Social responsibility - just business
In Business Stripped Bare, I have written a chapter which tells you about Virgin’s recent adventures in the territory where business and politics meet, and asked a few questions about where the forces of entrepreneurism might be headed in the next ten to a hundred years. I don’t think for an instant that big businesses would make good governments. I know for sure and from personal experience that governments don’t make great businesses! But somehow we need to close the circle. We need government and business to work together for the benefit of everyone. At the moment, in some parts of the world, there is no stability, no infrastructure, no ‘business as usual’, and bribery is the usual way of doing business or getting things done. It’s not good enough, and we can do better.
I believe that today’s businesses – regardless of their size – must be prepared to do good in societies around the globe. I am cautiously optimistic that we can make the world a far better, safer and more equitable place – but business and enterprise must sit at the heart of this process.













39 Responses to “Social responsibility - just business”
Omar Amer - December 18th, 2008
I fully agree with the sentiment of doing good. Businesses must embrace social responsibility as well as environmental stewardship in order to remain both competitive in todays evolving economy and social consciousness.
When consumers realise for example, that Fiji water is not even taking care of the production country’s citizens - which has a known potable water shortage - water - How many will continue to buy after reading this information online ? (as a spur of the mind example.)
They also run diesel generators around the clock there because the Fiji’an electrical grid simply cannot handle production. Poor environmental stewardship. Invest in solar, wind, etc.
I’d appreciate an eventual devolution of lobbyist control over the worlds resources and or production of responsible solutions to real problems.
thanks for the words Richard.
http://www.twitter.com/18percentgrey
Pete Moring - December 18th, 2008
I’ve been convinced for many years now that ALL Governments should invite ‘proven’ philanthropic entrepreneurs who ‘really’ know how to drive the economy have a far bigger say in the budget of their particular countries.
You only have to lok at the way government websites are built and administered to realise just HOW inefficient & basically useless they are. (Local governments too).
Politicians simply ‘do not’ interact successfully with the real world. They live in a bubble of self-perceived self-importance. Percentages & targets. They have no compassion for those who actually voted them into power.
It’s good to see so many wealthy business entrepreneurs taking it upon themselves to alter our destiny with so much good being done, especially in this new century, and particularly over in America. It’s like a fight over there to see WHO can do the most good. It’s very refreshing to know our destiny will eventually be in our own hands.
Pete Moring.
Ramla Akhtar - December 18th, 2008
Agreed. The universal process of growth is:
Dependence -> Independence -> Interdependence
or, as it is said in alchemical/ spiritual language
Oneness -> Separation -> Return to Oneness
Applying this to our world, we can see that by this time humans have specialized in almost all areas of knowledge. That institutions have developed in “separation” from each other. And that we have tested most theories on the spectrum of economics/ politics/ technological innovation/ belief systems, etc.
Right now, we are at the independent stage. It is once again time to come together - but not in dependence, but in interdependence. This is socio-econo-political adulthood. It is how ecology is formed: through weaving together the elements in an integral whole.
It is time!
Ramla Akhtar - December 18th, 2008
Indeed, it is in natural anticipation of this integration that institutions are breaking down. Unless that necessary process occurs, we shall not be willing to see the necessity of creating hybrid, integral structures.
Only a few are able to get a macro view of the situation and proactively embrace change.
Hilde M.Makkinje - December 18th, 2008
I fully agree with you.. But.. (as there is always a but), as long as we work from the plane of ‘need’something, you’ll not have it..
Remember the Miracles & Magic in Life (and business) IS Created by the Want.. (that’s why I like Harry Potter so much,LOL)
The want is the will to succeed and closing with a quote from Ralph Waldo Emerson saying; Unless you try to do something beyond what you have already mastered, you will never grow…
I fully trust in the fact that We Sure Can do it.. as long as we Want to make the change by willing to run the extra mile necessary.. I know I will and I know I want to do so and that is why I know, I’ll succeed in everything I do..
Always starting from a win-win+win situation and decision making process based on 4 basic points.. And I mean decision as it was meant to be.. (in latin it means to cut off from) as in; nothing else can or will ever come in between.. Enfin, according to your state of being, Im sure you precisely know what I’m talking about.. if not..you can always book me for a speaking engagement..LOL
Whishing you and all your loved ones another Wonderful Day, a Day Full of Wonders!
Love,Light & a Lot of Laughter
Hilde
http://www.twitter.com/missmac1973
Florian Komm - December 18th, 2008
I think you’re right. Todays entrepreneurs have the chance of improving societies with their work. My observation is, that the social resonsibility is working best when implemented in core of the business model and not on top as a marketing or PR. That way all stakeholder act responsible in their field. A good example I know is the German “Teekampagne”.
Roland Millward - December 18th, 2008
You have hit the nail on the head with the word ‘responsibility’. It has become a world of ‘rights’ and not responsibility. It may be a right to drive but their is a need to be responsible. We may have a right to an alcoholic drink but what about the responsibility?
If everyone thought of their responsibilities the world would be a far better place.
Pete Roythorne - December 18th, 2008
Agreed, but one question: is sustainability sustainable? In other words in the current financial turmoil can companies really afford to keep investing in CSR policies, but also can they afford to NOT invest in this area? And how do organisations strike the balance between looking after their customers (delivering value for money) and looking after the world around them. I think this could well be the biggest challenge for businesses in the next 12 months.
I recently wrote a string of articles for meetingsreview.com on CSR v The Recession and the general feeling seems to be that we have a “duty of care” to keep investing in CSR and sustainability.
Sadly, for all the rhetoric I am unconvinced that companies will be prepared to pay much more than lip service to social responsibility when their bottom line is at stake.
I hope I’m wrong.
Pete Roythorne
Joint editor in chief, eventsreview.com and meetingsreview.com
Albert Hallado - December 18th, 2008
Hi Sir Richard,
>>> But somehow we need to close the circle. We need government and business to work together for the benefit of everyone.
Amen! to that Sir Richard you know what they say;
“United we stand, Divided we fall”
BTW: GREAT post
Thanks’
Albert
Susan/Together We Flourish - December 18th, 2008
I also believe that we can make this world a better place if we are willing to try. My little blog for local nonprofits is my way of helping those who help. If they people with global influence, like you and people trying to make a difference locally, like me, continue to try, we can make this world a better place.
James Burnes, Mediasauce - December 18th, 2008
I believe the future of government will be saved by digital and social media’s integration into the management and oversight of organizations. No matter how lean or mean we try to be to manage things, it’s not about big or small government.
I believe if we can create centralized, automated tools to communicate and monitor how governments are ran, (and how dollars are spent and how money is allocated) we’ll have the first step to ensuring that government spending is through investments in the right areas, not just where the lobbyist congregate.
Rather, we must force accessibility and transparency to organizations through a centralized, intuitive interface that allows consumers to be informed about how their money is being spent, but also give them the tools to influence change.
Rod Tanks - December 18th, 2008
Business does need to be more socially aware & take appropriate actions for the future.
An example in developed regions is the “Great Fattening”.
This is powered by corporations selling food of fairly low dietary quality to the masses at an insanely cheap price.
The corporates make profits, the people develop health problems & Govt/Health Agencies are left to deal with the mess.
On a recent trip to China I was alarmed to see a 25 y.o. lady, weighing about 60kg (130lbs) tucking in to a large burger, large fries, large soft-drink & Ice Cream - with her friend/sister eating the more traditional lunch meal of rice & soup.
Here’s a health crisis waiting to happen & I wondered who is doing what about it?
The collision of business & govt. doesn’t really work, but there must be a way for one hand to wash the other.
Cheers,
Rod.
@toddlucier - December 18th, 2008
Without legislation, organizations that put environmental and social issues up from bear an unfair economic disadvantage. Often, newer smaller companies are keen to be more responsible, but competing with larger, older, more established organizations that block such responsible legislation makes progress slow in this area.
Karen Rands - December 18th, 2008
Kudos to Mr. Branson for bringing social responsibility in business…the double bottom line…to the forefront. I’ve heard it called Compassionate Capitalism as well. It is a place, a condition that truly great business leaders eventually reach if they don’t start out there when the begin their empire building.
Kevin Kelly - December 18th, 2008
Completely agree with the sentiments expressed here.
We need to instil some entrepreneurial dna into Governemnt Bodies - it is incredibly difficult to motivate potential entrepreneurs to take the first step in the context of their dreams if the “motivator” isnt congruent and authentic. Coming from “a job for life” mentality makes congruence a challenge.
Also regardless of the market environment, I beleive there is a moral imperative to reach out to the needy and “Do good.” Interestingly I beleive a different circle is closed when you take this challenge - when you give out, you get back.
From an organisational perspective people should not just focus on their own goals but also on working with others to achieve theres - watch the magic that happens.
Jorunn Førland - December 18th, 2008
Dear Richard,
Why are you so “angry” Richard ?
When all your planes are full booked so they have problems to take off. You should be Happy and pleased Richard.
Jorunn
Stavanger
Social Media And Non-Profits « The Intrepid Group, LLC - December 18th, 2008
[...] I wrote a post while back that “giving back” is good marketing: http://intrepid-llc.com/2008/11/18/intrepid-marketing-giving-back-to-your-community-is-good-marketing/. I believe it so. More each day. Richard Branson wrote a post on the subject just today: http://entrepreneur.virgin.com/2008/12/18/social-responsibility-just-business/. [...]
Todd Schnick - December 18th, 2008
Thank you for continuing to push and encourage business to “give back.” Not only is it good for their marketing, it is even better at making the world a better place. http://intrepid-llc.com/2008/12/18/social-media-and-non-profits/
Cara - December 18th, 2008
Very well said. It is dangerous to either move too far towards business as government (see contracting out wars) and government as business (moving towards a true socialist model). The two entities serve different functions, though they are functions that intersect.
There will be no magic fix simply because we use more businesses in government or less. We need to intelligently use good businesses to accomplish what we aim, and all businesses should aspire to be good.
As a small business employee I know first-hand how tempting it is to not do the right thing, and not be involved in the community, but it’s important so we work hard to be a good business. You can really see the results when the top of the company instills social responsibility into the company DNA. It’s a wonderful thing to experience-our owner has done it nicely.
http://www.locationstore.com - a specialty GPS store
Sandy Gray - December 18th, 2008
Well said!
It’s a pleasure to read this blog.
Cheers
Jay Hepner - December 18th, 2008
Richard, The key link in the concomitance of business and government is education. Business skills and entrepreneurship should be taught, should be as required as English and science and history and math and at least one other language.
Only when business is put on an equal footing with the other academics will we be able to realize the progress we dream of.
Arturo Pelayp - December 18th, 2008
Sir Richard,
I find your blog post of today quite refreshing from such a prominent businessman as you are. The space where business and politics meet is full of serendipity and leads itself to alchemy. In my short life I have had the chance to experience just what you describe.
Less than a year ago, I was part of a multi-country study abroad program based on a cruise ship. Essentially we traveled the globe on a floating campus where we had classes, leadership workshops, a research center (focused on Malaria DNA barcoding, global warming, etc) as well as the fundamental opportunity to network with over 250 people who spoke at least 37 different languages and came from over 55 countries.
Such tight integration of a community for the period of 110 days made in essence a platform for entrepreneurship and knowledge co-creation. A place where every time we arrived at a port of call we would spend this time meeting with government officials, executive leadership of NGOs and NPOs. For example, I led the creation of a documentary of our work in close partnership with UNICEF, UNDP, the Ecuadorian Government and other notable organizations. ( you can see the trailer here: http://www.youtube.com/watch?v=mp_zPLOuyvc )
In our travels -be it in Ecuador, Australia or China- we experienced what you referred to as “closing the circle”. There is nothing more powerful than having such a multicultural, multilingual community together. I went into the program thinking of what differences I could find with other fellow program participants, but early on I shifted my mindset towards acknowledging that the time would be most wise to invest by developing an understanding of our common humanity.
As you mention, “we can do better”, and it is in experiences like the one I participated on that I am hopeful of the present and near future. We need to participate more actively in the world by integrating global communities perhaps in environments like the one I described above -we could call it Virgin Oceanic! - possibly by expanding the reach of existing organizations like TED, Pop!Tech, BIF, PICNIC, The Charter for Peace, etc. Converging Social Entrepreneurship with Government, NGOs, NPOs, Industry and Academia, an environment conductive to new patterns of thought is thus created.
As you said in your post, let’s make the world a “more equitable place” now, because we can’t count just yet on tomorrow!
Please count me in!
Most sincerely,
Arturo Pelayo
founder, http://www.mediaalchemy.org
Nicholas Chase - December 18th, 2008
Hi Richard,
Enjoyed hearing about your speech in Moscow with Guy Kawasaki following. Reading Guy’s book now, ordered yours at local Borders, should be in before Christmas.
As a former Hollywood engineer, who burned lots of energy in that town, I salute your approach to all things environmental.
They took away the little electric trolleys in my home town before I was born, in favor of gas-powered buses and so on..
Now we see the fossil-fuel burning as a threat to our futures. I’m trying to make this Internet my livelyhood, a bit of a struggle, but it should be worth the wait.
Thanks for following me on Twitter.com, I’m encouraged!
Respectfully,
Nicholas Chase
http://www.twitter.com/nachase
http://donotreadthisblogunless.blogspot.com/
Trevor Gay - December 19th, 2008
I look forward to the day when social responsibility is not an ‘add-on’ to the business balance sheet. I think social responsibility should be a central part of all business and not some marginal activity. We can do it as businesses and we can also do it as individuals. I suggest we have got ourselves into this current recession because of individual and corporate greed. We now have an opportunity to turn back the tide of greed and reconsider why we are in business and why we are creating wealth. I speak as an independent sole trader. Surely we should re-distribute wealth to the most vulnerable in our society. I would go so far as to say that is a marker – a stake in the ground - about what sort to country we are. Mahatma Gandhi said – ‘You must be the change you wish to see in the world and we can all do something. Sir Richard – you are leading the way and I applaud you – I hope the rest of business listens and follows your lead.
Best wishes from Shakespeare’s County
Trevor Gay
http://www.simplicityitk.blogspot.com/
Internet Business Help - December 19th, 2008
I’m glad to see you leverage your position in areas like this and the environment - this is something I aspire to!
Thanks
Jerry Holliday
http://www.twitter.com/bonafide70
Aaron Nye - December 21st, 2008
I love the blog and respect the man immensely. It’s a lofty goal to bridge the gap between business and government. The main issue being, helping politicians see past the next election.
Christophe Poizat - December 21st, 2008
Dear Richard,
I agree with you when you say “I don’t think for an instant that big businesses would make good governments. I know for sure and from personal experience that governments don’t make great businesses!”; I think heads of states and governments in general should have a background as successful entrepreneurs!
Again, I completely agree with you, “today’s businesses – regardless of their size – must be prepared to do good in societies around the globe.”
I am the founder & chairman of the International Network of Social Entrepreneurs and CEO of its sister organization, Our One Planet, our primary mission is to increase Global Social Responsibility (GSR) worldwide and inspire the largest possible number of entrepreneurs to become social entrepreneurs.
Social entrepreneurship as we know has got nothing to do with Socialism, it’s actually the opposite: we want the poor to get richer, only rich people can help poor people.
At O1P/INSE, we are strong proponents of the capitalist model with the concept of free enterprise which thus far and in spite of the current turmoil has proven to be the best economic model; however, we are promoting a capitalist model which is more mature, a model where the bottom line is no longer the only thing that matters, we are in favor of globally adopting the concept of “triple bottom-line”: People, Planet, Profits — some people call it “Capitalism with a Conscience”, other people call it “Spiritual Capitalism”.
Whatever you call it, we firmly believe it’s the next stage in our evolutionary process and a remedy to all the global issues threatening us and the planet: extreme poverty, destruction of the environment, lack of education, diseases, terrorism…
We are contributing to making the world a better place, now and for generations to come; as my excellent partner Kenn Parks says: “we are bringing Love where hate exists, Hope where there is despair, Peace where there is strife, Sustenance where there is hunger, Health where there is disease, Tolerance where there is ignorance, Knowledge where there is lack of education, Respect where there is division and Passion where there is apathy!”
Our ultimate objective is to promote a culture of peace and tolerance on Earth where the beauty and diversity of humanity is celebrated instead of being feared.
I’d love to meet you one day and explore whatever synergy exists!
In dynamic peace,
Christophe
Sincerely,
Christophe J. Poizat
International Network of Social Entrepreneurs
Founder & Chairman
http://inse.collectivex.com
“Fostering Connections to Pursue Business Endeavors with Social & Environmental Benefits”
Dave Cartwright - December 23rd, 2008
Hi Richard,
I am working on a project at Merseyside Fire and Rescue Service called “Infection Control” this project will eradicate all strains of MRSA in the enviroment (Hospital’s Nursing Homes) with the use of the “Zimek” Sterilisation and Decontamination system which we have brought into the UK.
Please get in touch for more information and details and hopefully we can demonstrate the system to you.
Best Regards
FF Dave Cartwright
Infection Control Project
Lissa Boles - December 24th, 2008
Well said. And I couldn’t agree more. I also think the new Social Media tools make the job of demonstrating to the very reasonably skeptical who the true forces for good actually are in both business and politics.
And that the new web culture’s powerful intolerance of incongruity (among other things) will make doing ‘bad’ business hazardous.
Have you seen Seth Godin’s latest book, Tribes? Methinks you’d enjoy one another’s views.
Sara Sinnard - December 29th, 2008
Thus the social entrepreneurship trend: http://en.wikipedia.org/wiki/Social_entrepreneurship. Yes. This is all good. I think what I puzzle over is what the role can be for media… or, what will the new social media culture ALLOW news media to be. What is the acceptable business model? Or is media no longer a private venture including all the rights and risks of ROI…? Where do we (traditional media companies) go from here?
HA! Answer that and win something really big.
Robert Collings - December 29th, 2008
Sir Richard - what an amazingly antiquated, English concept, but (of course) you’re correct.
It may well be bourne out that what you discuss is the only path to sustainable, long-term business growth free from the tyrannies that have dominated post-WWII corporate conduct (or the past 24 months Stateside).
Big hugs and a happy NY (’cos we all need a little love),
RC
Jöl - December 31st, 2008
“Capitalism with a Conscience” = Socialism? Awww that’s cute!
Now allow me to play devils advocate for a moment.
Power is knowledge! The key to success is training millions of people to see things your way. You turn the tides one person at a time until what was once a drop is now a wave. Can these people truly become healthy competitors if you are the one laying the groundwork? Mr. Branson, I have not read your book, I do not intend to read your book. It is enough for me to know that you had a dream and you did what it took to get ahead. Now while you were doing this did you ever consider those that you may have stepped on? I wonder how many of them had dreams as well? And now you are…you! You have jets, one of the first private space programs…well you know what you have. Not to mention a long line brown-nosers who wouldn’t mind having a little piece of the “Branson”! (see above) Don’t get me wrong! I have the upmost respect for you as a business man, but that’s it, you are a business man.
You sell your books to a market that will no doubt never surpass you because they are book learners. In essence, you give them a box with windows and tell them to stick their head in it. They can see what’s going on, but it’s not within their comprehension to deal with it. There lie the finer details that a book can’t cover. I’ve read your blog for some time now, what got to me about this post is that you have the audacity to play their game and now that you are in a safe place, you turn around and say, “oh…, well look at what business has done for the people…nothing!” Yes you had the luck of turning the tides in your favor, but if take Newton’s laws of force and apply it to business; you know someone somewhere suffered because you are a success. So you want to turn the tides again, and bite the very hand that fed you? Prove it, prove me wrong! Are you willing to take a bullet in the leg for all those that take it in the head? Do you ponder solutions before asking questions?
Just a thought.
Ellen Johnson - December 31st, 2008
Dear Richard,
It brings me hope to hear your words especially from someone who is a successful business entrepreneur. So many people in business do not get that we can have a balanced relationship of business and social responsibility.
I was listening to some speeches that Robert F Kennedy gave in the 1970’s and he was already advocating that type of mind set. He said basically that the prosperity of a nation lies in it’s ability to have a healthy environment both physically and socially. Why didn’t anyone listen? My only concern is that people respond in a crisis and then once that is over they return to their old ways.
I think it’s important that we consider that we must not only change the way we live but the way we think about the way we live. We cannot bring new methods of living into old thought patterns.
Thanks for your inspiration and the opportunity to express mine to you.
Bernice Baker - January 2nd, 2009
Dear Sir Richard
I am a relatively old nurse who teaches around advanced practice, e-Health and develops/supports nurse led services. I am also Chair of the Information in Nursing Forum at the RCN. I am passionate about turning our original NHS concept into one which truly is health based, free at the point of need and which utilises technology and electronic records/information/knowledge to their fullest extent. To me this is about social responsibility at home here in the UK. To me this is about re-designing and re-vitalising an NHS concept which is so precious and so truly societally valid that it transcends the pure search for profit and power - it meets a human need to do the best for others and society - to be ready to support and promote health to all irrespective of social class or colour at a time when that individual or family most needs it. To me this meets all of nursing’s philosophical tenets and there is a vast army of nurses and other health professionals there and ready to work with a leader such as yourself to bring the precious ethos of the original NHS ideal into a socially responsive 21st century model. I would challenge you to meet with us and be ready to be astounded by the social opportunities that such an enterprising move could offer to both yourself and the country. We are ready - if you are.
I wush you a Happy 2009
Best Wishes
Bernice
Joe Ascanio, President & Founder, TerraCurve.com - January 12th, 2009
As a “hopeful entrepreneur”, social responsibility is a cornerstone from which I am attempting to build my business. In my niche - travel - businesses have a multitude of opportunities each and every day to take a positively responsible role in their social environment. It is important for us as innovators to provide the proper, beneficial tools to make this transition transparent.
Paul Harvey - January 22nd, 2009
Those companies that had Social responsibility at the core have always been successful. A number of the big names in the UK had these core values. Many of them have shifted from them as they were pushed by investors for greater financial returns that were more important than social accountability. The world in it current position has a great opportunity to put this right as we rebuild the infrastructure that has been so dented.
Beyond this an even greater challenge has to faced. How do we build a successful wealthy global system that is not base on infinite growth and consumption.
As a marketing coach I work with business to generate more sale more revenue more, more, more. I am still looking for a model that will be sustainable for those that follow.
Carolina Liechtenstein - January 29th, 2009
The old school idea of stewardship had died during the post war period, and it started to wane during the time of robber barons, in the 1800’s. Long ago, people in leadership roles, and those that owned resources were taught from early childhood that they’re responsible for the things under their charge. Modern business is not governed by grace, but by the bottom line. It merely focuses on what’s on the income statement each quarter. This is starting to change now, because new business leaders are growing up more culturally aware, and aware of the environment, The coldness of the post war era will have to make way for a better way of doing business. The trouble is, many companies are now having a narrow profit margin. Making changes dips into that margin. The solution might be strong tax incentives and waiting for a better economy.
Richard J. Krasney, CFP - February 1st, 2009
Richard,
I can’t wait to read the book. Hopefully, one day more business owners will wake up and recognize what doing well by doing good means. Now more than ever, companies must stand for something more than just earning a profit. Those that don’t will increasingly come up against socially conscious competitors who find an audience they can relate to, just like I found your post here. Well done.
Richard J. Krasney, CFP
President, RJK Wealth Management
http://twitter.com/PhilanthropyCFP
Sabia - February 25th, 2009
I worked in the charity sector for a number of years and at the time I felt good about being in a sector which I beleived was not working for profit but motivated solely for the benefit of those who are disadvantaged. This sector has grown enormously over the years. I found the following statistics on the ACEVO website:
“The UK’s broad not-for-profit sector now employs the full-time equivalent of 1.5m staff, with a collective annual turnover of £46bn. Our 2000 members are responsible for heading organisations that collectively:
Turnover £11 billion a year
Employ 260 000 staff members
Manage over 6 million volunteers”
With that amount of money and employees, you would think that it would be sufficient to resolve the issues of poverty and disadvantage which plague the UK as well as the rest of the world. However, that does not seem to be enough. There are astounding statistics regarding the current state of poverty in the UK. I found these on the Oxfam website:
UK Poverty facts
Nearly 13 million people live in poverty in the UK – that’s 1 in 5 of population.
3.8 million children in the UK are living in poverty.
2.2 million pensioners in the UK are living in poverty.
7.2 million working age adults in the UK are living in poverty.
I think that your comment about Govt and business working together may well be the answer but at the moment that is certainly not happening and until something more is done, people will continue to live in poverty.
It is good to see that at least Virgin is doing it’s bit to make a change and has some sense of social responsibility. I hope that you keep up the good work and that you can find ways to do even more.
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