Last Word

It’s a concept that’s gone by many different names: “social value” or “corporate social responsibility” or “corporate citizenship.”

This concept — that firms have some kind of obligation to better the communities in which they do business — was at first focused on the triple bottom line of People, Planet and Profit. Over the years our concept of social value creation became more sophisticated, and firms at the leading edge began to consider not just ways they could minimize damage to people or the environment, but ways to create a positive impact among all of their stakeholders.

Today we are seeing a great change in the way we think about the role firms play in the world, as CSR evolves into a concept sometimes called “organizational stewardship.” Business leaders are now thinking about how to use their resources to solve pressing societal problems — not from a sense of altruism, but because each problem also represents an amazing opportunity to create wealth.

Imagine the brightest business-trained minds taking on the problems within K-12 education, or healthcare in the developing world, or clean energy, the way Carbon War Room is taking on climate change. These people aren’t just going to change the world. They are going to make a significant amount of money — for themselves, their companies and the people wise enough to invest in them. I can’t tell you how exciting it is to see Smith entrepreneurs at the forefront of sustainable innovation.

At Smith, we have made it a priority to give students opportunities to experience and create sustainable innovation as part of required fieldwork projects. I believe all business leaders must think in these terms to meet the varied and mutable challenges of a global 21st century economy.
Corporate citizenship encompasses a wide range of activities and every company exists somewhere on the continuum. Some, like Mobius Motors or Sun Edison, are actively working to solve a social problem. Others, like Bob Kashan’s Earth Colors, are focused on producing a great product, but incorporating sustainability as a best practice. Still others simply choose to operate as good neighbors, supporting local nonprofit organizations that benefit their communities.

This issue of Smith Business highlighted many of the ways Smith Terps are bringing inventive, responsible, principled leadership to organizations of all types, here and around the globe. I would love to hear what you are doing as well. Visit our Facebook page to share how you and your company are confronting this issue.

G. ANANDALINGAM, DEAN