Focusing on creating social impact must become an imperative for every company. When you invest in this, you invest in the future, communities thrive, economies prosper, and the next generation leads with purpose.
In 1970, the Friedman doctrine, also known as the shareholder theory, was introduced to the world, this theory held that the sole responsibility of corporations is to maximize returns for shareholders. Now, more than half a century later, the theory is being discredited as the role of business within society is redefined.
For many, the overnight changes in the way we work and live and the challenges presented by the global pandemic have led to a collective moment of awakening. There was an even stronger call to action for companies to act, generating an impact for society, such as providing equal opportunities, ensuring sustainability and resolving social disparities by being more diverse and inclusive.
Having good business practices can be a game changer. An Accenture study found that the circular economy is projected to generate $4.5 trillion of additional economic output by 2030. McKinsey research suggests that the Asia region can add a collective $4.5 billion annually by 2025, if women’s equality is addressed.
A compelling business imperative for companies to do good
Over the past year, more companies and governments have pushed for stronger commitments to tackle climate change and social inequality. At this year’s G7 summit, nations pledged $100 billion a year to help poorer countries cut emissions and pledged a billion doses of vaccines to less developed nations in need.
Across the Dell Technologies ecosystem, there has been an increasing demand from companies to promote responsible actions, whether from their customers or partners. Nearly all (95%) of their top clients include social impact as a dimension when evaluating proposals and bid requests.
The reality of today must be about creating social impact, because when you invest in this, you invest in the future, communities thrive, economies thrive, and the next generation leads with purpose.
Going forward, areas like sustainability and diversity and inclusion (D&I) will only grow in importance to clients and consumers.
Using technology as an enabler
The power of technology increases and data becomes an enabler. Combined, they will make the difference for humanity to take its greatest leap forward. according to another Accenture study, Companies that embrace both technology and sustainability are 2.5 times more likely to become tomorrow’s leaders. Dell Technologies was founded on the idea of using technology to drive human progress.
According to the environmental social governance (ESG) strategy of the company and the Progress Made Real Social Impact Plan and 2030 Goals, are taking action to accelerate the circular economy, cultivate diversity, equity and inclusion, and transform lives to create impact for one billion people while upholding ethics and privacy.
The changes we are seeing in the world today will affect the way we do business, from suppliers and operations to customers.
Corporate social responsibility today is non-negotiable and companies must go above and beyond to comply. Change must be driven through people and technology to achieve positive and lasting impact.
There is no competition when it comes to solving the world’s problems. Corporations, entrepreneurs, communities and individuals, of all generations, must come together for the greater good. All people play a role and can emerge stronger and build back better to create a meaningful impact for future generations. We must focus on creating social impact, because when we invest in this, we invest in the future, communities thrive, economies thrive, and the next generation leads with purpose.