The Health of Business

SO, IF AN INCREASING NUMBER OF FINANCIAL LEADERS have worried publicly that perhaps capitalism has gone too far in creating social damage, is there enough resolve to chart a different, more inclusive course in our financial sectors? Likely not, at least at the moment. But perhaps we could be on the cusp of some reforms that might shed some light on what a more responsible capitalism would look like.It is definitely true that within our communities certain businesses are reassessing their impact, individually and collectively. In attempting to come to terms with the reality that their giving back to communities by way of charitable donations isn’t sufficient for overcoming the damage created by their recent practices, these businesses are quietly putting out “feelers” for ideas as to how they might quietly do things differently. In a number of conversations with such leaders in recent months I have encountered some business and corporate voices who are sounding out where the great social and environmental challenges are in both London and, in one case, Toronto, and how they might alter their practices to address such concerns. Some of them have, as local citizens and not just corporate leaders, seemed sincere in their impulses, while others have nevertheless still kept their eye on their bottom line.Questions have been raised which involve finding ways to create economic value in a way that also creates value for the local community by addressing its greatest challenges. Naturally, they wish to remain successful, but are exploring ways in which that success can find its counterpart in social progress.Recently former Prime Minister Paul Martin was in London to speak to the annual gathering for the local chapter of the Canada Association of Family Enterprise (CAFE). He reminded his audiences that around the world, as well as in Canada, that family-run businesses are taking increasing leadership in the definition of modern capitalism and that they exhibit a more acute sense of local trends and needs than many global firms. Some firms in that session took those lessons to heart. Their attitude was one of robust interest in how they might be of assistance – offers that reminded me once again that there are those within capitalism itself who are seeking a new way forward.What these family run businesses are already recognizing the broader array of global and national firms must come to terms with. The ability to do business in such a way that still recognizes profit but is willing to share some of the bounty, not merely through charity, but local infrastructure investment, is yet in its infancy but must soon arrive if capitalism itself is to recover its full possibilities. Business must become legitimate again and exploring sharing value with local communities is the way to capture it.Businesses must begin using some of their resources to dig far deeper into understanding the needs of the communities and countries in which they operate. If they are serious they won’t need to hire consultants. Highly qualified community developers, researchers, and those experienced with across the board challenges could be brought in for advice. It’s not rocket science, but it is a change in direction predicated upon the acknowledgement that capitalism must at least begin the process of rediscovering a human face that far exceeds philanthropy. If businesses were to get this right, new dynamics would begin shaking loose in our cities. New customers would be discovered. More disposable income would be in people’s pockets. And businesses would be seen as the valuable producers of products and the trainers of people.There will be those responding to this post who will say, “Forget it. It will never happen.” Perhaps. And yet some businesses are already making such moves, beginning with that very first stop of acknowledging that mistakes have been made.Nor should citizens be too quick off the starting line to blame the corporate and financial sectors for our collective ills. Feeble politics has played its role, to be sure, but we as citizens went along with this model for decades. We enjoyed the cheaper products, the employment, the wages, all the while straining the climate, without ever realizing that efficiencies and expanded mobility for companies would eventually make it possible for capital to disassociate itself from labour.Capitalism will soon enough have to accept that every firm should make its ultimate decisions through the lens which acknowledges that what is good for the community is ultimately good for the company itself.  It will lead to healthy profits for the latter and greater quality of life for the former. If the corporate sector doesn’t make that adjustment, then it can never hope to again be a respected and respectable leader in any community.It serves no one’s interest to have a form of capitalism that is so profit driven that it eventually consumes itself. New ways of generating wealth must be discovered that reward both business and community together – an impossible goal as long as the two increasingly refuse to acknowledge the other. “Anything that just costs money is cheap,” John Steinbeck once wrote. We should all have more value than that, businesses included.