In a 1970 essay for the New York Times, the economist Milton Friedman wrote, “the social responsibility of business is to increase its profits.” What followed was decades of economic growth, though often at great social cost. Paul Polman, the former CEO of Unilever, recently offered a different view when he suggested that profits should come “not from creating the world’s problems, but from solving them.” The March 31 Maine Sunday Telegram editorial (“Greater housing opportunities will require lateral thinking”) illustrates the how.

The editorial described Kennebunk Savings Bank’s decision to “use land it owns and does not use for a 70-unit affordable housing unit for older Mainers.” We don’t know what economic gains the bank will reap from this – but competitive advantage in gaining new customers and short-term economic prosperity are likely outcomes – all because the bank is directly addressing a social challenge using its resources and strengths.

The Androscoggin Bank recently identified another social challenge: a growing community of devout Muslims in Maine unable to access mortgages due to Quranic prohibitions around engaging in transactions that involve collecting or paying interest. This excluded many families from achieving homeownership and the community roots that go with it. In response, the bank developed a new financial product enabling a viable path to home ownership – and likely competitive advantage for the bank.

These two examples of profitability – from solving social challenges rather that creating them – are a small fire. Let’s fan the flames.

Bernard Mohr
Portland

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