HOW DOES BUSINESS BALANCE PROFIT WITH SOCIAL RESPONSIBILITY?

It is not a matter of focusing on one to the detriment of the other—the two are not mutually exclusive, although without profitability, it is not possible to practice much social responsibility for very long.

My experiences have convinced me that doing productive work that improves the human condition is the best way to practice social responsibility.

The first and perhaps the most important contribution of business is the work the products do. One of the greatest rewards of my career with Caterpillar Inc. has been playing a small part in projects that contribute to economic development throughout the world.

Examples include the construction of roads, airports, railways, canals, dams, reservoirs, levees, sewers, and waterways; the development of sites for homes, factories, and stores; the clearing, forming, and terracing of land; the production and harvesting of crops; the excavating of coal and ore; the reclaiming of wastelands for useful purposes; the exploring for oil and gas; the constructing pipelines; the disposal of waste materials; and the supplying of power for trucks, boats, industrial equipment, hospitals, and factories. Such work improves living standards and quality of life throughout the world.

Developing countries always benefit the most from these projects—if their leaders care about the welfare of the people … many don’t.

The second way in which business contributes to social responsibility is providing employment for people by establishing manufacturing facilities and marketing organizations in the various geographical areas they serve. Caterpillar’s products and components are distributed in all continents and manufactured in many countries.

Caterpillar has had a presence in most countries around the globe. Each of its facilities has generated significant employment opportunities for the local people, so that they can improve their lives.

Contrary to media reports, these facilities did not displace manufacturing capacity in the United States; quite the opposite—they strengthened market position and captured new business in new locations that would not have otherwise been available. In addition, in almost every instance, they stimulated exports from the United States.

Take China as an example. Caterpillar sold its first product to China in 1975, and shortly thereafter, I roamed the country helping to provide service support to our customers. Local production began in the early 1990s, and subsequently, several joint ventures and wholly owned facilities were established in China,

In total, I am confident that business demonstrates more social responsibility than all the other NGOs and government agencies combined. And they do it on purpose as they seek to satisfy their shareholders. I have watched it happen worldwide.

If you want more details, read my book “Professional Nomad” on Amazon.

Did you know that the following five products are made from oil and gas: eyeglasses, Aspirin, spacesuits, parachutes and candy and gum. There is much more to the oil and gas industry than meets the eye.