A Better World, Inc.

Can the world's problems become opportunities? Big corporations might hold the surprising key to tackling global challenges and thriving alongside solutions.

1. Nonprofits and Governments Struggle to Solve Global Problems

Nonprofits and governments have long been regarded as the primary agents for addressing global challenges like poverty, climate change, and failing healthcare systems. However, their limitations often prevent them from achieving substantial progress. Nonprofits, for example, frequently face funding shortages, lack skilled staff, and depend heavily on untrained volunteers. Their good intentions are often hindered by resource constraints.

Governments, on the other hand, often face political gridlock and short-term priorities. Leaders focus on immediate issues to secure re-election rather than implementing long-term solutions. For example, international treaties on sustainable development frequently fail due to conflicting national interests. A clear case is the 2012 Rio+20 United Nations Conference, which resulted only in non-binding agreements.

Additionally, governments face competing domestic priorities. When unemployment rates rise, the public demands immediate relief, leaving long-term initiatives like green energy or public health infrastructure underfunded. These pressing constraints highlight the gap left open for other actors to step in.

Examples

• NGOs like mothers2mothers initially found success but struggled to scale until Pfizer stepped in to provide resources and expertise.
• Political disagreements made agreements like Rio+20 ineffective despite significant buildup.
• Public pressure forces governments to prioritize short-term fixes, like new jobs, over investments in long-term projects like scientific research.

2. Why Big Corporations Are Ideal Problem-Solvers

Large corporations are uniquely equipped to tackle issues that governments and nonprofits cannot solve. They have extensive resources, global reach, and vested interests in a healthy world. Their financial and operational capabilities allow them to invest in sustainable innovations while influencing public opinion and government policy.

These companies often affect millions of lives directly. For instance, their product reach and investments in sustainable practices, such as initiatives to reduce waste and emissions, can lead to significant global impacts. An excellent example is Ecolab, which boasts 40,000 employees across 171 countries and has designed dishwashing machines that use half the water of traditional models.

Global companies also increasingly recognize that solving societal problems aligns with their profitability. Sustainable changes tend to attract more consumers and cut costs over time. Kimberly-Clark, for instance, transformed its supply chain and policies to use eco-friendly materials, earning back financial stability and bolstering public trust.

Examples

• Ecolab’s innovations reduced water waste on a large scale across several nations.
• Kimberly-Clark’s use of FSC-certified fibers helped shift its reputation and save millions of dollars.
• Companies’ lobbying efforts influence major environmental and economic policy decisions worldwide.

3. Healthier Economies Benefit Companies

Corporations have a clear interest in fostering healthier economies and improved healthcare systems, particularly in developing regions. Their long-term success relies on a stable environment where consumers can thrive and grow wealthy enough to purchase goods and services.

Research proves the link between health and economic stability. For example, the World Health Organization found that life expectancy is far higher in developed economies, where robust healthcare enables people to work and contribute to markets. In contrast, where health infrastructure is weak, life expectancy and consumer spending diminish.

Global companies directly profit from stronger economic conditions abroad. Take Ericsson’s work in Myanmar: the firm’s investment in mobile infrastructure is predicted to create 70,000 jobs and boost Myanmar’s GDP by over 7 percent. Such investments also lay the foundation for a new customer base in growing economies.

Examples

• WHO research links poor health in developing countries to stunted economic growth.
• Ericsson’s networking advances in Myanmar spurred local job markets and increased GDP by a projected 7 percent.
• New wealth in emerging markets often results in demand for better consumer products and infrastructure.

4. Sustainability Saves Companies Money

Growth-focused corporations now understand that protecting the planet can improve profitability. By cutting waste and adopting green energy policies, companies save resources and reduce costs while doubling their appeal to eco-conscious customers and employees.

Energy consumption is a notable example. McKinsey estimates that companies can reduce production energy use by 20–30 percent, slashing costs significantly while reducing emissions. Likewise, firms that adopt renewable energy are less reliant on fluctuating fossil fuel prices, achieving long-term savings.

Intel’s shift to renewable energy illustrates this. By purchasing over 3 billion kWh of green power, the company not only saved money equivalent to the energy usage of 320,000 homes but also strengthened brand loyalty among environmentally aware customers.

Examples

• McKinsey study shows reduced energy use can cut production expenses by up to a third.
• Intel’s focus on clean energy reduced costs and boosted consumer trust.
• Energy-efficient products like Intel’s Xeon processors help customers and meet future needs.

5. Climate Change and Poverty Impact Everyone

No one, not even wealthy nations or corporations, can escape the ripple effects of global crises. Natural disasters like hurricanes destroy lives, infrastructure, and supply chains, proving costly for governments, businesses, and individuals alike.

The damage goes beyond physical destruction. Hurricane Sandy caused $50 billion in losses and left millions without power. As climate change fuels more frequent disasters, these costs will only increase, threatening global economic security.

Poverty and disaster often exacerbate global instability through refugee crises, social unrest, or terrorism. For example, some analysts link food shortages and rising prices, partly caused by climate shifts, to sparking the Arab Spring. When markets are threatened by instability, everyone pays the price.

Examples

• Hurricane Sandy cost the U.S. $50 billion and left millions in darkness.
• Climate-driven food scarcity is tied to unrest during the Arab Spring.
• Refugees from environmental disasters strain resources in developed and developing nations.

6. Sustainability Committees Are Essential

Sustainability isn't an afterthought; it must be integrated into decision-making. A dedicated sustainability committee enables companies to align environmental goals with their operations while monitoring progress.

This committee should be tied to the company’s governance, such as the board of directors, emphasizing its importance in the organization’s core strategy. By setting measurable goals, evaluating performance, and advising on best practices, sustainability committees help firms improve transparency and meet ethical demands.

Nike’s committee exemplifies this model. It goes beyond energy issues to cover broader topics, including labor policies, diversity, and charity contributions, ensuring alignment between corporate values and practices.

Examples

• Nike’s committee handles policy and environmental goals comprehensively.
• Sustainability committees meet with boards to highlight performance areas.
• Unilever’s sustainability group helped incorporate green practices widely.

7. Engaging Stakeholders Boosts Success

Companies cannot thrive in isolation. Actively involving employees, customers, and local communities amplifies a firm’s ability to achieve both its sustainability and business aims.

Collaboration improves brand trust and loyalty. Harvard Business Review reported higher customer confidence when a company engaged stakeholders directly. Moreover, employees perform better when given a voice, helping to spread goodwill about their workplace.

An SAC, or Stakeholder Advisory Council, creates formal opportunities for engagement and can anticipate risks, especially on sensitive issues. For example, one oil company learned this lesson after losing $6.5 billion over two years due to mismanaging stakeholder relations.

Examples

• Harvard studies show greater loyalty among stakeholders who trust leadership.
• Employees are more motivated when given opportunities to contribute to projects.
• Oil firms lose billions from overlooked stakeholder concerns that fuel backlash.

8. Collaboration Fuels Greater Impact

Working together isn’t just beneficial—it’s necessary. When corporations collaborate with NGOs or even other businesses, the results often outperform isolated efforts.

NGOs often provide unique insight and credibility while contributing proven techniques to tackle challenges. The Dow Chemical Company, for example, partnered with the Nature Conservancy to jointly cut costs and optimize environmental practices, helping multiple other industries do the same.

High-profile partnerships like the Clinton Global Initiative show how combined resources from businesses and NGOs can transform lives across over 180 countries. Team efforts bring results that solo endeavors cannot achieve.

Examples

• Dow Chemical reduced costs by joining forces with NGOs like the Nature Conservancy.
• The Clinton Global Initiative impacted 400 million lives across the globe.
• Businesses gain technical know-how and credibility when collaborating with reputable NGOs.

9. Brands Thrive With Social Responsibility

Consumers today value brands that take stands on social and environmental causes. When companies demonstrate clear responsibility initiatives, they win customer trust, attract employees, and even entice investors.

BAV Consulting found that socially responsible brands see 33 percent more customers and retain them. Businesses showcasing efforts transparently tend to outperform competitors who appear indifferent to global issues.

Intel’s public push to create energy-efficient products not only served its markets but reinforced its leadership in environmental responsibility, further connecting with conscientious consumer bases.

Examples

• BAV research connects social responsibility with a 33 percent customer growth rate.
• Transparency can provide an advantage to sustainable brands in competitive markets.
• Intel’s Xeon processors optimize energy savings while engaging eco-focused customers.

Takeaways

1. Establish sustainability committees that report directly to leadership and align strategies with business goals.
2. Collaborate with NGOs and other businesses to maximize expertise and resources for tackling global challenges.
3. Actively involve stakeholders like employees and customers in decision-making for stronger brand loyalty and shared success.