Day #6: The business benefits of doing good

I have run into this Ted Talk, given by Wendy Woods, a social impact strategist, Senior Partner of The Boston Consulting Group (BCG). The title is very enlightening: The business benefits of doing good.

In the talk, Wendy explains how the idea of Total Societal Impact (TSI) has gone way beyond the Corporate Social Responsibility (CSR). The idea is that business work, done with innovation, can actually create core business benefits for companies and solve meaningful problems in the world today. As a result, TSI must be combined with TSR (Total Shareholder Returns) as important drivers of corporate strategy and decision-making. 

Then, she shows some data and gives some examples about how the value and margins of companies which actively care about TSI increase, like banks, pharmaceutical or coffee suppliers. 

I think it is a very interesting topic, since it gives a new dimension to the idea of benefits. One could think that doing good is not the most profitable activity, but this TED Talk shows the opposite. Besides, Wendy is right when suggesting that NGOs and charities are not enough to solve the most crucial problems in the world. Companies and investors are needed, and if their presence creates tangible economic benefits, then we will be sure that they won't leave. 

Wendy Woods at the TED Talk. Image from ted.com