As "Occupy Wall Street" continues to grow globally, many wonder what is causing the movement in the first place and what the outcome will be. The naming of the movement, related to Wall Street where it all started, does not do justice to the real issues. Yes, the original protests started with dissatisfaction at lavish bonuses and salaries in the financial sector, when seemingly little economic value is being created, but something much bigger is driving this movement. It is about "unheartful capitalism," as recently described by the CEO of Pepsi, Indrya Nooyi.
Companies are organs of society. They link everything together, provide products and services, give people the means to earn a living, and generally make our lives better. However, as short term thinking, quarterly earnings, "shareholder value" and profits became enmeshed with the growth of financial instruments, the system broke down. In almost every country, management has failed to remember that one of the overriding values of a company is to act as an organ for the community. Today, people are venting their frustration with unemployment, a degraded environment, increasing wealth gaps, and a myriad of other issues that have been accumulating in our societies for the past thirty years. The tipping point is upon us, and if you don't believe it, watch the Occupy movement in the months to come. It is not about pure money and wealth mismanagement, it is about societal leadership failure and greed.
One of the biggest opportunities that companies have in order to regain their edge, and take the lead within their industry, is to embrace socially engaged capitalism. This is when capitalism incorporates the values of both the community and the environment, and enhances each. The problem today is that although "sustainability" is often discussed, too often it is relegated to the back pages of an annual report. An interesting definition of sustainability is 'when companies invest in, and create products or services, that solve a problem." For example, according to Dr. Elizabeth Edersheim of Theme, a practitioner of Peter Drucker's management styles, Procter and Gamble has more impact on global water quality than any country on the planet, including China. In the same light, Unilever sells products to 2 billion people per day. Imagine what changes they can make when the right sustainability metrics and engagement are put into place.Socially engaged capitalism, and the benefits that accrue to the environment and society along the way, will win the hearts and minds of customers and employees. All companies have a chance today to truly become engaged in their communities, and that means getting involved in community issues, even alongside non-profit organizations, in order to create better, long-lasting solutions, increasing brand value along the way. According to Young & Rubicam, 72 percent of the Dow Jones market cap is based on intangible assets, up from only 20 percent in 1980. Brand Finance's recent study showed that 62 percent of the value of the world's business is now intangible, representing $19.5 trillion of the $31.6 trillion of global market value. This means that consumers, and the stock market, value qualities in a company that are hard to account for in black and white. Today, there is a world movement that speaks to this issue.The opportunities to change are there for the taking, but only for those business leaders who "get it." The Occupy movement is calling on these leaders to emerge, and to work with society to right the many wrongs that have been percolating for far too long. If a company wants to bring this growing movement into its "camp," one way to do it is to become truly involved in improving some of the world's environmental issues. The world is ripe for this type of participation, and as the movement crosses the ocean in many directions on a larger scale, those who see it coming will be the early winners.more information...Source: http://www.reuters.com
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