Podcast Summary
Reevaluating business values and the future of economics: The pandemic has accelerated the shift towards more equitable business models, emphasizing collaboration, stakeholder capitalism, living wages, and climate impact.
The current economic crisis brought about by the pandemic has led many to reevaluate their values and the role of business in society. Traditional business practices, such as prioritizing quarterly returns, are being questioned, and there's a growing interest in more regenerative and distributive economies. Businesses are being encouraged to prioritize collective well-being and create good jobs that support families. The pandemic has highlighted the need for change and the potential for new, more equitable business models. Corey Hagen, Ted's business curator, emphasizes the importance of true collaboration and the need to admit that the current business playbook is broken. The future of business will likely involve a shift towards stakeholder capitalism, living wages, and a focus on climate impact. These changes may not be easy to implement, but they are necessary for creating a more sustainable and equitable economy for all.
Reevaluating the worth of historically undervalued workers: Advocate for domestic workers' rights and recognition as essential, challenge hierarchical human value systems, prioritize people over growth in businesses, and recognize all forms of work's importance.
We need to reevaluate and revalue the work and workers who have been historically undervalued and invisible in our society, particularly domestic workers. Aijin Poo, the Executive Director of the Domestic Workers Alliance, passionately advocates for their rights and recognition as essential workers. The cultural devaluation of domestic work reflects a hierarchical human value system that prioritizes some groups over others. These workers, mostly women and disproportionately women of color, play a fundamental role in our lives, caring for our loved ones and enabling us to go about our daily business. Economist Kate Raworth argues that businesses should shift their focus from growth as the sole objective to valuing and prioritizing people. This interconnectedness and recognition of the importance of all forms of work and workers is crucial for a more equitable and prosperous future.
The unsustainability of constant economic growth: Economic growth prioritization can lead to societal issues, as shown by Uber's focus on growth over driver responsibility. A circular economy model offers an alternative approach to long-term sustainability, focusing on meeting essential needs without overusing resources.
Constant economic growth is not sustainable and may lead to societal issues. The example given was the rise and fall of Uber, which prioritized growth over responsibility for its drivers. The focus on growth has led to a system that relies on perfect supply and demand matching, but when crises hit, it can result in a total breakdown. Economist Kate Raworth proposes a circular economy model, represented by a donut, which aims to provide for everyone's essential needs without overusing resources. The goal is to move beyond the mindset of constant growth and find alternative ways to structure companies and society for long-term sustainability.
Shifting towards a regenerative economy: To create a regenerative economy, we need balance between protecting the environment, people, and companies. Measuring success through alternative metrics like happiness index can help prioritize essential needs.
We need to shift our economy towards a regenerative and distributed model, focusing on circular systems and reducing waste. This requires a balance between protecting the environment, people, and companies. The challenge is to meet the needs of all within the means of the planet. A dynamic balance, like the symbol of well-being in ancient cultures, is essential for replenishing to happen. However, this balance may require some people to give up certain privileges, such as having an excessive number of billionaires. Instead of measuring success through GDP or money, we could consider alternative metrics like a happiness index, focusing on essential needs such as housing, education, and food security. Ultimately, for a regenerative economy to take hold, it will require leadership from companies and their CEOs to adopt a different mindset.
Leading with a focus on people and community: Successful business leaders prioritize investing in their workforce and community, leading to a thriving business and positive impact.
Successful business leaders, like Hamdi Ulukaya, understand that investing in people and communities can lead to greater success, rather than solely focusing on shareholder return and spreadsheets. Hamdi's purchase and revitalization of a struggling yogurt factory, which became Chobani, serves as a powerful example. He prioritized hiring back and investing in the local workforce, creating a thriving business and becoming an advocate for the "anti-CEO playbook." This approach not only benefits the company but also the people and community involved, proving that the human element is essential to business success.
Businesses can prioritize community, kindness, and consumer satisfaction: Large companies can successfully prioritize values over profit and consumers should support them, creating a win-win situation.
Businesses, even large and successful ones, have the potential to prioritize community, kindness, and consumer satisfaction over pure profit. Chobani's example of giving employees a share of the company and personally responding to consumer feedback demonstrates this idea. However, consumers also have a responsibility to exercise their power and choose where to spend their money. Despite the convenience of monopolies like Amazon, there are alternatives and consumers should strive to support businesses that align with their values. Chobani's success in implementing these values shows that it's not just a niche approach, but a viable business model for larger companies as well.
The outdated idea of business leaders as heroes: Embrace interdependence and collaboration for effective and sustainable business outcomes. Set goals requiring collective effort and invite everyone to contribute ideas.
The idea of business leaders being heroes is outdated and harmful. Instead, we need to embrace radical interdependence and value collaboration and openness. Lorna Davis, a former CEO, shares her experience of wanting to be a hero and the realization that it's not effective or sustainable in today's complex world. She advocates for setting goals that require collective effort and inviting everyone, including employees and competitors, to contribute their ideas. Hero culture persists due to the challenges of vulnerability and transparency, but the rewards of interdependence are worth the effort. With the increasing interconnectedness of the world, it's crucial that we start prioritizing collaboration and mutual support to tackle the challenges we face.
Thinking beyond consumers: Companies as a force for good: B Corps encourage businesses to consider their impact on the environment and people, fostering collaboration and innovation for a better future.
Collaboration and considering the impact on each other and the environment are crucial for individuals, businesses, and the economy as a whole. The B Corp model, which certifies companies for being a force for good, encourages businesses to think beyond their consumers and consider their actions' effects on the environment and the system at large. Companies like Patagonia and Eileen Fisher, both B Corps, demonstrate this interconnected mindset by encouraging customers to repair or return their clothes instead of buying new ones. While competition exists, these companies collaborate to solve shared problems. As we rebuild the economy post-pandemic, an interconnected mindset and considering our impact on one another and the environment could pave the way for innovation and positive change. Additionally, consumers can contribute by looking for and supporting B Corp certified businesses. Scotland's First Minister, Nicola Sturgeon, is an example of a government leader shifting the focus from GDP to people's well-being and working with other countries to promote this new way of thinking.
Countries focusing on well-being and happiness instead of just GDP: Smaller countries like Scotland, Iceland, and New Zealand are leading the way in prioritizing well-being and happiness over GDP, using new measurement tools and policies to address income inequality, access to green spaces, and other essential factors for a happy society.
A group of countries, including Scotland, Iceland, and New Zealand, are shifting their economic focus from solely relying on Gross Domestic Product (GDP) to prioritizing well-being and happiness. These countries are collaborating to establish new measurement tools and policies that consider factors like income inequality, access to green spaces, and access to housing, which are essential for a healthy and happy society but not captured in GDP statistics. The efforts include policies like equal pay, child care, and paternity rights. These countries, led by women, are demonstrating that such policies are not detrimental to the economy but rather fundamental to a functioning and happy society. While these countries may be smaller in size and population, their initiatives could serve as a starting point for larger economies to adopt similar approaches.
A profound reckoning in values: Companies are being challenged to make changes addressing employee, consumer, and investor demands. Reach out to successful companies, adopt their metrics, and start the process.
The current global situation is causing a profound reckoning in communities, countries, and economies about what we value. Corey Hage, Ted's Business Curator, believes this shift is not a flash in the pan but a significant moment of truth. Companies are being challenged to make changes that address the demands of employees, consumers, and investors. While there are historical challenges, there are also opportunities to learn from those who have successfully scaled similar initiatives. Hage suggests reaching out to these companies, adopting their metrics, and starting the process, even if it's not perfect at first. Ultimately, the length and impact of this shift will depend on what people decide matters. The trends towards change were already in motion, and this moment could provide even more momentum. It's a time to reflect, decide, and come back stronger.
