The Role of Business in Society: An Agenda for Action

Abstract

The role of business in society is on the Boardroom agenda. Either the CEO and the Board manage the role their business plays, or others will manage it for them. At stake is corporate reputation, innovation, competitiveness and growth. This paper takes a pragmatic look at how globalisation is intensifying the pressures behind social and environmental concerns, and what the Board can do. It outlines the essential steps the Board can take to underpin ethical behaviour in the business. It looks at the support management can provide to the Board in understanding and interpreting the external environment and implementing company-wide strategy. For it is in the performance of the company in its core practice that it has its greatest impact on society and greatest potential to contribute to international development. There is no silver bullet. The case outlined here is that business needs to continuously invest in its relationship with society and to account for its use of natural resources. CEOs and Boards need to explicitly manage corporate behaviour and their company's social and environmental footprint in order to build public confidence and trust.