The Corporate Philanthropist: Stakeholders' Expectations of Business - Page 4
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Global Policy Perspective: Business and Society, Society and Business
Business has always been involved with the rest of society. Government affects corporate affairs through legislation and regulation, and the recent financial crisis and its aftermath provide ample evidence of the government’s new role in a “private” sector that is increasingly becoming a hybrid. At the same time, corporations and business associations have long pursued a strong interest in social and political issues. Corporate philanthropy, corporate social responsibility initiatives, and efforts to shape public policy are all elements of this involvement. Several factors, however, suggest that there is now a case for corporations to do more. The relative importance of business in society has increased as companies have grown and merged, as governments in Washington and elsewhere have become financially stretched, and as globalization has raised the salience of economic issues. Businesses have on-the-ground knowledge from their global presence. And contributions from the private sector are needed in developing the technologies and deploying the resources to meet this era’s principal challenges, from terrorism and climate change to pandemic disease and poverty.
Firms operating overseas have a number of opportunities to play a positive role, and many already are. One priority area for international firms is education, especially in places like the Arab and Muslim worlds, where basic (not to mention quality) education is often lacking. Public-private initiatives are a good model: corporations could work with governments, NGOs, and others to identify and support best practices, with girls’ education being a particular focus given its large economic and social benefits.
Societies emerging from conflict are also ripe for corporate involvement. Firms can foster peace and reconciliation by helping citizens build normal lives and enjoy the fruits of stability and growth—in other words, by showing that peace pays. Corporations can also offer valuable expertise to bolster the capacity of governing institutions in developing and post-conflict countries, something that improves the business environment and builds stronger economies and societies over time. There is thus ample opportunity for firms to do good and do well around the world.
Businesses have a role in tackling challenges in this country as well. Indeed, business leaders would do well to revive the tradition of corporate statesmanship. Voices from the private sector have often been among the most enlightened in debates over immigration, trade, and foreign investment. But corporate advocacy for continued American openness has weakened in recent years, one reason the United States has edged away from its welcoming traditions. This shift represents a real danger, not just to American business, but to American society and, indeed, the world. Corporations can help not only with direct advocacy but also with efforts to increase knowledge and awareness of relevant issues among Americans, through educational programs and support for policy-relevant research.
At a time when firms operate under more scrutiny—from the government, the media, and the public—than ever before, speaking out on important policy issues and fostering progress on social concerns is the right thing for corporate leaders to do. It is also important if firms are to build and maintain support for free markets. As Neville Isdell said in a speech last March at my organization, the Council on Foreign Relations, “We must change how we practice capitalism if we want the benefits of capitalism to continue.”
The Council on Foreign Relations is an independent, nonpartisan membership organization, think tank, and publisher dedicated to creating a better understanding of the world and the foreign policy choices facing the United States and other countries.
CECP asks today’s business leaders to consider:
The Council on Foreign Relations is an independent, nonpartisan membership organization, think tank, and publisher dedicated to creating a better understanding of the world and the foreign policy choices facing the United States and other countries.
CECP asks today’s business leaders to consider:
- How can your firm play a greater role in corporate statesmanship and advocacy, increasing knowledge and awareness of important issues?
- Does your company have unique on the- ground knowledge that can be more actively shared with other stakeholders to advance public debate?
- Are there philanthropic investments your company can make now to help strengthen the regional business environments in which it operates?
