Drivers of Change

Albert Einstein once said, “If I had an hour to solve a problem, I’d spend 55 minutes thinking about the problem and 5 minutes thinking about solutions.” Today, many organizations eagerly jump to solutions without considering all the factors involved. These solutions can sometimes be unsustainable because they only address one part of a problem or, in some cases, create new problems. In order to truly create a sustainable impact, businesses must adhere to Einstein’s problem solving method. Rather than focusing on symptoms, businesses need to spend more time thinking about the systems and root causes behind global issues before finding ways to solve them.

Today, there are two key issues facing the world: inequality and environmental degradation. Companies are already adjusting their business models to address these issues, but a lot more work still needs to be done in order to create a lasting impact both socially and environmentally.

Social impact refers to a change in a population’s way of life. Businesses positively impact society by providing goods, services, and jobs as well as tax revenue, which is used to fund public needs including education and infrastructure. Businesses also outsource manufacturing to other countries, which reduces production costs and consequently lowers consumer prices. Although businesses provide a lot for society, they inadvertently create a lot of inequality. The same processes that gather and convert raw materials to finished goods also create pollution that disproportionately affects people of color. According to one article from The Atlantic, “long term exposure to [pollution] is associated with racial segregation, with more highly segregated areas suffering higher levels of exposure.” Although racial covenants were outlawed in the mid 20th century, people living in communities that were once segregated decades ago still experience the effects of racial covenants today. Racial covenants were originally put in place to prevent people of different races from living in the same communities. People of color, especially blacks were restricted to lower quality housing, less educational resources, and less employment opportunities. This ultimately led to higher poverty rates in colored communities, which is still a prevalent issue today. One Minneapolis study explains that “the poverty rate in the Twin Cities area is 25.4% for blacks and 5.9% for whites.” Because black people are finding it increasingly difficult to recover from the effects of racial inequality, there is no question why BLM protests continue to rock the nation.

Pollution not only socially impacts previously segregated areas but also impacts the environment. Environmental impact refers to a change in the Earth’s life support system. Before the turn of the 21st century, businesses used to be solely focused on making a profit. There was little regard for environmental conservation, and recycling was more costly than simply dumping waste. After numerous scientific studies shed light on the negative impacts of pollution, businesses began to research more sustainable production methods. Today, there is a growing movement among businesses to mitigate environmental degradation by lowering emissions, reducing waste, and reusing materials. Advancements in alternative energy will continue to help businesses lower emissions. Managers continue to find ways to make processes more efficient as businesses transition from linear production to cyclical production. While these changes will continue to have a positive environmental impact, some businesses have not yet jumped on board. Antofagasta Mining Company is one such business. On the company homepage, Antofagasta claims that they are going to great lengths to prevent environmental damage. On the flip side, Antofagasta has continued to push for a proposed Twin Metals copper mine to be located in the Boundary Waters region in Minnesota. The Boundary Waters is a pristine natural environment that serves as the perfect habitat for many animal species. Because copper mining is one of the most polluting industries in America, the Twin Metals copper mine will only serve to disrupt the Boundary Waters ecology. There is a large discrepancy between the things that Antofagasta says they stand for and what they actually do, and Antofagasta is not alone. There needs to be more accountability.

Although businesses are making efforts to dismantle racial barriers and conserve the environment, old systems and pracitices continue to get in the way of progress. Systematic racism in the mid 20th century contributed to the current state of racial inequality today. Black people are still disproportionately poor. They are still suffering from poor air quality. Racial covenants may have been outlawed, but black people still live in separate communities. Although racism will not disappear any time soon, companies are making efforts to be more inclusive. The environment is worse than it has ever been. Air pollution kills 8.8 million people annually. While some companies continue to rely on old practices, many more are researching new methods to make the world a cleaner and healthier place.