Striking a balance between profit and humanitarian work

How can your organisation bridge the gap between profit-driven goals and the core values of humanitarian efforts, ensuring financial success while making a meaningful impact on the world? While there is continued tension between the goals of being committed to the welfare and well-being of those who are vulnerable, marginalised or suffering and the need for a business to make a profit, a shared value approach can balance the two. This shared approach not only advocates for organisations pursuing financial success but also highlights the potential for significant financial returns while also considering their social and environmental impacts.

Most humanitarian efforts focus on alleviating suffering, addressing social injustices and improving the well-being of individuals and communities. These efforts are primarily driven by empathy, altruism and a commitment to human rights, often without expectation of financial return, their effectiveness measured by the level of impact on people’s lives. In such cases, resources are usually allocated based on need, aiming to provide relief or address urgent social issues. In contrast, the primary goal of any business is to maximise profit and generate financial returns for the owners and stakeholders. Therefore, a business person will often prioritise resources expected to generate the highest profits, which might not always coincide with the greater good of the people and planet.

By adopting a shared value approach, your organisation commits to designing its business model to address social issues while generating a profit. The possibility of balancing humanitarian goals without compromising the business’ objectives may seem daunting at first.

However, finding the balance is possible, and it will require careful management and a genuine commitment to both social impact and financial sustainability. For example, you can have your organisation create products and services that serve the needs of the vulnerable and marginalised in society or implement sustainable practices that reduce environmental impact while cutting costs.

Moreover, integrating ethical considerations into your organisation’s profit-making activities and being transparent about your motives can contribute positively towards your humanitarian goals without compromising your financial goals.

There are several other ways your organisation can fit into the humanitarian space. Other than incorporating humanitarian effort into your overall business strategy, organisations have adopted a social enterprise model, where the primary mission is to address social or environmental issues while generating revenue. Some have opted for inclusive business models to develop products and services catering to marginalised communities. Most organisations often collaborate with governments and non-governmental organisations in private-public partnerships to address large-scale humanitarian challenges. Such collaborations leverage the expertise, resources and networks of each sector to create more effective and scalable solutions.

In addition, some organisations have committed to sustainable practices such as ensuring fair labour practices among themselves and their supply chain, reducing their environmental impact and supporting development within the communities they serve. These practices aim to reduce operational risks, improve supply chain resilience and appeal to ethically-minded consumers.

Social fragmentation, economic disparities, environmental and technological gaps, and individual psychological and emotional detachment have collectively created a dissociated world where our shared humanity has been eroded. To counteract this, individuals and organisations must work towards reestablishing a cohesive world that fosters harmony and balance within the global community. This effort involves recognising the inherent value of every person and striving to create a better, more just and compassionate world for all.

Achieving this goal requires transparency, accountability, and a genuine commitment to humanitarian principles. Businesses, in particular, must ensure that their efforts contribute meaningfully to societal well-being while still achieving financial success. By strategically aligning their operations with humanitarian objectives, companies can not only meet their financial goals but also play a crucial and empowering role in fostering a more equitable and just world.