The Corporate Citizen and Economic Development

The old adage states, “Give a man a fish and feed him for a day; teach a man to

fish and feed him for a lifetime.” One of the great obstacles to world prosperity is a

general lack of basic education among the disadvantaged of the world and the resultant

illiteracy. UNESCO, in its pamphlet The Right to Education (UNESCO. The Right. Pg

1), states, “Education is an inalienable human right. It is also unique in that it empowers

the individual to exercise other civil, political, economic, social and cultural rights,

attaining a life of dignity, while ensuring a brighter future for all, free from want and

fear.” Although education is not a silver bullet against the ills of the world, providing the

disadvantaged of the world with that lifeline enables them to more effectively struggle to

overcome the circumstances that bind them to their life of ignorance and poverty.

Due to the economic incentive and the pride that gainful employment provides,

businesses are in a unique position to influence for good the populations of the countries

in which they operate. There are three basic areas where this influence can be manifest.

First, as an employer, the company can provide vocational training. Second, the

company can provide incentive and money for education in company related fields. And

finally, the company can invest in the local school system, building a new generation of

quality employees and creating a good public image. The responsible corporate citizen

doesn’t strive to merely extract all possible profit from their host country, but to improve

the lot of its citizens as well. This is in reality a symbiotic relationship in which the

company provides training, education, economic support, and humanitarian aid to the

community and the host society provides motivated employees who are ever more

capable of contributing to the profitability of the company.

While much of the world’s humanitarian aid merely applies a bandage to the

symptoms of poverty by supplying the needy with basic provisions, businesses have the

will and incentive to treat poverty’s root causes by providing economic incentives to

work, go to school, and challenge the political, social, and institutional barriers to

personal prosperity. The first step is giving employees on the job and formal vocational

training and then paying them for the use of those skills. A teenager who must buy his

own car generally takes greater pride in his purchase, however humble it may be, than he

whose parents provide the vehicle and fuel. Similarly, a Senegalese villager will take

more pride in the bread he has earned than that, which was given to him with no effort on

his part. Although direct humanitarian aid is important, the hand that lifts him out of the

cycle of poverty not only feeds him, but restores his pride by making him a self sufficient

provider for his family.

The second area of influence involves programs to provide and encourage formal

education. By encouraging unskilled employees to seek formal education in a company

related field, businesses can build a cadre of well trained employees, who know and

understand the local culture and can therefore more effectively lead their coworkers.

Meanwhile, the employee increases his earning power and ability to influence his society.

The final task, while long term in nature, is arguably the most important. A

company that comes in and exploits the workers and resources without contributing to the

wellbeing of the community is often resented and does not enjoy the loyalty of its

employees. By investing in the local school system, a company improves the lives of the

students, while also building a more capable generation of prospective employees.

Additionally, a father that sees his employer making his child’s life better will often be

more devoted than one who only sees the monthly paycheck. The UNESCO’s 2002

report on its Education for All initiative states, “…education is important for at least three

reasons. First, the skills provided by basic education, such as being able to read and

write, are valuable in their own right...Second, education can help to displace other more

negative features of life…Third, education has a powerful role in empowering those who

suffer from multiple disadvantages. Thus women who have benefited from education

may simply survive better and longer than they would otherwise,” (UNESCO. Education

for All. Pg. 14).

While humanitarian aid in the classic sense of providing for the immediate needs

of the less fortunate is vital, the underlying goal of any aid program should be to remove

the underlying causes of suffering. Responsible businesses can effectively fill this role.

A great example is Western Union’s Our World, Our Family program. In addition to

providing direct humanitarian aid, Western Union also funds education and mentoring

programs to help build self sufficiency in migrant communities. Western Union has

provided educational benefits to over 500,000 migrant youth in the United States over the

past 26 years resulting in a 94 percent graduation rate (Western Union. “Our World.”

Para. 1-8). Western Union’s program and similar initiatives of numerous other

corporations are making differences in the lives of those otherwise condemned to

poverty. By giving the gift of education these corporate philanthropists are providing the

proverbial fishing hole that will likely feed the man and his loved ones for generations to

come.

List of Sources

Bernstein, Jason. “Is Education the Cure for Poverty?” The American Prospect. April 22, 2007. < http://www.prospect.org/cs/articles?article=is education the cure for poverty >. Accessed March 12,2008.

Lodge, George C. “Using Business to Fight Poverty.” Working Knowledge for Business Leaders. Harvard Business School. August 12, 2002. <http://hbswk.hbs.edu/cgi-bin/print> . Accessed March 12, 2008.

UNESCO. The Right to Education (pamphlet). September 26, 2005. Paris, France. <www.unesco.org/education>. Accessed March 12, 2008.

UNESCO. “Right to Education.” <http://portal.unesco.org/education/en/ev.php>. Accessed March 12, 2008.

UNESCO. Education for All: Is the World on Track? 2002 EFA Global Monitoring Report. Paris, France. <www.unesco.org/education> . Accessed March 12, 2008.

University of Maryland. Poverty Rates By Education (graph). <http://bsos.umd.edu/socy/vanneman/socy441/trends/poveduc.jpg>. Accessed March 12, 2008.

Western Union. “Our World, Our Family Program.” Copyright 2001-2008. <http://corporate.westernunion.com/ourworld.html> . Accessed March 12, 2008.

World Bank Group. “Education and the World Bank, What is the World Bank Doing to Support Education.” 2008. <http:web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTEDUCATION>. Accessed March 12, 2008.

World Bank Group. “FAQ.” Updated April 2006. <http:web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTEDUCATION>. Accessed March 12, 2008.

World Bank Group. “Education and Development, Why is Education Important to Development?.” Copyright 2008. <http:web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTEDUCATION>. Accessed March 12, 2008.