PURPOSE has become a buzzword in the modern context where every person and organization is seemingly willing to find it within its core. Thanks to the science that articulated the evidences that sensemaking is deeper than simply making sense and that the art of sustainability is not about profit bottom-line but about greater purpose. Even the language of quality has shifted to look not on what is put in a product or service but on what the customers get out of it. The concept of customers expanded to include internal customers where the second bottom-line is its people. And it expands to cover the third bottom-line to include even the planet.
The triple bottom-line proposition results to a challenging role of business in ensuring balance and blend of these Ps, namely profit, person and planet. Profit bottom-line covers economic variables reflected in the cash flow and financial wellness of the business. People bottom-line refers to the social variables dealing with communities within and around the business, the social resources, including the education, equity, health, well-being and the quality of life of persons in and around the business. Planet bottom-line covers the environmental variables relating to natural resources, water and air quality, energy conservation and land use.
The sustainability model offered by the Triple Bottom-line, conceptualized by John Elkington in 1994, proposes people development that is bearable to the planet, profit that will contribute to the viable planet and profit that will achieve equitable people.
Quintuple bottom-line expands the triple bottom-line to include financial stability and ethico-moral-legal sensitivity. It posits to deliver environmental sustainability, social equity, economic prosperity and cultural vitality.
The millennial and Gen-Z markets are demonstrating bias towards those businesses taking the role as agent of world benefit. The businesses are forced to transform to do good by doing well and the entrepreneurs to evolve as inno-preneurs and social entrepreneurs.
The 50 percent top 100 economies are businesses. In effect, business moves the world. We have witnessed how businesses innovate to regenerate the world. We have seen how entrepreneurial forces have contributed to solve social problems. We have admired businesses that harness the power of humanity to heal diseases and manage global health. We have noticed how businesses have empowered women, youth and the differently-abled.
Intrinsic to the juridical personality of corporation is its social roles that give citizenship rights that allow it to exercise its social rights, as a provider of goods and services; its civil rights, as enabler; as well as its political rights as a channel of resources and influence.
Given corporate citizenships, the business enterprises need to be good neighbor within the host community. Hence, the emergence of Corporate Social Responsibility, which refers to the transparent business practices that are based on ethical values, compliance with legal requirements, and respect for people, communities and environment. CSR mandates, in Carroll’s assertion, the economic responsibility to be profitable, which is the foundation upon which other responsibilities rest. It imposes legal responsibilities to obey the law, which is perceived as society’s codification of right and wrong. CSR also enforces ethical responsibilities, which imposes the obligation to do what is right, just and fair. And in its peak is philanthropic responsibility to be good corporate citizens by improving quality of life.
Business benefits from corporate citizenships in many areas. Its reputation, competitiveness, and the market positioning derived from the goodness create good human-interest stories for customer patronage (which should only be secondary to its authentic intention and purpose). The social media provide a powerful platform for these narratives. Corporate citizenship also contributes positively to employee recruitment, motivation, and retention, especially among the younger generation whose patronage for goodness is high. Its sustainability proposition attracts investor’s relations and access to capital. Learning and innovations are also nurtured positively from the positive environment that corporate citizenship creates. There is also a remarkable operational efficiency that could come as a blessing from corporate citizenship.
There is also an emergence of the concept of social enterprises, which form part of a business revolution that blends profit and social benefit. Social enterprises are businesses with primary social objectives whose surpluses are principally re-invested for that purpose in the business or in the community, rather than being driven by the need to maximize profit for shareholders and owners.
For the world to benefit from the social benefits of business, there is a need to put the spotlight on the local, regional and global achievements in these areas. Storytelling about them will amplify their influence and hopefully will increase patronage, bringing greater business and social values. There should be a more collaborative sharing of the learned lessons among these social entrepreneurs, advocates, and champions. Networking them together will lead to their synergistic co-existence. We should be able to magnify this model to spark inspiration.
With business as the number one higher education course and biggest population in higher education, both in undergraduate and graduate levels, among 15,000 schools all over the world, education is key in this entrepreneurial revolution. And with some 125 business leaders mentoring employees every single day, the hope is high that business is a formidable force in bringing social benefits that were less spoken before. The pandemic has incited the humanistic philosophies of many entrepreneurs wanting positive change. Indeed, every generation needs a revolution. In our age, entrepreneurial revolution towards social benefit is a must.
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