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Stakeholder Capitalism: What Is Required from Corporate Leadership? | DAVOS 2020

Jim Hagemann Snabe
Chairman at Siemens AG
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World Economic Forum 2020
January 21, 2020, Davos, Switzerland
World Economic Forum 2020
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Stakeholder Capitalism: What Is Required from Corporate Leadership? | DAVOS 2020
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About speakers

Jim Hagemann Snabe
Chairman at Siemens AG
Klaus Schwab
Founder and Executive Chairman at World Economic Forum
Ginni Rometty
Chairman, President and Chief Executive Officer, at IBM Corporation
Marc Benioff
Chairman and C.E.O. at Salesforce
Feike Sybesma
Chief Executive Officer and Chairman of the Managing Board at Royal DSM NV
Brian T. Moynihan
Chairman and Chief Executive Officer at Bank of America

Chairman at Siemens (D), Chairman at A.P. Moller - Maersk (DK), and Vice-Chairman at Allianz (D). Serves as a Member of the Board of Trustees at the World Economic Forum; Adjunct Professor at Copenhagen Business School (CBS). Former Co-Chief Executive Officer of SAP. Master’s in Operational Research from the University of Aarhus, Denmark.

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Professor Klaus Schwab was born in Ravensburg, Germany in 1938. He is Founder and Executive Chairman of the World Economic Forum, the International Organization for Public-Private Cooperation.He founded the Forum in 1971, the same year in which he published Moderne Unternehmensführung im Maschinenbau (Modern Enterprise Management in Mechanical Engineering). In that book, he argued that the management of a modern enterprise must serve not only shareholders but all stakeholders (die Interessenten), to achieve long-term growth and prosperity. Schwab has championed the multistakeholder concept since the Forum’s inception, and it has become the world’s foremost platform for public and private cooperation. Under his leadership, the Forum has been a driver for reconciliation efforts in different parts of the world, acting as a catalyst of numerous collaborations and international initiatives. (See the history page for more information).

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BSc (Hons) in Computer Science and Electrical Engineering, Northwestern University. With IBM: Vice-President, Worldwide Transformation Consulting Business; Head, Insurance Solutions Development Worldwide; Manager, Global Insurance and Financial Services Sector; Senior Vice-President and Group Executive, IBM Sales, Marketing, and Strategy; most recently Senior Vice-President, IBM Global Business Services. Member: Board of Trustees, Northwestern University; Board of Overseers and Board of Managers, Memorial Sloan-Kettering Cancer Center.

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Studies in Medical Biology, University of Utrecht; studies in Business Admin., Erasmus University. 1987-98, with Gist-Brocades, including: Divisional Director, Marketing and Sales; Member, Executive Committee. With DSM: 1998-99, Business Group Director, Food Specialities; 2000, Member, Managing Board of Directors; since 2007, Chief Executive Officer and Chairman of the Managing Board. Member of the Supervisory Board: De Nederlandsche Bank (Dutch Central Bank); (Non-Executive Director) Unilever N.V.; Member, CEO Council, Chinese Association for Friendship with Foreign Countries; Climate Leader, World Bank Group and Chair of the High Level Leadership Forum on Competitiveness and Carbon Pricing, convened by the World Bank Group.

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Chairman of the Board and Chief Executive Officer, Bank of America. Chair: World Economic Forum International Business Council, Bank Policy Institute, American Heart Association CEO Roundtable, Charlotte Executive Leadership Council. Member: Financial Services Forum, The Business Council, The Clearing House, Federal Advisory Council of the Federal Reserve Board. Corporation Trustee, Brown University. Member, Museum Council, Smithsonian’s National Museum of African American History and Culture.

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About the talk

With shareholder primacy giving way to a broader vision for stakeholder-driven capitalism, how can business leaders rebuild public trust and deliver on a new mandate?

Speakers: Jim Hagemann Snabe, Klaus Schwab, Ginni Rometty, Marc Benioff, Feike Sybesma, Brian T. Moynihan

The World Economic Forum is the International Organization for Public-Private Cooperation. The Forum engages the foremost political, business, cultural and other leaders of society to shape global, regional and industry agendas. We believe that progress happens by bringing together people from all walks of life who have the drive and the influence to make positive change.

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Interesting panel discussion are very important elements of a meeting of 50th anniversary is to take out the game and to promote soon ocean of Steak House of capitalism is related to coupons to discuss this evening, and I'm very pleased to do. I have a very powerful panel. I'm not going there since I went to come gym Hakeem and snobbish The Truman Siemens and of mask off The Ficus cbiz mom. Also a member of support he's chief of security for chairman of the managing

Vault of oil DSM. Let me have Marc benioff German and co-chief executive office of sage Force member of support of suburbicon chairman and chief executive officer of the Bank of America and chair of the International Business Council of the world economic forum and ginni rometty chairman and president and chief executive officer of IBM. Also member of the international business counseling thanks to you because coming here to the 50th Anniversary. I was joking again about our program which we had when we had supposed to be doing in 71.

Actually. Your company is supposed to go off too cold to sleep. I sent it already. Why one of its leading a Executives and thank you for 50 years of loyalty, highly appreciate you. Let me stop this Brian this afternoon. We had our meeting of International Business Council. What is the outcome you discussed rematch how we can create a credible ESG system around the Staples of competence. We had possession with it. Sheriff persons to this morning and I'm of the International Business Council. They really talking about two topics, which

is supposed to think about him one is about what we've been doing to help make progress. Nishie G's net the lighthouse project which are examples of what companies have done under your leadership the last 50 years to drive change in the second is metrics to measure what we're going to do in the future. So what are we going to do in the future is companies to continue to drive stakeholder capitalism. And I think that we could get the company's degree to mini operating companies the investors who invest in us to agree to in the owners who give them the assets to invest

so a pension fund giving it asset asset manager who then gives an Asus to adopt you going to send a message with can all agree to that are defining with stakeholder capitalism capitalism is an important progress on it. And so the hundred or so CEOs were there in hundreds of companies represented a group of us have been working on this we are now pushing it for just indicated through the entire population for people sign on the context is 50 years ago. I was referenced 50-plus years ago the concept of stakeholder capitalism leading to 2017 International Business Council the most remember

signing the compact then leading to The Next Step which was the things I could be our tea and there's a purpose of the corporation. What is it and on top of that the IVC saying that we have to make progress on the sdgs because if we don't Charity can't solve these problems governments can't solve these problems alone. It will take the money from companies to generate the six trillion dollars in investment to get the sdgs implemented in the wake up is going to be as by changing the operations the way Society will measure the is Biometrics. And so this operations to

metrics to investors to owners and back to the metrics will allow us to demonstrate what stakeholder capitalism can we use top four accounting firms help us drive it to have his integrity auditability and we'll push it through to the beginning of this trend. When do you feel we have a generally accepted comprehensive measurement system in place, but the goal is to do between now and August we started last summer before last August. It really got into it last August in Earnest with your team from the West helping and drive through the

industry and I think engagement, hopefully by Tommy me in Geneva and location and at the West headquarters will have a degree to set of metrics in that way we can Start publishing them as part of a new reporting by the next subsequent year in 2021 sent it to integrate everybody location of the next meeting at I was inside that that be the arc to do it in there after people can report and I think you have Simply Life to how to measure a company's progress towards serving all stakeholders doing a great job for its customers

and clients in teammates in and Cheryl's and doing a great job for society as that and it's critical so removed because it's complicated tasks the other panelists sense of urgency. Why is it necessary? Well, maybe I can add it a common day. I think it's itchy and me we are very good at measuring shareholder value and we've done that for many many years and their CEOs and chairman. We think that is an important role. Now if you want to go to stakeholder capitalism, we do need to make sure that

we can measure the valley we create false takeovers and there's so many measurements out there. So I'm very excited about the effort that finding the team has been doing it down to 22 measurements that everyone could Implement than that I can say is the chairman of Siemens. We have committed to engage in this project help out make sure that these metrics are relevant and we even putting Raymond a racing system for the CEO and then the executive team on an ESP bass. So stakeholder management, and it's cool. And to ask to Jim we should know. A

measure, of course the difference sing some sustainability in the area of sustainability the ocean should we look what happened to the climate in 2 hours care for all materials. It's clear that we need to measure but it also show that we're not doing enough yet. She made real living now in the way. I'm sorry. That's part of bringing the investment rate up to the need to actually get the sdgs implemented is is if we all commit to this commitment to acquire more by Jim's company that buy guineas company and that's

how we get there. Crates tears and see the amount of commitment we make right now, it's just about a third of what we need. Jimmy Rihanna, we are living in you actually you you are one of the Pioneers football 6h now sis says she's bringing new challenges like platform companies and someone has one hole does c4c distribution. Actually affect stakeholder capitalism. If you don't thank God for some companies is going to make it more difficult in for others. It will rely on the values of Health for a long time. And

the reason I say that is in some ways you'd stay with the fourth industrial revolution industrial revolution change what we do some ways you say no because when it comes to a long-term and managing for the long-term, it's your holder value. You say why I've always put in and between every constituent. I do think there's a difference though with the fourth Industrial Revolution and that it changes the nature of what we do and I would boil it down to one word and that's trust and in fact in many ways. I think this is going to be a decade of trust and if you think about the

technology is, you know, you mentioned way back when we started all of this even in the beginnings of AI you could see the world would compete on data and there would be good uses and dad uses of data and then you would say to yourself. Okay, if people if this error is going to thrive people have to trust a technology But one more thing they have to trust that the era will be inclusive for them as well. And so I think this this Industrial Revolution and everything about it basis itself and data and it caused the question then of trust an individual level about the data at a company

level at a nation level and then does everyone feel the Futures better or worse in this era and and that that leads you to change things if you focus on on that point cir e s g e s t i r e state I'm playing such an important goal should be emphasized from the metrics. One of them was around principles and governments and I think everybody could say go back when you had me out here for five years ago together we introduced. Introduced but we brought him down our

principles about data and data management years ago around this to be clear. The people new technology should augment the owner you had to be transparent. No bias excetera. So some of the things Brian is calling out to be measured on you should be audited against those things. If you believe them the other big pillar you have is around people and so if I can just kind of digress one second, I do think the Sarah mean a hundred percent of jobs will change we've been doing work with MIT and looking at how do job roles change and you can already see tasks

are moving to high-end and low-end and some people will call that howling out the middle and so it does call for massive retraining and so I would just add if I can on this point to the fourth Industrial Revolution, the biggest thing that I think it requires is a change of Paradigm around skills. For one it's moving so quickly you have to Value skills. Not just degrees. You have to have new education models in the new Pathways to get people retrained and back into the workforce. So maybe we'll talk more about those programs. But those are very concrete actions that have to be

taken. This is where I think there's an intersection between business and what is good for the shareholder was good for me was good for the community because if this is not good for anyone if people do not find the digital era to be an inclusive are aware. They see a better future for them self. No one is going to buy a new technologies. No one's going to want to go down these roads if the world becomes more Have and Have Nots that is a horrible thing. I believe

both and so therefore for us I also need great employees. And so that's part of my job and I think because of the speed I make this technology. I should Usher it safely into the world part of us. Drink safely means I have to help the real prepare for it and Society prepare and that means skills and that's a public-private partnership. I mean, I was just sharing with the IBC earlier today. One of the ones we've been passionate about for seven years was everyone can't have a college degree. So could you work with high schools around the world and turn them

into with a community college or an apprenticeship as others would call it a vocational school of a 6-year technology degree a high school and an associate degree to make a long story short 7 years later 600 companies 150000 kids coming through and they've got two degrees their employable and the results show. So I would report on these metrics last year 15:1 5% of my hiring in the United States where these kids and their great employees by the way, and they go back and get more education and so I but if We don't all participate it's too much for government in

the speed. It's moving at a too fast, and you've got to build trust in this era. Any comments on this issue of skills and the need for public-private cooperation handling this question the fourth Industrial Revolution. So it did he mentioned it but this is the alignment of these issues it that my other colleagues will talk about a and the fact that we can then commit the society will make progress. now if I could serious relationship between we discussed with great urgency here with you say environmental Challenge

and stakeholder of a capitalist. Congratulations with 50-year stakeholder model, but after 50 years take for tomorrow. We still need to discuss this area of sustainability. And then I ask myself the question. Are we all surfing our economic model? Or did we develop economically way to surf in mankind and I think the economy ever started in a very simple sustainable model with barter trade one specializes in this year in the exchange goods and behold making

money is a real goal of the economy where the real goal is to live happily hear all together and if we see how much problems we create Ricci oceans without climate. I wish I was cast wrong with you. We are somewhere to be raving and it's just good business sense as well to take care of your environment because nobody will remain successful Society. It means that we need to take bigger steps. We need to be more clear as businesses. What is our derivative of the parents ghost show show

called science-based Argos to set maybe to put a price on carbon. Also internally in Tampines at least two disclosure. The climate-related financial risks. We are taking all kinds of things for the three of us put in the letter to all the participants of the form and I think there's many many things. Is there would you can do as basis to step up in order also to guarantee your own business, but also I would like to say dare to think long-term care to address there to take care of all the different

stakeholders on the long-run. Otherwise, she will not remain successful. Sufficiently I asked to pull in to Z scheme, which we have now at the base is Earth and it has all the sdgs around environment of the Clean Water Sanitation the oceans alive full of water and the words they use at Planet etcetera. So they're all in their the metrics were using are really geared it at Showing how companies are managed Interscope once go to scope to emissions when they're going to be carbon free by and it'll letter that you wrote with Kiki and I asked people to make that come about 25% of the 25%

or so of the copies of already made a commitment. So I think they're sufficiently detailed that they'll give measurements. And it frankly that developed relative measurement Savannah things will happen within an industry if my company is doing a text in another company's doing better than x to be a natural competition to make sure I'm competitive which will then calls me to do more. We have Bank of America carbon-neutral now, it was 300 billion dollar environmental program. I think people learn more about that. We just create a new Market Committee with Anthony. Uckun Tom Montag.

Delete help Drive business case that people hear more about that. You can see more people do it even smaller size Banks and Cetera. Under your leadership Business Council developed to scream Brooke. I think we should talk to everybody here to integrate now everybody into this place a well. It is not only for us companies, but it is also for those who invest in us as advantages or behind them as a donor's they also find it very difficult to see which company is a really sustainable and which company no more than 650 different mattresses out there to determine who is

sustainable. Now, nobody understands out of 650 different messages. Who's that really sustainable and how you compare companies its first companies important issue investors important. It is for Society at large important and that is with Brian. Getaway CIBC try to do in the past months and in the coming months to convert that to emerge Montclair set. This is sustainable. This is not sustainable. This is the way you think that transparency fish hundred percent reason stakeholder model for restart your pool Revolution. We do

you want less sex chairman of Siemens you you had to just to make some difficult decisions and stakeholder concept. You cannot avoid said you have to take Cancel your ride. We had a pretty challenging situation recently and it was a challenging in many ways. It was emotional because of the NSA lack of facts in the conversation around it and it was super complex so was with the social media and it spread of information that we have today. You suddenly find yourself in a very

defensive moment. When when actually in your call, you feel it, you know pretty proud of where the company is and where it's going. I mean the the factual situation which makes me proud of semen says that seems was one of the first industrial players who actually committed to see your true neutrality and we did that in 2015. So that's 5 years ago and said by 30 would be no true Land by 20. This is this year. We'll have a 50% reduction of CO2 compared to 14. So very committed to that. We we changed our philosophy as well to say well, you know being a stakeholder

oriented and Planet Orange is not about her know how you spend your money how you make business we make a profit and then how much of this profit will we do before? We actually turn it around and say it's about how we make out money and factors that today 44% of the total revenue of of cement which is a 182 billion-euro company is associated with solutions that help our customers run their business any more sustainable way and I'm so with that in mind you're too proud about where the company is and then suddenly you find yourself in a few communication

prices because we had committed to deliver a signaling system to a train and the train moves cold from a cold man. And then when you look at that, you feel you're pretty far away from the the bad doing it, but we had committed to this project and suddenly, you know, if you follow them to meet in the headlines the headline says she know she misses building pulled mine which which is not factually true and but it's really hard to deal with that situation and you got to make some choices. Are we still going to deliver that system is not a big contract if you know

where you wanted valuable commitments to customers for me this case shows that first of all there is a Urgency on this where you permission to place a company, even though you feel you doing the right things can be taken away from you instantly in a place where you didn't expect it. And secondly, I believe that we are right now at the Tipping Point where the scooting around projects that are not relevant for that future a fossil free future would be dramatically increasing the climate change is not

some topic we can talk about it's about real action and and you got to realize that as a company and you got to take real action. The issue is not the commitments to the Future that you want to bring your company too. But the transition to get there you don't get there in one day we have seen is when we started this now, we have 10 left with doing fine, but we need to basically reinvent the company go from Solutions that will fossil base to renewable base. You got to reschedule the company.

You got to restructure the company get out of certain businesses so that you can invest in others and you do need to reposition the company because otherwise you suddenly find yourself in the wrong headline, even though you're doing the right thing. So that's it shamet for me. It's about not getting distracted by this because you got to do the right things. But if anything you need to talk more about it and you need to accelerate your effort. Otherwise any little project even though you're so far away from the wrongdoing can distract you and

reduce your ability to become what you have intended to me Jhene. You're very much. No, didn't you have your own experience or not? We can project discussion about different Technologies. And I think that those have to be values-based decision but what's changed is how much you have to talk about it so that people understand why you take these decisions and I think it's even what's surrounded this whole dialogue around the purpose of a corporation that there's been things that are written

very binary about the topic and this isn't a binary topic and if you manage for the long-term, you do have an and between all of these words get people want to polarize this. So when any one of us do things for our community our employees are clients the country's everywhere within which we live. Our partners are always filled. They give us license to operate that is where a license to operate comes from so that communication that Jim was talking about a it is both important to have it but it's also because it is good for your business, isn't it is not an

altruistic thing that you are doing in and of itself and I think you can't in this day and age explain that enough or Give the rationale. I mean when I say I do when people say well, this is Charity or foundation work. I say no, it's not I mean skills is not charity in foundation work and living in a democracy. The people think they have a better future is not charity work because they are your employees and your customers. So that's why I was really understanding in a green with this point that I think it's just so important to both position everything right in Connect those dots

right cuz it's a virtuous circle but you got to get get it moving want to set up so we did with the group's today was to talk about the Six Trillion and the Charity's eight eight hundred billion a year if the government as big as Governor States has a billion trillion dollar deficit and it's only $40 budget. So this work can't be charity. It's what Jim said it is retooling your business system to have the outcome. Otherwise, we're going to fail because we have $800 in the year. We have six It's not good composed and that's if you took all the money and all the

charity in the world only once this items and hers the Arts and I bought other things which are not also included. So this idea what gym is saying is were saying they operate your expense face your whole customer base your whole supply chain in overtime transition to producers result is a much more sustainable sustainable process. Mosque, I will I will ask you in a moment. Very sensitive question. But before coming back to you, Jeannie, if you want to church sheet behavior of a company, you have to ask Jessica principles. Now,

you have two principles and now you are in one of the artificial intelligence and see where we get look up. This is a topic that we took up many years ago first principles always start with yourself before you try to put them on other people and to this day we'd written ethical principles for a I so within my own company it starts with cuz I build this stuff the belief that it's there to augment what you and I do and make us better. It does matter where you start from and how you start building these things and then the part that you must be transparent and you must be

sure it's rid of by us and it has to be explainable. So once you start laying out with your principles are for this and then all that yourself to them, so I think there's some pretty simple things we do and not many people can do things like do not hide your AI. You should know when you're interacting with it for something versus adjust a system. There are things like you should check it for bias me we built products that actually can it doesn't matter who built your AI it can tell you if it Is biased in an important sort of footnote? Like what is bias Because the

actual aren't of concluding biases biases, you've had some set of values that you've determined. This is good in this is bad. And so that's culturally different berries in many places. So what are tools really look for are just patterns and then you have to put them against of values Isabel use question. Of Technology question, right? And so you would don't hide it test it all the time. I think when it comes to regulation and a framework to deal with AI you should deal with how it's used private technology in regulated itself. It takes Precision regulation and

then above that if I'm a company we have an AI ethics officer I think you guys do to is rme I think many of us do now so then we work with all countries around the world Europe is come out with one always think he's got one at met number of these have been built. That I think have been built quite sensibly in partnership with with business and industry and Academia to give them input because there is always going to be this balance between Innovation and whether it be privacy or security or any other path you go down and in these early stages you really do want to both

watch its use also regulated based on risk and be sure you're transparent. So that's why I think it's an incredibly important thing and it isn't just something a government does every company has to do it for themselves you have prenup appointment. Providence Park Novi, what year did is actually to speak out on social issues in a very strong way. So you took the position for example in testing policy in your community in San Francisco even really lost in

and of course you will support for HP TQ lights. I'm not my question is shoots a business leader or not only apply or submit himself to EST stand up. how to even go one step closer and speak out on political issues Will Klaus I mean just listening to this panel and being here at the conference in recent events. Certainly. I would tell you and I was totally tell the Business Leaders. Here's that capitalism. As we have known it is dead. And this Obsession that we have with maximizing profits for shareholders

alone. Has led to incredible an equality and a planetary emergency. We all owe a debt of gratitude to you Klaus. You have shown us the way Ford. And Klaus is right for 50 years. We have seen he has called for a new capitalism. A stakeholder capitalism a more fair or more just a more Equitable a more sustainable way of doing business that values all stakeholders as well as all shareholders and I close you are right because Salesforce and through your mentorship is living proof that stakeholder capitalism works. Now, if you know, we've had a phenomenal

return for our shareholders 165 billion dollars in market capitalization 4000% return since we went public in 2004, but Klaus we've also had a very good return for our stakeholders 310 million in grams so far to worthy causes our employees have volunteered for and 1/2 million hours to their local communities, 45,000 nonprofits and ngos included the world economic Forum use our product for free. And that's about a billion dollars of our software a year as well. And it's why Klaus I

so strongly believe. that when we serve all stakeholders business is the greatest platform for Change and the great news is and I believe that you can see it here that stakeholder capitalism. Is finally hitting a Tipping Point in the US The Business Roundtable has stated now the purpose of a corporation includes a fundamental commitment to all stakeholders not just its shareholders. The choosing between the two is a false choice and this Mana Davos Manifesto written says that the purpose of a company in the fourth Industrial Revolution is

to create a value for all its stakeholders. So taking that all into my heart when you say Does it mean that I have to fight for my employees? Yes, so if they're being discriminated against and if they're lgbtq employees, yes, we will fight for them doesn't mean that I have to pay for a customer's of course or even our local stakeholders in our community like are homeless. Yes. Every CEO has a responsibility to think about all stakeholders. And yes, as you aggressively at this conference, the planet is a key stakeholder. We are in a planetary emergency. That

is why I commend you Klaus for one tea. Org calling for the planning of 1 trillion trees the sequester over 200 gigatons of carbon and calling on the government still have spoken here. The business is that you have spoken here. The ngos is spoken here to take immediate action to one. Yes. NetZero reduce your mission about to also we need to sequester the carbon that has been transferred from the grounds and from the oceans and from the trees into the atmosphere. So anyway, I want to thank you clouds for leading us

to this vision of stakeholder capitalism though. We are today and you certainly deserve a tremendous, dacian for 50 years of this Vision. Thank you very much, It's a funeral of shareholder Capital. What would be You advise no to the audience. I mean, I'm I'm sure there's still people who are skeptical about people who are skeptical and still have question marks is a mine. Do you want to stop for me? I'm as a business leader. I had a baby in 2008 when I went on a trip to Indian and met some of the poorest people on

the planet and some of the richest people on the planet the same day and I almost resigned and said I don't spend time to do something good for the world and I realized the few hours later that if I stayed in business and I could leverage the vehicle of business and then probably I would have a significantly more impact than I would just have us a Jim hagemann snabe. Who cares about me at the time I was with sap and and that we began a process of trying to redirect a company to watch stakeholder orientation not only to a

doubling of the value of the company, but actually and excitement inside the company about what this company Could do I'm seeing the same now with Siemens. I see the same with a familiar mask. So in my mind, we often underestimate the power that business can have you asked should we be pulling political? No, I don't think so. We should influence policies to create Frameworks that align better the stakeholders, but it is not allowed you to do to be political. I think we need to have opinions and most of all we need to leverage the

global reach all companies the the integration that we have with employees and it in Societies in which we operate and demonstrate action because that's what business is really good at and and I hope that everyone would sign the emanifest I certainly will because I also think it's completely unfair that one CEO is asked to take responsibility for some other CEO who's not getting it. And therefore my please to everyone sign it and then do something via Force because business can be. Thank you.

I think that you know, there's been some comments made about corporate cultures, but I think that we realize that a corporate culture alone will not be enough to meet the urgency and scale of today's Global challenges. We need to resources. The wealthiest Among Us people like me and so many of us here. We need to pay higher taxes. That's a word that has not been used yet on the panel and I'm pleased that your man tavos Manifesto Klaus recognizes that companies need to pay higher taxes and pay their fair share and one example of that is how we're addressing this had

Salesforce in San Francisco where we radically supported a new tax on our largest companies to address our homelessness crisis because that Homeless are stakeholders as I mentioned. But you asked what should we be doing now is Business Leaders and I would tell my fellow Business Leaders here that none of these challenges are going away. We need to rise to this moment emergency. We need the act now. If you're attending this conference, you need to commit to stakeholder capitalism. If you are attending this conference, you need to commit to being

that 0 if you're attending this conference, you need to help protect the oceans. If you are attending this conference, you need to commit to help planning one tree and trees. Every single one of us is a platform for change. This is a time of action not words. We are at that point of urgency with our planet and that's why I wrote the books Trailblazer because I believe that my business and really all of us are tremendous platforms for Change and that we must act today. Thank you for the question. The skeptic might say can you do

those? Can you really deliver for all the constituencies? Can you deliver for your customers going to deliver for your voice can deliver for your voice and delivery society and we weave look back and back tested this in a lot of ways in a research just a matter of the brt firms assigned to brt about performed their industry. If you are research team has proven that if you don't follow good as to DS principal, if you could look back in a few were investor, if you didn't invest in those countries of perform poorly if Miss 90% of bankruptcies a research team is eclair the next decade one

of the 10 Trends is moral capitalism. And that's with an investor money is going to flow. So if you're thinking about you can produce a profit here shareholder and not address your owners, not address your employees have a problem, but I just look around and be out more often so you can do both our company has been able to across the deck and I've been CEO generation tremendous Cheryl return. Record and record earnings to not put in a charity 50 billion dollars Community Development going to complete completed 125 billion dollars plus environmental financing is Proposition

the Skeptics say you can't do both you can now let's go out and do it. FICA well, I hope it's not the funeral all those always go to bury the sing Sweet we don't need anymore. But I hope it's more a verse of taking care. Like I'm going to say no folder different stakeholders globalization brought prosperity for billions of people for many countries, but not for all countries and nose for old people in all countries, including the planet being one of those stakeholders of globalization, and I think

we should do my advice. I am deeply convinced that you can surf all stakeholders that you can surf the planet that you can serve society and create profit. However, not always on the short-term note. So what should we do? We should resist the temptation of being seduced to deliver value only on the short-term and it is sometimes tempting to do that, but we should resist the temptation and go for the long-term. And if you go for the long-term, I'm convinced that you can combine value Creation in an economic sense together

with a child who fell Uniqlo Chico value and that is what we see your house with three businesses need to do. Jimmy UFC Lost World the great job and I'm always humble about advice cuz I need more advice than I probably give so I think the only thing I would add to this conversation then is IBM's in its second century. So I think this is living proof that if you do honor all stakeholders, as I said earlier, it is your license to operate and one thing I had to think hard though in this new era I'll end where we're

close. Your first question to me was on the fourth Industrial Revolution and there is something different though here now and I think the world is bifurcating between what I called simply talking to my work for seven eight years ago to the team I said the world was bifurcating into good Tech and bad Tech and I think you have to decide what are those you are and if you're good Tech, what does that really mean? And I don't mean it quote technology company. I mean good Tech or bad Tech and how you're going to use it and for us. We made a decision that it would be about things like

everything. We did would build trust it would be to prepare society and their skills. We would be the industry's role model for diversity and inclusion and honor the planet and that's what that means in my own my good and on that advice to just decide what that means for you to be on the good side of History. Thank you all so you see why we feel so should really be a turning point enterprise system of democracy if we break it in the mall the context. So let's play Capture challenger, please. Thanks.

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