Ensconced within our capitalistic society is a deep yearning
to understand how we arrived at the current state we are in. This is not a
reference to the environmental predicament we find ourselves in or the crashing
of ecosystems and extinction of species. Nor is it an allusion to the
innovative and never-seen-before sustainable practices taking shape within
companies all over the world. Rather, this opening statement suggests a desire
for awareness among individuals and systems globally. What framework do we
currently live in? What are the most pressing issues at hand? How has history
shaped this moment we are experiencing right now?
Before I
continue, it is essential to expose two assumptions I am making in this blog
post:
1 - “capitalistic
society” refers to the most dominant system we operate within, next to the law of nature
2 - under the
law of nature, businesses are the most powerful entities within this system
Through
this awareness, I find myself trying to understand how I have come to allow
myself to live within in a system that is very self-centered. My values and
intuition tell me we should be living the exact opposite way, in a
system-centered manner. I believe everyone innately desires this since nature
proves that it is the only sustainable way to live, and we are absolutely part
of nature!
Since
businesses are the most influential human-designed entities, it seems their
operating methods and influences are worth discussing. While numerous factors
drive the decisions within a business, two primary opinions surface here. The
first: Consumers are in the driver’s seat with regards to why businesses do
what they do and how they affect society. To clarify, businesses are merely an
extension of what humanity needs and wants. In their article entitled “Why Companies Can No Longer Afford to
Ignore Their Social Responsibilities”, Knowledge@Wharton states , “Quite simply, companies care about CSR because their
customers do. Consumers, by and large, are a self-motivated and self-interested
lot. But numerous studies indicate that a company’s CSR policies increasingly
factor into their decisions. For example, a survey by Landor Associates, the
branding company, found that 77% of consumers say it is important for companies
to be socially responsible” (Knowledge@Wharton is a online research and business
analysis journal of the Wharton School). The second viewpoint:
Businesses are controlled by wealthy shareholders. This means all operations
spawn from decisions made at the top and the outcome is simply a plan coming to
fruition. Colin Mayer (HBR Blog Network) writes in his blog “They [shareholders] are perfectly within
their rights to penalize, remove, and dismiss at a moment’s notice anyone who
does not perform to the highest standards. Indeed if they do not do this they
are abdicating their responsibilities as financiers, property owners, and
guardians of corporate assets to ensure that their money, property, and assets
are deployed in the very best way. Controlling corporations is their job” (Blog
title: “What’s Lost When Shareholders Rule”). Overwhelming evidence
suggests shareholder control shapes consumer demand though effective marketing
and of course convenience. This expresses itself as a reinforcing behavior
between the two sides leaving many stakeholders in the dust.
VS.
I would
offer that both of these philosophies regarding the business decision-making
process are true to some extent. However, as business sustainability gains more
traction these two viewpoints become more polarized or easily distinguishable. A
question begins to emerge here: Is sustainability owner or customer driven?
There may even be a third alternative already transpiring. Employee demand for
sustainable business practices is showing up primarily in coop business models.
Within large corporations, especially those that are disinclined to change,
employees may have the strongest influence due to their operational knowledge and
flexibility.
Kevin,
ReplyDeleteNailed it! I too find myself acting selfish instead of more selfless and trying to act in the best interest of community. Marketing has definitely helped create and shape this at an early age when watching Saturday morning cartoons... right? I do love the point of awareness though... as we and communities become more aware of contribution to the betterment of both, the stakeholders are starting to gain more ground in business over the shareholders... this excites me.
I love seeing the Co-Op models and the Stakeholder Employee own models... in fact, I find myself shopping at them more and more because it offers me more than just a product, but a relationship with those I buy from and what that business impacts.. Very nice to be aware of that...It makes you think of wants and needs more and the true value of things and their effects on one another...I look forward to reading more of your posts in the future, as they are quite succinct and well done!
Cheers,
James
One last thing... you pictures for this post don't seem to be loading.... may want to check that out in preview mode, or it could be my computer, but I think it's worth an investigation...as I think it would have been even better to have seen those...
DeleteRegards,
James
Kevin! Thanks for such an insightful post. I enjoy listening/reading your thoughts. The co-op model fascinates me and I'm eager to understand its benefits more. In my area, we are without a co-op but yet we have a strong local community. I've wondered this concept hasn't gotten off the ground in my community but I really think it comes down to education. Many people do not understand how they operate and what the goal of a co-op is. As a side note, have you ever looked at Bob's Red Mill? They would be a great case study now that I think about. They have a very engaging employee culture.
ReplyDelete-Emily
P.S. Challenge accepted :)
Kevin, great to read your perspective and to see it from your view! Thanks for sharing. I would challenge you though to not put yourself in the position of frustration that you've somehow "come to allow [yourself] to live within in a system that is very self-centered." As with those born into extreme poverty or injustice, there are some things we don't choose. What we do choose however is to make change. To take control of the environment we are currently in, (for us, this capitalistic, consumer driven marketplace which is damaging our environment and degrading our values system) educate ourselves and others and actively engage in affecting change. As you point to, there are some exciting new opportunities in which this growing tool box of ours will offer us deeper insight upon which to impact change internally, within these massive companies that propel consumerism. But also, excite us to work together to encourage and support alternative business models, including the co-op, but certainly not limited to. I am so excited to continue our time together at BGI, as a cohort and value-driven community and to see if we create our own new models that positively impact the world of business, the state of the economy and the society we live in. I am encouraged, after even this first quarter together, that we will all work diligently to affect global change so that no one (big goal here!) finds themselves living in a self-centered world. Grand vision. Lots of hope. Let's see what we can do.
ReplyDeleteTil then, go easy on yourself. We're likely all in the same boat (speaking for myself). It is humbling to recgonize that for some period in our lives we've let ourselves- unknowingly- fall into the consumer, self-centered lifestyle and world we currently operate within. But again, take 1 step back, recognize all this good work being done and know that you're already moving forward at least 2 large steps!
Kevin,
ReplyDeleteInteresting question whether sustainability is more owner driven or customer driven. With the uniform adoption of CSR practices we have seen within publicly owned companies, it seems customer-driven plays a more significant influence. Then of course there are companies that are so forward-thinking such as Patagonia, that they become responsible for driving the customer-driven demands. I had an interesting conversation with Fran Korten at the last intensive and she mentioned the power of the number 10%. That if we can get 10% on board with a movement, it has the momentum to change behavior. It seems like 10% is an attainable number to reach, so how we can more effectively unify and voice the 10% to shape corporate behavior?
So Kevin,
ReplyDeleteAs I read through your blog a thought seems to jump out at me. Business is nothing more than agreements that human beings have agreed to operate by. Right now businesses are the most powerful entities, but that is because we are all in agreement for them to be so. It used to be governments and our religious institutions, but it all comes back to agreements.
Even with Capitalism, perfect competition happens when gain is made without causing harm to anyone else, and yet, we don't seem to have agreed to that portion of the capitalistic way. What is truly powerful is agreement, and what is exciting for me, is that I get to stand in agreement with you and the rest of our cohort that we are the leaders and the innovators that bring it all together for mutual benefit and life creation.
I'm excited the world gets to have you as a leader!
Kevin,
ReplyDeleteI have often have the feeling that I am living out of sync with nature however cultural norms have tied me into the current self-centered system. I think this is true for most people; one has to step away from the hustle and bustle to realize their position within the system. Some people are so caught up in the system they are unwilling to make any changes, or if they do make changes they are usually symptomatic in nature and do not address the real problem. The systems thinking approach gives us a powerful tool to approach problems.
I liked your exploration of sustainability being owner or customer driven. I concur that an either or scenario can leave some stakeholders in the dust. Maybe what would be a better solution is for all stakeholders to be considered in the decision making process for the company. Today’s corporations have become extremely powerful in our society and our politics. I enjoyed your point about alternative capital models such as Co-ops and Employee Owned. I believe these alternative models have the potential to make true change in the business environment.