Very interesting post on the cost of “social detachment”!
“Business’ Increasing Proximity Risk – A look at the cost of social detachment”
Read the following quote from that post:
“A fellow board member of sustainability organization Business for Social Responsibility (BSR) recently talked about this phenomenon known as ‘social detachment.’ I like the terminology. The price of being too distant and too removed from your community and your customers has recently increased. Better understanding of how your product and services truly impact your community is perhaps one of the best forms of brand insurance a company can buy.
BSR provides such insurance to many of large Fortune 500 companies. What’s encouraging is that it has found that despite the economic crisis, more and more organizations have realized that while many costs need to be cut, the social responsibility activities of companies should be expanded. Many companies buy traditional insurance — and it may make sense to do so — but I would argue that buying social insurance by getting closer to the end-users of your products is even more important. A building or a machine can be replaced, but many of the companies, and perhaps countries, that got lost in translation in this crisis will most likely never stand up again. At least not any time soon.”
By Mats Lederhausen, March 16, 2009