Corporate Rework Needed for Business & Philanthropy

Corporate leaders will need to rework their business, philanthropy and community strategies according to a report that proposes a new approach for businesses to solve societal challenges in the coming decade.

The US Committee Encouraging Corporate Philanthropy (CECP) and McKinsey & Company have released a new report, “Shaping the Future: Solving Social Problems through Business Strategy,” which explores the evolving relationship between business and society.

The report forecasts that societal problems will become more complex, requiring corporate leaders to rework their business, philanthropy and community strategies.

The report addresses key questions around what will the next decade look like for the world, and what are the implications for corporate involvement in solving social issues? And, how can corporations position themselves now to maximize their profitability as well as their societal impact?

Margaret Coady, Director of CECP, says this report provides business leaders with an urgent vision of what business could look like in the next decade.

Based on McKinsey & Company’s research on global forces, the report describes five issues that will have the greatest effect on how companies engage with society, including shifting centres of economic activity away from the west, talent mismatches, global connectivity, resource constraints, and a bigger role for governments.

The “Shaping the Future” report calls for business leaders to mitigate associated risks by looking forward to these issues and seizing opportunities for authentic engagement in society, for the benefit of both their communities and their companies.

The report says businesses have the ability to apply distinctive capabilities and resources to social issues that individuals, governments, and independent-sector contributors cannot.

While corporate engagement in society through foundations, pro bono service, and other forms of corporate philanthropy are not new, the report advocates for companies to leverage those unique assets in closer alignment with their corporate strategy, providing greater social impact and value to the company’s core business.

The Committee Encouraging Corporate Philanthropy is an international network of corporate leaders with the aim of actively working to affect positive change through corporate philanthropy.

The report is available for free download at CorporatePhilanthropy.org