Can billionaires make money while changing the world for the better? Can businesses really thrive if they give so much more to their employees and to society?
We’ve all heard the story of the merchant Ebenezer Scrooge, the protagonist of Charles Dickens’ 1843 novel A Christmas Carol.
As the story goes, Scrooge, despite having a lot of money, underpays his clerk and lives cheaply. He is best known for detesting Christmas and the reckless spending that comes with it. ‘Scrooge’ in fact became the English buzzword for stinginess.
At the end of the story, after a visit from the Ghosts of Christmas, Scrooge changes his ways and donates some of his gold to charity.
He’s a changed man although he could have done it much earlier. He could have helped more.
Social enterprises
Some companies are doing just that – making a positive impact on the world, but still churning in profits. They try to solve social problems like environmental degradation, protection of workers, etc. These companies are called social enterprises.
In a March 2019 article on social enterprises, Forbes uses the Scrooge story as an example of how companies “can actually mix free market and good will,” in a more organized way and “without the guilt trip from the three ghosts.”
But can social enterprises really work? Is this really the answer to so-called capitalist greed?
I think about social enterprises now with the COVID-19 pandemic demanding changes in the way we do everything, including how businesses thrive.
Reading about this sector, I learned that it can indeed work, but it needs the support of policymakers and bigger businesses.
The godfather
Social impact leader William Drayton is doing just that. He is considered the godfather of social entrepreneurs. Ashoka, his organization, has been supporting social enterprises around the world.
Ashoka’s goal is to help empower the youth so they can contribute toward making positive changes in the world.
There are many other social enterprises around the world.
My research also led me to Goodwill, a thrift store that provides employment opportunities for people in communities who cannot find jobs.
Social enterprises in the Philippines
In the Philippines, there are many social enterprises too, but some have closed because of the pandemic.
Some found it difficult to reach their partner communities due to quarantine and mobility restrictions.
This is on top of their pre-existing issues, such as limited access to capital, poor cash flow, and menacing business rates, according to the study, Reaching the Farthest First: The state of social enterprises in the Philippines, published by the British Council and the Philippine Social Enterprise Network in 2017.
And yet social enterprises have the potential to change lives by bringing sustainable livelihood to the communities they serve.
The government should provide more support to the brave entrepreneurs who do business with a purpose.
Even the Department of Trade and Industry (DTI) has recognized the importance of social enterprises.
“While a legal framework for social enterprises is yet to be institutionalized, DTI commits to provide interventions in sustaining the MSME development, including our social enterprises so as to generate more employment and to give better lives to millions of Filipinos.” said DTI Regional Operations Group Undersecretary Blesila Lantayona.
Conglomerates, including Ayala Corp., also have programs that help nurture and stimulate the growth of the sector.
Perhaps this is what Ayala chairman Jaime Augusto Zobel de Ayala means every time he talks about a “reimagined capitalist system.”
BPI Foundation and Ayala Land have collaborated for BPI Sinag, a program that aims to help social entrepreneurs grow their businesses.
The program tries to help social entrepreneurs in scaling their businesses and helping more communities benefit from the triple bottom line – people, planet, profit.
I heard about this initiative as I was researching social enterprises in the country.
Props to BPI president and CEO TG Limcaoco for this endeavor and the commitment to continue the program which provides cash grants and virtual training sessions to social enterprises.
He says that with the ongoing pandemic, it is important to help the sector recover and survive.
“Supporting the growth of MSMEs is key in building a financially inclusive and sustainable Philippines,” says TG, who formally took over the helm of BPI in April, and who is also very much into sustainability.
Indeed, social enterprises need support now more than ever and it would certainly be good to see more of these enterprises thrive in the country.
The goal isn’t just about creating more jobs, but more about changing a mindset – that one can actually help the world and still make money.
More businesses should support social enterprises by providing access to loans and concessions on mall rates. Imagine how this can help lead to more inclusive growth in the Philippines.
Every business has the power to change the world for the better and with global investors becoming more discerning now – choosing to place their bets on businesses that strive for the greater good of all – now is the best time for businessmen to find more ways to make a positive impact on the world. There’s no need to wait for the ghosts of Christmas to visit.
Iris Gonzales’ email address is eyesgonzales@gmail.com. Follow her on Twitter @eyesgonzales. Column archives at eyesgonzales.com