By Kathy-Ann Fletcher

I sit here reflecting on the recent G8 and G20 conferences and it hits me, rules and regulations are not going to solve the problems that led to the global economic downturn. The solution stands not in regulating the superficial arms of the problem but affecting change at the root of the issue.

The solution? Social Entrepreneurship

The blame is being placed firmly on the shoulders of corporate greed and its exploitative nature that harms employees, customers and global economies. The solution for this practice is social entrepreneurship which encourages companies to consider more than the bottom line when designing organisational policies and objectives.

How would social entrepreneurship be the solution?

Reorganise priorities

Many companies place their priorities on increasing profits and shareholder returns. Adding social entrepreneurship principles would cause the companies to put the provision of the solution to market and society’s problems above the yearly increase of profits.

Change insular approach

The pressure to increase profits year-on-year causes companies to be removed from their employees, the very same customers they aim to serve, and their community. In times of trouble and decline, they consider not the community they serve, the employees who have been loyal in service to them, nor the economy. Instead, they think only of themselves and how to retain their profit increase objective. Social entrepreneurship encourages a community approach and more inclusive and inventive means of solving organisational and social problems.

Modify corporate structure

The top heavy corporate structure is also a serious hindrance to companies truly serving their communities. With every member of this structure looking to get a piece of the pie, the concern for the other stakeholders in the company (employees, customers, community) to be disadvantaged in times when the fortunes of the company are not as bright as before. Simplifying the structure will enable all stakeholders from executive to society to benefit even in leaner times.

Focus on sustainability

The traditional practice of commerce did not explicitly encourage sustainable practices. Therefore, companies mistreated employees, sources and even the environment which is a major reason some firms go into decline after a period of prosperity. Encouraging sustainable practices will develop wise use of scarce resources, ethical treatment of valuable employees and the respectful use of our fragile environment.

These practices would thereby ensure a better future for all stakeholders including the company and the community. The company will see profits and the community will see sustained improvement in standard of living from a through collaborative effort with the private sector and the society.