Phish Food: Socially Conscience Business
It’s nice when you see a business that knows what to concentrate on. It’s fine when a company wants to be socially and environmentally responsible, but when it becomes your total focus, business can suffer. Ben & Jerry’s figured the formula out. They realized, without profit and happy shareholders, all the social advancements imaginable can’t be achieved. Read their mission for yourself:
Economic Mission: To operate the Company on a sustainable financial basis of profitable growth, increasing value for our stakeholders & expanding opportunities for development and career growth for our employees.
Social Mission: To operate the company in a way that actively recognizes the central role that business plays in society by initiating innovative ways to improve the quality of life locally, nationally & internationally.
Ben Cohen, Co-founder was quoted saying once:
“I think that business is the most powerful force in the country,” Cohen said. “When business starts using its voice for the benefit of the country as a whole, not just in its narrow self interest, it can really be the force that can make the changes that need to be made.”
I agree completely with Mr. Cohen. Business helps drive the American way of life. They provide us the products we use and the careers we work to improve everyday. Why shouldn’t businesses that benefit most from the earth’s environment and a country’s citizenship give back to their community?
However, as we have discussed previously, it is important to keep your eye on the bottom line, even while a company wants to help a community and maintain the environment, it needs to make a profit. A quick look at the Companies on Forbes Social Accountability list shows, it pays to be socially responsible:
1) Vodafone
2) BP
3) Shell
I’m sure it is surprising seeing two oil companies near the top of the list. But, if you think about it, what industry operates with more scrutiny over nearly every action. Even more so, when an oil company moves in, it is definitely going to affect and impact a community.
Each of these companies have had significant financial prosperity over the years. Vodafone has became one of Europe’s largest cellphone providers and Shell and BP are two of the largest oil/gas providers in the world. Does this mean that social responsibility leads to financial profitably? I would argue that it doesn’t hurt.
With today’s media focusing on our social conscience as a society, a company that does contribute to the community is sure to receive some bad press (oil business for sure!) or no press at all (which can be equally as harmful). Being socially conscience may be a PR move for most companies, but is that a bad thing? Does intent matter?
I don’t think so, although being selfless is admirable, if a company can receive something for it, why not. If we are getting into how much a companies spends to advertise their good deeds opposed to doing good deeds, well that’s another topic for another day.
Whats your opinion on the social responsibility? Has the broader, more accessible media forced companies to increase their stakeholder net? What is the degree of responsibility for a company like BP or Vodafone?
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March 25th, 2008 at 1:55 am
Isn’t BP considering selling off the alternative energy division of their business? They used it to generate good PR and goodwill, so I guess that division has served its purpose.
March 25th, 2008 at 1:59 am
I hit enter too soon. . .
Paul Hawken’s books are great reads on green economic practices.
And phish food rocks almost as much as cake batter w/chocolate frosting swirls.
March 25th, 2008 at 7:26 am
Zak - Thanks for the comment. I did a quick google search on BP ALternative Energy, found one article that makes it sound like it hasn’t been to profitable for the company’s shareholders. Link Below…
http://www.environmentalleader.com/2008/02/28/bp-fuzzy-on-future-alternative-energy-plans/