Is it possible for the market to prioritize its profits while upholding societal good?

Note: Photo is collected from Freepik

"If you want to remain small, solve small problems." If you want to be big, solve  big problems. " -Jack Ma 

As market failure causes many social and environmental problems in the first place, thus it is the responsibility of the market to make an impactful change towards society while it makes a profit. However, it is not a matter that the market should act only for social welfare alone. But, I insist on the part that, with no financial desire, a company seems to be unsustainable or weaker because they are donor inclined and ultimately less impactful. You must find a way to make money while making a difference in society. And it has been possible. 

Back 60 years, companies and organizations were less inclined to consider social welfare than to make a profit alone. Albeit, It is not entirely a pristine idea;  capitalism has just changed its true meaning. We are supposed to believe that  Business should be set for money-purpose. Owing to several social and environmental threats, the world has turned into the opposite.  

Growing up in a marginal area, I was one of the children who had to face common barriers in getting a proper education. This is a prevalent scenario in most of the rural areas in Bangladesh. The impediments behind it were not only a scarcity of money but a lack of consciousness and cooperation. Undoubtedly the same barriers have not been wholly rooted out yet. Nevertheless, the worst thing that was supposed to happen to us didn't go that way.

A nongovernmental organization called BRAC stepped up and brought us exactly what we were required to manage my study. They provide us with all we need to study without any financial exchange. Currently, the organization is considered the largest non-governmental organization in the world. Moreover, over the last  40 years, involved in social welfare programs, it has both achieved reputation and profit not only in Bangladesh but also overseas. BRAC is now running its programs to alleviate poverty in 11 countries- most of them are in Asia and  Africa. 

 

Furthermore, multinational firms such as Microsoft, Facebook, and Google have also had a significant influence around the world as well. When these tech firms have managed to contribute to social welfare, no institutions or charity foundations like them will not be able to do such things as they have been doing alone. That is why it would be difficult to find a person today who has never heard of Microsoft or  Google and does not know what products they offer. 

It's not merely the thing that BRAC, Microsoft, and Google employ the highest talented minds that create the best products, but rather the market for their impact-oriented social services that have been underway for an extended period of time around the world. 

Let’s look over a true story. For example, There was a shopkeeper who used to sell toys. Those were different types of toys but mostly all white with blue eyes and blond hair that didn't resemble black girls anyway. Then He came up with an idea to produce three dolls representing the three main ethnic groups in Nigeria:  Igbo, Hausa, and Yoruba. A part of the profit from the dolls was also planned to be used to promote education there in Nigeria. The student in question found a  dilapidated school in a low-income neighborhood with the aid of some street boys,  which he wanted to renovate with some of the proceeds from the doll sales. He wanted the workers he engaged in renovating to employ and train local people in the area while the school was renovated. This arrangement helped develop the area's skills remarkably. 

When the project was completed, he was enlisted for a state government award which drew attention in Nigeria not as a businessman but as a social worker promoting ethnic equality. Since then, all the National newspapers in Nigeria have started to cover his outstanding work throughout the country. Along with the national newspapers in Nigeria, globally known media like CNN, Forbes, CNBC,  and BBC Africa also published the social business idea that helped him make more money and gain fame swiftly. Today, he has got a global voice because of these dolls.  They have brought him more money and fame than all his other toys. 

Hence, it is now crystal, and enough corroborated that CEOs can run companies without any risk by gaining revenues and considering societal goods altogether.  And for this, we have some the companies like BRAC and Microsoft, which hold the idea to innovate, improve something and resolve social problems through working on their business. 

Reference 

Business.com Editorial Stuff (Apr 08, 2020), Can You Make  a Profit and Be Socially Responsible?  

https://www.business.com/articles/can-you-make-a-profit-and-be-socially-responsible/ 

McSherry, Tom (2020), Social Entrepreneurship: How You  Can Profit By Making A Difference,  

https://yaro.blog/9525/social-entrepreneurship/ 

Power, Rhett ( Sep 16, 2018), Here's How To Balance  Profitability And Social Good,  

https://www.forbes.com/sites/rhettpower/2018/09/16/heres-how-to-balance profitability-and-social-good/?sh=42a368e43e91 

Sandel, Michael (2008), Justice (1st edition), Penguins 

Sandel, Michael (2012), What money can’t buy (2nd Edition),  Penguins 

Smith and Lankoski ( June 19, 2018), Balancing Profit and  Social Welfare: Ten Ways to Do It,  

https://knowledge.insead.edu/responsibility/balancing-profit-and-social welfare-ten-ways-to-do-it-9421

Sullivan, Paul ( Aug 28, 2020), Investing in Social Good Is  Finally Becoming Profitable,  

https://www.nytimes.com/2020/08/28/your-money/impact-investing coronavirus.html 

Young Leaders of American Initiative (2020), 3 Ways to  Turn a Profit While Doing Good, https://ylai.state.gov/3-ways-to turn-a-profit-while-doing-good/ 

Yale Insights ( May 30, 2019), Is Making an Impact the Path to  Profit? 

https://insights.som.yale.edu/insights/is-making-an-impact-the-path-to-profit