Blurring the Line Between Business and Social Organizations
by Vic WIens
A few of my previous articles have produced very good feedback from readers. This was certainly true of the my recent article on Sins of Omission.
The concluding paragraph in that article said,
“The point of this article, then, is to encourage both businesses and non-profit organizations to develop both sides of the ethical equation. Make sure that you place equal emphasis on developing moral convictions about what should be done as on what should not be done.”
One reader asked me to be practical about what businesses “should” do. Here are some suggestions.
First of all, be sure to include some social goals along with your financial goals for your business this year. These will likely fit with the overall focus of your business. You may already be providing services with social benefits, but primarily to achieve financial goals.
I also believe that business leaders should consider whether there could be social goals that deserve measuring in their businesses. There is little point in setting goals that will not be measured. If you are a business leader you will likely have set some financial targets for your year. Do you have any social targets?
Let me give you a personal example. I have determined to help the board of a new private schoo get started this year. This is a social goal and it is a measurable goal. It is also a goal that is to be accomplished through my business, not personally. Will I be earning money achieving this social goal? I hope so, otherwise it is not really a legitimate business activity. There does not have to be a dichotomy between making money and accomplishing social goals. On the other hand, I will probably make less money on that project because I am not totally focused on making money. However, that does not have to be the case because some social goals lend themselves to high levels of profit. The point is, I have determined to achieve this social goal in addition to achieving several financial goals through my consulting business. There is a difference between means and ends. The social goal is an end.
Secondly, get in touch with both your passions and convictions as a leadership team. Find out what kinds of social goals will empower your leadership team in the long-run. The reason for making this my second point is to make sure that you don’t wait for the team to gel in regard to a common passion and conviction before you act. Act right away and then bring your team together.
You will probably be pleasantly surprised at how much added energy your leadership team will bring to the job when leaders are working towards common social goals in addition to financial goals. One of the most common reasons for mid-life crisis I have observed is that too many jobs focus exclusively on making money instead of also achieving social goals.
Non-profit organizations generally face the opposite problem. They can be so focused on social goals that they neglect financial goals. This can also result in loss of enthusiasm and even a mid-life crisis for staff members whose financial needs have not been looked after. In case you missed it, take time to read my article on Return on Investment in Non-Profits.
Both businesses and non-profit organizations need to set both financial and social goals to remain healthy places for people to work and to make a positive impact in the world.
