Key Messages
Learn How Multinational Corporations Can Help Solve the World’s Biggest Problems
It may seem counterintuitive, but companies can actually profit by addressing the world’s problems.
In fact, when multi-national corporations take on some of the biggest issues -population explosion, global warming and poverty- it turns out that their bottom line is actually improved.
This book will teach you why the government and NGOs alone cannot solve the world’s most pressing issues; how engaging with communities can lead to greater profits for companies; and most importantly, how successful corporations like Nike and Intel benefit from helping out with green energy solutions.
You’ll learn that encouraging cleaner fuels can save massive amounts of money for everyone involved – companies included – and gain insights into why taking a humanitarian approach pays off for businesses in the long run.
So don’t underestimate the potential of big businesses to contribute positively to social issues – it could be better for your wallet than you think!
Why Governments and NGOs Alone Can’t Solve Our Toughest Problems
It is no secret that Governments and NGO’s often struggle to make a meaningful, lasting impact in solving the world’s most challenging problems.
NGOs, despite their good intentions, generally lack the necessary resources or expertise necessary to achieve their goals, as seen with mothers2mothers who still required external help from Pfizer to get them through.
Likewise, when governments try to work together on solutions both national interests can come into conflict with each other.
For example at the 2012 Rio +20 United Nations Conference on Sustainable Development only a non-binding agreement was reached due to multiple countries separating out their own national interests first and foremost.
Furthermore, even when governments are attempting to take positive steps forward these are often only with an eye towards immediate success and not long term plans as politicians usually prioritize re-election over investing in more sustainable project that may benefit future generations.
In conclusion, both Governments and NGOs have had difficulty achieving tangible solutions for some of the world’s biggest challenges due mainly to conflicts of interest or typical political short-sightedness.
How Big Corporations are Utilizing their Power to Solve Environmental Issues
Global companies are uniquely positioned to find real solutions for environmental and economic problems.
With their financial power and access to large numbers of people, they can use revenue to create sustainable products and develop policies that have a positive effect on many lives.
Take Ecolab, for example.
With its vast network of 40,000 employees spread across 171 countries, it managed to invent a dish-washing machine that uses only half the water needed compared to conventional models.
As well as being the right thing to do, businesses can also benefit from solving social and environmental problems.
Customers will often opt for products from companies who seem to care more about these issues, giving them an edge over their competitors–which in turn leads to increased profits.
Corporations Have a Financial Interest in Supporting Developing Economies and Health Care Systems
Big corporations have a vested interest in helping developing countries grow their economies and health care systems.
After all, these economies are vital to the businesses’ success, as people can’t work if they’re not healthy.
Countries with low life expectancies and incomes tend to have more unstable economies, meaning businesses aren’t likely to flourish there.
This is why corporations like Ericsson seek out opportunities in developing countries such as Myanmar – they understand that investing in infrastructure will create jobs, promote economic growth, and ultimately make their own businesses more successful.
By providing high-performing mobile phone networks, Ericsson helped increase Myanmar’s GDP by up to 7.4 percent and created 70,000 jobs!
It’s clear that helping to improve the life expectancy of people in countries less fortunate than ours is a win for companies everywhere.
Furthermore, when people are healthier and their average incomes increase due to better economic conditions – more goods become available for purchase from these companies.
Which means it’s then possible for them to continue growing their customer base as well as healing communities all around the world at once!
In conclusion, when corporations help boost local economies and health care systems it reaps rewards both for them and the people of those countries.
Companies Can Protect the Environment and Grow Profits By Adopting Renewable Energies and Producing Energy-Efficient Products
Companies can become more profitable by helping the environment.
Not only does this increase their profits, but it also shows that they are committed to making the world a better place.
McKinsey claims that companies can reduce their energy usage and save up to 20-30 percent of the energy used in production when they become more environmentally friendly.
This is beneficial for both the planet and the company’s bottom line, as it helps conserve resources while increasing profitability.
Investing in renewable energies is also an effective way to cut costs in the long run.
Corporations such as Intel have already taken this route; in 2013, they purchased 3.1 billion kWh of green power, which was enough to cover their entire energy needs in the United States.
This resulted in saving 320,000 American homes’ CO2 emissions.
Global Crisis: Why We All Should Care About Climate Change, Natural Disasters and Poverty
Climate change and poverty are far-reaching threats that not only affect individuals, but entire corporations, international security and the global economy.
The effects of global warming can be felt in both wealthy nations like the United States and developing countries alike.
Major storms like Hurricane Sandy have caused billions in damage, along with loss of power for 8.5 million people in the northeastern US – and experts predict bad storms are only going to become more frequent as temperatures continue to rise.
The dangers of climate change and poverty extend beyond immediate tragedies, however.
When people’s basic needs aren’t met due to environmental disasters or economic insecurity, they may resort to violence.
This has led to refugee crises, terrorist attacks in developed countries, and even cases where experts say that the Arab Spring was partially a result of food scarcity caused by climate change.
These issues also present problems for businesses; when security is low due to environmental disaster or economic crisis, businesses tend to suffer as well.
Because of this, many companies have taken on extra incentives to contribute towards fighting poverty, natural disasters, and global warming – all for the benefit of mixed economies across the world.
Establishing a Sustainability Committee is the First Step to Implement Sustainable Practices
For companies that want to become more sustainable and make a positive change in the world, having a sustainability committee is essential.
This committee should be connected to the board of directors or another governing board within the company, emphasizing its importance and emphasizing its commitment to helping the environment.
The sustainability committee’s responsibility is to develop, implement, monitor and report on their sustainability strategy to the board.
Companies like Unilever and Nike have already established these committees and have seen remarkable improvements across areas such as labor standards, charitable giving and diversity in the workplace.
Having a dedicated group specifically focused on promoting further sustainable practices will help an organization maximizeits impact in this regard while opening up opportunities for better brand performance, financial returns and long-term stability.
Engaging with Stakeholders to Achieve Sustainability Goals and Achieve Financial Success
Companies that are looking to reach their sustainability goals should always involve their stakeholders in the process.
Engaging your clients, employees, investors and even the community around you can significantly improve your chances of having a successful sustainability practice.
Having a Stakeholder Advisory Council (SAC) is essential to ensure that communication lines with stakeholders remain open, and also important in anticipating any issues or conflicts between them.
Furthermore, including stakeholder-input can help prevent financial disasters — an estimated $6.5 billion was lost by just one oil company due to nontechnical risks in a two-year period.
Investing time and effort into engaging and collaborating with stakeholders can benefit the company in unexpected ways too!
An increase in employee motivation will result in greater productivity which eventually translates into higher sales for the company.
Companies and NGOs Can Achieve Great Results When They Collaborate
Companies should look to collaborate with NGOs and other businesses when working towards their environmental goals.
By doing so, companies can gain invaluable expertise and networking opportunities from an NGO and benefit from increased credibility in the eyes of customers, employees or investors.
Furthermore, having a partner such as an NGO can be extremely beneficial due to their own proven approaches to solving key social, environmental and economic issues.
As a prime example of successful collaboration, The Dow Chemical Company works armed with The Nature Conservancy to develop methodologies which are then adopted by four additional companies.
These shared methodologies allow for both organizations to reduce costs and risks.
Additionally, businesses can take cooperation to the next level by engaging business-to-business collaborations and sharing their wisdom and resources among each another .
In this type of collaboration, initiatives like the Clinton Global Initiative emerge which unites influential people around the world in order to tackle global issues while improving the lives of hundreds of millions at a time.
Wrap Up
The concluding statement of A Better World, Inc. is simple: when corporations team up and fight climate change, everyone wins.
Not only does this benefit the planet, but it also results in a dramatic increase in profits and lower overhead costs for those companies involved.
To ensure the best outcome for all, corporations should collaborate widely with non-governmental organizations (NGOs), other businesses, their customers, employees, investors and even their local communities.
By engaging with these stakeholders who offer diverse ideas and skillsets, environmental goals can be more easily achieved.
