There’s a responsibility that comes with being a global firm. Companies need to have a positive impact, both short and long term, on the communities they do business in.
UPS became a global company nearly 30 years ago, and now operates in 200 countries. The business model stresses the importance of taking an integrated approach to development. Companies need to be integrators, rather than extractors, when it comes to world-wide business practices.
What is the difference between extraction and integration? In the extraction model, companies enter a community, demand extravagant incentives from the local government, grab any resources they want and turn tail if things go bad. Generous incentives are offered by the locals, as communities try to please their new neighbours.
The integration approach is more of a two-way street. Companies contribute to the local community to enable it to sustain itself. They take a long-term, big-picture view and they act responsibly.
Sustainable development was defined by the United Nations as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” Initially, this focus was on reducing the environmental footprint. Today’s definition includes the social, environmental and financial success of companies — the so-called “triple bottom line.” The goal is to positively impact a society while achieving business success. Increasingly, companies are viewing sustainability as good business. There are several economic development trends worth noting.
First, roads, bridges and airports are critical, but information highways and intelligence infrastructure are becoming ever more important. The communities that will win business in the 21st century are those that are laying down cable, fibre and digital switches. The communities that will win are those that are pouring resources into education, research, excellent teachers and life-long learning. The communities that will win are those that are attracting young entrepreneurs who will craft the innovations in technology that grow new companies.
Another trend involves embracing sustainable development practices. People want to live and work in healthy communities — economically healthy, but just as important, environmentally and socially healthy.
We live in an age in which we have the technology and the incentives to allow people to live and work just about anywhere. Quality of life matters more now than ever. At the same time, there’s another trend that’s just as vital, and which is closely related to sustainability, and that is regionalism. Regionalism and regional economic development partnerships are clearly the way to move forward in a global economy. Jurisdictional battles and petty disputes between neighbours block progress and hinder economic development.
The path to economic prosperity is sustainable development. Companies and communities need to come together, sharing responsibilities to create sustainable, responsible growth. This can only be achieved if organizations and developers take an integration approach to economic development.
Lea Soupata is UPS’s senior vice-president of human resources.
UPS became a global company nearly 30 years ago, and now operates in 200 countries. The business model stresses the importance of taking an integrated approach to development. Companies need to be integrators, rather than extractors, when it comes to world-wide business practices.
What is the difference between extraction and integration? In the extraction model, companies enter a community, demand extravagant incentives from the local government, grab any resources they want and turn tail if things go bad. Generous incentives are offered by the locals, as communities try to please their new neighbours.
The integration approach is more of a two-way street. Companies contribute to the local community to enable it to sustain itself. They take a long-term, big-picture view and they act responsibly.
Sustainable development was defined by the United Nations as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” Initially, this focus was on reducing the environmental footprint. Today’s definition includes the social, environmental and financial success of companies — the so-called “triple bottom line.” The goal is to positively impact a society while achieving business success. Increasingly, companies are viewing sustainability as good business. There are several economic development trends worth noting.
First, roads, bridges and airports are critical, but information highways and intelligence infrastructure are becoming ever more important. The communities that will win business in the 21st century are those that are laying down cable, fibre and digital switches. The communities that will win are those that are pouring resources into education, research, excellent teachers and life-long learning. The communities that will win are those that are attracting young entrepreneurs who will craft the innovations in technology that grow new companies.
Another trend involves embracing sustainable development practices. People want to live and work in healthy communities — economically healthy, but just as important, environmentally and socially healthy.
We live in an age in which we have the technology and the incentives to allow people to live and work just about anywhere. Quality of life matters more now than ever. At the same time, there’s another trend that’s just as vital, and which is closely related to sustainability, and that is regionalism. Regionalism and regional economic development partnerships are clearly the way to move forward in a global economy. Jurisdictional battles and petty disputes between neighbours block progress and hinder economic development.
The path to economic prosperity is sustainable development. Companies and communities need to come together, sharing responsibilities to create sustainable, responsible growth. This can only be achieved if organizations and developers take an integration approach to economic development.
Lea Soupata is UPS’s senior vice-president of human resources.
