0:00:00.517,0:00:03.140
Bryn Freedman: So you keep[br]talking about leadership

0:00:03.164,0:00:05.617
as a real crisis of conformity.

0:00:05.641,0:00:07.973
Can you explain to us[br]what you mean by that?

0:00:07.997,0:00:10.351
What do you see as a crisis of conformity?

0:00:10.375,0:00:12.934
Halla Tómasdóttir:[br]I think it's a crisis of conformity

0:00:12.958,0:00:16.522
when we continue to do business[br]and lead in the way we always have,

0:00:16.546,0:00:19.263
yet the evidence is overwhelming

0:00:19.287,0:00:21.769
that the world needs us[br]to change our ways.

0:00:22.390,0:00:24.468
So let's look a little bit[br]at that evidence.

0:00:25.124,0:00:28.375
Science has told us[br]that we're facing a climate crisis,

0:00:28.399,0:00:30.495
yet 40 percent of board directors

0:00:30.519,0:00:32.954
don't think climate belongs[br]in the boardroom.

0:00:33.704,0:00:36.284
And we have kids marching[br]in the streets now,

0:00:36.308,0:00:39.333
asking us to be accountable[br]for their future.

0:00:39.822,0:00:41.982
We have a crisis of inequality.

0:00:42.006,0:00:44.713
We have Yellow Jackets[br]not just in the streets of France,

0:00:44.737,0:00:46.180
but all over the world,

0:00:46.204,0:00:48.363
and yet we continue to see examples

0:00:48.387,0:00:52.433
of businesses and other leaders[br]fueling that anger.

0:00:52.923,0:00:54.968
BF: Do you think[br]the pitchforks are coming?

0:00:54.992,0:00:57.258
HT: I definitely think[br]this is not sustainable.

0:00:57.282,0:00:59.527
And the reason why it's so difficult

0:00:59.551,0:01:03.898
for us to deal with these complicated[br]crises that are interrelated

0:01:03.922,0:01:07.099
is that we are at the lowest levels[br]of trust we've ever been at.

0:01:07.513,0:01:10.294
In the UK, three percent of people[br]trust their government

0:01:10.318,0:01:11.975
to solve the Brexit crisis,

0:01:11.999,0:01:13.366
and that was in December.

0:01:13.390,0:01:15.676
I think it's probably gone[br]down since then.

0:01:15.700,0:01:18.992
BF: What do you think[br]new leadership actually looks like?

0:01:19.016,0:01:21.026
HT: We need courageous leaders,

0:01:21.050,0:01:22.717
yet they have to be humble.

0:01:22.741,0:01:25.861
And they have to be guided[br]by a moral compass,

0:01:25.885,0:01:29.629
and the moral compass is the combination[br]of having a social purpose --

0:01:29.653,0:01:32.304
you can't have your license[br]to operate anymore

0:01:32.328,0:01:35.295
without a purpose[br]that contributes to society,

0:01:35.319,0:01:39.667
but what, to me, has been missing[br]from that dialogue is a set of principles.

0:01:39.691,0:01:42.150
We cannot just define why we exist,

0:01:42.174,0:01:45.142
we have to define[br]how we're going to do business

0:01:45.166,0:01:46.500
and how we're going to lead.

0:01:46.524,0:01:50.419
And to us, that has to be[br]to solve these imminent crises:

0:01:50.443,0:01:51.673
the climate crisis,

0:01:51.697,0:01:52.978
the crisis of inequality

0:01:53.002,0:01:54.374
and the crisis of trust.

0:01:54.398,0:01:55.567
So at The B Team,

0:01:55.591,0:02:00.314
we embrace sustainability, equality[br]and accountability as our principles.

0:02:00.338,0:02:05.703
BF: Do you think this whole question[br]of purpose is really window dressing --

0:02:05.727,0:02:08.248
they're saying what they think[br]people want to hear,

0:02:08.272,0:02:10.958
but they're actually not making[br]the fundamental changes

0:02:10.982,0:02:12.133
that are necessary?

0:02:12.157,0:02:13.955
HT: A lot of people feel that way,

0:02:13.979,0:02:16.403
and I think there's a growing[br]momentum behind that.

0:02:16.427,0:02:19.384
So I think the world is calling[br]for responsible leadership now,

0:02:19.408,0:02:22.449
and any leader who wants[br]to be around for the 21st century

0:02:22.473,0:02:25.479
really needs to start thinking[br]courageously and holistically

0:02:25.503,0:02:27.552
how they're going[br]to be part of the solution

0:02:27.576,0:02:29.033
and not window-dress anymore.

0:02:29.057,0:02:30.542
You have to do it for real now.

0:02:30.566,0:02:33.239
BF: Do you see anybody[br]out there who's doing it

0:02:33.263,0:02:36.014
in a way that you think[br]is actually effective

0:02:36.038,0:02:38.491
and has a real, long-term impact?

0:02:38.883,0:02:41.407
HT: Fortunately, we have[br]some great leaders out there.

0:02:41.431,0:02:42.830
And just to give one example,

0:02:42.854,0:02:45.813
Emmanuel Faber, who's one of the newest[br]members of The B Team,

0:02:45.837,0:02:47.042
he's the CEO of Danone,

0:02:47.066,0:02:49.854
the world's largest yogurt-maker[br]and major food company --

0:02:49.878,0:02:51.320
a real global company.

0:02:51.344,0:02:53.185
He's so committed to sustainability

0:02:53.209,0:02:56.080
that he's not only changing the ways[br]of his own business,

0:02:56.104,0:02:58.020
but his entire supply chain.

0:02:58.044,0:03:01.044
He's so committed to equality[br]that when he took on as CEO

0:03:01.068,0:03:02.846
and he said gender balance matters,

0:03:02.870,0:03:05.696
he created a gender-balanced[br]executive team

0:03:05.720,0:03:09.418
and gave men and women[br]equal maternity and paternity leave.

0:03:09.883,0:03:11.707
He's so committed to accountability

0:03:11.731,0:03:15.431
that he turned his US operations[br]into a B Corporation.

0:03:15.455,0:03:17.512
Now many of you may not know what that is,

0:03:17.536,0:03:19.930
but that's a company[br]that holds itself responsible

0:03:19.954,0:03:23.383
for not just profit but its impact[br]on people and the planet,

0:03:23.407,0:03:26.835
and transparently reports[br]on their performance on all of that.

0:03:26.859,0:03:28.891
It's the largest B Corp in the world.

0:03:28.915,0:03:31.395
So to me, that's holistic,[br]courageous leadership,

0:03:31.419,0:03:34.332
and it's really the vision[br]we all need to hold.

0:03:34.356,0:03:35.929
BF: Is this "Back to the Future"?

0:03:35.953,0:03:38.803
I mean, I wonder,[br]when I think about companies --

0:03:38.827,0:03:41.793
Anheuser-Busch comes to mind in America --

0:03:41.817,0:03:44.714
a 100-year-old company[br]that invested in its community,

0:03:44.738,0:03:45.971
that gave a living wage

0:03:45.995,0:03:48.715
before it ended up, you know,[br]losing and getting sold.

0:03:48.739,0:03:53.601
Are we really looking now for companies[br]that are global and community citizens,

0:03:53.625,0:03:57.280
or is that something that is not[br]even useful anymore?

0:03:57.304,0:04:01.493
HT: Well, you can do this for the reason[br]that it's risky, actually,

0:04:01.517,0:04:03.675
to continue without doing[br]the right thing now.

0:04:03.699,0:04:05.381
You can't attract the right talent,

0:04:05.405,0:04:06.707
you can't attract customers

0:04:06.731,0:04:09.303
and increasingly,[br]you won't be able to attract capital.

0:04:09.327,0:04:10.913
You might do it for risk reasons,

0:04:10.937,0:04:13.496
you might do it for business[br]opportunity reasons,

0:04:13.520,0:04:15.536
because this is where the growth is,

0:04:15.560,0:04:18.036
which is why many leaders[br]are doing the right thing.

0:04:18.060,0:04:19.842
But at the end of the day,

0:04:19.866,0:04:21.208
we need to ask ourselves:

0:04:21.232,0:04:24.012
"Who are we holding[br]ourselves accountable for?"

0:04:24.036,0:04:25.871
And if that isn't the next generation,

0:04:25.895,0:04:27.323
I don't know who.

0:04:27.347,0:04:29.299
So I want to just make very clear,

0:04:29.323,0:04:31.354
because we tend to think about leadership

0:04:31.378,0:04:34.432
as only those who sit[br]in positions of power.

0:04:34.456,0:04:36.814
To me, leadership is not at all like that.

0:04:36.838,0:04:39.572
There's a leader inside[br]every single one of us,

0:04:39.596,0:04:43.103
and our most important work in life[br]is to release that leader.

0:04:43.127,0:04:45.962
And I think one of the greatest[br]global examples we have

0:04:45.986,0:04:48.508
of someone who didn't --

0:04:48.532,0:04:49.971
no one gave her power --

0:04:49.995,0:04:52.649
is the 16-year-old girl[br]called Greta Thunberg.

0:04:52.673,0:04:53.835
She's from Sweden,

0:04:53.859,0:04:56.231
and a few years ago, she really became --

0:04:56.255,0:04:57.462
she has Asperger's,

0:04:57.486,0:05:00.007
and she became passionate[br]about our climate crisis --

0:05:00.031,0:05:01.365
learned everything about it.

0:05:01.389,0:05:02.743
And faced with the evidence,

0:05:02.767,0:05:05.395
she just felt so disappointed[br]in her leadership

0:05:05.419,0:05:09.091
that she started striking[br]in front of the Swedish parliament.

0:05:09.115,0:05:11.134
And now she has started a global movement,

0:05:11.158,0:05:14.216
and hundreds and thousands[br]of school kids are out in the streets

0:05:14.240,0:05:17.232
asking us to hold ourselves[br]accountable for their future.

0:05:17.592,0:05:20.120
No one gave her that authority,

0:05:20.144,0:05:23.684
and she now speaks to the leaders[br]of the world, heads of state,

0:05:23.708,0:05:25.667
and really is impacting the world.

0:05:25.691,0:05:29.751
So I really think that when we think[br]about leadership today,

0:05:29.775,0:05:32.156
it can't be defined[br]to those in positions of power

0:05:32.180,0:05:35.836
though they have disproportionately[br]greater responsibility.

0:05:35.860,0:05:37.673
But all of us need to think about,

0:05:37.697,0:05:38.848
"What am I doing?"

0:05:38.872,0:05:40.039
"How am I contributing?"

0:05:40.063,0:05:42.075
And we need to release that leader inside

0:05:42.099,0:05:44.371
and actually start making[br]the positive impact

0:05:44.395,0:05:46.182
this world is calling for right now.

0:05:46.800,0:05:49.108
BF: But we have such[br]hierarchical leadership.

0:05:49.132,0:05:51.164
I mean, I understand what you're saying --

0:05:51.188,0:05:53.195
it's nice to release the leader inside --

0:05:53.219,0:05:55.171
but in these corporations,

0:05:55.195,0:05:57.800
the truth is, it's extremely hierarchical.

0:05:57.824,0:05:59.675
What can companies do

0:05:59.699,0:06:04.431
to create less vertical[br]and more horizontal relationships?

0:06:04.455,0:06:07.170
HT: Well, I'm a big believer[br]and I've long been passionate

0:06:07.194,0:06:08.594
about closing the gender gap,

0:06:08.618,0:06:12.379
and I really believe gender-balanced[br]leadership is the way to go

0:06:12.403,0:06:17.582
in order to embrace a leadership style[br]that has been shown to be more powerful,

0:06:17.606,0:06:19.892
and that's when both men and women embrace

0:06:19.916,0:06:21.766
both masculine and feminine values.

0:06:22.084,0:06:23.762
It actually is proven in research

0:06:23.786,0:06:26.988
that that's the most[br]effective leadership style.

0:06:27.012,0:06:31.487
But I'm increasingly now thinking[br]about how we close the generational gap,

0:06:31.511,0:06:34.875
because look at these young children[br]in the streets around the world --

0:06:34.899,0:06:36.197
they're asking us to lead.

0:06:36.221,0:06:39.837
Kofi Annan used to say,[br]"You're never too young to lead."

0:06:39.861,0:06:41.065
And then he would add,

0:06:41.089,0:06:42.958
"Or too old to learn."

0:06:42.982,0:06:45.089
And I think we have now entered this era

0:06:45.113,0:06:49.106
where we need the wisdom[br]of those with experience,

0:06:49.130,0:06:52.800
but we need the digital natives[br]of the young generation

0:06:52.824,0:06:56.480
to co-mentor or to mentor us[br]just as much as we can help

0:06:56.504,0:06:59.054
with wisdom from the older people.

0:06:59.078,0:07:00.563
So it's a new reality,

0:07:00.587,0:07:03.911
and these old, sort of hierarchical[br]ways to think about things,

0:07:03.935,0:07:06.954
they're increasingly coming[br]under pressure in this reality.

0:07:06.978,0:07:09.621
BF: And you've actually called[br]that the hubris syndrome.

0:07:09.645,0:07:10.887
Can you talk about that?

0:07:10.911,0:07:14.979
HT: Well, yes, I think hubris[br]is our cancer in leadership.

0:07:15.003,0:07:17.605
That's when leaders[br]think they know it all,

0:07:17.629,0:07:19.604
can do it all, have all the answers

0:07:19.628,0:07:21.867
and don't think they need[br]to surround themselves

0:07:21.891,0:07:23.765
with people who will make them better,

0:07:23.789,0:07:26.885
which to me would, in some cases,[br]be more women and younger people

0:07:26.909,0:07:30.225
and people who are diverse[br]and have different opinions in general.

0:07:30.249,0:07:34.173
Hubris syndrome is so present[br]in leadership still,

0:07:34.197,0:07:35.818
and we know many examples of them,

0:07:35.842,0:07:38.854
I don't need to name them.[br]And the problem with that --

0:07:38.878,0:07:39.879
(Laughter)

0:07:39.903,0:07:42.236
Yeah, we know them -- all over the world,

0:07:42.260,0:07:43.773
not just in this country.

0:07:43.797,0:07:47.840
But that kind of leadership[br]doesn't unleash leaders in others.

0:07:48.315,0:07:50.070
No one person,

0:07:50.094,0:07:54.601
or no one sector even has the solutions[br]we now need to come up with --

0:07:54.625,0:07:57.813
the creativity and collaboration we need.

0:07:58.542,0:08:02.510
The bold and the brave leadership[br]we need to come up with solutions

0:08:02.534,0:08:07.381
that cross government, private sector,[br]civil society, young people, older people,

0:08:07.405,0:08:11.009
people of all different backgrounds[br]coming together is the way

0:08:11.033,0:08:13.126
to solve the issues[br]that are in front of us.

0:08:13.150,0:08:17.643
BF: Do you see that kind of leadership[br]coming from the bottom-up

0:08:17.667,0:08:18.891
or the top-down,

0:08:18.915,0:08:21.600
or do you think a crisis[br]is going to force us

0:08:21.624,0:08:23.974
into a reexamination of all of this?

0:08:23.998,0:08:27.523
HT: Well, as someone who lived through[br]the most infamous financial meltdown

0:08:27.547,0:08:28.882
in my home country, Iceland,

0:08:28.906,0:08:31.721
I hope we don't need another one[br]to learn or to wake up.

0:08:32.126,0:08:35.538
But I do see that we can't choose[br]one or the other.

0:08:35.875,0:08:40.146
We do have to transform the way we lead --

0:08:40.170,0:08:42.384
from the top, the boardroom, the CEOs --

0:08:42.408,0:08:44.146
we really do have to transform that,

0:08:44.170,0:08:46.429
but increasingly, we will transform that,

0:08:46.453,0:08:49.435
because we have these social[br]movements coming from the bottom

0:08:49.459,0:08:50.902
and throughout society.

0:08:51.224,0:08:53.004
And the solutions exist.

0:08:53.622,0:08:56.036
The only thing that's missing is will.

0:08:56.928,0:09:02.866
So if we just all find a way to embrace[br]a moral compass of our own

0:09:02.890,0:09:07.481
to figure out why we exist[br]and how we're going to lead,

0:09:07.505,0:09:11.439
and if we embrace courage[br]and humility in equal amounts,

0:09:11.463,0:09:16.111
each one of us can be part[br]of this 10-year period

0:09:16.135,0:09:19.410
where we can dramatically transform[br]the world we live in,

0:09:19.434,0:09:20.915
and make it just,

0:09:20.939,0:09:24.323
and make it about humanity[br]and not just the financial markets.

0:09:24.347,0:09:27.924
BF: Well, we have a lot of people here[br]who I bet have questions for you,

0:09:27.948,0:09:29.854
and we have a few minutes for questions,

0:09:29.878,0:09:34.157
so is there anybody that would like[br]to ask Halla a question?

0:09:34.640,0:09:36.569
Audience: Hello, my name is Cheryl.

0:09:36.593,0:09:38.293
I'm an aspiring leader,

0:09:38.317,0:09:44.706
and I have a question about how you lead[br]when you have no influence.

0:09:45.029,0:09:47.143
If I'm just an analyst,

0:09:47.167,0:09:49.362
and I want to speak to senior management

0:09:49.386,0:09:52.328
about a change that I feel[br]will affect the whole company,

0:09:52.352,0:09:54.744
how do I go about changing their minds

0:09:54.768,0:09:58.627
when they feel as if they've had[br]relationships that are set,

0:09:58.651,0:10:01.865
that their way of business is set?

0:10:01.889,0:10:04.387
How do you change minds[br]when you have no influence?

0:10:04.411,0:10:07.148
HT: Well, thank you very much[br]for that fantastic question.

0:10:07.172,0:10:09.956
So sometimes people[br]at the top won't listen,

0:10:09.980,0:10:13.967
but it's interesting that with the low[br]trust we have in society right now,

0:10:13.991,0:10:15.854
the greatest trust we have

0:10:15.878,0:10:19.167
is actually between the employee[br]and the employer,

0:10:19.191,0:10:20.830
according to recent research.

0:10:20.854,0:10:24.906
So I think that relationship[br]may be the most powerful way

0:10:24.930,0:10:27.229
to actually transform[br]the way we do things.

0:10:27.253,0:10:31.506
So I would start by trying to build[br]a coalition for your good idea.

0:10:31.897,0:10:37.631
And I don't know a single leader today[br]who will not listen to a concern

0:10:37.655,0:10:39.340
that many of their employees hold.

0:10:39.738,0:10:42.435
I'll give you an example[br]from another B Team leader,

0:10:42.459,0:10:44.198
Marc Benioff, the CEO of Salesforce.

0:10:44.222,0:10:47.538
He's really been outspoken[br]on homelessness in San Francisco,

0:10:47.562,0:10:51.714
on LGBTQI rights,

0:10:51.738,0:10:54.671
and all of the things[br]that he's been standing up for,

0:10:54.695,0:10:57.793
he does because his employees[br]care about them.

0:10:57.817,0:11:02.043
So don't ever think you don't have power[br]if you don't sit in a position of power.

0:11:02.067,0:11:04.531
Find the way to go convince him ...

0:11:04.555,0:11:05.721
or her.

0:11:05.745,0:11:10.360
And Marc, for example, was convinced[br]to close the gender pay gap by two women

0:11:10.384,0:11:12.310
who worked inside of his organization,

0:11:12.334,0:11:14.782
who told him, "We have a gender pay gap."

0:11:14.806,0:11:17.213
He didn't believe it;[br]he said, "Bring me the data."

0:11:17.237,0:11:20.936
They did, and he was smart enough to know[br]he needed to do something about it,

0:11:20.960,0:11:24.233
and was one the first tech leaders[br]to step up and do so voluntarily.

0:11:24.656,0:11:27.046
So don't ever think[br]that you don't have power,

0:11:27.070,0:11:29.512
even if you don't sit[br]in a position of power,

0:11:29.536,0:11:32.351
but find other people to support you

0:11:32.375,0:11:34.952
and make the case.

0:11:35.965,0:11:37.115
BF: Thank you.

0:11:37.139,0:11:38.827
Anybody else? Any other questions?

0:11:38.851,0:11:40.623
Audience: Hi, I'm overwhelmed[br]by fascination

0:11:40.647,0:11:43.226
with everything you're saying,[br]so thank you.

0:11:43.250,0:11:47.665
I just wanted to ask how, like,[br]diversity in opinion and thought

0:11:47.689,0:11:49.023
and also background

0:11:49.047,0:11:51.350
has impacted your leadership ability.

0:11:51.374,0:11:56.365
And what do you think is the barricade[br]that is limiting the overflow of diversity

0:11:56.389,0:11:58.036
in all business settings,

0:11:58.060,0:12:01.937
and what do you think can impact[br]the change in that setting

0:12:01.961,0:12:07.742
but also to disrupt the overflow[br]of generations of people staying in place?

0:12:07.766,0:12:12.824
And what do you think is the next step[br]to breaking several glass ceilings?

0:12:12.848,0:12:15.752
BF: We're going to do an entire Salon[br]just on that question.

0:12:15.776,0:12:16.887
(Laughter)

0:12:16.911,0:12:19.877
HT: I think Bryn said it well,[br]but let me try and touch on it.

0:12:19.901,0:12:24.562
So the way I see gender,[br]it is a spectrum --

0:12:24.586,0:12:26.115
you know, men also have gender.

0:12:26.139,0:12:28.542
We sometimes forget about that.

0:12:28.566,0:12:29.567
(Laughter)

0:12:29.591,0:12:31.069
We sometimes forget about that.

0:12:31.093,0:12:34.694
And I actually played a very masculine[br]woman early in my career,

0:12:34.718,0:12:36.672
because those were the rules of the game.

0:12:36.696,0:12:38.413
And I achieved some success with it,

0:12:38.437,0:12:40.072
but fortunately, I got to a place

0:12:40.096,0:12:42.564
where I started embracing[br]my feminine side as well.

0:12:42.588,0:12:45.383
But I would still say[br]that the best leaders embrace both,

0:12:45.407,0:12:46.812
both women and men.

0:12:46.836,0:12:48.467
But I see gender, also,

0:12:48.491,0:12:52.650
as one of the most powerful levers[br]to shift values in culture.

0:12:52.674,0:12:55.449
So the reason I'm so passionate[br]about women in leadership

0:12:55.473,0:12:58.941
and believe that balance is needed

0:12:58.965,0:13:04.063
is because right now, our definition[br]of success is incredibly masculine.

0:13:04.526,0:13:08.809
It's about financial profit alone[br]or economic growth alone,

0:13:08.833,0:13:11.188
and we all know that we need[br]more than money.

0:13:11.212,0:13:13.519
I mean, we need wellness:

0:13:13.543,0:13:15.018
well-being of people,

0:13:15.042,0:13:19.219
and there is no future[br]beyond the well-being of our planet.

0:13:19.243,0:13:23.096
So I think gender may very well be[br]one of the most powerful levers

0:13:23.120,0:13:26.725
to help all of us shift[br]our economic and social systems

0:13:26.749,0:13:28.169
to be more welcoming.

0:13:28.193,0:13:29.891
And the answer to your last part --

0:13:29.915,0:13:33.082
it's so complicated, but let me try[br]to give you a short one.

0:13:33.526,0:13:39.743
I believe that the way talent[br]and consumption is shifting

0:13:39.767,0:13:42.508
is going to increasingly get companies

0:13:42.532,0:13:46.338
to look at adding difference[br]into their leadership,

0:13:46.362,0:13:48.834
because sameness is not working --

0:13:48.858,0:13:50.569
BF: And difference is a superpower.

0:13:50.593,0:13:52.071
HT: Difference is a superpower.

0:13:52.095,0:13:53.324
BF: Thank you very much.

0:13:53.348,0:13:56.263
Halla, thank you so much,[br]I wish we could talk to you all day.

0:13:56.287,0:13:57.288
(Applause and cheers)

0:13:57.312,0:13:58.463
HT: Thank you.

0:13:58.487,0:13:59.864
(Applause)