Reflecting Back and Looking Ahead

A little more than five years ago, a group of business leaders in Chicago formed the Corporate Coalition of Chicago , an alliance of companies committed to the idea that the responsibility of business is not just to make a profit, but also to create a safer, more thriving region for everyone.

Reflecting on five years of work toward this mission, I re-read Milton Friedman’s essay on the social responsibility of business. ?There are several notions in his essay I’ve always found interesting and generally overlooked. One serves as an “escape clause,” in case his contention that the social responsibility of business is solely to make a profit didn’t work out.

Friedman says his idea works if business leaders follow the ethical norms of society. Five years in at the Corporate Coalition, I have seen business leaders who are changing the ethical norms of society by:

• Deciding that it makes no sense to exclude one-third of the working-age population from productive employment because they made a mistake years ago.? They are tapping the vast talent resident in our neighbors who have a criminal record;
• Investing capital and jobs into previously disinvested communities, even if this means investing on a different risk/return profile than might be the case ?in wealthy neighborhoods;
• Supporting new developers and businesses on the South and West sides of Chicago not just through charity, but by creating business partnerships and human connections;
• Encouraging their employees to speak up when they need help dealing with challenges in their lives and providing the support employees need to prosper in the workplace.

Leading the Corporate Coalition is hopeful work.? I’m inspired by business leaders who are redefining our ethical norms for the better. ?

The work is also frustrating at times, in some cases because business leaders don’t want to talk about their efforts. But here’s the truth about redefining social norms: they are not norms if people don't talk about them.

As I look to next year and beyond, uncertainty abounds. The corporate response to uncertainty is to reduce risk, pull back, play it safe. In hedging FX exposure or building more resilient supply chains, that is probably the right response.

But when it comes to employees, I think hedging and pulling back is exactly the wrong response. In times of uncertainty, people are looking for stability. And this is what companies can provide if they are explicit about what they stand for, talk publicly about their values, and act on them. ?And make no mistake, employees know what is window dressing and what is real. They know when the talk doesn’t match a company’s walk, and vice versa.

Bending to whatever political winds are blowing does not give employees confidence about the firm’s values or stability for anyone in the long-term. Acting on and talking about values is what employees need.

With all the winds blowing today, two things are clear to me: our mission is more important than ever, and we – the Corporate Coalition and our members – need to talk more openly about the important work we are all doing. And that is what we will do in the year ahead and beyond.

As we plan for 2025, the Corporate Coalition remains committed to identifying new approaches, supporting companies as they make positive changes in their practices, and building a stronger voice for new ethical norms together.? When our members succeed, we know we are creating a safer, more thriving region for everyone.? Powerful inspiration—and aspiration—in our uncertain times.