Today we explain you how companies can be a solution for social problems. For that, we refer to a TED talk that made Michael Porter with the title “Why business can be good at solving social problems”.
This talk made in 2013 and Porter explained that all the world was full of serious and pressing problems, for example, poor nutrition, access to water, climate change, deforestation, lack of skills, insecurity, not enough food, not enough healthcare or pollution. Two years later, unfortunately, this problems are already in the world.
More people already believe that only NGOs have the solutions for this problems. It’s true that this organizations have had a growth through the years, but this growth is too slow, thus, the solutions that they are achieving and their impact are small because of lack of resources.
Porter announced in 2013 that the solution for this lack of resources was in the business, in other words, we had to see the companies like a solution for that problems and not see, like more people believed, like a part of the problem.
Nowadays, from Worldcoo, and together with many other companies, we know that with our business we can generate resources in order to solve social and environmental problems.
How can a business generate these resources?
Business generates those resources when it makes a profit. And those resources can help to solve social and environmental problems, they only have to reallocate these profits to social problems.
Many companies don’t still know but, when they really make profit is when they solve social problems. For example, have a safe working environment will prevent accidents and, that will make the business more profitable because of accidents are expensive and costly. Another examples that can be help to the business performance are prevent pollution or protect the health of employees of your company. Although you don’t believe it, this facts generate good practices and efficient process that make higher profits.
How can a business help this social problems?
We have to address a social issue with a business model. Porter tell that Shared Value, and is when we can create social value and economic value simultaneously and their application allow the resources expansion to a sufficient scale for solve social problems.
In other words, business should analyze social problems that can be related with their business activities and close to their group like another market segment and define appropriate value offers to serve them.
Finally, in order to solution works, we have to now change how business sees itself, and this is thankfully underway and know that they also have to recognize business is not going to do this as effectively as if we have NGOs and government working in partnership with business.
From Worldcoo we are helping many companies to collaborate with NGO to find fund for projects that have a high social and environmental impact.
Like Porter, we are sure that a fundamental opportunity exist in order to impact and solve this problems at the same time that the companies obtain high profits. We are sure that the future business will be a company that save the environment, save their workers and involved in actions with positive social impact.
The Worldcoo Team.