It is clear that the global socio-political and economic situations are uneasy.
South Africa is not exempt from the impact of this unrest, and this is evident in the recent xenophobic attacks in our own province, KwaZulu-Natal. It is clear that as a nation and economy connected to a global system, businesses in South Africa will need to reconsider their mindset and approach to community development.
Businesses need to make profits to survive. However, profits are made by buyers (communities) and uninterrupted supply chains, access to natural resources and sufficient infrastructure. If business continues to ignore the real social harms of its buyers and this country, it is clear businesses will close.
We need to start finding ways for businesses to give back to communities and nation building, which sustain and increase their profits.
This could include developing cheaper products to solve societal problems, like health, housing, nutrition, financial security and environment, or participating in ways to create jobs and income. It could also involve finding ways to build up national infrastructure in key areas (education and health) and supporting the expansion of other businesses (they create jobs, which generate disposal income).
Money spent on addressing community problems can also reduce the internal costs of a business, in areas such as health (absenteeism, accidents), education (better business results) and conserving the environment (preserving raw materials for longer, like coal and water).
So to save your bottom line, start thinking about what you are doing to create shared value.
