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Businesses have always impacted the world
And they have done that beyond the economy and financial system. What has changed is that corporations now pay attention to their social role.
This shift is the result of several converging factors. Reams of analytic data are now available, so customers and investors have more ways than ever of evaluating companies—and many now expect businesses to be as green, ethical, and transparent as possible. Social media has also given consumers a greater voice. Climate change has made everyone aware of humanity’s effects on life and the planet.
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Building socially responsible and profitable companies
- Create a new model or market.
- Transform the business.
- Pursue pure-play alignment. This involves shifting to a new venture, rather than transforming an existing business.
- Offer a substitute product.
- Focus on operational efficiencies.
- Recognize an added value.
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Actions speak louder than words
While many industries promote green values, some may just be paying lip service. To be truly impactful is not easy to do. It requires a transformation, and not everyone will do that.
Legacy industries such as transportation and auto manufacturers, in particular, are under threat of disruption. Many companies are struggling to adapt in the face of change. This requires convincing your workforce to do something different, and it’s hard for all of us humans to change.
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