Richard Branson: “Business should focus more on solving social problems”

Business must achieve its goal - making profit. But at the same time it should increasingly focus on solving social problems. This idea Richard Branson, founder of Virgin Corporation, shared with the participants of the Second Davos Philanthropic Roundtable conducted by the Victor Pinchuk Foundation during Annual Meeting of World Economic Forum.

[for a full archive of information on the event - see project's page]

"Capitalism is the only economic system that really works", he underlined, saying that the downside of the capitalist system is accumulation of great wealth in hands of relatively small number of people. "Not all of these people use their assets to create new jobs and new opportunities." Branson stated.

This is precisely why social role of business, as said by Richard Branson, is so important in modern world. "A modern company should focus not only on making money, but also on solving social problems and investing in protection of environment." he said reminding the participants about his own initiative to establish an award for development of know-how to reduce emissions. Businessmen could make a contribution to this segment not only by bringing money but also introducing innovative business tactics. As an example, Richard Branson mentioned a company that has introduced new technology for fuel production from agricultural waste products.

As reported earlier, more than 300 representatives of international business and political elite, the largest charity foundations and NGOs, corporations and venture funds participated in the Second Davos Philanthropic Roundtable conducted by the Victor Pinchuk Foundation during Annual Meeting of World Economic Forum.

Background

A philanthropic meeting point organised by the Victor Pinchuk Foundation in Davos during Annual Meeting of the World Economic Forum, Davos Philanthropic Roundtable is aimed at developing philanthropy in Ukraine and increasing effectiveness of social projects. Main theme of the Second Davos Philanthropic Roundtable, entitled "From Philanthrocapitalism to Philanthrocrisis", was the impact of the economic crisis on philanthropy and perspectives of philanthropy development.

The key speakers at the event were the dignitaries who have significantly contributed to the development of a new model of philanthropy: 42nd President of the United States Bill Clinton; former
Prime-Minister Of Great Britain Tony Blair; businessman and philanthropist Richard Branson; Laureate of 2006 Nobel Peace Prize Muhammad Yunus; actor and founder of the One Foundation Jet Li, founder of the Bill and Melinda Gates Foundation Bill Gates and also Victor Pinchuk, the Roundtable organiser, public leader and businessman. Matthew Bishop, Chief Business Editor of The Economist and co-author of the book "Philanthrocapitalism: How the Rich Can Save the World" acted as a moderator of the discussion.