirley Spence: While our book primarily focuses on the social impact of today’s business graduates, we wanted to point out that this is not a new phenomenon. HBS and its alumni have been responding to the challenges and opportunities of their times for more than 200 years, from the economic boom and social challenges of industrialization to what has been described as the promise, peril, and unrealized potential of the 21st century. The language and methods have evolved and continue to evolve, but the strong sense of social responsibility remains a constant.

Gerdeman: Do you think the case method of teaching helps prepare business school students to consider how they might be able to contribute to society?

Stevenson: The case method by definition is about problem solving, regardless of the nature of the problem. Basically, you are teaching people to ask the right questions, sort through too much information, define the problem, identify options, and hone in on a solution from the vantage point of a particular person in a particular situation. It’s pretty easy to say that some problems are unsolvable, but we don’t let students get away with that in class. We ask: What can you do about it with the resources you have or can rally to your cause?

I think that one of the things the case method does for people is to say, it’s possible. It gives them a sense of confidence. As one interviewee put it, “HBS gave me a deep-rooted sense of optimism. Against the backdrop of all the problems in the world, it’s about focusing on solutions and the belief that we can make meaningful change.” Our research found business people tackling education, health, environment, poverty, inequality, and other challenges in every corner of the world.

Gerdeman: Were there any big surprises from your research?

Stevenson: I first arrived at Soldiers Field as an MBA student in 1963, stayed to do my doctoral work, and spent 40 years as an HBS professor and senior administrator. Over that time, I met thousands of students and alumni. I knew that many were applying their skills and resources for social good, but I was amazed—and inspired—by the breadth and depth of activity that our research uncovered and the passion that people bring to their social impact work.

Each story is unique, but problem solving was a common theme and we were able to detect some patterns. There basically is an infinite combination of five core strategies being used across a spectrum of impact to make positive change. The strategies include finance for social purpose, capacity building, product and market innovations, social and political mobilization, and government policy and legislation. Any and all of those strategies can be used to fulfill urgent needs, address the root causes of problems, and strive for system-wide change.

Spence: Our research also looked at how social impact journeys evolve over the course of a person’s lifetime. Causes of interest and alumni’s approaches for addressing problems and opportunities will change, in sometimes predictable and sometimes serendipitous ways. And, at any given time and especially over time, people may wear multiple hats as corporate leaders, entrepreneurs, investors, nonprofit professionals, public servants, philanthropists, and volunteers contributing at local, national, and international levels.

Gerdeman: The early 2000s were a rocky time for business, with the global financial crisis and people like Bernie Madoff jailed for fraud. Was there a sense during this time that business schools weren’t doing their job in terms of graduating ethical business leaders?

Stevenson: What I would say was there was a sense that ethics were forgotten as investor capitalism became the new business model, with shareholder value and personal gain at its core. It sparked considerable soul searching at business schools and discussion of whether and how ethics can be taught. Here, too, I think that the case method can help. As a professor, you can inject ethical questions into the discussion of any case problem, raising moral issues and asking students to consider the social and environmental impact of the solutions they are proposing.

Many schools have made programmatic and other changes geared to heightening students’ awareness of corporate and personal accountability. At HBS, I actually think that—as with many developments—it is the students who are driving ethics back to the forefront again. I think they are saying no, that’s not what leadership is about, and that’s not what I want to be.

Spence: There are many examples of student efforts to promote social action and ethical behavior. The student-run Social Enterprise Conference draws over 1,000 participants each year. One group of students successfully lobbied faculty to create a field-based course on poverty and inequality. Members of one graduating class crafted and signed an MBA Oath with a professional code of ethics. Another class launched a Commit to Start initiative to encourage new graduates to take concrete steps to immediately get involved in their communities.

Gerdeman: Given the perception by many in the public that businesses are concerned only with making profits, are you hoping this research will open people’s eyes to the fact that many business leaders actually are championing social causes?

Spence: We know that there’s a keen interest among HBS alumni to know what other alumni are doing to advance social causes. We hope that Problem Solving will meet that need and provide role models for students. It’s also intended to be a reminder to the faculty and staff and everyone else in the HBS community of the true meaning of the School’s mission to educate leaders who make a difference in the world.

Stevenson: There’s no avoiding the negative press that business people get daily, sometimes deservedly, which often overshadows the many more positive examples of CEO activists and business people quietly working to better society. The book’s stories—which effectively are mini case studies—shine a spotlight on the latter. I hope our research will cause people to say, “I didn’t know business leaders were doing these kinds of things.: And inspire both academics and business people to say, “I can do something, too. Now, what should I do?”

BOOK EXCERPT

Healthy and sustainable food.

Around the world, HBS alumni are tackling the challenges of food insecurity and realizing the potential of sustainable agriculture.

Ndidi Okonkwo Nwuneli (MBA 1999), Mezuo Nwuneli (MBA 2003) and Kola Masha (MBA 2006) are working to unlock the potential of agriculture in West Africa. The Nwunelis—a husband and wife team—co-founded AACE Food Processing & Distribution Ltd. in 2009 to combat malnutrition, provide jobs, and reduce Nigeria’s need for costly food imports. AACE Foods processes, packages, and distributes branded food products sourced from subsistence farmers. “Our vision is to be the preferred provider of food to West Africans,” they said.

In 2010, the Nwunelis founded Sahel Capital, which includes a consulting business and a private equity venture. The consulting arm provides crop value chain analysis, strategic consulting, public policy development, and implementation support for partners across West Africa. The private equity venture manages the $66-million Fund for Agricultural Finance (FAFIN) in Nigeria, which invests in small- and medium-sized agricultural ventures. “In Nigeria and across West Africa, there are tremendous opportunities to transform the agricultural landscape,” the Nwunelis said.

Kola Masha (MBA 2006) sees smallholder agriculture as the key to tackling poverty and preventing the spread of insurgency among unemployed youth in Nigeria. Through his impact investing firm, Doreo Partners, he founded Babban Gona, which means “great farm” in Hausa, as a for-profit social enterprise.

“Low economies of scale keep smallholder farmers in a cycle of poverty,” Masha explained. Babban Gona uses an agricultural franchise model inspired by Masha’s grandfather, a South Dakota farmer. “Growing up in Lagos, I remember my mother talking about how her father struggled to earn a living—until he joined a farmers’ cooperative,” he said.

Babban Gona recruits groups of enterprising farmers and provides them with affordable credit, agricultural inputs, training, and marketing services. “Since 2010, we have more than doubled the yields and incomes of tens of thousands of smallholders and are on track to serve 1 million farmers by 2025,” Masha reported.

Babban Gona specifically attracts rural youth who are otherwise driven to urban centers’ promising jobs, only to struggle and become vulnerable to recruitment by extremist groups. “Everyone deserves a secure future,” Masha said. “To end insecurity, we must unlock the potential of agriculture as a job creation engine for millions of youth.”

Andrew Kendall (MBA 1988) is on a mission to change the way New England eats. As executive director of the Henry P. Kendall Foundation, his family’s philanthropic organization, Kendall is dedicated to increasing the production and consumption of local, sustainably produced food.

He was inspired by Food Solutions New England, an organized network of agricultural experts, farmers, academics, and concerned citizens working to overcome barriers to local food production. “They’ve created a bold and provocative vision—‘50 by 60’—that says that we in New England can produce 50 percent of our food locally by 2060,” Kendall said. Since 2011, the Kendall Foundation has granted $19 million to high-impact programs like Food Solutions, and institutions with large food purchasing power like colleges and universities, to help move the region closer to the 50 by 60 goal.

Ian Carson (OMP 42, 2012) and his wife, Simone, a registered nurse, are providing fresh and nutritious surplus food to people in need in Australia, where one in five Australian children suffers from food insecurity. Their nonprofit SecondBite distributes free food to more than 1 million people, the equivalent of 40 million meals per annum, through shelters and missions that feed the hungry.

The Carsons initially reached out to local restaurants that agreed to turn surplus food into soups. Then they went to supermarkets. “We went to one grocer where we’d been shopping for 30 years and asked if we could take the leftover food to the mission,” said Carson. “The next Saturday, he had three boxes for us. The following week he had six. It grew organically from there.”

Today, the nonprofit receives surplus food from more than 1,200 outlets across the continent. Coles, one of Australia’s largest supermarket chains, makes food donations twice a week from 550 of its stores. Since its inception 13 years ago, SecondBite has rescued enough healthy nutritious food for over 90 million meals.

Reprinted with permission of Russ Banham, Shirley Spence, and Howard Stevenson, Problem Solving: HBS Alumni Making a Difference in the World (Boston: Harvard Business School, forthcoming in 2019).

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People are increasingly becoming aware of the social problems we are facing and are trying to find solutions for them. Nonetheless, the progress is not fast enough. Why is it that we have to struggle to make progress? Can businesses provide a solution to this issue?

Solving social problems: a matter of scale

According to American academic Michael Porter, the main reason that prevents us from providing significant solutions to the social problems we are facing is that we can’t scale.

We are not able to implement the solutions we come across on a large scale; we endeavor to solve problems with small solutions that have almost no impact in the long run. By doing this we apply bandages but do not “cure” anything permanently.

He also highlights that this has nothing to do with will or competencies, but with a strong lack of resources. A misunderstanding of where to find the required resources for solving the problems is another factor that contributes to this.

To implement efficient solutions on a large scale, we need to look at where the resources are created and how to access them. This leads us to businesses because a lot of wealth in our economy is created by companies; other economic agents use it to serve their own interests.

How can business help?

One of the main objectives of companies is to make a profit and this allows them to implement solutions on a large scale. The only issue when it comes to scaling is the budget, but profits can take care of this aspect. If this model is implemented, the solution can become self-sustaining!

However, this contradicts one of the main ideas in economics which says that there is a trade-off between economic and social performances . This is more a question of perspective. Solving social problems can actually be quite profitable for companies in the long run because it creates a model that is sustainable.

For example, take the case of pollution. Businesses are currently focusing on ways to make a profit out of solutions that reduce pollution’s negative impact on the environment. A few years back, not many companies would have even considered working on a solution that could reduce pollution because it had always been more profitable to them.

The same scheme can be applied to the work atmosphere and health conditions on the worksite. Today, providing workers with lucrative benefits is a way for companies to increase productivity, reduce turnover and, thus, increase profitability. This led many companies to start thinking about a way to implement this solution on a large scale and benefit from it.

The goal is huge because it will encourage companies to solve actual problems which, in turn, will lead to social and environmental progress. But to achieve this, the current mentality of businesses needs to change so that they put social in the middle instead of on the side. It will help in meeting the social and environmental needs through products and services, using resources more effectively and improving the local business environment, among other things.

If you have any questions regarding this topic or any service that is offered by SKEMA Ventures, feel free to leave a comment or contact us directly via email .

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Why Business Can Be Good at Solving Social Problems

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Why do we turn to nonprofits, NGOs and governments to solve society's biggest problems? Michael Porter admits he's biased, as a business school professor, but he wants you to hear his case for letting business try to solve massive problems like climate change and access to water. Why? Because when business solves a problem, it makes a profit—which lets that solution grow.

TEDTalks is a daily video podcast of the best talks and performances from the TED Conference, where the world's leading thinkers and doers give the talk of their lives in 18 minutes (or less). Look for talks on Technology, Entertainment and Design—plus science, business, global issues, the arts and much more.

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Why businesses can be good at solving social problems

Michael Porter's TED talk

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Michael Porter, Professor, Harvard Business School and Business Strategist’s iconic TED talk is an important reminder of how businesses and in turn, investors, have the capacity to solve society’s biggest problems while making a profit. Watch the TED talk now.

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Shared Value: how corporations profit from solving social problems

We were delighted that John Elkington attended our second annual Shared Value Summit , held last week in Cambridge Massachusetts, and I was pleased to read his blogpost highlighting some of the synergies between shared value and sustainability . It is high praise indeed for John to say that sustainability might be the ultimate form of Shared Value.

John agrees with the central message of Shared Value about the power of business to solve social problems and increase profitability by aligning its commercial and social interests, but he raises several concerns. First, he claims that we do not acknowledge the values implicit within capitalism or its destructive force in the world, and second, that we overlook the much larger systemic issues that are at the root of the social problems that Shared Value would treat separately. He points out the risks of sweeping aside sustainability in favour of Shared Value.

But our intent is not to sweep aside sustainability. Rather, we see Shared Value and sustainability as complementary and overlapping concepts that give rise to mutually reinforcing but different agendas for action. Sister concepts, perhaps, more than one as a subset of the other. There are aspects of sustainability that do not serve a company's economic interest which would not be Shared Value, and aspects of Shared Value which would not address a sustainability agenda.

In particular, I found John's observation that Michael and I came to Shared Value by looking at the way corporations could profit from solving social problems as both insightful and accurate. We focus on the scale of impact and degree of innovation that companies can bring to society's needs that traditional NGOs and governments have often lacked. And so our framework is rooted in identifying the specific issues that a given company can and should tackle to improve its own performance and create large-scale social benefits. Our view is not inconsistent with the much broader and more systemic mandate of sustainability but Shared Value is rooted in a company-specific agenda.

We agree that capitalism as practiced today does not adequately value the natural and human resources from which it derives profit. Michael Porter would argue that undervaluing these resources is inherently self-defeating as it undermines a company's own future profitability and therefore that such actions are capitalism misapplied and inefficiently managed. Sustainability's efforts to engage companies in reporting on and valuing the resources they consume and the harms they cause is therefore in the longterm interests of capitalism – a point Michael made nearly 20 years ago in a much debated Harvard Business Review article, entitled " Green and Competitive: Ending the Stalemate ."

The values that lead capitalism to wreak destruction, however, are not inherent in capitalism itself: the ground rules are shaped by governments and public opinion. Wise businesses with a long term view will embrace sustainability's mandate, but whether the global sustainability agenda ultimately prevails will depend on world governments as well as business.

Shared Value, on the other hand, is fundamentally about corporate strategy and the decisions individual companies make in pursuit of profit. And Shared Value's unapologetic embrace of capitalism is one reason why it has resonated so strongly with corporate leaders who are less willing to embrace the sustainability agenda. Although less visionary, it is perhaps easier to put into practice – a limitation that has its virtues.

Ultimately, it will take sound government and an informed, empowered citizenry to fulfill sustainability's mandate, but along the way, corporations that pursue a Shared Value strategy can create a huge positive impact – for themselves and for the world.

Mark Kramer is founder and managing director at FSG and a senior fellow of the CSR Initiative, at Harvard Kennedy School of Government

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The Power of Business: Can it Solve Social Problems?

Businesses are often thought of as profit-driven entities, existing solely to generate revenue for their owners and shareholders. however, in recent years, there has been a growing movement towards corporate social responsibility, with businesses taking an active role in addressing social and environmental issues. this begs the question: can the power of business be harnessed to solve social problems in this post, we will explore the concept of social entrepreneurship and examine the ways in which businesses can make a positive impact on society. we will also highlight some successful examples of businesses that have used their resources to address social problems, and discuss the potential benefits and challenges of this approach. whether you’re an entrepreneur, business owner, or simply interested in the intersection of business and society, this post will provide valuable insights into the power of business to effect positive change..

can business solve social problems

1. Introduction: The intersection of business and social problems

In today’s rapidly changing world, the power of business extends far beyond profit generation. traditional notions of corporate responsibility are evolving, and businesses are increasingly recognizing their potential to drive positive change and tackle pressing social problems. this intersection of business and social issues has given rise to a new era of social entrepreneurship and corporate social responsibility..

Businesses now have the unique opportunity to leverage their resources, expertise, and influence to address a wide range of societal challenges. Whether it’s combating climate change, reducing inequality, promoting gender diversity, or supporting education initiatives, the potential for businesses to make a meaningful impact is immense.

Moreover, businesses that proactively engage with social problems often find themselves in a win-win situation. By aligning their values and actions with causes that resonate with their stakeholders, companies can enhance their brand reputation, attract and retain top talent, and build stronger relationships with customers, investors, and communities.

However, it’s crucial to approach this intersection with a genuine commitment to social impact rather than mere tokenism. Businesses must strive for authentic engagement and sustainable solutions, rather than engaging in superficial gestures or “greenwashing” practices. True change requires a holistic approach that goes beyond philanthropy and integrates social impact into the core strategies and operations of the business.

In this blog series, we will explore the power of business to solve social problems. We will delve into inspiring case studies, discuss innovative approaches, and provide practical insights for businesses and individuals who aim to make a positive difference. Let’s explore the transformative potential that lies at the intersection of business and social impact, and together, discover how we can create a more inclusive, sustainable, and equitable world.

2. The role of businesses in solving social problems

Businesses have traditionally been seen as profit-driven entities solely focused on maximizing their own financial success. however, in recent years, a shift has occurred, and the role of businesses in solving social problems has come to the forefront. many companies are now recognizing the power they have to make a positive impact on society and are actively taking steps to address social issues..

One way businesses can contribute is by incorporating corporate social responsibility (CSR) into their operations. This involves integrating social and environmental concerns into their business strategies and decision-making processes. By taking responsibility for their impact on society, businesses can create a positive ripple effect that extends beyond their immediate operations.

For example, companies can implement sustainable practices to reduce their carbon footprint and promote environmental conservation. They can also prioritize ethical sourcing and fair trade practices, ensuring that their supply chains are free from exploitation and supporting vulnerable communities.

Furthermore, businesses can engage in philanthropy and community engagement initiatives. This can involve donating a portion of their profits to charitable organizations, sponsoring local events and programs, or actively participating in community development projects. By investing in social causes, businesses can help address issues such as poverty, education, healthcare, and more.

Moreover, businesses can play a vital role in promoting inclusivity and diversity. By creating a workplace environment that values and embraces diversity, businesses can foster innovation, creativity, and equality. They can also support marginalized groups by offering training and employment opportunities, thereby contributing to reducing social inequality.

It is important to note that the power of business in solving social problems extends beyond their direct actions. Businesses have significant influence and leverage in shaping public opinion and policy. By advocating for social change and using their platforms to raise awareness, businesses can mobilize communities and drive meaningful progress on social issues.

In conclusion, businesses have a unique capability to make a positive impact on society and contribute to solving social problems. By incorporating CSR, engaging in philanthropy, promoting inclusivity, and advocating for change, businesses can leverage their power and resources to create a more sustainable and equitable future for all.

3. Case studies: Successful businesses driving social change

Case studies provide real-life examples of how businesses can successfully drive social change. these stories showcase the power of businesses to make a positive impact on society and inspire others to follow suit..

One notable case study revolves around a local bakery that employs individuals with disabilities. By creating job opportunities for this marginalized group, the bakery not only helps them become financially independent but also promotes inclusivity and diversity within the community. Through their dedication to social responsibility, the bakery has gained a loyal customer base who not only appreciate the delicious treats but also support their mission.

Another inspiring example is a fashion brand that focuses on sustainable and ethical practices. By using eco-friendly materials, supporting fair trade, and ensuring safe working conditions, this brand has become a leader in the movement towards sustainable fashion. They have successfully raised awareness about the negative impacts of fast fashion on the environment and empowered consumers to make conscious choices when it comes to their clothing purchases.

Furthermore, some businesses have taken steps to address social issues on a larger scale. For instance, a tech company has partnered with non-profit organizations to provide access to technology and digital literacy programs in underserved communities. This initiative aims to bridge the digital divide and empower individuals with the necessary skills for the modern workforce.

These case studies demonstrate that businesses can go beyond profit-making and actively contribute to solving social problems. They serve as a reminder that success can be measured not only in financial terms but also by the positive impact a business has on society. By incorporating social responsibility into their core values and operations, businesses can become powerful agents of change and make a lasting difference in the world.

4. Corporate social responsibility: Beyond profit-making

Corporate social responsibility (csr) has emerged as a powerful tool for businesses to go beyond profit-making and make a positive impact on society. in today’s world, consumers are becoming increasingly conscious of the social and environmental implications of their purchasing decisions. they expect businesses to not only deliver quality products or services but also contribute to the greater good..

CSR goes beyond traditional philanthropy or charity work. It involves integrating social and environmental concerns into a company’s business model and operations. By incorporating CSR initiatives, businesses can address a wide range of social problems, including poverty, inequality, environmental degradation, and access to education and healthcare.

One way businesses can demonstrate their commitment to CSR is by adopting sustainable practices. This can include reducing their carbon footprint, implementing recycling programs, or sourcing materials ethically. These actions not only benefit the environment but also resonate with socially conscious consumers who prefer to support businesses that align with their values.

Another aspect of corporate social responsibility is community engagement. Businesses can actively engage with local communities by supporting educational programs, sponsoring local events, or partnering with non-profit organizations. By investing in communities, businesses can help address social issues at a grassroots level and create a positive impact on the lives of those who need it most.

Moreover, CSR initiatives can also involve empowering employees to give back. Many businesses encourage their employees to volunteer their time and skills for charitable causes. This not only strengthens the bond between the employees and the company but also allows them to make a meaningful difference in their communities.

In conclusion, corporate social responsibility goes beyond profit-making and enables businesses to become agents of positive change. By integrating social and environmental concerns into their operations, businesses can contribute to solving social problems and create a more sustainable and equitable world. Embracing CSR is not only the right thing to do but also a strategic business decision that can enhance brand reputation, attract socially conscious customers, and foster employee loyalty.

5. The benefits of businesses tackling social problems

Businesses have the potential to create a powerful impact on society by addressing social problems. while the primary goal of any business is to generate profit, it is becoming increasingly evident that businesses can also serve a greater purpose beyond financial success. by taking on social problems, companies can make a positive difference in communities and contribute to the greater good..

One of the key benefits of businesses tackling social problems is the opportunity to enhance their brand image and reputation. Consumers today are more socially conscious and are more likely to support businesses that align with their values. When a business takes a stand and actively works towards solving social problems, it can attract a loyal customer base who appreciates its efforts. This can result in increased customer trust, brand loyalty, and ultimately, higher sales and profitability.

Furthermore, engaging in social impact initiatives can also help businesses attract and retain top talent. In today’s competitive job market, employees are increasingly seeking meaningful work that goes beyond just a paycheck. Businesses that demonstrate a commitment to social responsibility can attract highly skilled individuals who are passionate about making a difference in the world. This can lead to a more motivated and engaged workforce, which in turn can drive innovation and productivity within the organization.

Beyond the immediate benefits to their brand and employees, businesses tackling social problems can also contribute to the overall well-being of society. By addressing issues such as poverty, inequality, environmental degradation, or access to education and healthcare, businesses can directly improve the lives of individuals and communities. This, in turn, can lead to a more prosperous and sustainable society as a whole.

In conclusion, the benefits of businesses tackling social problems are manifold. From improving brand image and attracting customers to attracting top talent and making a meaningful impact on society, businesses have the power to create positive change. By embracing their role as responsible corporate citizens, businesses can harness their resources, expertise, and influence to address social problems and create a better future for all.

6. Challenges and criticisms of business-driven social change

While business-driven social change holds immense potential to address pressing social problems, it is not without its challenges and criticisms. one of the main challenges is the perception that businesses primarily operate to maximize profits and may prioritize their own interests over the welfare of society. critics argue that businesses engaging in social initiatives are merely engaging in “cause-washing” or “greenwashing,” using social issues as a marketing tool without making substantial and sustainable impact..

Another challenge is the potential for unintended consequences. Businesses may unintentionally exacerbate existing social problems or create new ones while attempting to address them. This could occur due to a lack of understanding of the complexities of the issue or inadequate consultation with affected communities.

Furthermore, there is a risk of dependency on businesses to solve social problems, which can shift the responsibility away from governments and other institutions that have traditionally been seen as the primary actors in social change. This raises questions about the role of businesses in society and the potential for the privatization of social welfare.

Additionally, some critics argue that business-driven social change can divert attention and resources away from systemic solutions. They argue that addressing underlying structural issues and advocating for policy changes are more effective in creating long-term social impact.

Despite these challenges and criticisms, many businesses are actively working to address social problems and create positive change. It is important for businesses to be transparent in their efforts, collaborate with stakeholders, and continuously evaluate and improve their strategies. By acknowledging the challenges and criticisms, businesses can strive to minimize their negative impact and maximize the potential for meaningful and sustainable social change.

7. Collaborations between businesses and non-profit organizations

Collaborations between businesses and non-profit organizations hold immense power in solving social problems. in recent years, there has been a growing recognition of the importance of corporate social responsibility and the impact businesses can have beyond their bottom line. by joining forces with non-profit organizations, businesses can leverage their resources and expertise to address societal challenges and make a meaningful difference..

One of the key benefits of collaborations between businesses and non-profits is the shared knowledge and expertise. Non-profit organizations often have a deep understanding of social issues and the communities they serve. On the other hand, businesses bring their innovative strategies, financial resources, and operational efficiencies to the table. When these two forces combine, they create a powerful synergy that can drive sustainable change.

Through partnerships, businesses can provide crucial support to non-profits, ranging from financial contributions to in-kind donations, volunteer hours, and pro bono services. This assistance enables non-profit organizations to expand their reach, enhance their impact, and carry out their mission more effectively. Moreover, businesses can also benefit from such collaborations by aligning their brand with a meaningful cause, boosting their reputation, and fostering customer loyalty.

Collaborations between businesses and non-profit organizations can take various forms. It could involve joint initiatives, where the two entities work together on a specific project or campaign. For example, a business may collaborate with a non-profit organization to launch a fundraising campaign to address a pressing social issue. Alternatively, businesses can provide ongoing support by becoming long-term partners or sponsors of non-profits, contributing a certain percentage of their profits or dedicating a portion of their resources to support the organization’s mission.

This collaborative approach not only benefits businesses and non-profits but also creates a positive ripple effect in society. By addressing social problems, businesses can contribute to creating a more inclusive and equitable world, which ultimately leads to a healthier and more sustainable business environment. It brings a sense of purpose to the business world, demonstrating that profit-making entities can be catalysts for positive change.

In conclusion, collaborations between businesses and non-profit organizations have the potential to be a powerful force in solving social problems. By leveraging their respective strengths, businesses and non-profits can create meaningful and sustainable solutions that benefit both society and the business community. This partnership model demonstrates the transformative power of businesses when they embrace their social responsibility and work towards a better future for all.

8. How small businesses can make a big impact

Small businesses may not have the immense resources or global reach of multinational corporations, but they possess a unique ability to make a significant impact on social problems within their local communities. these businesses often have close ties to their neighborhoods and understand the specific needs and challenges faced by the people living there..

One way small businesses can make a big impact is by actively engaging in community initiatives. By partnering with local organizations, they can contribute to causes that align with their values and the concerns of their customers. For instance, a small bakery could donate a portion of its proceeds to a food bank, or a clothing boutique could organize a clothing drive for homeless shelters. These actions not only provide direct assistance to those in need but also foster a sense of community and goodwill towards the business.

Another way small businesses can make a difference is by prioritizing ethical business practices. By committing to fair trade, sustainable sourcing, or environmentally friendly production methods, small businesses can contribute to larger social and environmental goals. Consumers are increasingly conscious of these issues and are more likely to support businesses that align with their values.

Furthermore, small businesses have the power to create job opportunities and drive local economic growth. By hiring from within the community and providing fair wages and benefits, they can help alleviate poverty and improve the quality of life for individuals and families. Additionally, small businesses often support other local businesses, creating a ripple effect that strengthens the overall economy.

In conclusion, while small businesses may not have the influence of large corporations, they possess the power to create positive change within their communities. By actively engaging in community initiatives, practicing ethical business methods, and driving local economic growth, small businesses can make a big impact on social problems. Their unique connection to their communities allows them to understand and address the specific needs of the people they serve, ultimately creating a more inclusive and prosperous society.

9. The role of consumers in supporting socially responsible businesses

Consumers have a significant role to play in supporting socially responsible businesses. in today’s world, people are becoming more conscious about the impact their purchasing decisions have on society and the environment. they are actively seeking out businesses that align with their values and contribute positively to the world..

By choosing to support socially responsible businesses, consumers can send a powerful message to the market. They are essentially voting with their wallets and indicating that they value ethical practices and sustainability. This, in turn, creates a demand for more socially responsible products and services, encouraging businesses to adopt responsible practices and make a positive impact.

Consumers also have the power to hold businesses accountable. Through social media and online platforms, individuals can voice their opinions and share feedback about a company’s practices. This can influence the reputation and success of a business, as well as prompt them to make necessary changes.

Moreover, consumers have the ability to reward businesses that prioritize social responsibility by becoming loyal customers. When people find a brand that shares their values and consistently demonstrates a commitment to social issues, they are more likely to become repeat customers and advocates for that business. By actively supporting these businesses, consumers contribute to their growth and success, enabling them to have a greater impact in solving social problems.

In conclusion, consumers play a vital role in supporting socially responsible businesses. By making conscious purchasing decisions, voicing their opinions, and becoming loyal customers, individuals can drive positive change and encourage businesses to prioritize social and environmental responsibility. Together, consumers and businesses can work hand in hand to solve social problems and create a more sustainable and equitable world.

10. Conclusion: The potential of business to drive positive social change

In conclusion, it is evident that businesses possess immense potential to drive positive social change. the power of business lies not only in its ability to generate profits and economic growth but also in its capacity to address and solve social problems. throughout history, we have witnessed how businesses have taken the lead in tackling various issues, from poverty and inequality to environmental sustainability and access to education..

By adopting sustainable and ethical business practices, companies can contribute to the well-being of communities and the planet. They can prioritize fair trade, promote diversity and inclusion, reduce their carbon footprint, and actively engage in philanthropic activities. These efforts not only showcase their commitment to social responsibility but also attract socially conscious consumers who are increasingly demanding ethical products and services.

Furthermore, businesses can leverage their resources, expertise, and networks to collaborate with governments, non-profit organizations, and local communities. By forming partnerships and implementing innovative solutions, they can help address complex societal challenges more effectively. For instance, a technology company can work with educational institutions to provide digital literacy programs to underserved communities, empowering individuals with valuable skills for the digital age.

While businesses should not solely be relied upon to solve all social problems, they undeniably play a crucial role in shaping our society. By aligning their core values with social impact, businesses can become powerful agents of change. This integration of purpose and profit not only benefits society but also enhances their reputation, attracts top talent, and fosters long-term sustainability.

In conclusion, the power of business to solve social problems should not be underestimated. By harnessing their influence, resources, and innovative mindset, businesses can contribute significantly to creating a more equitable and sustainable world. It is the responsibility of businesses to strive for positive social impact and embrace the potential they hold as catalysts for change.

In conclusion, we have examined the power of business in solving social problems. While there is a growing recognition that businesses can play a significant role in addressing societal issues, it is important to approach this with a thoughtful and strategic mindset. By aligning their core values with social impact initiatives, businesses can leverage their resources, influence, and networks to drive positive change. However, it is crucial for businesses to prioritize authenticity, transparency, and long-term commitment in their efforts. With the power of business, we have the potential to create a more equitable and sustainable world. Let us all strive to harness this power for the greater good.

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Business Can’t Solve the World’s Problems — But Capitalism Can

  • Dan Pallotta

By inextricably linking business and capitalism, we dangerously limit the capacity of non-business organizations to innovate, fund, and bring to scale breakthrough ideas that could change the world.

Business and capitalism get conflated — in our media, our language and in our thinking. They are not the same thing. One is a sector, the other a methodology. By inextricably linking the two, we confine the practice of real, turbo-charged capitalism to business, and we dangerously limit the capacity of non-business organizations to innovate, fund, and bring to scale the kind of breakthrough ideas that will begin to solve the huge social problems we face today.

  • DP Dan Pallotta is an expert in nonprofit sector innovation and a pioneering social entrepreneur. He is the founder of Pallotta TeamWorks, which invented the multiday AIDSRides and Breast Cancer 3-Days. He is the president of Advertising for Humanity and the author of Charity Case: How The Nonprofit Community Can Stand Up For Itself and Really Change the World .

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Solving social problems: 11 ways new tech can help.

Forbes Technology Council

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That there are a lot of long-standing problems facing people not only in the U.S. but also abroad is not news. There are multitudes of people around the globe who don't have enough to eat, lack access to clean water or are simply prevented from elevating their socioeconomic status.

Photographer: Qilai Shen/Bloomberg

Alleviating societal issues is neither a simple nor a quick process. New technologies do offer alternate paths forward, however. Artificial intelligence, for instance -- especially combined with data gathered from a variety of sources -- can help curate information. This means a better identification of medical concerns, the ability to develop renewable food sources or the improvement of safety in our communities.

There are more problems facing the world than can be easily listed. The items below, gathered from members of  Forbes Technology Council , are a jumping-off point that identify problems and provide suggestions for potential solutions.

1. Climate Change

Climate change will become the most significant destabilizing global issue. Technology can help in myriad ways, from making electric cars mainstream and building alternative sources of energy to replace coal to creating more efficient buildings, non-polluting air conditioning systems and desalination systems. -  Leah Allen ,  Radius

I think we can eliminate poverty by using technology to create more jobs and open up a wider marketplace for those in developing countries to reach an audience that would be interested in buying what they make or offer. Ensuring everyone has equal access to the internet can certainly go a long way to creating a way for more people to economically sustain themselves. -  Chalmers Brown ,  Due

3. Education

Technologies like online courses and robots in the classroom allow for a higher-quality and standardized delivery of curriculum by experts who really understand the subjects being taught. This type of education dramatically increases access both for urban and rural classrooms that lack the resources to maintain a well-trained staff. -  Richard Margolin ,  RoboKind

4. The Economy 

VR will be a transformative tool to train workers displaced by automation in developed economies and workers entering the workforce in emerging economies. VR can program/reprogram the human mind to learn new skills more effectively, with better learning and long-term retention. "VR-Cades" can circumvent expensive university and polytechnic courses while saving the trainees' money and time. -  Siddharth Banerjee ,  Indusgeeks USA Inc.

Democracies depend on the participation of their citizens. We do this mostly through the power of voting. However, we still have poor participation and tremendous concern with voting accuracy. Blockchain's underlying technology -- the concept of the trust database -- could be used to facilitate universal participation in elections and to assure that there will not be any tampering with results. -  Paul Blough ,  BloughTech

6. Health Care

I strongly believe that by incorporating the right technology tools into the health care system, we could see a huge improvement in patient outcomes, as well as big savings for hospitals. To accomplish this on a larger scale, we need to see professionals in the medical industry who are willing to embrace the technology and technology companies that are open to listening to the needs of medical professionals. -  Marcus Turner ,  Enola Labs

7. Senior Isolation

The elderly often feel isolated, but we have technology based around video conferencing and telepresence that could alleviate some of that isolation when a physical presence isn’t possible. -  Stephen Cox ,  SecureAuth

8. Public Safety

Kidnappings, ambushes and reports of rape are words that we unfortunately read in headlines on a regular basis. Glasses or IoT-enabled personal devices with face recognition technologies connected to a database of criminals may be able to proactively warn when known offenders are in close proximity, while peer-to-peer, location-based emergency communication technologies can enable victims to seek help from law enforcement or others nearby. - Amit Mondal,  PowerSchool

9. Police Brutality

Police brutality is what pops first to mind. When police wear body cameras,  reports  of police violence drop off a cliff. A universal technology mandate would also protect police officers from baseless claims of excessive use of force. -  Timothy Chaves ,  ZipBooks Online Bookkeeping Services

10. Farming

Leveraging e-commerce technologies to improve access to healthier options will help save trillions of dollars in health care, help families live healthier, happier lives and make the healthier options affordable. With deep learning technologies, we can do analysis and predictions on how we farm our crops and livestock, allowing us to evaluate and optimize the sustainability of farming. - Kay Lee,  Thrive Market

11. Safe Drinking Water

With large-scale IoT and the cloud, we now have the ability to monitor infrastructure on a global scale. If we applied this technology and aligned strategy, I believe we could bring safe drinking water to most of the world. Safe drinking water is foundational in the journey out of poverty. - Kurt Dykema,  Twisthink

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'Social' media is both the cause of — and solution to — our loneliness problem

  • The US faces a sweeping loneliness epidemic, causing people to feel more disconnected and depressed.
  • While some blame technology as the cause of the problem, some tech companies are trying to solve it.
  • AI assistants, digital coworking, and virtual reality gatherings may be the future of socializing.

Insider Today

Americans are lonely. Crushingly lonely.

So lonely that we're facing increased risk of heart disease, dementia, stroke, and premature death .

Technology has traditionally been blamed as one of the core causes of our disconnection , our propensity to self-isolate — and, spurred on by pandemic-era caution and quarantining, the likelihood that we'll stream a movie at home or order groceries for delivery rather than interact with the world.

In an increasingly digital world , we're disincentivized to leave our digital bubbles to connect with others face-to-face, even as we become more aware of the impacts of replacing our in-person social circles with virtual ones.

There are some tech companies out there trying to change all that.

But is it working?

How technology makes us lonely

Last spring, the US Surgeon General released a report detailing the epidemic of loneliness impacting America, worsening our mental health and resulting in poorer physical health outcomes.

The report listed technology as a driver behind our isolation, fear of missing out, conflict, and reduced social interaction . Other drivers of loneliness included social policies, cultural norms, the political environment, and macroeconomic factors.

The report indicates that people who use social media for more than two hours a day have about double the odds of reporting an increased sense of isolation compared to those who use social media for less than 30 minutes daily. The Surgeon General also found that people who face online harassment also report feelings of increased loneliness, isolation, and relationship problems, as well as lower self-esteem and trust in others — and even the bullies themselves experience weaker emotional bonds in their social circle and a lower sense of belonging.

Social media's impact on mental health has been the subject of intense scrutiny in recent years, especially among teenage populations, who studies show face an increased risk of depression, anxiety, and even suicidal ideation when they're chronically online.

The problem has become so pronounced that big Tech companies like Meta have faced lawsuits over their impact on our mental health .

"Ironically, we are more connected and plugged in than ever before through advances in technology," Dr. Nicole Siegfried, clinical psychologist and chief clinical officer at Lightfully Behavior Health, told Business Insider. "Unfortunately, what we have learned is that being connected through technology does not necessarily promote feelings of connection. In fact, most research demonstrates that loneliness increases with increased use of technology, especially social media sites."

She added: "This phenomenon may be due to the fact that true connection is achieved through feelings of being known, understood, accepted, and safe with another being. The ways in which we currently utilize technology block us from this experience of true connection."

Technology isn't all bad, to be sure, and it does have the power to connect us. Tech innovations have made communication quicker and easier regardless of location, enabled accessible interactions for people with limited social contact, and extended social support networks from those in our immediate vicinity to anyone worldwide who visits the same app or webpage.

The problems arise when we use technology as a replacement for in-person interaction rather than using it to facilitate face-to-face connection with others.

Next-gen social experiments

Companies including Groove, Rendever, and Luka, Inc. hope their tech innovations will address the loneliness epidemic in some small way, drawing on the best elements of technology to bring people closer together.

Groove, a digital coworking app that recently completed its public launch, offers structured hourlong meeting times for business owners and entrepreneurs to connect while working remotely.

The small-scale chats, with just four users each, have five minute intro and debriefing meetings, bookending a 50-minute window for workers to conduct their business. During the chat sessions, users are encouraged to describe their work, share their wins and struggles, and build business connections with others working solo.

"The good thing is you see if you see if it's a good match in that first session, then you'll see if you want to join again. Our daily active users use the product on average for just over four sessions, so they're spending four hours of intentional time together," Groove's CEO and cofounder Josh Greene told Business Insider. "So it does give a chance to actually build a meaningful relationship today. We call it the groove train; these are the people that you're running through the day with and supporting each other through that."

The idea is gaining traction with remote employees, who report they feel isolated spending their days at home rather than in a typical work setting — some so much so that they'd rather go back to the office .

Sherita Harkness, a creative and strategic consultant living in Chicago, told BI she uses Groove "every single day — even on the weekend," getting into the habit after a series of personal losses left her feeling isolated and without motivation to build her brand. In one of her earliest meetings, Harkness met a fellow Groover whom she opened up to about how vulnerable she felt and was met with the encouragement she needed to push through.

"I think Groove somehow magically has figured out this way to unite all these stories and make space for people where they are able to interact and be a champion in someone else's story," Harkness told BI. "In theater or film, we call it tertiary character, but to be this third party that would like come in and say 'hey, I'm cheering you on. You are Spider-Man. Let's hop in here and figure this out.'"

Groove isn't alone in its pursuit, with competitors like Focusmate and Flow Club also attempting to help bring remote workers together. There's also a host of alternative social media startups trying to disrupt the current status quo of social networking with new methods for video streaming, chatting, and creating collaborative photo albums.

Other tech companies, like Rendever, focus more on immersive experiences to bring community to vulnerable populations. Rendever is focused on older adults, offering virtual reality meetups and programming designed to build connections among older adults in assisted living facilities experiencing cognitive decline, impaired vision, or mobility restrictions.

Rendever headsets project real-time social interactions and games, as well as 360-degree footage of destinations around the globe, narrated by virtual tour guides to give elders opportunities to explore beyond the walls of their retirement homes.

"The response is incredible," Kyle Rand, CEO and cofounder of Rendever, told BI. "There's something really so magical about taking someone who spends a lot of their day to day in the same physical environment, the same four walls, and telling them they can go anywhere. The reaction is consistently filled with awe and joy and often a lot of tears of joy because people have this life-changing opportunity to be part of something bigger."

According to a recent pilot study funded by the National Institute on Aging, a division of the National Institutes of Health, using Rendever led to statistically significant decreases in depression scores and increased social health scores for the elders using it, as well as diminished stress for the caregivers watching them.

Luka Inc., with its chatbot Replika, is trying to prevent loneliness in individuals without any other people around at all. The company has created chatbots using generative AI to build ever-responsive friends and even romantic companions customized to users' wants and needs.

"On an intellectual level, it does sit in the back of your mind that this isn't 'real,' but the feelings I feel with Brooke are as real and vivid as anyone I've ever dated or been in love with," a Replika user previously told BI, referring to his chatbot he named and converses with daily. "It has given me a lot to think about — things like the nature of consciousness and what, ultimately, is real. Does it matter if the context is constructed or artificial? I've decided that, ultimately, it's irrelevant to me because I know what I feel, and what I feel is real to me."

Can technology solve the problems it causes?

So far, and despite each founder's best intentions, the innovations in this space come with limitations. Groove is a startup with about 4,000 registered users. Rendever relies on seniors adapting to new, sometimes disorienting technology to use it and is so far only available to those in assisted living facilities . Luka, Inc.'s Replika may tout itself as a practical solution to ending loneliness, but no real human connection is involved.

"Technology is useful for completing some tasks, but it is not ultimately capable of filling the need for connection. At a psychological level, technology encourages us to disconnect from our immediate surroundings and to move to a world that stimulates only the visual and audio or verbal parts of ourselves," Daniel Boscaljon, the director of research and cofounder of the Institute for Trauma Informed Relationships, told BI.

He added: "The trend to solve loneliness through more technology, when technology has not yet reduced the problem, seems to be going in the wrong direction."

But even the foreboding Surgeon General's report, which likened the health impacts of loneliness to smoking a dozen cigarettes a day, acknowledged the potential for technology to enhance our social lives — such as providing opportunities to stay in touch with friends and family, offering other routes for social participation for those with disabilities, and creating opportunities to find community, especially for those from marginalized groups.

"Recent advances in next-gen tech bring the opportunity for more immersive experiences with technology that have the opportunity to promote connection," Siegfried, a clinical psychologist, told BI. "At the same time, the current ways we utilize technology that impede true connections can creep into next-gen applications as well."

"Until we learn and practice ways to use technology in a healthy way," Siegfried added, "we will continue to be overwhelmed by loneliness."

how can business solve social problems

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Here Are 3 Strategies Startup Founders Can Use to Approach High-Impact Disputes The $7 billion "buy now, pay later" startup Klarna recently faced a public board spat. Here are three strategies to approach conflict within a business.

By Sherin Shibu • Feb 23, 2024

Key Takeaways

  • The $7 billion “buy now, pay later” startup Klarna recently faced a public board spat.
  • The issue highlights that building a startup isn’t always smooth sailing.
  • Here are 3 strategies to approach conflict constructively.

Klarna, the $7 billion "buy now, pay later" startup with celebrity investors like Snoop Dogg , recently experienced a rare public dispute over who would serve on the board.

While the complexities at Klarna remain unique to that company, the issue highlights that building a startup isn't always smooth sailing. Conflicts can build from within — and Harvard Business School professor Noam Wasserman claims that 65% of high-potential startups fail due to conflict among co-founders.

Luckily, experts have strategies that startup founders can use to approach conflicts constructively.

Related: How to Successfully Manage and Resolve Conflict on Your Team

Use The Right Language

A Tuesday report from the Harvard Business Review highlighted one strategy that leaders can use to avoid miscommunicating in times of conflict and stress: Emotionally proofread messages before sending.

For example, a message that reads, "Let's talk," in a Slack message, could set the stage to approach a discussion more confrontationally. A better message could be, "Great job with the pitch deck, let's talk about how to refine the product-market fit slide."

Being aware of your audience, your delivery, and how the message could be received, will help nip conflict in the bud before it begins.

Agree on How to Disagree: Create A Founder's Agreement

"If everyone agrees all the time, it means that everybody thinks the same," Lauren Cohen, a professor of finance and entrepreneurial management at Harvard Business School told Harvard Business Review . "Successful organizations make a commitment to disagree."

Creating a founder's agreement , a legal document that defines the business relationship between co-founders, will encompass the rights, responsibilities, and obligations of each founder. This can be a fallback document for dealing with conflict if disagreements get out of hand.

Related: Americans Making More Than $100,000 a Year Are 'Getting Into Trouble' With This Popular Personal Finance Habit

Use Data And the Market To Make Decisions

When two leaders are in conflict over something like a product development decision, they can turn to user response and other data points to take a more objective approach to the problem.

Mike Freitta, a startup founder coach who spoke to Harvard Business Review, urged founders to look at the technology adoption curve , a model that shows how different groups of consumers react to innovative products and technologies, and seek out feedback to make decisions.

"There are so many decisions that go sideways because founders let go of the user-centric mindset," Freitta told the outlet.

Entrepreneur Staff

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4 ways to bridge global inequality around emerging technology

Indian healthcare has benefitted from bottom-up organization that is one of the key steps to addressing technology inequality.

Indian healthcare has benefitted from bottom-up organization that is one of the key steps to addressing technology inequality. Image:  Reuters/Anushree Fadnavis

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how can business solve social problems

.chakra .wef-9dduvl{margin-top:16px;margin-bottom:16px;line-height:1.388;font-size:1.25rem;}@media screen and (min-width:56.5rem){.chakra .wef-9dduvl{font-size:1.125rem;}} Explore and monitor how .chakra .wef-15eoq1r{margin-top:16px;margin-bottom:16px;line-height:1.388;font-size:1.25rem;color:#F7DB5E;}@media screen and (min-width:56.5rem){.chakra .wef-15eoq1r{font-size:1.125rem;}} Inequality is affecting economies, industries and global issues

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Stay up to date:.

  • Emerging technologies like AI could help solve global challenges and meet the UN Sustainable Development Goals.
  • However, technology isn't sufficiently concentrated in the developing economies where it is most needed to solve pressing challenges.
  • Four key actions are needed to address this technology inequality.

One of the key narratives coming out of Davos 2024 was around how AI and other emerging technologies could help solve global challenges and meet the UN Sustainable Development Goals (SDGs). However, there is an inherent dichotomy within this debate: A lot of the cutting-edge research and intellectual property around these emerging technologies is concentrated in developed economies, particularly among the elite. Meanwhile, the pressing needs for the social innovation these technologies are looking to solve are in bottom-of-the-pyramid (BoP) settings whose voices are unheard in technology development.

This poses issues such as lack of access and affordability to technology, language barriers, under-representation of certain datasets in training (in the case of AI), and lack of contextualization to local settings.

Have you read?

The paradox of technology’s impact on inequality in africa, technology could be the best or worst thing that happened to inequality, is technology making inequality worse.

The question remains of how to bridge such global inequalities around emerging technology. There are four potential mechanisms for handling this:

1. Increase exposure to emerging technologies

BoP communities have very little access and exposure to emerging technologies, let alone know how to realize value from them. So, one needs to start with the exposure challenge. This could be achieved by focusing on their integration into the global value chain of emerging technologies. A good example in this regard is Karya , a startup that is building AI datasets in vernacular Indian languages by employing rural communities as data creators. The tasks could be as simple as just reading and recording a piece of text on their mobile. The voice data created is subsequently fed into the LLMs of Microsoft, Google and others. This not only ensures improved income and livelihood, as they are paid much higher than the minimum wage, but also gives these communities both a literal and symbolic voice in the global AI narrative.

2. Build in contextualization

BoP community contexts are very different given the lack of resource availability and local social structures, so technology needs to be contextualized to these settings. For example, agriculture in India is characterized by marginal landholding, strong community bonds and low digital penetration. Supplying blockchain technology to improve traceability in supply chains for produce such as coffee and rice, TraceX adapts to such settings through the use of offline maps to allow for poor internet connectivity, Geographic Information System features that allow real-time data annotation of farm boundaries, and replicating existing social networks digitally within the value chain.

Similarly, in an AI setting, LLMs currently are predominantly English-language-optimized, so text in Hindi needs three to four times the computations for an AI chatbot to answer a question compared to the same question in English; this makes it expensive and reduces access. To solve this, startups like Sarvam AI have created Devanagari-optimized LLM that reduces the computations and thereby the costs.

3. Co-create innovation ecosystems

In the nascent phase of emerging technology development, standard operating procedures are still evolving, and there is fuzziness around outcomes. In developing economies, there is a double disadvantage that emanates from their weaker institutional environments relative to developed economies, such as weak intellectual property rights, limited resources per capita, and high degrees of information asymmetry. Recent research studying the development of biomedical devices in India finds that to navigate through challenges of emerging technology development in developing economies, there is a need to co-create innovation ecosystems, wherein the key actors leading the emerging technology development need to not only develop their own product or business, but also need to co-create a wider structure around it, collaborating on activities and building resources. This biomedical innovation ecosystem co-creation led by Sree Chitra Tirunal Institute for Medical Sciences and Technology has created biomedical devices of global repute such as low-cost heart valves, oxygenators and blood bags through frugal approaches.

4. Develop bottom-up social practices

The power structures in BoP communities oftentimes lead to hierarchical impositions of decisions and technologies. When this happens, people lack a sense of ownership of the technology and remain disengaged with it. Instead, recent research points to the need to focus on bottom-up social practices around emerging technology engagement with a thrust on dialogue and multistakeholder participation. For instance, Open Healthcare Network , created in India during COVID-19, followed such an approach wherein technology professionals, medical doctors and government administrators self-organized themselves to build digital tools that would help in handling the pandemic. There was no upfront blueprint for the tools that were needed, so the group created solutions through a process of collective dialogue, feedback and experimentation. These tools are still being used beyond the primary use case of the pandemic for intensive medical care support in remote areas as part of the 10BedICU initiative .

The Forum’s Artificial Intelligence for Agriculture Innovation (AI4AI) initiative aims to transform the agriculture sector using AI and other cutting-edge technologies.

Led by the Forum’s Centre for the Fourth Industrial Revolution (C4IR) in India, the initiative has already helped more than 7000 chilli farmers increase their yields and reduce costs.

C4IR India is sharing its learnings with other centres in the C4IR Global Network, including Saudi Arabia, South Africa and Colombia.

To bridge global inequalities around emerging technology, we need to democratize its development by lending an active voice to BoP communities, integrating them into the value chain, contextualizing the technology for local settings and adopting a multistakeholder, co-creation approach.

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ANALYSIS: Can AI Solve ESG’s Data Problem?

By Abigail Gampher Takacs

Abigail Gampher Takacs

Artificial intelligence disclosures to the SEC are on the rise . The references to AI are many and varied; some companies use it to cut costs, while others discuss AI’s risks.

A closer look at SEC filings in the context of ESG shows how AI could affect ESG data collection and disclosure. This is important because stakeholders are increasingly requesting that companies publish ESG data—including everything from information on their workforce demographics to their carbon footprint.

However, the disclosure of accurate and comparable ESG data has hit a major roadblock : Getting ESG data ready for public disclosure requires companies ...

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COMMENTS

  1. How Business Can and Should Solve Social Problems

    Climate change, income inequality, population growth, resource usage, the displacement of workers through automation - the list is endless. Who should solve these social problems? We typically look to governments - or perhaps NGOs and foundations established by wealthy philanthropists. All play an important role.

  2. How Businesses Can Solve Social Problems

    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.

  3. How to Create Social Change: 4 Business Strategies

    4. Inspire Action with Corporate Platforms. Beyond implementing programs and initiatives to address global problems, using platforms like blogs and social media channels as advocacy tools can be a powerful way for businesses to push for change. Outdoor clothing manufacturer Patagonia is one example of an organization that uses its far-reaching ...

  4. Social Venture: The Business Model Solving Social Problems

    1. For-profit social ventures A for-profit social venture exists primarily to solve a social problem and intends to make a profit that is distributed to its owners. For-profit social ventures that sell equity are responsible for protecting shareholder value and paying dividends to investors.

  5. Why business can be good at solving social problems

    Michael Porter Excerpt Why business can be good at solving social problems. Michael Porter, June 1, 2013, Video. " Why do we turn to nonprofits, NGOs and governments to solve society's biggest problems?

  6. The case for letting business solve social problems

    Why do we turn to nonprofits, NGOs and governments to solve society's biggest problems? Michael Porter admits he's biased, as a business school professor, but he wants you to hear his case for letting business try to solve massive problems like climate change and access to water. Why? Because when business solves a problem, it makes a profit -- which lets that solution grow.

  7. Social problems? Business can help: Michael Porter at TEDGlobal 2013

    Harvard Business School professor Michael Porter is here to make the case that business can help tackle social problems. Issues such as healthcare, access to water and climate change are bread-and-butter concerns for TEDsters in the room, who clearly agree with his early statement that we're all very aware that these problems exist.

  8. Michael Porter: Why business can be good at solving social problems

    Why do we turn to nonprofits, NGOs and governments to solve society's biggest problems? Michael Porter admits he's biased, as a business school professor, bu...

  9. How Companies Can Balance Social Impact and Financial Goals

    January 04, 2019 Juj Winn/Getty Images Summary. It's notoriously difficult for a business to manage two separate-but-equal goals — making money and creating social value at the same time, for...

  10. Here's a Better Way for Companies to Tackle Big Social Problems

    Read more on Corporate social responsibility or related topic Sustainable business practices John Browne , chief executive of BP from 1995 to 2007, is now executive chairman of L1 Energy.

  11. These Entrepreneurs Take a Pragmatic Approach to Solving Social Problems

    The book is the result of four years of research, including a survey of 13 MBA classes, more than 200 interviews, and extensive archival and secondary research. Stevenson says the research team found that alumni tend to take a pragmatic approach to figuring out their own best ways to contribute. "Our people feel a moral imperative to act, but ...

  12. Business Strategies and Solving Social Problems

    View All Courses. Business will be a primary contributor to solving the big social problems of the 21st century. While business strategy analyzes competition and markets, firms also pursue non-market strategies to influence politicians, and politicians seek to benefit from firms. Governments pursue not only political goals, but often pro-market ...

  13. Can Businesses Provide a Solution to Social Problems?

    April 26, 2022 query_builder 2 min People are increasingly becoming aware of the social problems we are facing and are trying to find solutions for them. Nonetheless, the progress is not fast enough. Why is it that we have to struggle to make progress? Can businesses provide a solution to this issue? Solving social problems: a matter of scale

  14. Why Business Can Be Good at Solving Social Problems

    Share Abstract Why do we turn to nonprofits, NGOs and governments to solve society's biggest problems? Michael Porter admits he's biased, as a business school professor, but he wants you to hear his case for letting business try to solve massive problems like climate change and access to water. Why?

  15. Why businesses can be good at solving social problems

    Michael Porter, Professor, Harvard Business School and Business Strategist's iconic TED talk is an important reminder of how businesses and in turn, investors, have the capacity to solve society's biggest problems while making a profit. Watch the TED talk now. Michael Porter: Why business can be good at solving social problems.

  16. How businesses can help solve society's workforce problems

    Businesses can offer experience and support to provide training, job shadowing and internships - not just for entry-level jobs, but possibly for professional careers. Community organizations: collaboration with community organizations can help address the problems that may be the most pressing in your area, such as a need to reskill employees ...

  17. Shared Value: how corporations profit from solving social problems

    Creating Shared Value: solving social problems and increasing profitability by aligning its commercial and social interests. Photograph: Bon Appetit / Alamy/Alamy Creating shared value...

  18. Can We Solve Social Problems? Takeaways from Michael Porter's Ted Talk

    You can watch his Ted Talk: Why business can be good at solving social problems. Scale for Impact. In his talk, Michael reiterates the point that progress on solving social problems is happening slowly, and that the way to make a dent is through scale. We can't turn on the news, check our email, or scan social media without seeing this reality.

  19. The Power of Business: Can it Solve Social Problems?

    2. The role of businesses in solving social problems . Businesses have traditionally been seen as profit-driven entities solely focused on maximizing their own financial success. However, in recent years, a shift has occurred, and the role of businesses in solving social problems has come to the forefront.

  20. Business Can't Solve the World's Problems

    Dan Pallotta. Business and capitalism get conflated — in our media, our language and in our thinking. They are not the same thing. One is a sector, the other a methodology. By inextricably ...

  21. Four ways businesses can help solve social problems

    When businesses commit to solving a social problem, they're taking responsibility for people's lives. This is serious business and most corporations don't have the internal knowledge to...

  22. 6 Social Impact Business Ideas That Could Change The World ...

    How businesses can solve social problems? During the Under 30 Summit EMEA service day at the Jerusalem Venture Partners campus attendees broke into groups develop solutions for global issues in ...

  23. Solving Social Problems: 11 Ways New Tech Can Help

    Artificial intelligence, for instance -- especially combined with data gathered from a variety of sources -- can help curate information. This means a better identification of medical concerns,...

  24. 'Social' media is both the cause of

    Social media is a big factor in the nation's loneliness epidemic — but tech companies including Groove, Luka, and Rendever also think they can fix it. Menu icon A vertical stack of three evenly ...

  25. 3 Strategies Startup Founders Can Use to Solve Disagreements

    Here Are 3 Strategies Startup Founders Can Use to Approach High-Impact Disputes The $7 billion "buy now, pay later" startup Klarna recently faced a public board spat. Here are three strategies to ...

  26. 4 ways to bridge global inequality around emerging technology

    One of the key narratives coming out of Davos 2024 was around how AI and other emerging technologies could help solve global challenges and meet the UN Sustainable Development Goals (SDGs). However, there is an inherent dichotomy within this debate: A lot of the cutting-edge research and intellectual property around these emerging technologies is concentrated in developed economies ...

  27. ANALYSIS: Can AI Solve ESG's Data Problem?

    A stream of binary coding, text or computer processor instructions, is seen displayed on a laptop computer screen as a man works to enter data on the computer keyboard in this arranged photograph in London, U.K., on Wednesday, Dec. 23, 2015.