It’s Time Businesses Got Back to Business

WHERE does corporate responsibility begin and end? In the old days, the answer was clear: A corporation existed to make money. Social responsibility, if it was felt at all, was a matter for governments, charities and other social do-gooders. But lately, the answer has evolved considerably.

Even before the recent scandals, responsibilities that used to be the purview of governments - like fighting poverty, guaranteeing public health and protecting the environment - have been handed over to corporations, as if businesses were bottomless pits of money whose sole function was to provide social benefits to the world.

Now may be the time to re-examine these assumptions, because the role of business has become confusing. In this era of slowing economic growth, we must re-embrace the wealth-enhancing, job-creating role that business plays in society. And business leaders must once again take the lead, offering up an assertive, positive vision of their function in the world at large.

To be sure, the confusion did not arise overnight. The scandals of recent years eroded the image of the business community severely. As stock markets tumbled, middle-class families watched much of their wealth evaporate, leaving many rightfully resentful of the business leaders to whom they had entrusted their family savings. Many people now genuinely worry about their retirement, or whether their children will find work.

Like many people, we at the World Economic Forum welcome some elements of the corporate-responsibility movement. In this increasingly global age, no one is isolated from anyone else. It is only a matter of time before the complex issues that besiege poor regions like Africa will be felt in America, Europe, Asia and elsewhere. Business can and should be an important part of the search for solutions to these problems.

But I worry, sometimes, that the trend towards saddling companies with social responsibilities may have gone too far. After all, economic growth is the business of business. If economies do not grow, there won't be enough wealth to meet the world's pressing needs, like finding a cure for Aids or preserving the environment.

Isn't it time to get back to basics here? Shouldn't the men and women of business once again serve as ambassadors for economic growth by promoting a better, deeper understanding of the vital role they play in society?

In recent years, it has become almost a cliche to bemoan the collapse of trust in society. But the destructive cycle must end somewhere. I think that the solution might lie not far from where the cycle began - within the business community itself.

Business can and does play a positive role in our society. We should not be so shy about recognising and expressing this. It's time for businesses, and society at large, to once again embrace the role that business plays.