1
00:00:00,372 --> 00:00:02,085
I think we're all aware

2
00:00:02,085 --> 00:00:05,058
that the world today is full of problems.

3
00:00:05,058 --> 00:00:07,153
We've been hearing them

4
00:00:07,153 --> 00:00:11,443
today and yesterday and every day for decades.

5
00:00:11,443 --> 00:00:15,672
Serious problems, big problems, pressing problems.

6
00:00:15,672 --> 00:00:18,843
Poor nutrition, access to water,

7
00:00:18,843 --> 00:00:21,880
climate change, deforestation,

8
00:00:21,880 --> 00:00:25,124
lack of skills, insecurity, not enough food,

9
00:00:25,124 --> 00:00:28,100
not enough health care, pollution.

10
00:00:28,100 --> 00:00:29,845
There's problem after problem,

11
00:00:29,845 --> 00:00:32,376
and I think what really separates this time

12
00:00:32,376 --> 00:00:36,500
from any time I can remember in my brief time

13
00:00:36,500 --> 00:00:38,935
on Earth is the awareness of these problems.

14
00:00:38,935 --> 00:00:41,240
We're all very aware.

15
00:00:41,240 --> 00:00:43,960
Why are we having so much trouble

16
00:00:43,960 --> 00:00:45,360
dealing with these problems?

17
00:00:45,360 --> 00:00:48,400
That's the question I've been struggling with,

18
00:00:48,400 --> 00:00:52,569
coming from my very different perspective.

19
00:00:52,569 --> 00:00:55,376
I'm not a social problem guy.

20
00:00:55,376 --> 00:00:58,168
I'm a guy that works with business,

21
00:00:58,168 --> 00:01:01,704
helps business make money.

22
00:01:01,704 --> 00:01:04,800
God forbid.

23
00:01:04,800 --> 00:01:07,792
So why are we having so much problems

24
00:01:07,792 --> 00:01:10,336
with these social problems,

25
00:01:10,336 --> 00:01:13,192
and really is there any role for business,

26
00:01:13,192 --> 00:01:16,310
and if so, what is that role?

27
00:01:16,310 --> 00:01:19,384
I think that in order to address the question,

28
00:01:19,384 --> 00:01:21,912
we have to step back and think about

29
00:01:21,912 --> 00:01:26,521
how we've understood and pondered

30
00:01:26,521 --> 00:01:29,103
both the problems and the solutions

31
00:01:29,103 --> 00:01:33,160
to these great social challenges that we face.

32
00:01:33,160 --> 00:01:35,440
Now, I think many have seen business

33
00:01:35,440 --> 00:01:38,976
as the problem, or at least one of the problems,

34
00:01:38,976 --> 00:01:41,728
in many of the social challenges we face.

35
00:01:41,728 --> 00:01:43,504
You know, think of the fast food industry,

36
00:01:43,504 --> 00:01:45,648
the drug industry, the banking industry.

37
00:01:45,648 --> 00:01:47,688
You know, this is a low point

38
00:01:47,688 --> 00:01:50,279
in the respect for business.

39
00:01:50,279 --> 00:01:52,360
Business is not seen as the solution.

40
00:01:52,360 --> 00:01:54,854
It's seen as the problem now, for most people.

41
00:01:54,854 --> 00:01:57,704
And rightly so, in many cases.

42
00:01:57,704 --> 00:01:59,983
There's a lot of bad actors out there

43
00:01:59,983 --> 00:02:02,160
that have done the wrong thing,

44
00:02:02,160 --> 00:02:04,223
that actually have made the problem worse.

45
00:02:04,223 --> 00:02:06,640
So this perspective is perhaps justified.

46
00:02:06,640 --> 00:02:09,599
How have we tended to see the solutions

47
00:02:09,599 --> 00:02:11,889
to these social problems,

48
00:02:11,889 --> 00:02:15,512
these many issues that we face in society?

49
00:02:15,512 --> 00:02:17,560
Well, we've tended to see the solutions

50
00:02:17,560 --> 00:02:19,681
in terms of NGOs,

51
00:02:19,681 --> 00:02:21,656
in terms of government,

52
00:02:21,656 --> 00:02:24,424
in terms of philanthropy.

53
00:02:24,424 --> 00:02:26,504
Indeed, the kind of unique organizational entity

54
00:02:26,504 --> 00:02:30,384
of this age is this tremendous rise of NGOs

55
00:02:30,384 --> 00:02:33,136
and social organizations.

56
00:02:33,136 --> 00:02:35,960
This is a unique, new organizational form

57
00:02:35,960 --> 00:02:38,400
that we've seen grown up.

58
00:02:38,400 --> 00:02:40,560
Enormous innovation, enormous energy,

59
00:02:40,560 --> 00:02:43,296
enormous talent now has been mobilized

60
00:02:43,296 --> 00:02:45,785
through this structure

61
00:02:45,785 --> 00:02:49,392
to try to deal with all of these challenges.

62
00:02:49,392 --> 00:02:53,310
And many of us here are deeply involved in that.

63
00:02:53,310 --> 00:02:56,296
You know, I'm a business school professor,

64
00:02:56,296 --> 00:02:59,296
but I've actually founded, I think, now, four non-profits.

65
00:02:59,296 --> 00:03:02,677
Whenever I got interested and became aware

66
00:03:02,677 --> 00:03:05,768
of a societal problem, that was what I did,

67
00:03:05,768 --> 00:03:08,400
form a non-profit.

68
00:03:08,400 --> 00:03:10,848
That was the way we've thought about how to deal

69
00:03:10,848 --> 00:03:12,904
with these issues.

70
00:03:12,904 --> 00:03:16,400
Even a business school professor has thought about it that way.

71
00:03:16,400 --> 00:03:18,405
But I think at this moment,

72
00:03:18,405 --> 00:03:20,528
we've been at this for quite a while.

73
00:03:20,528 --> 00:03:23,856
We've been aware of these problems for decades.

74
00:03:23,856 --> 00:03:26,720
We have decades of experience

75
00:03:26,720 --> 00:03:29,568
with our NGOs and with our government entities,

76
00:03:29,568 --> 00:03:31,936
and there's an awkward reality.

77
00:03:31,936 --> 00:03:33,986
The awkward reality is we're not making

78
00:03:33,986 --> 00:03:36,000
fast enough progress.

79
00:03:36,000 --> 00:03:38,570
We're not winning.

80
00:03:38,570 --> 00:03:40,993
These problems still seem very daunting

81
00:03:40,993 --> 00:03:43,230
and very intractable,

82
00:03:43,230 --> 00:03:45,160
and any solutions we're achieving

83
00:03:45,160 --> 00:03:47,100
are small solutions.

84
00:03:47,100 --> 00:03:49,106
We're making incremental progress.

85
00:03:49,106 --> 00:03:53,535
What's the fundamental problem we have

86
00:03:53,535 --> 00:03:56,413
in dealing with these social problems?

87
00:03:56,413 --> 00:04:00,230
If we cut all the complexity away,

88
00:04:00,230 --> 00:04:04,148
we have the problem of scale.

89
00:04:04,148 --> 00:04:06,182
We can't scale.

90
00:04:06,182 --> 00:04:10,770
We can make progress. We can show benefits.

91
00:04:10,770 --> 00:04:13,175
We can show results. We can make things better.

92
00:04:13,175 --> 00:04:17,468
We're helping. We're doing better. We're doing good.

93
00:04:17,468 --> 00:04:19,622
We can't scale.

94
00:04:19,622 --> 00:04:24,542
We can't make large-scale impact on these problems.

95
00:04:24,542 --> 00:04:26,653
Why is that?

96
00:04:26,653 --> 00:04:30,212
Because we don't have the resources.

97
00:04:30,212 --> 00:04:32,292
And that's really clear now.

98
00:04:32,292 --> 00:04:34,928
And that's clearer now than it's been for decades.

99
00:04:34,928 --> 00:04:37,850
There's simply not enough money

100
00:04:37,850 --> 00:04:41,717
to deal with any of these problems at scale

101
00:04:41,717 --> 00:04:44,827
using the current model.

102
00:04:44,827 --> 00:04:46,989
There's not enough tax revenue,

103
00:04:46,989 --> 00:04:51,189
there's not enough philanthropic donations

104
00:04:51,189 --> 00:04:54,453
to deal with these problems the way we're dealing with them now.

105
00:04:54,453 --> 00:04:58,372
We've got to confront that reality.

106
00:04:58,372 --> 00:05:01,661
And the scarcity of resources

107
00:05:01,661 --> 00:05:05,812
for dealing with these problems is only growing,

108
00:05:05,812 --> 00:05:08,100
certainly in the advanced world today,

109
00:05:08,100 --> 00:05:12,695
with all the fiscal problems we face.

110
00:05:12,695 --> 00:05:16,463
So if it's fundamentally a resource problem,

111
00:05:16,463 --> 00:05:21,400
you know, where are the resources in society?

112
00:05:21,400 --> 00:05:25,200
How are those resources really created,

113
00:05:25,200 --> 00:05:26,968
the resources we're going to need to deal

114
00:05:26,968 --> 00:05:29,762
with all these societal challenges?

115
00:05:29,762 --> 00:05:32,786
Well there, I think the answer is very clear:

116
00:05:32,786 --> 00:05:35,780
they're in business.

117
00:05:35,780 --> 00:05:40,714
All wealth is actually created by business.

118
00:05:40,714 --> 00:05:44,978
Business creates wealth

119
00:05:44,978 --> 00:05:50,747
when it meets needs at a profit.

120
00:05:50,747 --> 00:05:53,750
That's how all wealth is created.

121
00:05:53,750 --> 00:05:55,138
It's meeting needs at a profit

122
00:05:55,138 --> 00:05:57,642
that leads to taxes

123
00:05:57,642 --> 00:05:59,466
and that leads to incomes

124
00:05:59,466 --> 00:06:01,578
and that leads to charitable donations.

125
00:06:01,578 --> 00:06:03,907
That's where all the resources come from.

126
00:06:03,907 --> 00:06:07,349
Only business can actually create resources.

127
00:06:07,349 --> 00:06:09,411
Other institutions can utilize them

128
00:06:09,411 --> 00:06:11,329
to do important work,

129
00:06:11,329 --> 00:06:13,450
but only business can create them.

130
00:06:13,450 --> 00:06:15,602
And business creates them

131
00:06:15,602 --> 00:06:22,881
when it's able to meet a need at a profit.

132
00:06:22,881 --> 00:06:26,433
The resources are overwhelmingly

133
00:06:26,433 --> 00:06:28,769
generated by business.

134
00:06:28,769 --> 00:06:33,625
The question then is, how do we tap into this?

135
00:06:33,625 --> 00:06:36,970
How do we tap into this?

136
00:06:36,970 --> 00:06:38,947
Business generates these resources

137
00:06:38,947 --> 00:06:42,433
when it makes a profit.

138
00:06:42,433 --> 00:06:46,990
That profit is that small difference

139
00:06:46,990 --> 00:06:51,329
between the price and the cost it takes to produce

140
00:06:51,329 --> 00:06:54,153
whatever solution business has created

141
00:06:54,153 --> 00:06:57,746
to whatever problem they're trying to solve.

142
00:06:57,746 --> 00:07:03,490
But that profit is the magic.

143
00:07:03,490 --> 00:07:08,937
Why? Because that profit allows whatever solution

144
00:07:08,937 --> 00:07:11,109
we've created

145
00:07:11,109 --> 00:07:14,177
to be infinitely scalable.

146
00:07:14,177 --> 00:07:17,900
Because if we can make a profit,

147
00:07:17,900 --> 00:07:20,794
we can do it for 10, a hundred, a million,

148
00:07:20,794 --> 00:07:24,163
a hundred million, a billion.

149
00:07:24,163 --> 00:07:27,100
The solution becomes self-sustaining.

150
00:07:27,100 --> 00:07:30,697
That's what business does

151
00:07:30,697 --> 00:07:34,769
when it makes a profit.

152
00:07:34,769 --> 00:07:37,799
Now what does this all have to do

153
00:07:37,799 --> 00:07:40,513
with social problems?

154
00:07:40,513 --> 00:07:44,457
Well, one line of thinking is, let's take this profit

155
00:07:44,457 --> 00:07:49,929
and redeploy it into social problems.

156
00:07:49,929 --> 00:07:52,350
Business should give more.

157
00:07:52,350 --> 00:07:53,897
Business should be more responsible.

158
00:07:53,897 --> 00:07:55,915
And that's been the path that we've been on

159
00:07:55,915 --> 00:07:58,170
in business.

160
00:07:58,170 --> 00:08:00,157
But again, this path that we've been on

161
00:08:00,157 --> 00:08:02,297
is not getting us where we need to go.

162
00:08:02,297 --> 00:08:07,153
Now, I started out as a strategy professor,

163
00:08:07,153 --> 00:08:09,212
and I'm still a strategy professor.

164
00:08:09,212 --> 00:08:10,941
I'm proud of that.

165
00:08:10,941 --> 00:08:12,867
But I've also, over the years,

166
00:08:12,867 --> 00:08:14,907
worked more and more on social issues.

167
00:08:14,907 --> 00:08:17,420
I've worked on health care, the environment,

168
00:08:17,420 --> 00:08:20,500
economic development, reducing poverty,

169
00:08:20,500 --> 00:08:24,245
and as I worked more and more in the social field,

170
00:08:24,245 --> 00:08:26,746
I started seeing something

171
00:08:26,746 --> 00:08:29,800
that had a profound impact on me

172
00:08:29,800 --> 00:08:33,279
and my whole life, in a way.

173
00:08:33,279 --> 00:08:36,699
The conventional wisdom in economics

174
00:08:36,699 --> 00:08:40,874
and the view in business has historically been

175
00:08:40,874 --> 00:08:44,923
that actually, there's a tradeoff

176
00:08:44,923 --> 00:08:49,963
between social performance and economic performance.

177
00:08:49,963 --> 00:08:52,123
The conventional wisdom has been

178
00:08:52,123 --> 00:08:54,931
that business actually makes a profit

179
00:08:54,931 --> 00:08:57,540
by causing a social problem.

180
00:08:57,540 --> 00:08:59,600
The classic example is pollution.

181
00:08:59,600 --> 00:09:02,344
If business pollutes, it makes more money

182
00:09:02,344 --> 00:09:05,232
than if it tried to reduce that pollution.

183
00:09:05,232 --> 00:09:08,814
Reducing pollution is expensive,

184
00:09:08,814 --> 00:09:12,191
therefore businesses don't want to do it.

185
00:09:12,191 --> 00:09:16,919
It's profitable to have an unsafe working environment.

186
00:09:16,919 --> 00:09:19,380
It's too expensive to have a safe working environment,

187
00:09:19,380 --> 00:09:21,102
therefore business makes more money

188
00:09:21,102 --> 00:09:23,142
if they don't have a safe working environment.

189
00:09:23,142 --> 00:09:25,163
That's been the conventional wisdom.

190
00:09:25,163 --> 00:09:29,190
A lot of companies have fallen into that conventional wisdom.

191
00:09:29,190 --> 00:09:31,103
They resisted environmental improvement.

192
00:09:31,103 --> 00:09:33,983
They resisted workplace improvement.

193
00:09:33,983 --> 00:09:40,407
That thinking has led to, I think,

194
00:09:40,407 --> 00:09:42,311
much of the behavior

195
00:09:42,311 --> 00:09:44,292
that we have come to criticize in business,

196
00:09:44,292 --> 00:09:46,335
that I come to criticize in business.

197
00:09:46,335 --> 00:09:49,731
But the more deeply I got into all these social issues,

198
00:09:49,731 --> 00:09:51,819
one after another,

199
00:09:51,819 --> 00:09:54,803
and actually, the more I tried to address them

200
00:09:54,803 --> 00:09:57,427
myself, personally, in a few cases,

201
00:09:57,427 --> 00:10:00,171
through non-profits that I was involved with,

202
00:10:00,171 --> 00:10:03,910
the more I found actually that the reality

203
00:10:03,910 --> 00:10:05,643
is the opposite.

204
00:10:05,643 --> 00:10:07,659
Business does not profit

205
00:10:07,659 --> 00:10:09,515
from causing social problems,

206
00:10:09,515 --> 00:10:12,965
actually not in any fundamental sense.

207
00:10:12,965 --> 00:10:15,267
That's a very simplistic view.

208
00:10:15,267 --> 00:10:18,251
The deeper we get into these issues,

209
00:10:18,251 --> 00:10:20,281
the more we start to understand

210
00:10:20,281 --> 00:10:22,243
that actually business profits

211
00:10:22,243 --> 00:10:23,917
from solving from social problems.

212
00:10:23,917 --> 00:10:26,152
That's where the real profit comes.

213
00:10:26,152 --> 00:10:28,179
Let's take pollution.

214
00:10:28,179 --> 00:10:30,763
We've learned today that actually

215
00:10:30,763 --> 00:10:33,155
reducing pollution and emissions

216
00:10:33,155 --> 00:10:37,200
is generating profit.

217
00:10:37,200 --> 00:10:39,190
It saves money.

218
00:10:39,190 --> 00:10:41,350
It makes the business more productive and efficient.

219
00:10:41,350 --> 00:10:43,270
It doesn't waste resources.

220
00:10:43,270 --> 00:10:45,590
Having a safer working environment actually,

221
00:10:45,590 --> 00:10:47,170
and avoiding accidents,

222
00:10:47,170 --> 00:10:48,959
it makes the business more profitable,

223
00:10:48,959 --> 00:10:50,996
because it's a sign of good processes.

224
00:10:50,996 --> 00:10:54,535
Accidents are expensive and costly.

225
00:10:54,535 --> 00:10:57,647
Issue by issue by issue, we start to learn

226
00:10:57,647 --> 00:10:59,967
that there's no trade-off

227
00:10:59,967 --> 00:11:03,855
between social progress

228
00:11:03,855 --> 00:11:06,810
and economic efficiency

229
00:11:06,810 --> 00:11:09,287
in any fundamental sense.

230
00:11:09,287 --> 00:11:11,247
Another issue is health.

231
00:11:11,247 --> 00:11:13,215
I mean, what we've found is actually

232
00:11:13,215 --> 00:11:15,251
health of employees is something

233
00:11:15,251 --> 00:11:17,183
that business should treasure,

234
00:11:17,183 --> 00:11:19,311
because that health allows those employees

235
00:11:19,311 --> 00:11:21,135
to be more productive and come to work

236
00:11:21,135 --> 00:11:23,790
and not be absent.

237
00:11:23,790 --> 00:11:25,183
The deeper work, the new work, the new thinking

238
00:11:25,183 --> 00:11:29,567
on the interface between business and social problems

239
00:11:29,567 --> 00:11:32,623
is actually showing that there's a fundamental,

240
00:11:32,623 --> 00:11:34,959
deep synergy,

241
00:11:34,959 --> 00:11:38,671
particularly if you're not thinking in the very short run.

242
00:11:38,671 --> 00:11:40,754
In the very short run, you can sometimes

243
00:11:40,754 --> 00:11:42,855
fool yourself into thinking

244
00:11:42,855 --> 00:11:45,150
that there's fundamentally opposing goals,

245
00:11:45,150 --> 00:11:47,103
but in the long run, ultimately, we're learning

246
00:11:47,103 --> 00:11:51,390
in field after field that this is simply not true.

247
00:11:51,390 --> 00:11:54,204
So how could we tap into

248
00:11:54,204 --> 00:11:57,710
the power of business

249
00:11:57,710 --> 00:11:59,759
to address the fundamental problems

250
00:11:59,759 --> 00:12:02,700
that we face?

251
00:12:02,700 --> 00:12:05,407
Imagine if we could do that, because if we could do,

252
00:12:05,407 --> 00:12:07,447
we could scale.

253
00:12:07,447 --> 00:12:10,303
We could tap into this enormous resource pool

254
00:12:10,303 --> 00:12:12,447
and this organizational capacity.

255
00:12:12,447 --> 00:12:16,583
And guess what? That's happening now, finally,

256
00:12:16,583 --> 00:12:21,104
partly because of people like you

257
00:12:21,104 --> 00:12:23,959
who have raised these issues now

258
00:12:23,959 --> 00:12:27,320
for year after year and decade after decade.

259
00:12:27,320 --> 00:12:29,375
We see organizations like Dow Chemical

260
00:12:29,375 --> 00:12:31,663
leading the revolution away from trans-fat

261
00:12:31,663 --> 00:12:35,240
and saturated fat with innovative new products.

262
00:12:35,240 --> 00:12:37,870
This is an example of Jain Irrigation.

263
00:12:37,870 --> 00:12:39,175
This is a company that's brought drip irrigation technology

264
00:12:39,175 --> 00:12:41,951
to thousands and millions of farmers,

265
00:12:41,951 --> 00:12:45,710
reducing substantially the use of water.

266
00:12:45,710 --> 00:12:48,154
We see companies like the Brazilian forestry company [??]

267
00:12:48,154 --> 00:12:50,191
that's figured out how to avoid

268
00:12:50,191 --> 00:12:52,870
tearing down old growth forest

269
00:12:52,870 --> 00:12:54,231
and using eucalyptus and getting much more yield

270
00:12:54,231 --> 00:12:56,375
per hectare of pulp

271
00:12:56,375 --> 00:12:58,527
and making much more paper than you could make

272
00:12:58,527 --> 00:13:00,698
by cutting down those old trees.

273
00:13:00,698 --> 00:13:02,839
You see companies like Cisco that are training

274
00:13:02,839 --> 00:13:06,534
so far four million people in I.T. skills

275
00:13:06,534 --> 00:13:09,431
to actually, yes, be responsible,

276
00:13:09,431 --> 00:13:11,631
but help expand the opportunity

277
00:13:11,631 --> 00:13:14,135
to disseminate I.T. technology

278
00:13:14,135 --> 00:13:16,175
and grow the whole business.

279
00:13:16,175 --> 00:13:18,919
There's a fundamental opportunity for business today

280
00:13:18,919 --> 00:13:24,129
to impact and address these social problems,

281
00:13:24,129 --> 00:13:26,207
and this opportunity

282
00:13:26,207 --> 00:13:28,167
is the largest business opportunity

283
00:13:28,167 --> 00:13:31,510
we see in business.

284
00:13:31,510 --> 00:13:34,208
And the question is, how can we get business

285
00:13:34,208 --> 00:13:38,206
thinking to adapt this issue of shared value?

286
00:13:38,206 --> 00:13:40,199
This is what I call shared value:

287
00:13:40,199 --> 00:13:43,416
addressing a social issue with a business model.

288
00:13:43,416 --> 00:13:45,570
That's shared value.

289
00:13:45,570 --> 00:13:47,615
Shared value is capitalism,

290
00:13:47,615 --> 00:13:49,961
but it's a higher kind of capitalism.

291
00:13:49,961 --> 00:13:53,184
It's capitalism as it was ultimately meant to be,

292
00:13:53,184 --> 00:13:55,304
meeting important needs,

293
00:13:55,304 --> 00:13:59,219
not incrementally competing for

294
00:13:59,219 --> 00:14:03,390
trivial differences in product attributes

295
00:14:03,390 --> 00:14:05,230
and market share.

296
00:14:05,230 --> 00:14:07,219
Shared value is when we can create social value

297
00:14:07,219 --> 00:14:09,776
and economic value simultaneously.

298
00:14:09,776 --> 00:14:12,547
It's finding those opportunities

299
00:14:12,547 --> 00:14:14,643
that will unleash the greatest possibility we have

300
00:14:14,643 --> 00:14:16,619
to actually address these social problems

301
00:14:16,619 --> 00:14:18,605
because we can scale.

302
00:14:18,605 --> 00:14:21,131
We can address shared value at multiple levels.

303
00:14:21,131 --> 00:14:24,788
It's real. It's happening.

304
00:14:24,788 --> 00:14:28,804
But in order to get this solution working,

305
00:14:28,804 --> 00:14:31,347
we have to now change how business sees itself,

306
00:14:31,347 --> 00:14:35,230
and this is thankfully underway.

307
00:14:35,230 --> 00:14:38,491
Businesses got trapped into the conventional wisdom

308
00:14:38,491 --> 00:14:40,708
that they shouldn't worry about social problems,

309
00:14:40,708 --> 00:14:42,996
that this was sort of something on the side,

310
00:14:42,996 --> 00:14:45,177
that somebody else was doing it.

311
00:14:45,177 --> 00:14:47,692
We're now seeing companies

312
00:14:47,692 --> 00:14:49,691
embrace this idea.

313
00:14:49,691 --> 00:14:51,665
But we also have to recognize business

314
00:14:51,665 --> 00:14:53,870
is not going to do this as effectively

315
00:14:53,870 --> 00:14:56,438
as if we have NGOs and government

316
00:14:56,438 --> 00:14:59,300
working in partnership with business.

317
00:14:59,300 --> 00:15:01,954
The new NGOs that are really moving the needle

318
00:15:01,954 --> 00:15:04,398
are the ones that have found these partnerships,

319
00:15:04,398 --> 00:15:06,446
that have found these ways to collaborate.

320
00:15:06,446 --> 00:15:08,534
The governments that are making the most progress

321
00:15:08,534 --> 00:15:10,518
are the governments that have found ways

322
00:15:10,518 --> 00:15:12,984
to enable shared value in business

323
00:15:12,984 --> 00:15:16,520
rather than see government as the only player

324
00:15:16,520 --> 00:15:19,934
that has to call the shots.

325
00:15:19,934 --> 00:15:22,406
And government has many ways in which it could impact

326
00:15:22,406 --> 00:15:24,614
the willingness and the ability of companies

327
00:15:24,614 --> 00:15:26,714
to compete in this way.

328
00:15:26,714 --> 00:15:29,663
I think if we can get business seeing itself differently,

329
00:15:29,663 --> 00:15:32,206
and if we can get other seeing business differently,

330
00:15:32,206 --> 00:15:34,196
we can change the world.

331
00:15:34,196 --> 00:15:38,216
I know it. I'm seeing it.

332
00:15:38,216 --> 00:15:40,166
I'm feeling it.

333
00:15:40,166 --> 00:15:42,600
Young people, I think,

334
00:15:42,600 --> 00:15:44,241
my Harvard Business School students, are getting it.

335
00:15:44,241 --> 00:15:49,363
If we can break down this sort of divide,

336
00:15:49,363 --> 00:15:51,543
this unease, this tension,

337
00:15:51,543 --> 00:15:54,303
this sense that we're not

338
00:15:54,303 --> 00:15:56,543
fundamentally collaborating here

339
00:15:56,543 --> 00:15:58,893
in driving these social problems,

340
00:15:58,893 --> 00:16:00,997
we can break this down,

341
00:16:00,997 --> 00:16:02,997
and we finally, I think,

342
00:16:02,997 --> 00:16:05,629
can have solutions.

343
00:16:05,629 --> 00:16:08,429
Thank you.

344
00:16:08,429 --> 00:16:11,151
(Applause)