Evolution of business

"Not business as usual" is a heart warming documentary showing how the entrepreneurs nowadays are creating new business models that can contribute to fixing some current social problems. Unlike the "usual" business, aka the old fashioned capitalists, selling stuff at great quantity and cheap price; the new business models appear to be not just about money but to be environmentally conscious, caring for its community and making social changes. Some may say that Friedman is wrong, business's business is not just making a profit anymore but to drive social changes.

I think it is worth debating if the new business model is driving social changes or if the societal changes are driving the generation of new business models. I, personally, am for the latter. Business is a media that only exist to link the social environment and technology advancement to people, aka consumers. Sustainable businesses that are conscious about the production and life cycle of their materials can only survive when consumers agree with and are willing to support their values. If people are unable to pay the higher price for the ethical products, the new business model simply can’t survive.

There is another reason for the emergence of the new business model. Big corporations, the old fashioned capitalism, has taken control over the traditional business. So entrepreneurs now are left to innovate to have their own business models. New as they may be, the fundamentals of the business are still for profit. The difference is that they are selling a new value or concept but not simply stuff. These kind of business can survive because of the current social conditions that cares for social good. It is great that business are starting to merge into social needs, but that is only the result of increased national wealth, aka, profit from previous capitalism activities in that country. Consumers in developed countries, where these entrepreneurs are, are generally not so concerned with the quantity of the stuff they are buying anymore but quality. Education and wealth have given them the chance to pursue something more, like wellness for themselves and the environment. It is this pursuit that give the new business models a chance to rise. To do good, complying with their target consumers' values to compete with the old businesses. 

In Friedman’s time, he probably just didn't see the possibility of having such a win-win situation. It is understandable because consumers' attention then was mostly still on stuff, how to get more for cheaper. A business like "Eco apparel" whose mission is to sell clothes made with low environmental impact but higher price might not have survived competing with Walmart's cheap but unethical clothes.


Friedman's statement, "Only people have responsibilities...there is one and only one social responsibility of business--to use its resources and engage in activities designed to increase its profits” is still valid. Social goals are good for sure but it can not the main concern for a “business”. Instead, it is the goal of an entrepreneur, and his/her business is the means to do it. A business can go beyond profit certainly but cannot do without it. It is a wonderful thing that the entrepreneurs now want to tackle some social issues and make the world a better place through their business. Their profit making and social good doing now may be more  interdependent than the past. Such may be the advancement of the society.