Entrepreneurship Trigger 2

Entrepreneurship Trigger #2

Kerkko Jahnukainen

Problem: The role of business is solving social problems

Learning Objectives:

- How a company should choose which social problem it should address

- Ways companies profit from solving social problems?

- Examples of companies solving social issues

Keywords: 

Profit, social respbiblty, fairtrade, share value

How a company should choose which social problem it should address

• Based around already existing expertise or already existing resources
• Choosing a problem, which if solved or even gotten into better state, would benefit your business
• a subject, which you have personal ties to
• an area which, may be profitable, for example electric cars and global warming

Ways companies profit from solving social problems?

"Harvard Business School professor Michael Porter explains in a TED Talk that resources and wealth are created in business. Resources and wealth are created when business meets a need at a profit. Other organizations can utilize resources, but only business generates them." (From www.sites.psu.edu)

In the modern world, where especially young people are interested in topics such as the environment, contributing in solving these issues can earn yourself a good reputation which then translates into more sales, publicity and brand loyalty.

The roots of all businesses is to provides solutions to problems or fill needs which one may have. Social problems can be one of these. (business segments)

Roberto Mollison: "We think that if business pollutes, it makes more money. Because is expensive to reduce pollution or to have a safe work environment. Even companies have come to believe that there is conflict between profits and sustainability.

In reality however, it is the opposite. The new way of thinking described by Porter is that business actually profits from solving social problems. Reducing pollution means reducing the amount of waste in the firm’s manufacturing process. Having a safe work place means reducing costs associated with accidents and compensations.

Companies need to address social issues with an economic model by creating economic and social value at the same time and change the conventional way we see business." (2018, Can business solve social issues?, 

Examples of companies solving social issues

Even though, most companies don't just focus on solving social issues, most still keep it in mind and make their best efforts to contribute. Not just for sake of good heart, but also the reason mentioned above.

Tesla - Environmental issues. Making great electric cars and a recognisable brand behind it

Zimperium - Mobile phone security firm

Direclty from www.inc.com:

Surgical Theater

"Surgical Theater is exactly as the name implies--a rehearsal platform that turns CT scan and MRI images into dynamic, interactive 3-D models for lifelike simulations of actual brain-related surgical procedures. Surgical Theater's product, the Surgical Rehearsal Platform (SRP), has a screen and two joysticks, making it look like a flight simulator. This is no coincidence. Two of the three founders are former Israeli Air Force R&D officers; the third is a neurosurgeon. Surgical theater has raised almost $600,000 through venture and crowdfunding to support its mission of providing surgeons with the tools to practice their operations in advance, just like fighter pilots do."

Umoove

"Umoove, founded in 2012, has developed technology that enables people to control computing devices with eye and facial movement. A godsend to victims of paralysis and a deeper, more nuanced level of interactivity for anyone, Umoove runs on any mobile device with a front-facing camera. By tracking eye or facial movement, it allows the mobile device to respond to not only touch or orientation, but also to the user's level of interest. Think of the conversational possibilities."

ReWalk

"A computer-controlled, motion-sensing exoskeleton, ReWalk is restoring the lives and mobility of those who have given up hope of ever standing or walking again. The creation of Israeli entrepreneur Dr. Amit Goffer--the founder of Argo Medical Technologies and a 16-year quadriplegic himself--the ReWalk is in effect a wearable robot that features light brace support integrated with computer control that enables users to stand, walk, turn, and even climb and descend stairs. The company plans to expand on its life-changing product offerings with wearable robots for many different needs, injuries, and illnesses."

(Dave Kerpen, 10Tech COmpanies Helping Humanity, 24.6.2014, www.inc.com, https://www.inc.com/dave-kerpen/10-tech-companies-impacting-humanity.html)

Sources:

https://www.globalcitizen.org/en/content/solving-social-issues-good-business/

https://www.ted.com/talks/michael_porter_why_business_can_be_good_at_solving_social_problems

http://sites.psu.edu/robertomollison/2016/01/27/can-business-solve-social-problems/

http://www.worldcoo.com/blog/en/how-companies-can-be-a-solution-for-social-problems/

https://www.entrepreneur.com/article/244690

https://www.inc.com/dave-kerpen/10-tech-companies-impacting-humanity.html

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