MIT Sloan Management Review Article on Business Needs a Safety Net

It is standard fare for large companies to talk about their contributions to society, but 2017 has provided new evidence that businesses may need to rethink their purpose in society. In just one month — September — the southern United States and Mexico were hit by three Category 4-plus hurricanes and at least two major earthquakes that devastated entire communities. Over 400 people died in two powerful quakes occurring 11 days apart in Mexico, while Puerto Rico faced the prospect of being without power and clean water for months in the aftermath of Hurricanes Irma and Maria (even as the U.S. was cleaning up after Hurricane Harvey, which hit Houston less than a week before Irma struck).

The following month, three more major events hit: Wildfires in California yielded a predicted $85 billion in losses, while Spain and Portugal similarly saw devastating blazes. Hurricane Ophelia left three Ireland residents dead, with hundreds of thousands lacking power.

About the Author

David Kiron is the executive editor of MIT Sloan Management Review. He tweets @davidkiron1. Gregory Unruh is the Arison Group Endowed Professor at George Mason University in Fairfax, Virginia, and MIT Sloan Management Review’s guest editor for the Sustainability Big Ideas Initiative. He can be reached at unruh@mit.edu or on Twitter @davidkiron1.

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