New Stakeholder-centric Purpose Drives 21st Century Capitalism

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For the last 50 years, Milton Friedman’s three-word corporate purpose mantra has been imprinted into the mindsets of  business school graduates: “maximize shareholder wealth.” The maxim worked well … for the 1%. In August 2019, the Business Roundtable acknowledged that 20th century shareholder-primacy capitalism has failed the rest of us and declared that the new / improved 21st century corporate purpose is to “maximize stakeholder wellbeing.” Stakeholder-primacy capitalism is not a revelation for the founders of the B Corp movement who have shown that operating for the benefit of all stakeholders is more rewarding in today’s tumultuous economy. The new stakeholder-centric purpose drives 21st century capitalism – and changes everything.
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3 Reasons To Upgrade To ES2B Business Models

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Most business models are out of date. They lack a systems perspective. Today’s business models omit the surrounding environment and society-at-large. They suggest no accountability for long-term impacts on the nests by company operations, by use of company products and by the ultimate disposition of its products. Classical business models treat impacts on the environment and society-at-large as externalities that are beyond the purview of company accountability. Doing business on today’s crowded, depleted planet requires more complete business models that are fit-for-purpose in the 21st century. There are 3 reasons to upgrade to ES2B business models that better reflect systemic environment-and-society-to-business dynamics.

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7 Ways Companies Can Contribute to the SDGs

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The Sustainable Development Goals (SDGs), a.k.a. the Global Goals, are increasingly embraced by companies as a useful reporting framework for their sustainability efforts. That’s a good thing. However, many companies focus on how they directly contribute to only three to five SDGs that are deemed to be most relevant to their business models and ignore the rest. They seriously undervalue their investments in social and environmental wellbeing. It’s time that they gave a more comprehensive and transparent account of the seven ways that they directly or indirectly create natural, human and social capital, as framed by the SDGs. Read more

7 Climate-Related Wake-Up Calls Are Fueling System Change

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“System change, not climate change” is the slogan for the global climate justice movement. It acknowledges that the socio-economic system that enabled our climate crisis must be transformed. A perfect storm of 7 climate-related wake-up calls are fueling system change. Read more

7 Reasons Why “Future Generations” are Key Stakeholders

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Climate destabilization is an existential threat to human civilization. Current and future generations are in jeopardy on our finite planet. So are businesses. They both have a lot at stake. There are seven reasons why it is time for companies to treat “Future Generations” as key stakeholders who are in urgent need of their attention.  Read more

5 Reasons Why “Mother Nature” is a Key Stakeholder

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For years, companies have treated the environment as an externality. The environment is not on their radar screens of stakeholders to whom they need to pay attention. Stakeholders are defined as “anybody who can affect, or is affected by, an organisation, strategy or project.” The environment is not a body / person. Maybe calling it “Mother Nature” would personify it enough for it to qualify as an “anybody.” There are five reasons why it’s time to treat Mother Nature as a key stakeholder. Read more

The Business Case for Sustainability, Redux … Seven times

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Question: “What’s the business case for sustainability?”
Answer: “Compelling! Doing the right thing for the environment and society enables a company to capture new opportunities and avoid new risks.”

Next Question: “Okay, but what’s the business case for sustainability?”
Answer: “…?!?! …”

I was reminded of this frustrating dialogue when I read Andrew Winston’s recent blog, “Explaining the Business Case for Sustainability Again … and Again … and Again.” Andrew is a guru on the business case for sustainability. His book, Green to Gold, is a classic.  In his blog, he recalls five different Groundhog Day-like discussions he’s had on the business case for sustainability. I smiled when I read them. It was a trip down memory lane. Read more

Are Three Enoughs Enough? Part 3: Making enough difference

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Sustainability champions want to make a difference. We want to create a new paradigm of responsible businesses helping to create a just and resilient human society on a finite, healthy planet. How do we stay upbeat when we fear that we are not making enough difference to accomplish our lofty goals, quickly enough? Let’s look at three dimensions of the answer. Read more

Are Three Enoughs Enough? Part 2: Enough sustainability

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How much sustainability is enough? That question niggled at me for years. When have companies contributed enough to the wellbeing of the environment and society? There are four ways that companies express their answer to that question. Using a company’s reduction of its carbon footprint as an example of a sustainability goal, let’s explore them. Read more

Are Three Enoughs Enough? Part 1: Enough wealth

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“Annual income twenty pounds, annual expenditure nineteen six, result happiness.
 Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”

― Wilkins Micawber, clerk, in Charles Dickens’ David Copperfield

 

Lately, I’ve found myself revisiting the concept of “enough.” Maybe it’s time we all did. Maybe we would benefit from being satisfied with enough wealth, achieving enough sustainability, and making enough difference. I will explore these three “enoughs” in three blogs, starting with enough wealth. Read more