How Businesses Can Fill the Gaps Left by Government
Why Companies Should Embrace Society as Their Stakeholder
Growing up, I watched my parents run car dealerships in our local community. For them, business wasn’t just about selling cars—it was a calling to serve. Conversations at our dinner table weren’t always about maximizing profit but they were also about making a difference. My parents built real relationships with local organizations, donated significant portions of their profits to nearby causes, and opened the dealership as a community space where people could meet, discuss what mattered, and support each other. This was my earliest education in business: real success is about serving people, not just numbers.
The Lesson of Service
When I began my career working for The Oprah Show, this belief in the power of business to serve only got stronger. Oprah would challenge us constantly: “How are we using this platform for good?” That’s what it was about—serving others first. To me, Oprah’s wealth wasn’t an accident. Her commitment to uplifting people came first, and as a result, she became one of the most successful businesswomen on earth. This isn’t just idealism; it’s a blueprint for success.
In every role, I’ve championed ways for companies to step up for those who are underserved. When George Floyd was murdered, Netflix didn’t just issue statements or pledges. We invested in Black-owned banks, putting real resources into communities that needed it most. Because serving people goes beyond talking points—it’s about real action that makes a real impact.
Why Companies Need to Step Up Now
Look around. Confidence in our institutions has been steadily declining. According to Edelman’s 2024 Trust Barometer, only 48% of people globally trust government institutions. Trust in media is even lower, and trust in non-governmental organizations is in decline. But here’s the standout: 61% of people believe business is the most trusted institution and can fill the void left by governments.
If you’re a business leader, founder, or entrepreneur, and you’re frustrated with the election results or the government’s inaction, know this—you have the power to make a meaningful change. If the government isn’t going to address issues head-on, then who else will? The private sector isn’t federally mandated, which means you have the freedom to act, to serve, and to lead without constraint. If you’re in a position of leadership and you’re not using that position to make a difference, ask yourself: why aren’t you?
The Problem with Milton Friedman’s “Profit-First” Mentality
Here’s where I fundamentally depart from traditional business thinking. Economist Milton Friedman famously argued that “the social responsibility of business is to increase its profits.” In his 1970 essay, he claimed companies should focus exclusively on profit, leaving social issues to the government. But today, that philosophy is outdated and, frankly, dangerous. Friedman’s ideology ignores the reality of today’s interconnected world, where companies have a direct impact on social, environmental, and economic issues.
Business leaders, like it or not, are in a powerful position to shape society. But that comes with a responsibility. Companies make up over 60% of global GDP and employ millions. Imagine the impact if more businesses decided to serve—not just their customers, but the communities they’re a part of.
In fact, research has shown that Friedman’s view is not only harmful but also counterproductive in today’s market. Companies that prioritize long-term impact over short-term profits consistently perform better. A study by NYU Stern School of Business found that companies with high Environmental, Social, and Governance (ESG) ratings had better financial performance and lower volatility. In today’s climate, where social issues are inextricable from business performance, companies can’t afford to operate as if they are separate from society.
Reimagining Companies as Mini-Nations
It’s time for companies to rethink their role. Rather than seeing themselves as isolated entities, companies should act as mini-nations, with leaders as stewards committed to the well-being of their “citizens”—their employees, customers, and communities. And let’s be clear: this isn’t just ethically sound; it’s financially smart.
Here’s Why Serving Communities Works:
Higher Profitability: Companies with strong Environmental, Social, and Governance (ESG) practices see 25% higher profitability. Service isn’t charity—it’s smart business.
Employee Engagement: When employees feel connected to a real mission, they’re 21% more productive and generate 23% more profitability.
Customer Loyalty: 88% of consumers prefer to buy from brands with a purpose. People buy from companies they trust, period.
Investment Appeal: Investors are pouring money into socially responsible companies. If you want long-term capital, show you’re serious about serving society.
A Call to Leaders and Founders
This isn’t just a feel-good call to be “purpose-driven.” It’s a call to be bold, to take real action, and to be good stewards of the power you have. This is the moment to make an impact—and it’s your duty. In a world where needs are growing and governments may not fill every gap, business leaders have to step up. You don’t have to solve every problem, but in big and small ways, you can start showing up for the people around you.
Ways to Make a Difference:
Feed the Homeless: Support local food banks, sponsor community meals, or volunteer your team’s time.
Serve the Poor: Invest in affordable housing initiatives, provide low-interest loans, or support financial literacy programs.
Health and Wellness: Offer mental health resources and wellness programs for employees and communities.
Environmental Impact: Invest in sustainability and green initiatives; support local environmental projects.
Community Crisis Support: Create disaster relief funds or partner with shelters to provide emergency resources.
Building a Company That Stands for People
In building our company, we didn’t just want to solve a problem; we wanted to serve people, to do the right thing, and to be on the right side of history. We’re still an early-stage company, and while our blast radius isn’t big yet, we’re always thinking about this. Our first stakeholder is each other—how are we making sure we’re all okay? What do we want to stand for? How do we want to serve?
This is what business should be. We can all build companies that don’t just make money but strengthen the communities around us. The path forward isn’t just about profits; it’s about purpose and leaving a legacy worth remembering. This is the future of business. Let’s be the ones to lead it.
let’s do our part,
m