The Responsible Business
By David Williams, CEO, ShoreBank Pacific
With nine stores in the Portland metropolitan region and a commitment to sourcing food locally, New Seasons Market is an example of a business connected to its community.
Despite a view by many citizens of the United States that government is the solution of all ills, the fact is that the money to generate solutions comes from businesses and their employees.
Wealth is generated by commerce—people doing things, making things, selling things, providing services. Banks, law firms, insurance companies, retail stores, schools, transportation, restaurants, and health care are all examples of commerce, and of moving wealth from one place to another, or preserving the wealth that is already generated. This raises the question “what businesses will strengthen our community?”
The leadership of most communities derives from its senior-level business managers. That is why it is such a shame when local companies are purchased by companies outside of the region, often resulting in their local and regional management moving elsewhere. Retaining leadership is critical to the development and preservation of the community, as these leaders help to set tax policy, promote wealth generation and retention, and ensure a continued commitment to the community.
Without commitment by local businesses, local governments tend to chase larger and fewer businesses, partly due to the ease of negotiations. As a result, citizens look to the government for solutions and become compliant, while potential opportunities are moved out of the region. This leads to a belief that the existing community doesn’t count. This approach does not help any community sustain itself.
Businesses must take an active role in their community to be valued by it, and this starts with attracting and retaining good employees, which can be accomplished in large part by:
- Providing a safe working environment
- Creating opportunities for employees to positively impact their community
- Producing a product that makes a difference in the world, so that employees are excited about going to work
- Paying employees reasonably well and offering health and other benefits
- Offering opportunities for employees to benefit from the growth in value of the company
The relationships a business forms in a community are also important. A truly sustainable business has the responsibility to:
- Engage other local businesses in the community to assist in building and supporting products so that all, in turn, can benefit from the growth of these companies
- Use its leadership, time, and contacts to assist the community in building amenities that add to the wealth of the community, such as parks and community centers
- Work with others in the community to develop sustainable financing mechanisms to promote the development of the next company, and the next one after that
Many factors determine the success or failure of a business. However, the promotion, the acceptance, and the leadership of a business needs to be undertaken first by the business itself, and then by the community in which it operates. This joint commitment of business to community and community to business is the way to build and strengthen the economic activity, civic partnerships, and peer relationships within a community.
More often than not, business fails to understand its responsibility to the community and the value it can offer. That said, the Pacific Northwest has several examples of businesses that do understand their responsibilities to community and we are better off because of their contribution. ShoreBank Pacific customers New Seasons Market, Hot Lips Pizza, Paneltech, Jessie’s Ilwaco Fish Co., Full Circle Farm, and Farm Power Northwest, are just a few examples of businesses that are making a difference.
This issue of EcoNotes expands on my view that business has a responsibility to community, explores the role of B Lab in addressing ‘benefit corporations,’ and discusses the importance of and the need for impact investing.
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