The Effect of Businesses on Social Issues

Image by Autumn Qiu for Girls For Business

The year 2020 was a rollercoaster filled with ups and downs. The downs being situations that impacted the world negatively, and the ups being the light at the end of the tunnel, which brought the world a sense of hope. in 2020, in addition to the clear presence of the pandemic influencing nations globally, the world also witnessed crucial social movements that changed the perspectives of many people. We have continuously seen critical social issues and increased poverty, hunger, and environmental conflicts. With all these current challenges affecting the world, how can businesses significantly contribute to solving some of these conflicts? 

In a Ted Talk published in 2013, Michael Porter, a Harvard professor, focuses his presentation on how business can eventually solve social problems. Porter stated that businesses usually lack resources to solve these social problems. However, companies are learning that when they make a profit, it ultimately is helping solve these universal issues. When businesses take crucial steps to develop safety measures to help their company, it leads to more profits. For example, it has been reported that enterprises improve their performance by preventing pollution or covering their employee’s healthcare. It is surprising that even the simplest actions taken by businesses can help them make profits. 

Unfortunately, many businesses are not aware of the resources they have to contribute to solving some of these world issues. But when they are aware, they can make a large difference in the world. According to the website Global Citizen, “businesses should analyze social problems that can be related with their business activities.” Connecting the relevant issues going on in the world to the purpose and mission of a company can help create solutions. Nevertheless, for this to happen, businesses need to change their perspectives and be more mindful and informed of current social issues.