Businesses need to be more human

"So across the region, governments need to move towards better and more sustainable fiscal policies. In particular, more targeted social protection systems would help free up funds for spending on areas like infrastructure, education, and health while laying the foundations for inclusive growth," Lagarde said.

"This would be a break from the past when generalised subsidies were used to appease the population while allowing the privileged to benefit from unfair practices," she said.

Dr Saeedi underscored the risks of ignoring this message. If policymakers and businesses do not engage with people and invest in empowering them they will bring down those remaining at the top.

Economists and business leaders are warning too that big gaps in income and inequality could destabilise the social status quo.

That's why businesses that have been focusing only on delivering profits and dividends to shareholders can no longer shy away from social obligations.

This is where corporate social responsibility (CSR) must be given serious thought.

"[Corporates] are the critical link between the policymakers and people and lobbyists. We could create the link between the right thing to do and the best thing to do," said Rajeev Kakar, chief executive of Dunia Finance, a personal finance provider.

"We are good at delivering financial returns. The challenge is: how do we give good financial returns and do good at the same time?" he asked.

For many years, the two were never mentioned in the same breath. "However, we need to make that link now," he said.

CSR is not a set of activities. "It's living it. It's about enduring life, empowering people — to make a difference in life," he said.

"Weave some social issues into your businesses and profitability. You can no longer ignore those living at the bottom of the pyramid because with growing inequality, they could destablise the power of the few."

Rising social inequality could lead to violent transformation. Nature tends to limit things that go out of control.

"If things go wrong, each of us will lose more than we stand to gain," Kakar said. "People at the base are important and it is critical that we take care of them.

"It's not about giving people money. It's empowering them with skills. We could make a difference by empowering them."

However, he said, the agents of change will have to be the individuals. "Corporates can only help. But it's the people, the individuals, who can make things happen," he said."

Notícia de 14-12-2011, retirada de http://gulfnews.com/business/features/businesses-need-to-be-more-human-1.950473

Excerto de um artigo que apresenta números bastante desconcertantes sobre a pobreza no mundo. Aponta também alguns caminhos como solução incorporando o papel das empresas nos países do terceiro mundo e de que forma a RSE pode ajudar.

Postado por Filipa Lelé