0:00:16.360,0:00:18.220
I have a confession to make:

0:00:19.564,0:00:21.759
most of my adult life

0:00:21.759,0:00:26.733
I have been working because of money[br]and because of prestige.

0:00:27.132,0:00:32.567
It was not about high moral standards[br]or creating social value.

0:00:32.596,0:00:34.708
It was about money[br]and it was about prestige.

0:00:35.218,0:00:38.058
The more money, the better.[br]The more prestige, the better.

0:00:38.679,0:00:41.015
It's a bit sad, but that's the truth.

0:00:41.471,0:00:44.731
But I want so much more[br]than money and prestige.

0:00:44.731,0:00:46.385
I want to make a difference.

0:00:46.762,0:00:50.092
Think about it.[br]We are born as human beings.

0:00:50.098,0:00:54.178
We are born, we grow up,[br]we live our lives, and we die.

0:00:55.044,0:00:57.454
The same cycle[br]you could apply to companies.

0:00:58.543,0:01:01.363
They are created,[br]they start, they develop,

0:01:01.363,0:01:03.341
and eventually, many of them die.

0:01:03.783,0:01:07.634
So what is the meaning about all of this?[br]What is the meaning about our work life?

0:01:07.634,0:01:10.244
And what is the meaning[br]about the companies,

0:01:10.276,0:01:12.806
more than just giving a profit?

0:01:14.621,0:01:18.571
Some of you here have[br]not even started your working life,

0:01:18.615,0:01:21.803
and some of you have, just like me,[br]been working for decades.

0:01:22.283,0:01:24.143
And what's the purpose of that,

0:01:24.143,0:01:26.931
and how's that actually link[br]to creating social value?

0:01:28.668,0:01:30.699
What is also the purpose of the companies?

0:01:30.701,0:01:33.931
I think, so far, we have talked[br]about creating social value

0:01:33.931,0:01:37.203
as something nonprofit[br]organizations are doing.

0:01:37.303,0:01:40.909
I think we need to change that model.[br]We need to think in a different way.

0:01:41.612,0:01:45.666
And I think this is important and leads[br]to some very interesting questions.

0:01:46.034,0:01:50.434
Think about it, we are working[br]more than we have ever done before.

0:01:50.650,0:01:51.865
For what purpose?

0:01:52.308,0:01:56.856
And the markets are flooded[br]with services and products.

0:01:56.857,0:01:58.057
For what purpose?

0:01:58.244,0:02:00.377
How can you build a company that can last?

0:02:01.456,0:02:03.729
I think one of the answers here

0:02:03.729,0:02:07.099
is that we are more clear[br]about our purpose.

0:02:07.099,0:02:10.289
It's all about for us -[br]as individuals and also the companies -

0:02:10.289,0:02:13.838
creating economic and social value.

0:02:14.284,0:02:16.812
And if you think about it,[br]creating economic value

0:02:16.812,0:02:19.265
is probably, you know,[br]it's pretty obvious for us.

0:02:19.265,0:02:23.142
As individuals, we need to survive,[br]we need to pay our mortgages,

0:02:23.401,0:02:25.771
have a vacation[br]once in a while, and so on.

0:02:25.771,0:02:28.699
And the companies all also need profit.

0:02:28.750,0:02:33.140
They need to invest in employees,[br]they need to invest in products,

0:02:33.159,0:02:35.499
and also give something[br]back to the owners.

0:02:36.064,0:02:40.108
Well, we need to create a new model,[br]and I see that because of two reasons:

0:02:40.838,0:02:42.866
first of all is reason number one,

0:02:43.135,0:02:46.359
and that is we are facing[br]some major challenges in the world.

0:02:47.342,0:02:50.958
According to the[br]World Health Organization,

0:02:50.958,0:02:57.272
2.1 billion people lack access[br]to safe, reliable water every day.

0:02:57.665,0:03:00.865
Think about it: 2.1 billion people.

0:03:01.258,0:03:06.742
4.5 billion people lack access[br]to safely managed sanitation.

0:03:07.079,0:03:12.166
So when Greta Thunberg,[br]the 16-year-old Swedish climate activist,

0:03:12.166,0:03:14.378
says to the World Economic Forum,

0:03:14.378,0:03:16.799
"I don't want your hope,[br]I want you to act,"

0:03:17.168,0:03:20.429
I see that as a proof[br]that our model has to change,

0:03:20.569,0:03:22.153
it has to transition.

0:03:23.708,0:03:26.506
The reason number two[br]is divided between two things:

0:03:26.850,0:03:30.550
one thing is the individual part[br]and the other thing is the company part.

0:03:30.825,0:03:34.306
What you see here on the screen,[br]you know, that is proven for us,

0:03:34.450,0:03:37.068
that is things that[br]are actually given to us

0:03:37.158,0:03:39.956
when we are helping and giving to others.

0:03:40.275,0:03:45.045
We know from studies[br]that it activates parts of the brain

0:03:45.162,0:03:48.222
that are associated with pressure[br]when we are helping and giving.

0:03:49.013,0:03:51.537
We know when we give back,[br]we are more likely,

0:03:51.660,0:03:54.584
and when we give something,[br]we are more likely to get it back.

0:03:55.554,0:03:56.999
We know also

0:03:56.999,0:04:01.848
when we do social value creation,[br]we build stronger social connection,

0:04:01.848,0:04:05.610
and that's one of the things that's proven[br]to give us a happy and long life,

0:04:05.610,0:04:06.994
more than anything else.

0:04:08.125,0:04:09.175
So that's, you know,

0:04:09.175,0:04:11.699
from an individual perspective,[br]why we should do this.

0:04:11.699,0:04:15.502
If you look from a company perspective,[br]the business case is very, very good.

0:04:16.078,0:04:18.292
We need here - a company needs a mission.

0:04:18.292,0:04:19.293
Why are we here?

0:04:19.293,0:04:21.354
And that needs to go beyond profit.

0:04:21.852,0:04:24.432
And we need that mission[br]to spark a purpose,

0:04:24.531,0:04:28.831
and that purpose, as I said before,[br]is so important because the purpose,

0:04:28.831,0:04:32.466
that's where employees[br]and customers will buy into.

0:04:32.466,0:04:34.130
And also talent.

0:04:34.571,0:04:39.329
Young people today[br]don't want money and prestige only.

0:04:39.329,0:04:41.656
They also want to make[br]a difference in the world.

0:04:42.054,0:04:45.091
That purpose will create[br]engagement in your workforce.

0:04:45.426,0:04:48.721
That engagement[br]will give more productivity.

0:04:49.370,0:04:52.249
More productivity is equal to profit.

0:04:52.800,0:04:57.280
So it's a very good business case[br]in creating social value.

0:04:57.280,0:05:00.709
And the Edelman Trust Barometer,[br]they confirm that.

0:05:00.835,0:05:03.551
They say that 73% of us believe

0:05:03.551,0:05:05.279
that we would rather be in a company

0:05:05.279,0:05:08.466
that creates both social[br]and economic value.

0:05:10.370,0:05:12.940
Before I get too carried away about this,

0:05:12.940,0:05:16.361
I just want to give[br]everybody here a word of warning.

0:05:16.754,0:05:20.650
If you were to hear a TED Talk[br]about social value creation,

0:05:21.842,0:05:25.532
or you think this is the new Black[br]and you want to do this as a leader

0:05:25.532,0:05:27.425
and you're not really engaged,

0:05:27.581,0:05:28.718
you will fail.

0:05:28.963,0:05:33.563
In order to do so, you need to be sincere,[br]you need to be honest,

0:05:33.889,0:05:36.719
and this needs to be delivered[br]with integrity;

0:05:36.719,0:05:40.799
otherwise, both your employees[br]and your customers will see you're a fake.

0:05:41.377,0:05:46.316
I would like to give you an example[br]that we have tried in real life.

0:05:46.476,0:05:48.146
It's Xylem Watermark.

0:05:49.305,0:05:52.294
I come from a company[br]where we have 17,000 people.

0:05:52.667,0:05:55.777
We are dedicated to solve[br]the world's water challenges.

0:05:55.777,0:05:58.606
We do that by producing solutions

0:05:58.606,0:06:03.216
to transport, to treat, to analyze,[br]and to data [manage] water -

0:06:03.351,0:06:06.607
so where we can get[br]what we call "smart water" moving

0:06:06.747,0:06:08.281
to solve the challenges we have.

0:06:08.501,0:06:12.427
In 2008, we started[br]a program called Watermark,

0:06:12.515,0:06:17.335
and so far, we have supported[br]3.5 million people in 55 countries.

0:06:18.249,0:06:22.269
So what we do here [br]is that we go to countries.

0:06:22.374,0:06:27.036
We make water towers to make sure[br]that people have access to clean water.

0:06:27.828,0:06:31.638
When we had the situation[br]in Thailand with the cave,

0:06:31.638,0:06:34.152
where the 12 boys[br]were there with their coach,

0:06:34.372,0:06:35.722
we were one of the companies

0:06:35.722,0:06:38.402
that supported the team there[br]to get the boys out.

0:06:38.825,0:06:42.269
But we also do things[br]on a smaller scale,

0:06:42.271,0:06:44.267
so in the office where I am, you know,

0:06:44.267,0:06:48.771
we bake cakes and we sell them,[br]and the money we donate to Watermark.

0:06:48.974,0:06:51.354
We wash the cars of the neighbors,

0:06:51.488,0:06:54.088
and the money for that,[br]we donate to Watermark.

0:06:54.148,0:06:56.398
Or we do a football tournament,

0:06:56.398,0:06:58.988
and we take 10 euros[br]from each person participating,

0:06:58.988,0:07:02.318
and we donate these monies to Watermark.

0:07:03.874,0:07:06.922
All of this is small stuff.[br]Let's try to see how it works.

0:07:06.922,0:07:07.922
(Video)

0:07:07.922,0:07:10.076
Narrator: Because this[br]same spirit of respect,

0:07:10.076,0:07:14.641
responsibility, integrity, and creativity

0:07:14.641,0:07:17.462
that makes us invaluable to our customers

0:07:17.462,0:07:21.111
is even more valuable[br]to communities in need around the world

0:07:21.111,0:07:23.811
and knows where we live[br]and work every day.

0:07:25.104,0:07:28.424
To our corporate citizenship initiative,[br]Xylem Watermark,

0:07:28.664,0:07:30.626
we provide safe water resources

0:07:30.626,0:07:33.564
to remote villages[br]in the Philippines and India,

0:07:34.090,0:07:37.975
protect water resources [br]in the rural areas of China and Brazil,

0:07:38.404,0:07:42.244
educate children from Cambodia[br]to Columbia about water,

0:07:42.607,0:07:47.357
and work with local nonprofits and NGOs[br]to help solve local water issues.

0:07:48.283,0:07:50.533
We do all of this so people everywhere

0:07:50.533,0:07:54.955
have a better chance at living[br]healthy, prosperous and sustainable lives.

0:07:55.599,0:07:58.629
But none of these profound changes[br]happen on their own.

0:07:58.713,0:08:02.633
First, it requires great partners,[br]and we have the best,

0:08:03.647,0:08:06.037
but the most vital component[br]in making a difference

0:08:06.037,0:08:08.330
is the collective action of our people.

0:08:09.873,0:08:11.083
The power and passion

0:08:11.083,0:08:15.519
of more than 16,500 employees[br]is enough to change the world.

0:08:17.365,0:08:19.995
So when we volunteered to put our hands

0:08:19.995,0:08:24.215
and our feet and our hearts[br]and our minds into action,

0:08:24.357,0:08:30.536
we helped Haiti, Houston,[br]and Puerto Rico recover.

0:08:34.996,0:08:38.449
We make rivers in Germany[br]and North Carolina cleaner

0:08:38.449,0:08:39.959
and our neighbors wiser.

0:08:39.959,0:08:43.109
We give children[br]a chance at a better future.

0:08:44.229,0:08:48.006
And we come to understand[br]why it is we do what we do.

0:08:48.519,0:08:50.139
Woman: Thanks to this donation,

0:08:50.139,0:08:53.099
our community is going[br]to be able to have water.

0:08:53.099,0:08:54.959
Man: It's very difficult to comprehend.

0:08:54.959,0:08:58.329
It's massive for these guys.[br]It's massive for them.

0:08:58.329,0:09:02.063
Narrator: In 2016,[br]we made a bold proclamation:

0:09:02.073,0:09:05.468
Xylem colleagues would dedicate[br]100,000 hours of time

0:09:05.468,0:09:09.748
to water-related volunteer activities[br]by the end of 2018,

0:09:09.748,0:09:12.693
and we're well on our way[br]to meeting that goal.

0:09:12.693,0:09:14.658
Xylem. Let's solve water.

0:09:15.838,0:09:17.138
(Video ends)

0:09:17.948,0:09:20.948
(Applause)

0:09:27.803,0:09:29.103
Dan Iversen: Thank you too.

0:09:29.103,0:09:31.788
If you're sitting now and saying,[br]"How do we start this?"

0:09:31.788,0:09:35.426
you know, when something new starts,[br]it's always a bit vulnerable,

0:09:35.426,0:09:39.342
and that was also the case[br]when we started this in the company.

0:09:40.014,0:09:41.434
I was doubting myself.

0:09:41.528,0:09:43.335
I remember some of my colleagues said,

0:09:43.335,0:09:46.793
"Well, this will go over.[br]It's a virus, you know, it will go away,"

0:09:47.044,0:09:52.030
but it didn't, and like many other things,[br]it was dependent on leadership.

0:09:52.660,0:09:59.156
In 2014, we had a new CEO,[br]and he started to change our look at this,

0:09:59.156,0:10:01.322
and he said to us as leaders

0:10:01.322,0:10:04.275
that he looked a bit on Watermark[br]like a business unit.

0:10:04.275,0:10:06.055
So he gave us individual targets.

0:10:06.055,0:10:09.388
I had to do that many individual hours,

0:10:09.388,0:10:10.454
volunteer hours.

0:10:10.454,0:10:13.584
So, he also did that[br]for the business unit I was leading,

0:10:13.745,0:10:15.065
and that changed that.

0:10:15.652,0:10:18.074
And more important than everything else,

0:10:18.074,0:10:22.454
he had and he has a really honest desire

0:10:22.454,0:10:24.840
to make a difference in the world[br]with the company.

0:10:26.007,0:10:29.285
The big difference[br]for myself came in 2015.

0:10:30.051,0:10:34.158
We, Watermark, had until then been[br]internal for us as colleagues.

0:10:34.863,0:10:37.303
We now decided to spread[br]this more around the world,

0:10:37.303,0:10:42.194
so we invited 12 customers to build[br]four water towers in the Philippines.

0:10:42.484,0:10:44.949
It was an idea. It was a test.

0:10:44.949,0:10:49.379
We didn't know it would work,[br]but the result was quite amazing.

0:10:49.771,0:10:53.261
I remember, in the evening,[br]after building the water towers,

0:10:53.261,0:10:56.242
I took my phone,[br]and I recorded the customers.

0:10:56.628,0:11:01.541
And I asked them this simple question,[br]"How has the day been for you?"

0:11:01.629,0:11:04.859
And they answered that question,[br]and they started to cry,

0:11:05.427,0:11:09.297
and then I started to cry -[br]that's not the goal in itself,

0:11:09.499,0:11:12.689
but it just showed that something here[br]was truly, truly amazing.

0:11:12.689,0:11:16.550
I think that's one of the formulas here[br]in creating social value.

0:11:16.793,0:11:19.993
We shouldn't talk so much about it.[br]We should actually go and do it.

0:11:20.548,0:11:22.648
And remember, this is so rewarding.

0:11:22.648,0:11:25.962
When you see a child that's learning[br]something new in school

0:11:25.962,0:11:28.820
or you see a child that sees[br]clean water for the first time

0:11:28.820,0:11:31.958
or the customer crying[br]in front of you, it's so rewarding.

0:11:31.958,0:11:33.119
It's contagious.

0:11:33.506,0:11:36.406
I've seen some funny stuff on these trips.

0:11:36.477,0:11:41.290
I will show you now a clip[br]that was done last year in Cambodia.

0:11:41.594,0:11:47.871
I was there with customers from UK[br]and from France, in Siem Reap Province.

0:11:48.362,0:11:49.362
(Video)

0:11:49.362,0:11:51.062
DI: Hey.

0:11:51.062,0:11:54.980
So now we have put up the tower[br]here with our customers.

0:11:55.338,0:12:00.296
It took us around a couple hours,[br]and we're almost ready to fill in water,

0:12:00.296,0:12:01.908
and what we're doing over here

0:12:01.908,0:12:05.364
is that some of the customers[br]and my colleagues

0:12:05.364,0:12:10.506
are actually training the kids[br]in how to have a high level of hygiene.

0:12:10.506,0:12:12.597
So we tell them how to wash their hands

0:12:12.597,0:12:14.633
and these things they're doing right now.

0:12:14.633,0:12:17.499
As you can see, they are having[br]a lot of fun over here,

0:12:17.904,0:12:22.860
so we're almost there[br]and in, I think, half an hour,

0:12:23.129,0:12:25.961
we'll finalize[br]and put water in the system.

0:12:25.961,0:12:26.961
I'll be back.

0:12:26.961,0:12:27.961
(Video ends)

0:12:28.555,0:12:31.555
(Applause)

0:12:35.996,0:12:39.466
DI: Thank you very much, and you know,[br]think about it, this is contagious.

0:12:39.466,0:12:41.213
And why is this contagious?

0:12:41.213,0:12:43.319
I think it's contagious[br]because it goes away

0:12:43.319,0:12:46.085
from the rational stats [br]about the challenges we have.

0:12:46.085,0:12:47.505
We all know about that.

0:12:47.505,0:12:51.638
Then it goes into the personal reaction[br]you see when you help people

0:12:51.638,0:12:55.288
and the personal gain we have ourselves[br]when we are helping others.

0:12:57.647,0:12:59.467
Well, we have to change the model.

0:12:59.467,0:13:02.992
That means, we also, as leaders,[br]have to change the way we're doing things.

0:13:02.992,0:13:06.335
In 2016, I took a decision as a leader.

0:13:06.692,0:13:07.872
I took the decision,

0:13:07.872,0:13:09.687
a bit tough, but I took the decision:

0:13:09.687,0:13:12.226
You cannot be in my part[br]of the organization

0:13:12.226,0:13:16.868
if you don't buy into the idea[br]of social value creation.

0:13:17.664,0:13:20.924
I don't care how talented[br]you are, how good you are.

0:13:20.924,0:13:22.495
If you don't buy into that idea,

0:13:22.495,0:13:25.628
you must strive, grow,[br]perform, and be happy

0:13:25.628,0:13:27.998
in another organization, not with me.

0:13:29.751,0:13:34.725
So in the end, I don't think[br]we really have a choice.

0:13:35.234,0:13:37.821
As individuals and as companies,

0:13:37.821,0:13:41.534
we need to create[br]both social and economic value.

0:13:41.534,0:13:42.873
It's pretty simple.

0:13:43.924,0:13:45.294
So I'm asking you,

0:13:45.836,0:13:49.006
what will you do to make[br]a difference in the world?

0:13:50.120,0:13:51.670
What gives you a purpose?

0:13:52.525,0:13:56.364
What gives your life[br]personal growth and learning?

0:13:56.898,0:14:01.336
And remember, it doesn't have[br]to be big and fancy and [overt].

0:14:01.646,0:14:05.228
It just has to bring value[br]to someone and to yourself.

0:14:06.251,0:14:08.401
Good luck in making[br]a difference in the world.

0:14:08.401,0:14:09.395
Thank you.

0:14:09.395,0:14:12.395
(Applause)