Green (2014), explains the relationship between social progress and GDP of a country. The social progress status of a country, according to Green (2014), is independent of its GDP level. In most countries, however, a high social progress status is dependent on high GDP. When a country’s levels of income rises, social progress that emerges from economic development end up getting exhausted (Porter & Stern, 2014).
Several social and environmental challenges result from a country’s economic growth. Fast-growing economies that disregard social progress concerns show success and improved GDP. A high social progress status, therefore, does not necessarily mean improvement in GDP. For instance, nations such as Chad show low social progress index but have comparatively high GDP.
It is justified that social improvements result from many myopic reforms that cause the GDP-Social Progress cohesion (Grzesiak et al., 2014). The cohesion ensures that a rise in GDP influences positive changes in social progress index of a particular economy.
Deloitte imperative is a strategy that focuses on addresses fundamental economic issues such as incorporating social progress in economic growth (Talbot, 2014). It emphasizes the need for governments to visualize beyond the boundaries of micro-economic levels in supporting social progress.
Social progress is imperative in evaluating business because it relates to the per capita income. Business success in a region depends on consumers’ purchasing power. Social progress, therefore, is a vital component to consider when evaluating a business.
Social entrepreneurial behavior is fundamental to driving social progress in any economy (Skoll & Osberg, 2013). It is important because social entrepreneurs get motivated through opportunities they identify and vision they pursue.
Green, M. (November 11, 2014) What the Social Progress Index can reveal about your country. TED Talk.