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Sustainability and Business
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Sustainable development means reducing both ecological footprints and poverty. Businesses can pursue strategic advantages and contribute to both aspects by finding ways to foster more balanced social capital in their stakeholder networks. In the case of poverty reduction, for example, teaching a hungry man how to fish is developing "human capital". Linking him to a fish market so he can sell his catch is developing social capital.
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Sometimes the calls for sustainable business sound like we should all be spending more time growing worms under the kitchen sink and volunteering at leper colonies. Not so. Neither hemp shoes nor a Mother-Teresa-halo are required. Building social capital among stakeholders promotes sustainability but it is best done as part of achieving straight business objectives. Here are some examples:
- Instead of hiring more security guards, form a district security committee with neighboring businesses, organizations, and community groups. By forming a cohesive group, local participants gain influence (an aspect of social capital) in the community network and can strengthen behavior norms that reduce crime for everyone in a way that lasts.
- Instead of giving long-term exclusive contracts to the best local suppliers, limit how much each one can sell your organization but help them form a marketing co-operative to improve their offerings and crack new markets further afield.
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For more practical suggestions, see:
Wilson, C. and Wilson, P. 2006. Make poverty business: Increase profits and reduce risk by engaging with the poor. Sheffield, UK: Greenleaf. |
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