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Does big business support community values? Most people would say it’s a mixed picture.
By Tom Rausch
Corporations spend significant financial resources in advertising, marketing, and public relations to convince us that they only have our best interests in mind with their products and services. In the United States, for example, many of the largest employers in really do support community values in a variety of ways, such as sponsoring sporting and fundraising events and giving generously to local charities. Many large employers also create good-paying jobs that give some employees the resources needed to support their families in a standard of living beyond what was imaginable 100 years ago.
Capitalism is the reason the United States is one of the richest countries in the world. However, the growth that capitalism supports also creates growing social inequities. While it is fair to say that big business supports the values of some communities, it is also true that other communities are left behind and even exploited by the business model that drives big businesses. A Google search will quickly tell you that some of the United States’ largest corporations employ thousands of workers who receive aid from federal assistance programs such as the Supplemental Food and Nutrition Program and Medicaid, suggesting that the employees’ compensation is not enough to live above the governmental defined poverty levels.
At Barrett Values Centre (BVC), we have a 25-year history of working to transform the business model from one focused solely on generating wealth for shareholders, to one that honors all stakeholders. Not only internal stakeholders like employees, contractors and vendors, but also external stakeholders such as local communities, regulators and the environment. The need for this transformation has never been more urgent. While businesses both large and small are seeing the need for a more sustainable business model, the change has been slow and has tended to focus on somewhat selfish motives such as becoming an employer of choice to attract and retain the best employees. Nothing wrong with that, other than it does not go nearly far enough.
A paradigm shift is needed. Addressing the problems created by the very essence of the current business model will require a new way of thinking about and doing business. What is needed is an expanded business model. One that strives to go beyond just being the best in the world, to one that also strives to be the best for the world.
We are now at an important milestone in human existence where we, through our businesses, make a tremendous impact on society and the planet we live on. This impact can be either positive or negative. To disregard this basic truth, not only challenges the sustainability of the business, but also continues to amplify the dysfunction and crisis we see around us and in society.
This is our call to action. We propose a business transformation that results in an extended bottom line. One that goes beyond shareholder value or even employee engagement to include employee wellbeing, and both organizational and societal value creation. BVC’s Whole System Transformation process addresses the needs of all stakeholders, internal and external. Aligning the benefits and impacts of the person, corporation, and society, to create a sustainable and thriving future.
Interested in learning more and engaging in this thought-provoking discussion? Please join us for our World Values Day webinar at 10 am EST on October 21. Register here for this free event
About the Author
Tom Rausch is the Director of Consulting at Barrett Values Centre. Tom works with global companies to align their leadership teams with their company culture to deliver on business strategy. As a grandfather of four, he is fully committed to the decade of action to deliver the United Nations Sustainable Development Goals.
https://www.linkedin.com/in/tomrausch/
Photo by Navi on Unsplash