No one can deny that society has its pros and cons. Societies are either successful or not. There is no doubt about it that a society that is thriving is good while a society that is not able to sustain and support itself is not doing well. Society is either successful or not, depending upon what is happening on the ground. A society that is flourishing is good and a society that is not able to sustain its potential should be encouraged and allowed to deteriorate.
It would seem reasonable to assume that if capitalism works, then society should do well too. By looking at the performance of capitalist economies around the world, the conclusion that can be drawn is that capitalism and business work in tandem. Capitalism has played a vital role in augmenting the standard of living for billions of individuals all over the world by continually evolving as a delicate balance between civil society and state. However, capitalism is yet unable to live up to all its unique potential.
The social responsibility of business to society is perhaps one of the major reasons why capitalism has failed to achieve its fullest potential. Business has become an individualistic business where profit is the main priority. Individual business owners have refused to look at the bigger picture, and this has led to an erosion of the social peace. If a business owner keeps focusing on how much profit he is going to make instead of looking at how his community is developing, the social peace will be destroyed. That is why the so called ‘capitalists’ or business owners are generally referred to as ‘capitalists’, even though they do not actually own any of the business themselves.
For a business owner to create a positive contribution to society, one must be actively involved in society’s economic development. A business must be part of a healthy community and be part of that community’s economical, social, and political structure. Capitalizing on other people’s need, the business owner can create a win-win situation for everyone. The more the business becomes involved in social ventures and the greater it is able to channel resources back into the society, the higher its chance of success will be. And success itself is the ultimate motivator for society’s economy.
But the question remains: how can business owners contribute to the society? How can business owners utilize their productive resources and create wealth for society? How can business owners make the best use of their capital and still earn a healthy profit? These are the questions that are frequently asked by business owners and entrepreneurs who want to create a social impact and contribute to the society.
It is undeniable that business owners have a great potential to be part of making changes in society. They have the capacity to generate income and profits, be the sources of savings for the future, and even direct more investment into the society. But how can they do this? Below are some of the ways on how business owners can use their capital and the strength of the economy to make a difference in society:
Share ownership. Share ownership is one of the easiest and most inexpensive means of doing social good through capitalization. Many business owners purchase a portion of their business to be able to contribute to the society at large. This may involve purchasing real estate or other property which can be rented out. Other business owners may just choose to donate their time and services as consultants and instructors to nonprofit organizations or government agencies.
Offer services to society. Many business owners give away part of their business to charity organizations and charities to promote social causes and economic growth. Others may just donate their time as an entrepreneur or business adviser to help those who are in need. Business owners can also make use of their capitalization to make donations to charity programs. Whatever the reason, every business can make a difference and contribute to the betterment of society through social profit.