The world we face today is vastly different from the one our parents knew. In fact, things are changing so rapidly that the challenges and opportunities we experience now will differ significantly from those that today’s children will encounter as adults. These shifts are most evident in technology and the environment—but significant social transformations are also occurring.
Those most affected by these changes are often the least equipped to cope with them. Consider the shift to a knowledge economy and the marginalisation of traditional manufacturing workers, or the increasingly homogenised nature of local communities and the resulting erosion of social capital.
Unfortunately, little attention is paid to the changing nature of these social problems. Perhaps this is because the changes are often subtle and nuanced, with the greatest impact felt by those who remain unseen and unheard in our communities. When we do think about social issues, we often rely on outdated perceptions—such as the belief that poverty results from material deprivation or moral failure. These simplistic views overlook the complex and evolving nature of disadvantage.
If concerned institutions—including businesses—are to mount effective, long-lasting interventions, then these issues must be discussed, debated, and critically reflected upon.
One of today’s greatest challenges is the growing complexity of social problems. Many of the issues our communities face are increasingly layered, often influenced by individual capacity and context. Getting to the root of these issues is difficult—they are frequently hidden and interwoven, much like the root system of a large tree.
In Solving Tough Problems, Adam Kahane offers insights into this complexity, noting that creating meaningful change requires intentionality, creativity, and perseverance. Kahane also highlights that many complex problems lack stakeholder consensus on both the core issue and the desired solution. These challenges are often characterised by unpredictable outcomes, and the benefits of effective action may only become apparent over time.
Every problem in modern life carries social and economic costs. Poverty is no exception. In many cases, the costs of not addressing these issues are far greater than the investments needed to prevent them.
Think about:
It’s in our collective interest to address these social problems—not only because of the business case, but because our humanity demands it. However, compassion alone is not enough. We must respond strategically and intentionally, intervening early before issues become chronic and costly.
For decades in South Africa, non-profits, governments, and businesses have responded to social issues with good intentions. But with each new generation, it’s critical that we rethink interventions to reflect the evolving nature of social challenges.
This points to a clear need for greater social innovation.
In the business world, innovation is a given. Companies invest in research and development to meet changing customer needs and stay competitive. So why should our approach to poverty and disadvantage be any different?
In The Process of Social Innovation, Geoff Mulgan criticises the lack of focus on innovation in the social sector, despite increasing unmet needs. He calls for greater investment in new interventions, which can be piloted and scaled for impact.
Crucially, social innovation isn’t just for altruists. It’s a responsibility shared across sectors—especially institutions committed to collaboration. Innovation must also be disciplined, refining solutions so they can be scaled and replicated for wider effect.
In addition to social innovation, many experts now advocate for a more collaborative approach to tackling today’s “wickedly complex” social problems.
In a landmark article in the Stanford Social Innovation Review, Kania and Kramer introduced the concept of Collective Impact. Unlike typical collaborations, collective impact requires:
This approach elevates social change efforts from isolated interventions to system-wide improvements, where cross-sector collaboration can generate meaningful, lasting change.
Social innovation and collective impact are both critical—but what is the role of business?
In recent decades, businesses have begun to redefine their roles as corporate citizens. The traditional model—where profitability was the sole community service—is being replaced with a broader focus on social and environmental sustainability.
Corporate Social Responsibility (CSR) has evolved. While once focused on philanthropy and marketing, many corporations now align CSR with their core business strategies. Yet, despite increased CSR efforts, macro-level social and environmental indicators continue to worsen.
As Wayne Visser writes in The Age of Responsibility, “despite more CSR than ever before… virtually every macro-level indicator… shows that things are still getting worse, not better.” He offers guiding principles for a new CSR era: creativity, scalability, and responsiveness.
The next frontier of CSR demands a closer interface between business and community.
Just as good customer service keeps businesses tuned to changing client needs, CSR must be similarly responsive. This shift calls for businesses to become more adaptive, learning from past models and being open to the complex and messy realities of social issues.
As Porter and Kramer argue in The Competitive Advantage of Philanthropy, businesses that align social and corporate goals—by improving the business environment where they operate—achieve better outcomes for both society and their bottom line.
Tackling modern social problems demands a new kind of leadership.
Professor Ron Heifetz, in Leadership Without Easy Answers, emphasises the importance of adaptive leadership—which mobilises people and institutions to tackle complex problems that can’t be fixed with technical solutions alone.
Similarly, Adam Kahane and authors like Kania and Kramer highlight the need for:
Kania and Kramer also introduce the concept of “backbone organisations,” which support sustained stakeholder collaboration—though such work is “messier and slower” than traditional grant-making, it is essential for systemic change.
At Lusa, we are embracing this new leadership model through our Community Impact Strategy, built on three core principles: Collaboration, Evidence, and Innovation.
Businesses play a vital role in Lusa’s community work. Our strategy pushes CSR beyond traditional boundaries—creating direct engagement to tackle complex issues. Here, corporate partners become co-creators of change, not just funders.
This partnership can mobilise more resources—financial, material, and human—than non-profits could alone. It also unlocks new modes of community volunteering:
This approach aligns social issues with business interests, delivering more strategic and emotionally resonant engagement opportunities for employees.
This new paradigm offers tremendous potential. CSR can evolve from transactional giving to holistic community engagement, unlocking underutilised corporate assets and generating competitive advantages—as Porter and Kramer affirm.
With three decades of experience, Lusa has developed strategies that:
Together, through collaboration, innovation, and evidence-based action, we can forge a new path—one that leads to lasting, meaningful change for communities and for business.
