The growing importance of corporate conscience

THE economist Milton Friedman famously wrote that "there is one and only one social responsibility of business - to use its resources and engage in activities designed to increase its profits". Covid-19 has, however, accelerated the evolution of organisations' broader value to society.

Over the past few months, companies have gone the extra mile to support employees and communities. From repurposing manufacturing lines to produce face masks, converting hotels into quarantine facilities, redeploying airline crews to support the healthcare system, to taking a stand against racial injustice - companies have stepped up to discharge their social responsibilities, which has in many cases also helped support their businesses.

Guided by a sense of right and wrong, as opposed to mere profit maximisation, companies are increasingly balancing the interests of all stakeholders - shareholders, customers, employees, supply-chain partners, environment, and broader society. What's clear is that corporate conscience is becoming more important.