In our country, is the business of business just business?

GROWING up in an entrepreneurial family, I have always wondered about the line between “business as usual,” and business that is socially responsible. With limited repercussions in Bangladesh, it seems that the overwhelming positivity of businesses have, to an extent, been negated by poor environment and labour practices, and a blatant disregard for the good of society. It begs the question, is the business of business just business? On an even more molecular level, what is business?

These days, people have so many ideas about business that it is not clear what "Business" really means anymore. Typical answers include everything from commercial enterprises to market sectors to performing arts to, most interestingly, responsibility (as in, “minding one's own business.")

The most rational definition of business is: to engage in commercial activities that focus on generating profit. Some people further qualify the answer, claiming that business should not engage in social or environmental or other considerations beyond what is legally required. Yet in a survey conducted by Financial Times, 750 CEOs ranked increasing pressure for social responsibility as the second most important business challenge. Personally, I believe that companies must go beyond the law and take on moral responsibilities, adjust to the changing market, and embrace the positivity of those changes rather than resisting the inevitable.

Businesses do not function in a vacuum. They are an embedded and integral part of a larger system -- society. No matter the law, making profits at the expense of society is not ethical. I believe the business world is changing, and people expect and demand more from companies than just maximising profit. Customers expect value and peace of mind that their purchases are worthy; employees demand benefits, not just a paycheque; and communities want taxes, job creation, and ecologically-safe operation. Although I am an entrepreneur, I cannot encourage Bangladeshis enough to collectively demand improvements in all these domains.

As a result, the business of business is no longer just business. In fact, it may be better phrased to say that the business of business is to add value to society, while being profitable. Moreover, that philosophy can enhance a company's bottom line. Doing more than maximising profit can cut costs and even attract investments. Tracked over a period of 18-years, companies which have voluntarily embraced a sustainable business culture have significantly outperformed their counterparts over the long-term, both in terms of stock market and accounting performance. Moreover, voluntarily engaging in socially responsible and safer practices saves the company from tiptoeing around the legal line, and avoids more frequent and deeper investigations that cost time and money. In 2010, in the US, $3.07 trillion was spent on socially responsible investments. That kind of commitment attracts investors and consumers who want products that are not issued at the expense of other people's health, safety and human rights, and rightly so. Although earning a profit by providing excellent goods at the lowest possible cost remains central to businesses, the increased emphasis on responsibility paves the way to the future and dispels the notion that the only business of business is more business as usual.

I see a definite convergence of business and society. The vigorous pursuit of responsible goals, aside from profit alone, can lead to competitive advantages for a company. Despite the poor image of corporations generally, polls show that people still retain a belief that businesses can provide positive contributions to society. As a Bangladeshi business leader of tomorrow, I strongly believe that they can, and I will strive to lead companies that work alongside society. Perhaps it is best for businesses to acknowledge that the “invisible hand” has indeed signed the business social contract. As summarised by Grayson & Hodges, “today the business of business is everybody's business.”

The writer is an MBA candidate 2015, Oxford University.