As a CEO -The Purpose of Business

As a CEO, I would start by asking the following questions:

What role do we play in the community?

How are we managing our impact on the environment?

How are we adapting to technological change?

Friedman, NYT Magazine, The Social Responsibility of Business (1970) -“There is one and only one social responsibility of business — to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.”

I would disagree with Friedman. Being in the consumer tech space, I strongly feel a lack of ESG and Sustainability initiatives from the companies and more greenwashing. Over the next decade, food and water will be scarce in many parts of the world, and food safety will be a continuing challenge for all. Global climate disruption is a wake-up call, and as a leader, it is crucial to think not only years ahead but generations ahead.

I will be that CEO who would prioritize ESG & Sustainability in the company’s vision and product line. There is a massive misconception that ESG is a form of CSR activity and that businesses will lose money when they take ESG initiatives or adopt sustainable business models. I learned that the phrase “triple bottom line” (TBL) was coined in 1994 by John Elkington. The central theme behind the phrase was that a company can be run so that it makes a profit and enhances the lives of people and the health of the planet. I would Implement TBL metrics that can impact many areas of the company’s decision-making. According to Edwards (2018) “In this model, a company helps stimulate economic growth and create wealth by compensating employees fairly, supporting local suppliers with its business, generating innovation, and paying its fair share of taxes. It also makes financially prudent but ethically driven decisions about how and where to source materials, products, or labor.”

• I would encourage the decision-makers to determine and reduce the true environmental cost of the entire life cycle of our products.
• Taking initiatives such as safe deposit of toxic waste or carbon-neutral workplaces and working with ESG supply chain partners.
• While my competitors would be looking at profits as the bottom line for shareholders, I would lead the company to follow TBL metrics consider how “profits will help empower and sustain the community as a whole, and not just flow to the CEO and shareholders” (Mindtools, 2009).
• Recruit a diverse board mix of genders, ethnicities, career experiences, and ways of thinking and have, as a result, a more diverse and aware mindset.
• Hold ESG workshops to inspire my staff also to live a sustainable life. Equip people to make a difference in their world.

Although the disposable income is rising, and more consumers are purchasing eco-friendly cleaning products, the public expectations of your company have never been greater. Society demands that public and private companies serve a social purpose. To prosper over time, every company must deliver financial performance and show how it positively contributes to society.

I am very passionate about ESG, and I believe listening to the future — ESG will shape new leaders.

As a leader, I would love to make the world better.