Michael Shribman is president and founder at APS Global Partners Inc. and Medias Health Inc.
The connection between business and society is not a choice—it is a necessity. Having worked in various industries for over 20 years, ranging from manufacturing to tech startups and now consulting, I’ve seen firsthand how businesses can drive societal change while achieving their financial goals. By focusing on shared value, businesses can turn challenges into opportunities, creating a ripple effect of positive change.
Businesses Thrive When Society Thrives
The mutual dependence between business and society is undeniable. Companies rely on healthy, educated communities for their workforce and customer base, while societies depend on businesses for innovation, jobs and economic growth. For example, I once worked with a tech startup that developed software to digitize supply chains for small farmers. Initially, we saw it as a profit opportunity. However, as we trained farmers to use the system, we realized it also empowered them by improving their crop yields and income. Over time, this mutual benefit created trust and loyalty that scaled our business.
Michael Porter and Mark Kramer describe this as “creating shared value.” Nestlé provides an excellent case study. In India’s Moga district, Nestlé invested in infrastructure and training for local dairy farmers, raising the region’s standard of living and securing a stable supply of quality raw materials, ensuring its business success.
Corporate Social Responsibility: A Strategic Advantage
Corporate social responsibility (CSR) isn’t just a checkbox for businesses—it’s a long-term strategy. During my career as a business consultant, I’ve often advised clients that CSR initiatives can be a competitive advantage. For instance, a textile manufacturer I worked with in Southeast Asia struggled with public backlash due to pollution. By adopting sustainable practices, such as wastewater recycling and reducing chemical use, the company not only improved its public image but also reduced costs, attracting eco-conscious clients.
For example, Walmart cut greenhouse gas emissions and lowered food prices through sustainable agricultural practices, achieving economic and environmental benefits.
The Power Of Innovation
Businesses have unique capabilities to innovate solutions for social problems. In my own experience, one of the most rewarding projects involved a renewable energy startup aiming to bring affordable solar energy to rural areas. We combined cutting-edge technology with micro-financing options, enabling low-income households to access electricity. This not only expanded the company’s market but also transformed lives by improving education and health outcomes.
Tesla offers another inspiring example. By revolutionizing the electric vehicle industry, Tesla is addressing climate change while building a multi-billion-dollar brand.
Building Ethical Foundations For Long-Term Success
Ethics and transparency are critical for any sustainable business. As a consultant, I’ve encountered companies hesitant to invest in ethical practices, fearing higher costs. However, I’ve consistently seen that businesses committed to ethics gain trust, which is invaluable in the long run. For example, I worked with a healthcare provider that implemented strict patient data privacy measures, even exceeding legal requirements. Although costly initially, this decision differentiated the company from competitors and attracted clients who valued trust.
Unilever’s commitment to sustainability offers a similar lesson of reducing plastic waste while boosting loyalty and brand reputation.
Challenges In Aligning Business Goals With Societal Needs
Despite the benefits, aligning business goals with societal needs can be challenging. In one project, I helped a multinational company navigate conflicting priorities: Shareholders demanded short-term profits, while stakeholders expected long-term sustainability. By emphasizing open communication and showing how sustainability could drive long-term profitability, we gradually won over skeptical investors.
This tension is a recurring theme in globalization and transparency. For instance, when companies neglect environmental or labor concerns, they risk public backlash. The 2013 Rana Plaza tragedy in Bangladesh highlighted the dangers of prioritizing profits over safety, forcing global brands to re-evaluate supply chain practices.
Collaborations For Greater Impact
No single entity can solve global challenges alone. Partnerships between businesses, governments and non-profits are essential. In my consulting work, I’ve seen successful collaborations where companies pool resources to address systemic problems. For example, one retailer partnered with a non-profit to provide education programs for its workers, boosting employee retention and morale while empowering communities.
Walmart’s collaboration with the U.S. Agency for International Development (USAID) to support smallholder farmers in Central America is a textbook case. By combining Walmart’s expertise in logistics with USAID’s agricultural programs, they improved food security and farmer incomes.
The Path Forward: Systemic Change
Looking ahead, businesses must integrate societal goals into their core strategies. I’ve encouraged clients to shift from reactive CSR initiatives to proactive systemic changes. For example, instead of just donating to educational charities, a client in the tech industry created a free coding platform for underprivileged students, addressing skill gaps and cultivating a future workforce aligned with the company’s needs.
To begin, leaders should focus on aligning these initiatives with their organization’s mission and values. Start by identifying societal challenges that intersect with your core business strengths. For example, a tech company might tackle digital literacy, while a healthcare provider could expand access to essential services. Engaging all stakeholders in brainstorming sessions can uncover shared priorities and foster innovative, inclusive solutions. Small pilot programs often serve as a practical way to test ideas and demonstrate measurable impact before scaling.
However, challenges will arise—particularly when balancing short-term profits with long-term societal benefits. Leaders must proactively communicate the value of these initiatives, emphasizing how they drive both business growth and societal progress. Set clear, measurable goals and showcase early successes to gain stakeholder trust. Be transparent and purpose-driven approach to transform skepticism into a shared vision and ensure seamless integration of societal goals into core business strategies.
Consider focusing on the following priorities and initiatives:
• Leveraging Technology: AI and big data can revolutionize areas like healthcare and climate modeling.
• Promoting Circular Economies: Adopting models where resources are reused rather than discarded.
• Fostering Inclusion: Ensuring economic opportunities extend to marginalized communities through fair wages and equitable hiring practices.
Conclusion
The relationship between business and society is a powerful force for progress. By embracing innovation, ethical practices and collaboration, businesses can transform global challenges into opportunities for mutual benefit. Drawing from my own experiences and the success stories of industry leaders, it’s clear that businesses thrive when they see themselves not just as profit-makers but as agents of positive change.
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