Natural resources in developing countries do not grow in vacuum space. Government often not see people in natural resources site concessions since the government set the site in a table long way from where the people live. In fact, in a remote areas, it contains people wherever mostly you go as companies. The companies understands but mostly not really take social aspect into account. They do not consider them as an important factor in investment.
The thing changes when there is complain, demonstrations, protest, violence set by both parties in fighting the get rights on the resources, say palm oil plantation, or forest areas. It may be too late. But no, you have to deal with it. The cost to deal with social issues after company operating in the areas may way higher than if the company take social issues into account at the very early stage of planning.
If you deal with sustainable business you have to also consider developing sustainable livelihood for people around you. Sustainable livelihood is totally different with charity. Sustainable livelihood require collaboration and partnership between company and people. Company has to work togather to plan, develop and implement something that fit with people potential, resources and capacity. The purpose is to support them so that they can sustain their living. Social is dynamic thing. You do one thing at the time you may try to innovate. Human is full of dynamic. You have to explore social innovation.
By doing social innovation you may create environment for company to innovate and better growth and profits.
Good luck. To know more on social innovation in practice please contact me at dwirm@aksenta.com.
Dwi Muhtaman
Thursday, October 30, 2008
Social Issues: From Costs to Profits
Now you have to pay all of your social ignorance. They claim, you pay. They demonstration to talk and pay. They protest, you set it free with you annual budget post. Is it you want to do all the time? Is that the way you think you will settle all your social relations? For how long you can stay that way? How much you spend in terms of monetary as well as non monetary expenses, every day,every month or every year...
Why don't you try a better way.
Think about the concept of "Three feet development." You have economic as your (may be) main interests. You have environment component where you live. You need better water, better air. You need to enjoy nature better. That's environment give you that services. The next foot is your social environment. So economic, environment and social should be hand in hand working together. You cannot ignore one of them.
Start thinking social aspects when you start thinking your economic aspects of your business. Similarly, you have to take into account your business action's impact to environment. You have to change your mindset that social or environment are all about costs. Not anymore.
Social and environment aspect is your sustainable profits without it you cannot go anywhere. Want to learn more please do not hesitate to contact me at dwirm@aksenta.com
Dwi Muhtaman
Why don't you try a better way.
Think about the concept of "Three feet development." You have economic as your (may be) main interests. You have environment component where you live. You need better water, better air. You need to enjoy nature better. That's environment give you that services. The next foot is your social environment. So economic, environment and social should be hand in hand working together. You cannot ignore one of them.
Start thinking social aspects when you start thinking your economic aspects of your business. Similarly, you have to take into account your business action's impact to environment. You have to change your mindset that social or environment are all about costs. Not anymore.
Social and environment aspect is your sustainable profits without it you cannot go anywhere. Want to learn more please do not hesitate to contact me at dwirm@aksenta.com
Dwi Muhtaman
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