Improving social and financial bottom lines

HISTORICALLY, private businesses do not include any social responsibility in their corporate missions as that is perceived to be the responsibility of the government or social sector organisations.

This view emanated in the 1970s from leading economist Milton Friedman who famously said: "There is one and only one responsibility of business: to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game."

Proponents of this belief argue that the focus of business should be strictly on their financial bottom lines: optimising profits and maximising financial returns to shareholders. Anything else may distract the business, resulting in not only a decrease in returns but also the erosion of its competitive edge. It may even affect its existence.