Over the past five decades, the priorities of the business world have changed with regard to their role in making the world a better place. Today, businesses and their leaders are tasked not only with turning a profit but also with impacting their communities in positive ways. As Californian real estate expert David Malcolm puts it, we’re seeing “a new worldview coupled with a generational shift.”
He attributes this change to two crucial, interrelated factors: a global awareness that natural resources are not inexhaustible and a demand for a model of sustainability that can impact future generations.
In a recent Forbes article, Malcolm touched on how businesses can thrive while also bringing about great social impact.
On the Business World’s Changing Vocabulary
According to Malcolm, it all starts with understanding the vocabulary around social change. When he first entered the business world 50 years ago, terms like “socially responsible investing” and “corporate social responsibility” did not exist.
A deep understanding of such terms matters because today they should be baked into the values that companies adopt.
As Malcolm puts it, “Once upon a time, it was about feeling good (giving back after achieving success). Then, it was about doing good (supporting the community that feeds you). Now, it is about being good (having it built into the mission).”
David’s Journey of Enlightenment
In discussing the beginning of his career, Malcolm is brutally honest: “I did not balance the imperative for business success with the desire for social impact when I started. The drivers in the beginning were ambition, career, income and family.”
But as the decades passed and his worldview expanded, Malcolm realized that operating a business is about much more than profiting; social impact is just as important. And that doesn’t simply mean joining the board of directors for nonprofits as Malcolm began doing —it means establishing the right mindset throughout a company, listening to multiple stakeholder groups and feedback from others.
The People Who Care
But many business owners struggle with social impact: Who really cares? Who really notices? And who do these changes truly impact?
According to David Malcolm, positive social impact matters greatly to various groups, from employees and consumers to governments.
“Corporate character is a core value for employees today,” he says. “They will vote with their feet, especially younger employees. Governments care, too. Regulators grant or withhold licenses to operate based in large part on companies’ impact on the outside world. They vote with permits. Customers choose and vote with their wallets.”
Financial institutions also care. As Malcolm puts it, “Banks take note and make decisions with this in mind! I am in real estate and depend on banks to finance acquisitions, improvements and much more. It is not just the percentage return they consider today. KPMG reports that banks have ESG (environmental, social, governance) squarely on their radar.”
Being Genuine
There’s one last thing Malcolm touched on that is of paramount importance: Businesses cannot fake social impact. They cannot greenwash, nor can they “purpose-wash,” lest they be exposed.
“In my company, we ask ourselves how can we leave the community better each year,” Malcolm says. “To do this the right way, define ‘community,’ define ‘better’ and build that into your mission. Then live it every day.”
About David Malcolm
With a five-decade track record of success in the real estate industry, David Malcolm is the President of Cal West Apartments, which has provided financing and homes for thousands of residential and commercial clients. Malcolm has also served in several civic offices and is a generous contributor to many public and private organizations.
DISCLAIMER: No part of the story was written by The Signal editorial staff.
