May 10, 2017 | Read Time: 4 minutes
“If government is going to get out of a lot of things, somebody has to take their place. It seems to me that business and the private sector — which pushed for this — has to assume some responsibility. If so, then it means that the leaders of business and of not-for-profit corporations should recognize that they have a responsibility outside their own businesses to do something for society at large.”
David Rockefeller said this almost 20 years ago.
Mr. Rockefeller, the former CEO of Chase Manhattan Bank who recently died at the age of 101, will long be remembered for his influential role in banking and philanthropy. But it is what he did to change the role of business in society that deserves the greatest recognition and should be instructive for businesses large and small.
His approach to corporate responsibility was ahead of his time. For decades he advocated that business responsibility is about much more than quarterly earnings and managing a well-run corporation. Indeed, corporate America’s capabilities, ingenuity, and assets have time and again demonstrated their capacity to drive transformative change. Unfortunately, not enough companies have followed Mr. Rockefeller’s lead, missing out on opportunities to strengthen and improve their communities and make their businesses better off for it.
In a world that is more interconnected than ever before, solutions to today’s complex social and economic challenges, which affect us all, must not be relegated to government or nonprofits. Businesses must lead.
If the recent U.S. and British elections have made one thing clear, it is that far too many people are being left behind — shut out of the rewards of a growing economy. The frustration and disillusionment that follow have deep and far-reaching effects. The need to create greater economic opportunity is both a moral and an economic imperative. And business leaders have not only a responsibility and a vested interest in helping solve such critical challenges facing our communities but also a vital contribution to make.
Nontraditional Roles
Business is uniquely positioned to drive economic growth and create greater economic opportunity. But moving the needle on those issues requires a coordinated and integrated approach that involves meaningful collaboration among government, businesses, and nonprofits. We must also think beyond traditional roles. Money alone will not solve the complex challenges we’re facing today. We have too often seen money used with the best intentions — both public and private — fail to result in long-term impact. Thus, a critical part of any effort that will deliver lasting change must include strengthening the underlying systems and organizations that are needed to empower communities and sustain change.
We must each look within and bring our unique capabilities to the table. And companies must find ways to ensure their business operations strengthen the communities where they operate. Traditional philanthropy is simply not enough.
Investing in Detroit
For us at JPMorgan Chase, we have seen that we are able to make a real impact when we use the assets and capabilities that drive our business success. Our corporate-responsibility approach focuses on key areas where we know we can make an impact driving inclusive economic growth by taking advantage of our global reach and our local footprint as well as our employees’ deep expertise and our data, technology, market knowledge, and relationships.
This is most evident in Detroit, where, in 2014, we started investing in the city’s economic recovery, with a goal of contributing $100 million over five years. Today we’re excited to announce that our investment has surpassed $100 million two years ahead of schedule, and we expect it to reach $150 million by 2019. This is a credit to the pace of progress in the city, significant collaboration among government, businesses, and nonprofits, and improving economic conditions.
But our work in Detroit goes well beyond our financial investment. We are taking a market-based approach that relies on our data and business expertise to build sustainable solutions to neighborhood stabilization, small-business expansion, and getting people the skills they need to succeed.
Every company has different assets and experiences to contribute — including Google’s efforts to harness its employees’ passion for technology in ways that benefit great causes and IBM’s pioneering skilled volunteerism program Regardless of what we bring to the table, business must embrace David Rockefeller’s message of working together to tackle our challenges and be a positive force for opportunity in our communities around the world.
