[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:01.42,0:00:03.83,Default,,0000,0000,0000,,Lately, a lot of chief executives
Dialogue: 0,0:00:03.83,0:00:07.03,Default,,0000,0000,0000,,have promised to shift\Ntheir business model.
Dialogue: 0,0:00:07.03,0:00:10.14,Default,,0000,0000,0000,,They pledge to serve all stakeholders,
Dialogue: 0,0:00:10.14,0:00:12.29,Default,,0000,0000,0000,,not just shareholders.
Dialogue: 0,0:00:12.46,0:00:14.76,Default,,0000,0000,0000,,Investment return, they say,
Dialogue: 0,0:00:14.76,0:00:16.94,Default,,0000,0000,0000,,will no longer take precedence
Dialogue: 0,0:00:16.94,0:00:19.49,Default,,0000,0000,0000,,over the health and welfare of employees,
Dialogue: 0,0:00:19.49,0:00:20.82,Default,,0000,0000,0000,,suppliers,
Dialogue: 0,0:00:20.82,0:00:22.22,Default,,0000,0000,0000,,even Planet Earth.
Dialogue: 0,0:00:22.22,0:00:24.59,Default,,0000,0000,0000,,Not just in a crisis,
Dialogue: 0,0:00:24.59,0:00:26.16,Default,,0000,0000,0000,,but every day.
Dialogue: 0,0:00:26.16,0:00:30.41,Default,,0000,0000,0000,,This is a change that business\Nabsolutely needs to make,
Dialogue: 0,0:00:30.62,0:00:33.47,Default,,0000,0000,0000,,but that does not mean\Nit is going to be easy.
Dialogue: 0,0:00:33.76,0:00:36.28,Default,,0000,0000,0000,,It's like going from being a young couple
Dialogue: 0,0:00:36.28,0:00:38.35,Default,,0000,0000,0000,,to having kids.
Dialogue: 0,0:00:38.35,0:00:40.15,Default,,0000,0000,0000,,When you're trying to make decisions
Dialogue: 0,0:00:40.15,0:00:42.59,Default,,0000,0000,0000,,with just one other person\Nin the relationship,
Dialogue: 0,0:00:42.59,0:00:44.40,Default,,0000,0000,0000,,it's pretty straightforward.
Dialogue: 0,0:00:44.40,0:00:46.34,Default,,0000,0000,0000,,Where should we have Sunday lunch?
Dialogue: 0,0:00:46.34,0:00:48.33,Default,,0000,0000,0000,,What should we watch for the movie?
Dialogue: 0,0:00:48.93,0:00:51.63,Default,,0000,0000,0000,,But when you add one child,
Dialogue: 0,0:00:51.63,0:00:53.02,Default,,0000,0000,0000,,a second child,
Dialogue: 0,0:00:53.02,0:00:54.76,Default,,0000,0000,0000,,new decision makers,
Dialogue: 0,0:00:54.96,0:00:56.95,Default,,0000,0000,0000,,life gets complicated.
Dialogue: 0,0:00:57.65,0:01:00.99,Default,,0000,0000,0000,,And each one has their own unique needs
Dialogue: 0,0:01:00.99,0:01:02.72,Default,,0000,0000,0000,,and individual perspective.
Dialogue: 0,0:01:03.26,0:01:07.31,Default,,0000,0000,0000,,We all know that you're not supposed\Nto have a favorite child,
Dialogue: 0,0:01:07.31,0:01:11.62,Default,,0000,0000,0000,,and that being fair\Ndoesn't always mean being equal.
Dialogue: 0,0:01:13.18,0:01:15.58,Default,,0000,0000,0000,,It's one of the biggest\Nchallenges in parenting,
Dialogue: 0,0:01:15.58,0:01:17.88,Default,,0000,0000,0000,,and in stakeholder capitalism.
Dialogue: 0,0:01:18.24,0:01:21.86,Default,,0000,0000,0000,,Employees need to earn a living wage.
Dialogue: 0,0:01:21.86,0:01:25.51,Default,,0000,0000,0000,,How else can they be confident\Nthat they can feed their families?
Dialogue: 0,0:01:26.14,0:01:29.28,Default,,0000,0000,0000,,Pension fund investors\Nneed to earn a positive return.
Dialogue: 0,0:01:29.100,0:01:32.08,Default,,0000,0000,0000,,Only then can they be sure
Dialogue: 0,0:01:32.08,0:01:35.23,Default,,0000,0000,0000,,that they are managing\Nthe savings and retirement
Dialogue: 0,0:01:35.23,0:01:37.24,Default,,0000,0000,0000,,of their investors responsibly.
Dialogue: 0,0:01:37.48,0:01:40.98,Default,,0000,0000,0000,,Consumers want and deserve\Nproducts and services
Dialogue: 0,0:01:40.98,0:01:43.96,Default,,0000,0000,0000,,that are both affordable and safe.
Dialogue: 0,0:01:44.89,0:01:47.94,Default,,0000,0000,0000,,And we all want a society and planet
Dialogue: 0,0:01:47.94,0:01:49.74,Default,,0000,0000,0000,,that lets us breathe.
Dialogue: 0,0:01:50.08,0:01:54.87,Default,,0000,0000,0000,,I have spent my career\Nhelping companies and their leaders
Dialogue: 0,0:01:54.87,0:01:56.69,Default,,0000,0000,0000,,improve their performance,
Dialogue: 0,0:01:56.69,0:01:59.28,Default,,0000,0000,0000,,particularly at times of transition.
Dialogue: 0,0:02:00.41,0:02:02.65,Default,,0000,0000,0000,,We've all gone digital.
Dialogue: 0,0:02:02.65,0:02:05.49,Default,,0000,0000,0000,,We've responded to new\Nhealth care regulations.
Dialogue: 0,0:02:05.49,0:02:07.36,Default,,0000,0000,0000,,We've improved their productivity,
Dialogue: 0,0:02:07.36,0:02:09.81,Default,,0000,0000,0000,,made them more diverse and inclusive.
Dialogue: 0,0:02:10.19,0:02:11.91,Default,,0000,0000,0000,,It took us a while to learn
Dialogue: 0,0:02:11.91,0:02:15.39,Default,,0000,0000,0000,,that you can't actually\Nmake a company more digital
Dialogue: 0,0:02:15.39,0:02:17.61,Default,,0000,0000,0000,,by appointing a chief digital officer,
Dialogue: 0,0:02:18.11,0:02:20.78,Default,,0000,0000,0000,,or that a chief diversity officer
Dialogue: 0,0:02:20.78,0:02:24.62,Default,,0000,0000,0000,,could not single-handedly\Nmake a company's culture more inclusive.
Dialogue: 0,0:02:24.62,0:02:31.19,Default,,0000,0000,0000,,So we already know that we cannot\Njust appoint a chief stakeholder officer
Dialogue: 0,0:02:31.19,0:02:34.40,Default,,0000,0000,0000,,if we really want to serve\Nall stakeholders.
Dialogue: 0,0:02:34.40,0:02:37.67,Default,,0000,0000,0000,,Instead, we need to reset.
Dialogue: 0,0:02:37.67,0:02:41.54,Default,,0000,0000,0000,,If we really want to serve\Nstakeholder needs,
Dialogue: 0,0:02:41.54,0:02:43.70,Default,,0000,0000,0000,,we need to get everyone involved.
Dialogue: 0,0:02:43.70,0:02:45.87,Default,,0000,0000,0000,,There are no quick fixes,
Dialogue: 0,0:02:45.87,0:02:48.21,Default,,0000,0000,0000,,but I do have a few ideas.
Dialogue: 0,0:02:48.76,0:02:51.44,Default,,0000,0000,0000,,Let's start at the top: the boardroom.
Dialogue: 0,0:02:51.44,0:02:55.07,Default,,0000,0000,0000,,This is where a company's strategy\Nis set and governed,
Dialogue: 0,0:02:55.07,0:02:57.94,Default,,0000,0000,0000,,and if all stakeholder needs\Naren't accounted for here,
Dialogue: 0,0:02:57.94,0:03:01.08,Default,,0000,0000,0000,,really, nothing's changing.
Dialogue: 0,0:03:01.90,0:03:07.68,Default,,0000,0000,0000,,By definition, a board\Ncan stand in the way
Dialogue: 0,0:03:07.68,0:03:09.23,Default,,0000,0000,0000,,of serving all stakeholders.
Dialogue: 0,0:03:09.62,0:03:11.27,Default,,0000,0000,0000,,Why?
Dialogue: 0,0:03:11.27,0:03:14.76,Default,,0000,0000,0000,,Because often, a board\Nis elected by shareholders.
Dialogue: 0,0:03:14.96,0:03:17.42,Default,,0000,0000,0000,,It represents their interests.
Dialogue: 0,0:03:17.42,0:03:21.19,Default,,0000,0000,0000,,It's there to act on their behalf.
Dialogue: 0,0:03:21.19,0:03:23.64,Default,,0000,0000,0000,,That's not just a dictionary definition.
Dialogue: 0,0:03:23.64,0:03:26.84,Default,,0000,0000,0000,,It's enshrined in law in the US,
Dialogue: 0,0:03:26.84,0:03:28.46,Default,,0000,0000,0000,,and this can really limit
Dialogue: 0,0:03:28.46,0:03:32.25,Default,,0000,0000,0000,,how much change a CEO or board can effect
Dialogue: 0,0:03:32.25,0:03:35.70,Default,,0000,0000,0000,,if they want to serve the needs\Nof more stakeholders.
Dialogue: 0,0:03:35.94,0:03:38.52,Default,,0000,0000,0000,,For years, if we're honest,
Dialogue: 0,0:03:38.52,0:03:40.48,Default,,0000,0000,0000,,we've been ticking boxes:
Dialogue: 0,0:03:40.48,0:03:43.87,Default,,0000,0000,0000,,ethnicity, age, gender.
Dialogue: 0,0:03:44.14,0:03:47.32,Default,,0000,0000,0000,,We've been looking for people\Nwho look different,
Dialogue: 0,0:03:47.32,0:03:50.48,Default,,0000,0000,0000,,but boards still do the same thing.
Dialogue: 0,0:03:50.73,0:03:54.09,Default,,0000,0000,0000,,They look after the interests\Nof shareholders.
Dialogue: 0,0:03:54.09,0:03:56.12,Default,,0000,0000,0000,,We don't need tokens.
Dialogue: 0,0:03:56.12,0:03:59.21,Default,,0000,0000,0000,,We need people who truly\Nunderstand the experience
Dialogue: 0,0:03:59.21,0:04:04.32,Default,,0000,0000,0000,,and represent the diversity\Nof our stakeholders.
Dialogue: 0,0:04:04.32,0:04:08.64,Default,,0000,0000,0000,,Corporate boards can learn a thing or two\Nfrom the nonprofit world.
Dialogue: 0,0:04:08.64,0:04:10.63,Default,,0000,0000,0000,,I chair a charity, Teach First.
Dialogue: 0,0:04:10.63,0:04:14.25,Default,,0000,0000,0000,,It's an educational charity\Nthat produces outstanding teachers
Dialogue: 0,0:04:14.25,0:04:15.65,Default,,0000,0000,0000,,and schools.
Dialogue: 0,0:04:15.65,0:04:20.35,Default,,0000,0000,0000,,Our board includes a wide range of skills:
Dialogue: 0,0:04:20.35,0:04:22.91,Default,,0000,0000,0000,,former civil servants,
Dialogue: 0,0:04:22.91,0:04:26.12,Default,,0000,0000,0000,,activists, teachers, ambassadors,
Dialogue: 0,0:04:26.78,0:04:28.22,Default,,0000,0000,0000,,technologists.
Dialogue: 0,0:04:28.22,0:04:30.75,Default,,0000,0000,0000,,Some of them on paper have very little
Dialogue: 0,0:04:30.75,0:04:34.38,Default,,0000,0000,0000,,that's an obvious fit\Nfor an educational charity.
Dialogue: 0,0:04:34.38,0:04:38.20,Default,,0000,0000,0000,,But they each have real experience\Nwith our stakeholders.
Dialogue: 0,0:04:38.78,0:04:40.40,Default,,0000,0000,0000,,Every board is different.
Dialogue: 0,0:04:40.40,0:04:46.16,Default,,0000,0000,0000,,Imagine a world where corporate governance\Nwas very different than today:
Dialogue: 0,0:04:46.16,0:04:49.72,Default,,0000,0000,0000,,community leaders sitting\Non the boards of their local bank;
Dialogue: 0,0:04:50.08,0:04:54.14,Default,,0000,0000,0000,,moral philosophers advising\Nsocial media companies;
Dialogue: 0,0:04:54.44,0:04:58.83,Default,,0000,0000,0000,,environmental activists as directors\Nof global energy companies.
Dialogue: 0,0:04:59.52,0:05:02.09,Default,,0000,0000,0000,,CEOs keep making pledges.
Dialogue: 0,0:05:02.09,0:05:04.58,Default,,0000,0000,0000,,They keep talking about social purpose,
Dialogue: 0,0:05:04.58,0:05:07.11,Default,,0000,0000,0000,,but real change won't happen
Dialogue: 0,0:05:07.11,0:05:09.35,Default,,0000,0000,0000,,until we change who governs
Dialogue: 0,0:05:09.58,0:05:12.31,Default,,0000,0000,0000,,and for what purpose.
Dialogue: 0,0:05:12.31,0:05:15.76,Default,,0000,0000,0000,,We have to change the laws\Nof incorporation that limit us,
Dialogue: 0,0:05:15.76,0:05:18.33,Default,,0000,0000,0000,,and remember who we really serve.
Dialogue: 0,0:05:18.93,0:05:22.34,Default,,0000,0000,0000,,Next, let's talk about the big E,
Dialogue: 0,0:05:22.34,0:05:23.84,Default,,0000,0000,0000,,the environment.
Dialogue: 0,0:05:24.08,0:05:28.36,Default,,0000,0000,0000,,Sustainability goals have been written\Ninto annual reports all over the world.
Dialogue: 0,0:05:28.81,0:05:31.12,Default,,0000,0000,0000,,The goals are very lofty,
Dialogue: 0,0:05:31.12,0:05:33.28,Default,,0000,0000,0000,,and very, very long-term,
Dialogue: 0,0:05:33.28,0:05:35.66,Default,,0000,0000,0000,,and none of them will be accomplished
Dialogue: 0,0:05:35.66,0:05:38.44,Default,,0000,0000,0000,,if they don't have\Nreal steps along the way.
Dialogue: 0,0:05:38.62,0:05:39.90,Default,,0000,0000,0000,,It's like saying,
Dialogue: 0,0:05:39.90,0:05:44.04,Default,,0000,0000,0000,,"I'm going to run a marathon,\Nor a 5k, sometime in the future."
Dialogue: 0,0:05:44.81,0:05:48.73,Default,,0000,0000,0000,,No one is going to believe you\Nuntil they see you get off the couch,
Dialogue: 0,0:05:48.73,0:05:49.95,Default,,0000,0000,0000,,start training,
Dialogue: 0,0:05:49.95,0:05:52.89,Default,,0000,0000,0000,,putting in the miles every single day.
Dialogue: 0,0:05:53.59,0:05:55.51,Default,,0000,0000,0000,,CEOs need the same thing.
Dialogue: 0,0:05:55.51,0:05:59.44,Default,,0000,0000,0000,,They need concrete, achievable,\Nmeasurable goals,
Dialogue: 0,0:05:59.77,0:06:03.60,Default,,0000,0000,0000,,and they need to share the data\Nand progress along the way.
Dialogue: 0,0:06:04.54,0:06:08.33,Default,,0000,0000,0000,,Being green is good\Nfor the bottom line in the long run,
Dialogue: 0,0:06:08.69,0:06:10.53,Default,,0000,0000,0000,,but it requires investments,
Dialogue: 0,0:06:10.53,0:06:13.27,Default,,0000,0000,0000,,and those have to be shared.
Dialogue: 0,0:06:13.27,0:06:17.18,Default,,0000,0000,0000,,Brazil-based Natura is the world's\Nfourth largest cosmetics company.
Dialogue: 0,0:06:17.18,0:06:20.03,Default,,0000,0000,0000,,They've got the usual\Nprofit and loss statements
Dialogue: 0,0:06:20.03,0:06:22.27,Default,,0000,0000,0000,,for the investors and the executive,
Dialogue: 0,0:06:22.27,0:06:24.32,Default,,0000,0000,0000,,but it's their other two P&Ls
Dialogue: 0,0:06:24.32,0:06:27.03,Default,,0000,0000,0000,,that make them a little bit special.
Dialogue: 0,0:06:27.03,0:06:30.54,Default,,0000,0000,0000,,One measures how well\Nthey do for the environment.
Dialogue: 0,0:06:30.54,0:06:33.74,Default,,0000,0000,0000,,The other looks at\Ntheir impact on society.
Dialogue: 0,0:06:34.04,0:06:35.73,Default,,0000,0000,0000,,They measure everything:
Dialogue: 0,0:06:35.73,0:06:37.87,Default,,0000,0000,0000,,seeds planted,
Dialogue: 0,0:06:38.10,0:06:39.39,Default,,0000,0000,0000,,jobs created,
Dialogue: 0,0:06:39.39,0:06:41.37,Default,,0000,0000,0000,,rubbish thrown in the bin.
Dialogue: 0,0:06:41.67,0:06:44.85,Default,,0000,0000,0000,,Shell, the Anglo-Dutch energy company,
Dialogue: 0,0:06:44.85,0:06:46.24,Default,,0000,0000,0000,,is another example.
Dialogue: 0,0:06:46.24,0:06:49.07,Default,,0000,0000,0000,,They figured out\Nwhat many of us already knew;
Dialogue: 0,0:06:49.07,0:06:53.97,Default,,0000,0000,0000,,it's not good enough\Njust to look after your own emissions.
Dialogue: 0,0:06:53.97,0:06:57.70,Default,,0000,0000,0000,,In fact, their emissions\Naccounted for about 15 percent
Dialogue: 0,0:06:57.70,0:06:59.29,Default,,0000,0000,0000,,of their system emissions.
Dialogue: 0,0:06:59.29,0:07:00.49,Default,,0000,0000,0000,,So they changed.
Dialogue: 0,0:07:00.49,0:07:03.56,Default,,0000,0000,0000,,Working with activists and pension funds,
Dialogue: 0,0:07:03.56,0:07:05.73,Default,,0000,0000,0000,,they set three-year rolling goals
Dialogue: 0,0:07:05.73,0:07:09.74,Default,,0000,0000,0000,,with progress markers year by year.
Dialogue: 0,0:07:09.74,0:07:14.40,Default,,0000,0000,0000,,By 2050, they hope to reduce\Ntheir net carbon footprint
Dialogue: 0,0:07:14.40,0:07:15.96,Default,,0000,0000,0000,,by almost two thirds.
Dialogue: 0,0:07:15.96,0:07:17.40,Default,,0000,0000,0000,,That is a major reduction.
Dialogue: 0,0:07:17.76,0:07:22.60,Default,,0000,0000,0000,,Initially, these targets\Nare linked to the bonuses
Dialogue: 0,0:07:22.60,0:07:24.50,Default,,0000,0000,0000,,of their top 150 decision makers,
Dialogue: 0,0:07:24.50,0:07:31.10,Default,,0000,0000,0000,,and over time the pay\Nof nearly 17,000 employees
Dialogue: 0,0:07:31.10,0:07:36.23,Default,,0000,0000,0000,,could be linked in part\Nto how they treat Mother Earth.
Dialogue: 0,0:07:36.23,0:07:39.07,Default,,0000,0000,0000,,It's still early days for this industry
Dialogue: 0,0:07:39.07,0:07:40.72,Default,,0000,0000,0000,,and many of these initiatives.
Dialogue: 0,0:07:40.72,0:07:44.94,Default,,0000,0000,0000,,Success will depend on how well\Nwe stay the course
Dialogue: 0,0:07:44.94,0:07:47.41,Default,,0000,0000,0000,,when the investments\Nbecome more significant,
Dialogue: 0,0:07:47.41,0:07:49.63,Default,,0000,0000,0000,,when stakeholders disagree,
Dialogue: 0,0:07:49.63,0:07:52.67,Default,,0000,0000,0000,,or when competitors start catching up.
Dialogue: 0,0:07:52.98,0:07:56.18,Default,,0000,0000,0000,,Let's spend a little bit of time\Non a stakeholder
Dialogue: 0,0:07:56.18,0:07:57.85,Default,,0000,0000,0000,,who is sometimes hidden,
Dialogue: 0,0:07:57.85,0:08:00.21,Default,,0000,0000,0000,,and those are our suppliers.
Dialogue: 0,0:08:00.21,0:08:03.53,Default,,0000,0000,0000,,They are the connective tissue\Nunderneath many companies:
Dialogue: 0,0:08:04.30,0:08:06.62,Default,,0000,0000,0000,,Uber drivers, widget makers,
Dialogue: 0,0:08:06.62,0:08:08.06,Default,,0000,0000,0000,,service employees.
Dialogue: 0,0:08:08.06,0:08:12.03,Default,,0000,0000,0000,,They're like an invisible life force\Nthat power our economy,
Dialogue: 0,0:08:12.60,0:08:14.50,Default,,0000,0000,0000,,and one thing we know for sure
Dialogue: 0,0:08:14.50,0:08:17.49,Default,,0000,0000,0000,,is that the success\Nor failure of your business
Dialogue: 0,0:08:17.49,0:08:19.91,Default,,0000,0000,0000,,depends on your suppliers\Nand partnerships.
Dialogue: 0,0:08:20.18,0:08:22.53,Default,,0000,0000,0000,,It's a painful lesson that many hospitals,
Dialogue: 0,0:08:22.53,0:08:24.38,Default,,0000,0000,0000,,including in the US and UK,
Dialogue: 0,0:08:24.38,0:08:26.24,Default,,0000,0000,0000,,will take from COVID-19.
Dialogue: 0,0:08:26.24,0:08:30.26,Default,,0000,0000,0000,,In pandemics, robust, agile supply chains
Dialogue: 0,0:08:30.26,0:08:32.92,Default,,0000,0000,0000,,deliver the masks, ventilators,
Dialogue: 0,0:08:32.92,0:08:35.70,Default,,0000,0000,0000,,testing kits and vaccines
Dialogue: 0,0:08:35.70,0:08:37.14,Default,,0000,0000,0000,,that we all need.
Dialogue: 0,0:08:37.37,0:08:39.09,Default,,0000,0000,0000,,It saves lives,
Dialogue: 0,0:08:39.09,0:08:42.34,Default,,0000,0000,0000,,and it helps to reopen our economy.
Dialogue: 0,0:08:42.58,0:08:45.84,Default,,0000,0000,0000,,Suppliers don't just matter\Nwhen we're in a crisis.
Dialogue: 0,0:08:45.84,0:08:48.82,Default,,0000,0000,0000,,If you really want to scale\Nyour positive impact,
Dialogue: 0,0:08:48.82,0:08:51.84,Default,,0000,0000,0000,,you have to look beyond\Nthe walls of your company.
Dialogue: 0,0:08:51.84,0:08:53.21,Default,,0000,0000,0000,,BHP Billiton,
Dialogue: 0,0:08:53.21,0:08:54.92,Default,,0000,0000,0000,,the Australian mining company,
Dialogue: 0,0:08:54.92,0:08:57.74,Default,,0000,0000,0000,,did just that when it made a commitment
Dialogue: 0,0:08:57.74,0:09:01.47,Default,,0000,0000,0000,,to end gender imbalance\Nin its workforce by 2025.
Dialogue: 0,0:09:01.71,0:09:06.92,Default,,0000,0000,0000,,It decided to encourage, or kind of nudge,\Nits suppliers into also participating
Dialogue: 0,0:09:06.92,0:09:09.59,Default,,0000,0000,0000,,by providing training and technology.
Dialogue: 0,0:09:09.59,0:09:12.31,Default,,0000,0000,0000,,In Chile, Kal Tire
Dialogue: 0,0:09:12.31,0:09:14.78,Default,,0000,0000,0000,,helps to change the enormous tires
Dialogue: 0,0:09:14.78,0:09:17.33,Default,,0000,0000,0000,,on BHP's trucks.
Dialogue: 0,0:09:17.33,0:09:20.80,Default,,0000,0000,0000,,It is a very physical,\Ndemanding, dangerous job,
Dialogue: 0,0:09:20.80,0:09:23.19,Default,,0000,0000,0000,,and to be honest with you\Nnot that many women
Dialogue: 0,0:09:23.19,0:09:25.09,Default,,0000,0000,0000,,were even interested in the job.
Dialogue: 0,0:09:25.31,0:09:27.85,Default,,0000,0000,0000,,The two companies change that.
Dialogue: 0,0:09:27.85,0:09:29.94,Default,,0000,0000,0000,,First, they developed a mechanical arm.
Dialogue: 0,0:09:29.94,0:09:34.27,Default,,0000,0000,0000,,And then they proactively encouraged\Nwomen to apply for the job.
Dialogue: 0,0:09:34.66,0:09:39.57,Default,,0000,0000,0000,,Now, Kal Tire is just one company.
Dialogue: 0,0:09:39.57,0:09:41.25,Default,,0000,0000,0000,,It's an example.
Dialogue: 0,0:09:41.25,0:09:45.22,Default,,0000,0000,0000,,BHP Billiton has thousands of suppliers,
Dialogue: 0,0:09:45.22,0:09:48.43,Default,,0000,0000,0000,,and if you really want to engage\Nyour supplier network,
Dialogue: 0,0:09:48.43,0:09:51.48,Default,,0000,0000,0000,,you can use incentives\Nto get them engaged.
Dialogue: 0,0:09:52.32,0:09:55.90,Default,,0000,0000,0000,,Today, Kal Tire illustrates
Dialogue: 0,0:09:55.90,0:09:58.57,Default,,0000,0000,0000,,how well that can be done,
Dialogue: 0,0:09:58.57,0:10:00.83,Default,,0000,0000,0000,,and across BHP's supplier networks,
Dialogue: 0,0:10:00.83,0:10:04.54,Default,,0000,0000,0000,,women are now 15 percent\Nmore likely to get the job
Dialogue: 0,0:10:04.54,0:10:07.12,Default,,0000,0000,0000,,than they were even a year ago today.
Dialogue: 0,0:10:07.65,0:10:09.98,Default,,0000,0000,0000,,Suppliers and partnerships
Dialogue: 0,0:10:09.98,0:10:13.50,Default,,0000,0000,0000,,will make or break your business.
Dialogue: 0,0:10:13.50,0:10:16.74,Default,,0000,0000,0000,,In good times, they're the key\Nto your success,
Dialogue: 0,0:10:16.74,0:10:18.43,Default,,0000,0000,0000,,scaling it worldwide,
Dialogue: 0,0:10:18.43,0:10:22.25,Default,,0000,0000,0000,,and in bad times,\Nthey're the key to your survival.
Dialogue: 0,0:10:22.25,0:10:25.26,Default,,0000,0000,0000,,If suppliers are a hidden stakeholder,
Dialogue: 0,0:10:25.26,0:10:27.81,Default,,0000,0000,0000,,then customers are probably\Nthe most visible.
Dialogue: 0,0:10:28.10,0:10:31.33,Default,,0000,0000,0000,,But when shareholders rule supreme,
Dialogue: 0,0:10:31.33,0:10:34.50,Default,,0000,0000,0000,,some companies may have an incentive
Dialogue: 0,0:10:34.50,0:10:37.06,Default,,0000,0000,0000,,to focus on customer's short-term desires
Dialogue: 0,0:10:37.06,0:10:40.78,Default,,0000,0000,0000,,rather than their long-term needs.
Dialogue: 0,0:10:40.78,0:10:44.10,Default,,0000,0000,0000,,Consumption of processed food\Nhas taken off around the world,
Dialogue: 0,0:10:44.48,0:10:45.64,Default,,0000,0000,0000,,and with it,
Dialogue: 0,0:10:45.64,0:10:48.34,Default,,0000,0000,0000,,global obesity rates have increased.
Dialogue: 0,0:10:48.61,0:10:50.15,Default,,0000,0000,0000,,That's why
Dialogue: 0,0:10:50.15,0:10:55.12,Default,,0000,0000,0000,,the Access to Nutrition Foundation\Nnow tracks the salt, fat, sugar
Dialogue: 0,0:10:55.12,0:10:58.86,Default,,0000,0000,0000,,that global food and drink companies\Ninclude in their products.
Dialogue: 0,0:10:59.61,0:11:02.54,Default,,0000,0000,0000,,They also track whether\Nthey market them responsibly.
Dialogue: 0,0:11:02.83,0:11:06.16,Default,,0000,0000,0000,,I think it's like measuring\Nthe calories consumed
Dialogue: 0,0:11:06.16,0:11:08.96,Default,,0000,0000,0000,,for every dollar these companies earn.
Dialogue: 0,0:11:08.96,0:11:13.20,Default,,0000,0000,0000,,Companies that have been\Npaying attention to this
Dialogue: 0,0:11:13.20,0:11:14.15,Default,,0000,0000,0000,,have begun to make changes,
Dialogue: 0,0:11:14.15,0:11:15.92,Default,,0000,0000,0000,,including ingredients and formulations.
Dialogue: 0,0:11:15.92,0:11:19.66,Default,,0000,0000,0000,,Nestle reduced the sugar\Nin its breakfast cereal.
Dialogue: 0,0:11:19.96,0:11:23.95,Default,,0000,0000,0000,,Unilever reduced the volume\Nand calories in its ice cream.
Dialogue: 0,0:11:24.40,0:11:27.46,Default,,0000,0000,0000,,Now, I'm not sure that's a good idea,
Dialogue: 0,0:11:27.46,0:11:31.63,Default,,0000,0000,0000,,but I can tell you it takes creativity\Nand a little bit of investment.
Dialogue: 0,0:11:31.63,0:11:36.17,Default,,0000,0000,0000,,We know that consumer needs\Nchange over time,
Dialogue: 0,0:11:36.17,0:11:40.31,Default,,0000,0000,0000,,but companies that make\Nthese investments proactively
Dialogue: 0,0:11:40.31,0:11:44.52,Default,,0000,0000,0000,,can be better positioned\Nin the long term, even for shareholders.
Dialogue: 0,0:11:45.29,0:11:48.51,Default,,0000,0000,0000,,As we all have tried to improve\Nour eating habits,
Dialogue: 0,0:11:48.51,0:11:50.26,Default,,0000,0000,0000,,tried to eat less ice cream,
Dialogue: 0,0:11:50.26,0:11:53.54,Default,,0000,0000,0000,,these companies were well-positioned\Nto capture that market.
Dialogue: 0,0:11:53.72,0:11:55.90,Default,,0000,0000,0000,,They were ahead, more competitive,
Dialogue: 0,0:11:55.90,0:11:58.57,Default,,0000,0000,0000,,and able to be more relevant.
Dialogue: 0,0:11:58.84,0:12:00.89,Default,,0000,0000,0000,,It also aligns with governments,
Dialogue: 0,0:12:00.89,0:12:03.25,Default,,0000,0000,0000,,many of whom have looked\Nat nutrition labeling,
Dialogue: 0,0:12:03.25,0:12:04.57,Default,,0000,0000,0000,,exercise programs,
Dialogue: 0,0:12:04.57,0:12:06.35,Default,,0000,0000,0000,,or even sugar taxes
Dialogue: 0,0:12:06.35,0:12:08.49,Default,,0000,0000,0000,,to encourage healthier eating.
Dialogue: 0,0:12:08.82,0:12:13.75,Default,,0000,0000,0000,,If customers are stakeholders,
Dialogue: 0,0:12:13.75,0:12:15.88,Default,,0000,0000,0000,,then they should not be harmed
Dialogue: 0,0:12:15.88,0:12:18.47,Default,,0000,0000,0000,,by the goods, services
Dialogue: 0,0:12:18.96,0:12:21.33,Default,,0000,0000,0000,,and products we produce.
Dialogue: 0,0:12:21.33,0:12:22.80,Default,,0000,0000,0000,,It's that simple.
Dialogue: 0,0:12:22.80,0:12:27.30,Default,,0000,0000,0000,,For stakeholder capitalism to really work,
Dialogue: 0,0:12:27.30,0:12:31.24,Default,,0000,0000,0000,,we all need to see ourselves\Nas chief executive officers.
Dialogue: 0,0:12:31.56,0:12:33.68,Default,,0000,0000,0000,,If we really want change,
Dialogue: 0,0:12:33.68,0:12:35.20,Default,,0000,0000,0000,,we have to be willing
Dialogue: 0,0:12:35.20,0:12:38.24,Default,,0000,0000,0000,,to bear the backlash.
Dialogue: 0,0:12:38.82,0:12:40.60,Default,,0000,0000,0000,,We're not always going to get it right,
Dialogue: 0,0:12:40.60,0:12:42.58,Default,,0000,0000,0000,,and that's OK.
Dialogue: 0,0:12:42.58,0:12:47.48,Default,,0000,0000,0000,,Real, substantive change takes time.
Dialogue: 0,0:12:47.48,0:12:50.02,Default,,0000,0000,0000,,The right answer keeps changing.
Dialogue: 0,0:12:50.75,0:12:53.88,Default,,0000,0000,0000,,But we have to try to do better.
Dialogue: 0,0:12:54.36,0:12:57.51,Default,,0000,0000,0000,,There's a quote that I love\Nthat really captures
Dialogue: 0,0:12:57.51,0:13:00.15,Default,,0000,0000,0000,,the essence of this moment.
Dialogue: 0,0:13:00.15,0:13:02.66,Default,,0000,0000,0000,,It's by the American poet\NGwendolyn Brooks.
Dialogue: 0,0:13:02.88,0:13:05.38,Default,,0000,0000,0000,,"We are each other's harvest.
Dialogue: 0,0:13:05.69,0:13:08.48,Default,,0000,0000,0000,,We are each other's business.
Dialogue: 0,0:13:08.48,0:13:12.63,Default,,0000,0000,0000,,We are each other's magnitude and bond."
Dialogue: 0,0:13:12.63,0:13:17.22,Default,,0000,0000,0000,,Business is a set\Nof ever-changing human bonds
Dialogue: 0,0:13:17.22,0:13:21.52,Default,,0000,0000,0000,,through which we plant and grow and reap.
Dialogue: 0,0:13:21.52,0:13:26.20,Default,,0000,0000,0000,,Our harvest is our lives and livelihoods,
Dialogue: 0,0:13:26.20,0:13:29.80,Default,,0000,0000,0000,,our civil liberties, our skills\Nand communities.
Dialogue: 0,0:13:30.65,0:13:33.49,Default,,0000,0000,0000,,Business is what we make of it.
Dialogue: 0,0:13:33.49,0:13:35.78,Default,,0000,0000,0000,,Let's hit reset
Dialogue: 0,0:13:35.78,0:13:38.16,Default,,0000,0000,0000,,and serve all stakeholders.
Dialogue: 0,0:13:38.50,0:13:40.18,Default,,0000,0000,0000,,Thank you.