Companies taking a lead in addressing major world problems – notably societal inequality and climate change – will become the most successful of the 21st century, business leaders will be told in London tonight (Tuesday).
Paul Polman, ex CEO of Unilever, will address more than 100 business chiefs attending the Odgers Berndtson Chair and CEO dinner in London tonight.
“Capitalism, which has been responsible for the growth and prosperity that has done so much to enhance our lives, is a damaged ideology and needs to be reinvented for the 21st century,” Paul will say. “Business needs to re-invent capitalism; we need to build a new model of inclusive and sustainable capitalism.”
As CEO of Unilever, Paul was one of the first global business leaders to show that multinational companies could successfully combine purpose with profit to drive sustainable behaviours across all aspects of business.
WORK TOGETHER
Now leading IMAGINE, which he describes as an ‘activist corporation’, he wants other top companies and CEOs to work collaboratively to address the United Nation’s Sustainable Development Goals.
“Responsible business must step up,” he will say. “The commercial incentive for investing in the SDGs is compelling, with the opportunity to unlock economic growth worth at least $12 trillion a year and generate 380 million jobs. Companies with a strong sense of purpose are better able to grow not only revenue and profits but also create additional value, such as customer loyalty, attracting top talent and developing new products and services.”
SHORT-TERMISM
Business leaders will also hear that, 10 years after the financial crisis, short-termism still too often prevails.
Putting profit over long term prudence and prioritising short termism is not, according to Paul, in itself sustainable. Instead, businesses must focus on a ‘next decade of delivery’ and become a force for good.
Kester Scrope, CEO of Odgers Berndtson, will say at the dinner: “Increasingly leaders recognise the risks to their businesses associated with social inequality and climate change through changes in regulation and consumer behaviour. These challenges require greater agility and authenticity in leadership teams”.
