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YPO April 2019.Pdf MEET THE NEW KIND OF CAPITALIST TM INSPIRE THE FUTURE www.real-leaders.com BEYOND UNILEVER ANYONE PAUL POLMAN CAN BE SHOWS US AN IMPACT A BETTER INVESTOR WAY TO (YES, YOU!) LEAD + GREAT ADVICE FROM AKON CARLY FIORINA MUHAMMAD YUNUS CHARLIZE THERON MARY ROBINSON 10 LARRY FINK INSPIRING IMMIGRANTS WHO LEAD THE WORLD IN INNOVATION WE SUPPORT Cinderella_Real Leaders_March2019_210x275mm_ENG.pdf 1 18/3/2562 BE 17:08 CRAFTING THE EXTRAORDINARY TM CINDERELLA RESPONSIBLY SOURCED DIAMONDS FROM ROUGH TO JEWELRY Cinderlla (Engish) Magazine: Real Leaders, Date: March 18, 2019 Size : (Trim) W21 x H27.5 cm. (Breed) W22 x H28.5 cm. Cinderella_Real Leaders_March2019_210x275mm_ENG.pdf 1 18/3/2562 BE 17:08 VIDEO CRAFTING THE EXTRAORDINARY TM CINDERELLA RESPONSIBLY SOURCED DIAMONDS FROM ROUGH TO JEWELRY Cinderlla (Engish) Magazine: Real Leaders, Date: March 18, 2019 Size : (Trim) W21 x H27.5 cm. (Breed) W22 x H28.5 cm. vs. capitalism, as society continues to grapple KIND CAPITALISM with economic inequality, degradation of life- “We have to find sustaining ecosystems, healthcare, retirement, and a way to make a host of other challenges. Meanwhile, real leaders the aspects of everywhere are busy building a newer and healthier capitalism that form of capitalism that serves all stakeholders (not just shareholders). This new economic system serve wealthier goes by many names. Harvard Business professor people serve poorer Michael Porter calls it “shared value.” Others call people as well.” it conscious capitalism, sustainable business, ESG, — Bill Gates impact investing, the triple bottom line (People, Planet, and Prosperity) or socially responsible investing (SRI). There are also several thousand “Benefit Corporations” or “B Corps” that have been certified as being good for our people and our planet Do you ever wonder why people want us to choose by B Lab (who has partnered with us for the Real between two opposing viewpoints, as if there Leaders 100 Top Impact Companies Awards). are no other options? Why are we ever presented In this issue, you’ll meet many leaders who with a decision to choose between capitalism and represent this new kind of capitalism, or rather, socialism? Surely, this a false choice. “kind capitalism.” They are committed to leveraging Hasn’t the world already chosen capitalism, the power of capitalism to solve the many real even in communist countries such as China? The and existential threats we face today. They have new normal is for many countries to now decide discovered the Holy Grail: a way to thrive in their how they’d like to adapt the capitalist model to personal lives and finances by leveraging their deliver maximum benefits to citizens. But let’s be business as a force for good. It’s not easy. Making clear, unregulated capitalism would be a horribly money is always challenging, but doing so while destructive force — with child slave labor, hunger, protecting the environment, improving lives, rampant pollution, environmental degradation, and solving social problems is more so. But, mass extinction, and ultimately, a planet unsuitable it’s hugely rewarding. for human life. Some may say this is already the If you’re still skeptical after reading our path we’re on, despite the many existing laws that special section titled, “How to Lead with Your protect society from unbridled capitalism. How do Money” (pg 78), read what BlackRock, one of we get the balance right? How do we tame the beast the largest investors in the world, has to say in its of capitalism to serve us more like a racehorse and 2019 annual letter, “People and Profit”(goo.gl/ less like a bucking bronco trying to throw us to the j4n16C). Addressed to the CEOs of companies ground? BlackRock invested in, Chairman Larry Fink As ordinary citizens, we make choices each day writes: “Companies that fulfill their purpose and with our spending — we vote with our money. We responsibilities to stakeholders reap rewards over choose how much harm or good we want to cause the long-term. Companies that ignore them stumble with our capitalist model. These decisions are no and fail.” Note that he mentions responsibility to longer dictated by CEOs. They are being made by “stakeholders,” not “shareholders.” And he speaks hyper-connected citizens who are progressively as a $6 trillion shareholder. identifying their values with the social impact being As you listen to the ongoing capitalism vs. made by companies they work for and support socialism debate, become a little light-hearted and with their spending. Successful CEOs increasingly say, “Neither works for me. Instead, I choose to be a realize the need to create a positive impact in their kind capitalist.” communities, beyond just creating jobs. In the months and years to come, we’ll encounter Mark Van Ness, Founder a growing debate over our “choice” of socialism (YPO Presidents’ Action NOW) [email protected] For more inspiring stories join us on social media: @Real_Leaders @RealLeadersMagazine @Real_Leaders @Real-Leaders @RealLeadersMagazine 4 REAL-LEADERS.COM / SUMMER 2019 SIGN UP FOR OUR FREE WEEKLY “WOW! WORDS OF WISDOM” EMAIL SIGN UP FOR FREE HERE PLUS: SPECIAL ADVERTISING OFFER 40% DISCOUNT! On all advertising to our global network. Contact: [email protected] (YPO Presidents’ Action NOW) WWW.REAL-LEADERS.COM When Paul Polman resigned as CEO of British- Dutch consumer goods company Unilever last year, he left behind a decade of innovation and a global company with more than 400 brands, housed in a $140 billion company. He also left behind inspiration for our future, a visionary roadmap for consumers and CEOs alike. His long-term strategy and courage in the face of early shareholder pressure — combined with a genuinely global worldview — has inspired Unilever’s 170,000 employees to seek authentic purpose in their work. If you’ve ever washed with Dove soap, enjoyed a cup of Lipton tea, eaten a tub of Ben & Jerry’s ice cream, or styled your hair with Toni&Guy, you can be confident that Polman’s foresight was behind it. It’s tough being a visionary — especially when your ideas are so far ahead PAUL that no one recognizes what you’re building. By Laura Giadorou Koch POLMAN: (YPO Big Apple Gold) Above: The United LIFE AFTER Nations Sustainable Development Goals (SDGs) logo includes a colour wheel that represents each of the 17 goals. The SDGs were UNILEVER adopted by all United Nations Member States in 2015, and provides a shared blueprint for peace and prosperity for people and the planet — now and into the future. 6 REAL-LEADERS.COM / SUMMER 2019 Business cannot“ continue as usual and be a bystander to a failing system. Paul Polman ” Left: Many societies in India and Africa have long realized the value of being resourceful and of recycling. Conserving natural resources is less a lifestyle choice and more about survival. Companies that develop solutions to social problems will become the winning companies of the future. it,” he explains. “I will certainly keep working to help solve pressing world challenges. Indeed, now that I am no longer running a company, I can dedicate even more time to this agenda. We cannot stop until we truly leave no one behind.” For example, he serves as chair of the International Chamber of Commerce (ICC), chair of the B Team, and vice chair of the United Nations Global Compact. “CEOs are increasingly focused on the next quarter, driven by the pressures of the financial markets,” he continues. “Or in the case of governments, the next election cycle. This is an opportunity for all of us in the private sector to step up.” With more than 45 million companies associated with the ICC, Polman made a smart move by “It’s the best of times, it’s the worst of times,” says recognizing the tremendous opportunity for Unilever Polman, quoting Charles Dickens. “When Dickens wrote to become a thought leader among the world’s The Tale of Two Cities, ‘it was the spring of hope and corporations, while helping to develop a new social the winter of despair,’ and I think this is where we find contract that would focus on climate change and ourselves today.” inequality. Luckily, when he arrived at Unilever, he On one side, people are living longer and healthier already found a company with the right value system lives, more have access to formal education, and more in place and a desire to be a force for good. individuals than ever before have been lifted from poverty. He recalls that most of our current global And while some leaders scoffed at the United Nations governance dates back to Bretton Woods in 1944. Millennium Development Goals set in 2000 under Kofi The issues we face today are vastly different from 74 Annan, which had a goal of cutting global poverty in half, years ago, when 90 percent of the world was found miraculously, this was achieved by the target date of 2015. in Western Europe and the United States. Topics And yet, while progress is being made, it’s not all roses, such as climate change, cybersecurity, and financial says Polman, who thinks the system is still flawed and these victories may be short-lived. “We’ve seen enormous levels of over-consumption and private and government “I WILL CERTAINLY debt across world markets,” he says. “Frankly, we’re KEEP WORKING TO HELP leaving too many people behind. When you do this, the SOLVE PRESSING WORLD system starts to rebel against itself.” He cites the yellow CHALLENGES... WE CANNOT vest protests on the streets of France as a manifestation of STOP UNTIL WE TRULY what many people are feeling across the world right now. LEAVE NO ONE BEHIND.” There’s something appealing about a business leader who adopts the attitude of a world leader, someone who has the wisdom to see the interconnectivity between a bottle of shampoo and rioting on the street (waterless hair products ultimately result in less stress on an economic system).
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