Business and Social Impact: An Inseparable Purpose, Not Just CSR

The idea that business and social responsibility are inseparable isn’t new, but it’s more urgent now than ever. In a recent conversation with Bang Salman Subakat, CEO of NSEI Paragon & Ketua Pembina of Pemimpin.id, and Bu Shanti Lasminingsih Poesposoetjipto, a key point emerged: social impact should be the core purpose of business, not something tacked on after profit. In today’s world, many view Corporate Social Responsibility (CSR) as the solution to integrating social values into business, but it often becomes an afterthought, a way to utilize excess profit rather than a driving force from the outset. This approach needs to change.

The Evolution of Business and Social Integration

During our discussion, Bu Shanti shared a powerful story about her father, Pak Soedarpo Sastrosatomo, one of Indonesia’s pioneering entrepreneurs. As the nation was being built, businesses were not only a means to generate wealth but a tool to serve the greater good. In the early days of Indonesia's independence, entrepreneurs like her father played a crucial role in supporting the country, particularly in establishing the necessary financial institutions and strengthening the nation's economic foundations. The objective wasn’t merely profit, but freedom and prosperity for the entire country.

This perspective—that business exists not just for itself but for society—was not just an ideal but a reality for first-generation entrepreneurs in the Republic of Indonesia. Pak Soedarpo and his peers saw their companies as vehicles for national development, deeply connected to the welfare of the people and the future of the country. This is where today’s businesses can take a lesson: social impact must be embedded in the DNA of every company, not an afterthought or an add-on.

"We Don't Sell Products—We Sell Solutions"

Bu Shanti recalled one of her father's visionary thoughts, which is especially relevant to modern businesses: "We don’t sell products, software, or hardware; we sell solutions." This statement, though seemingly straightforward, was revolutionary for its time. Long before independence, Pak Soedarpo understood that businesses should not focus on mere transactions but on solving real problems for their customers and communities.

In today's startup culture, this philosophy is often repeated—companies boast that they provide solutions, not just products—but Pak Soedarpo was already practicing this approach decades before it became popular. For him, the idea of business as a provider of solutions was not about profit maximization but about fulfilling societal needs and offering real value to improve lives.

Many modern businesses, especially startups, have adopted similar language, but too often, these promises are hollow. While they speak of innovation and solutions, their primary focus is still on profit margins. The essence of Pak Soedarpo’s vision was different: business as a driver of social good, where profit is a natural result of solving meaningful problems, not the ultimate goal.

Business and Social Impact: A United Vision

The discussion with Bang Salman and Bu Shanti underscored a profound truth: businesses must aim to create a positive social impact from the beginning. Social responsibility shouldn’t be treated as a side project or limited to CSR initiatives that use leftover profits. Instead, the core purpose of business should be to serve society by solving real problems and improving the well-being of the communities it touches.

This concept aligns with modern discussions around conscious capitalism and shared value, where businesses succeed by creating value not just for shareholders but for all stakeholders—employees, customers, suppliers, and society at large. It’s a recognition that the long-term success of a business is intimately tied to its contribution to society. When businesses take care of their communities, communities support businesses in return.

Bang Salman echoed this sentiment, stressing that businesses, particularly in Indonesia, must look beyond profits to purpose. This shift in mindset requires seeing social challenges not as external issues but as opportunities for businesses to step up and provide innovative solutions. The future belongs to companies that can integrate purpose and profit, making social impact not just a CSR afterthought but a core part of their mission.

The Legacy of Values-Driven Leadership

Pak Soedarpo's forward-thinking approach to business remains a powerful reminder of how deeply values-driven leadership can influence a company’s trajectory. His belief that businesses are responsible for delivering solutions rather than just products is something modern businesses can learn from, particularly those in Indonesia aiming to make a lasting impact. He saw the bigger picture and knew that strong, sustainable businesses are those that contribute meaningfully to their communities.

Bu Shanti’s story highlights how entrepreneurship in Indonesia's early days was not about accumulating wealth for personal gain. It was about building a nation, supporting the development of institutions that could sustain Indonesia's independence, and making sure that businesses were integral to the country’s progress. This historical context reminds us that business, at its best, is a force for good—a tool for shaping not just economies, but societies.

A Call to Action for Today’s Businesses

The conversation with Bu Shanti and Bang Salman left me with a powerful message: businesses must return to their roots as drivers of social change. Profit is important, but it should not be the sole focus. The real value of a business lies in its ability to solve problems and uplift the communities it operates in.

As we move forward, it's essential for businesses to rethink their role in society. Instead of viewing social impact as a secondary goal, it must become the central purpose. Companies that align their operations with societal needs, that focus on providing real solutions, and that integrate values into their core strategy will not only succeed but will leave a lasting, positive mark on the world.

Conclusion: Business as a Force for Good

Business and social impact are inseparable. Social responsibility must be woven into the fabric of a company’s mission, not left as a side project or the result of excess profits. As Pak Soedarpo said, “We don’t sell products; we sell solutions.” This timeless wisdom, passed down through generations, is a powerful reminder that business at its best is a tool for serving society, not just profiting from it.

Indonesia’s first-generation entrepreneurs, like Pak Soedarpo, understood that their businesses were not just for themselves but for the nation. Today’s businesses must remember this legacy and strive to build enterprises that solve real problems, uplift communities, and make the world a better place—not because it’s good PR, but because it’s the right thing to do.