Essay
Essay: Connected Capitalism
Neville Isdell, IBLF chairman, says for businesses, sustainability doesn’t just mean saving energy. It requires a much broader social agenda.
Dennis Balogh
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E-mailThe prevailing economic crisis presents business leaders with a clear challenge: Rewire how we relate to society or face the risk of discovering that society has redesigned business for us. Businesses must think again about both how they work and how they engage with society to ensure sustainable and profitable growth in the 21st century. As leaders we must change the way we practice capitalism if we want its benefits to continue. A new model of social engagement, which I call Connected Capitalism, requires us to take four crucial steps.
Connect philanthropy and our sustainability agenda with our core business. Corporate philanthropy is not only about money but also about how we can more imaginatively deploy our core strengths to benefit the communities in which we work and live. We need to assist local firms in such areas as project and contract management, technology, supply chains, marketing and distribution, and employee training.
As business leaders, we must make the connection between business and the values of our employees. Just as consumers are demanding higher value from our brands, increasingly our employees seek a closer connection between their values and their employers’ value systems. A rewired business model encompasses practices, processes, systems and behaviors that resonate with employee expectations for transparency, responsible governance, fair practices and commitment to upholding human rights standards and employee welfare.
The IBLF at a glance
The IBLF works with businesses, governments and civil society to enhance the contribution that companies can make to sustainable development.
The IBLF developed the Corporate Social Responsibility Self Assessment Tool, which allows companies to identify areas within their practice that require action and creates tailored CSR action plans.
In China, the IBLF and partners launched in 2005 a local business leaders forum to raise understanding of business ethics and corruption.
The IBLF and partners produced Human Rights Translated, a summary of each of the internationally recognized rights, provided in a corporate context that makes recommendations for how human rights issues can be managed.
100 of the world’s leading businesses support The International Business Leaders Forum’s work in more than 90 countries.
Connect our business to the communities we serve. Globalization without localization creates alienation. However, global business cannot mimic the charitable sector or substitute for local government. Operational and market necessities in business cycles make such activity neither desirable nor sustainable. Still, companies can gain something back by offering and aligning their core competencies with the strategic plans and resources of governments and the community-based knowledge and resources of local volunteer organizations.
Connect our business to civil society and governments to address large-scale issues. Concerns like climate change and the availability of fresh water are so large and complex that no single company or organization can address them alone. These issues require multipolar, plural action and partnerships across all industries and across business, public and civil sectors.
Put business at the heart of sustainable development. At the International Business Leaders Forum (iblf.org), we work with businesses, governments and civil groups to respond to the development challenges businesses face, particularly when operating in transitioning and emerging economies. Besides running programs that provide opportunities to manage risks and enhance their impact on society, we work operationally with businesses to help them find their own solutions to development challenges. We consult with businesses, governments and civil society to improve cross-sector collaboration.
Teaching companies the importance of operating in a more connected way benefits both society and business in the long term. In this era of change, the businesses that connect with and adapt to the broader social agenda are the ones that will survive and thrive.
Neville Isdell is chairman of the board of trustees of the International Business Leaders Forum (IBLF) and former chairman and CEO of The Coca-Cola Co.
