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  • The entire model of capitalism

  • and the economic model that you and I

  • did business in,

  • and, in fact, continue to do business in,

  • was built around what probably Milton Friedman

  • put more succinctly.

  • And Adam Smith, of course, the father of modern economics

  • actually said many, many years ago,

  • the invisible hand,

  • which is, "If you continue to operate

  • in your own self-interest

  • you will do the best good for society."

  • Now, capitalism has done a lot of good things

  • and I've talked about a lot of good things that have happened,

  • but equally, it has not been able to meet up

  • with some of the challenges that we've seen

  • in society.

  • The model that at least I was brought up in

  • and a lot of us doing business were brought up in

  • was one which talked about

  • what I call the three G's of growth:

  • growth that is consistent,

  • quarter on quarter;

  • growth that is competitive,

  • better than the other person;

  • and growth that is profitable,

  • so you continue to make

  • more and more shareholder value.

  • And I'm afraid this is not going to be good enough

  • and we have to move from this 3G model

  • to a model of what I call

  • the fourth G:

  • the G of growth that is responsible.

  • And it is this that has to become

  • a very important part

  • of creating value.

  • Of not just creating economic value

  • but creating social value.

  • And companies that will thrive are those

  • that will actually embrace the fourth G.

  • And the model of 4G is quite simple:

  • Companies cannot afford to be just innocent bystanders

  • in what's happening around in society.

  • They have to begin to play their role

  • in terms of serving the communities

  • which actually sustain them.

  • And we have to move to a model

  • of an and/and model which is

  • how do we make money and do good?

  • How do we make sure

  • that we have a great business

  • but we also have a great environment around us?

  • And that model

  • is all about doing well and doing good.

  • But the question is easier said than done.

  • But how do we actually get that done?

  • And I do believe

  • that the answer to that is going to be leadership.

  • It is going to be to redefine

  • the new business models

  • which understand

  • that the only license to operate

  • is to combine these things.

  • And for that you need businesses

  • that can actually define their role

  • in society

  • in terms of a much larger purpose

  • than the products and brands that they sell.

  • And companies that actually define a true north,

  • things that are nonnegotiable

  • whether times are good, bad, ugly --

  • doesn't matter.

  • There are things that you stand for.

  • Values and purpose are going to be the two

  • drivers of software

  • that are going to create

  • the companies of tomorrow.

  • And I'm going to now shift

  • to talking a little bit about my own experiences.

  • I joined Unilever in 1976

  • as a management trainee in India.

  • And on my first day of work

  • I walked in and my boss tells me,

  • "Do you know why you're here?"

  • I said, "I'm here to sell a lot of soap."

  • And he said, "No, you're here to change lives."

  • You're here to change lives.

  • You know, I thought it was rather facetious.

  • We are a company that sells soap and soup.

  • What are we doing about changing lives?

  • And it's then I realized

  • that simple acts

  • like selling a bar of soap

  • can save more lives

  • than pharmaceutical companies.

  • I don't know how many of you know

  • that five million children don't reach the age of five

  • because of simple infections that can be prevented

  • by an act of washing their hands with soap.

  • We run the largest

  • hand-washing program

  • in the world.

  • We are running a program on hygiene and health

  • that now touches half a billion people.

  • It's not about selling soap,

  • there is a larger purpose out there.

  • And brands indeed can be

  • at the forefront of social change.

  • And the reason for that is,

  • when two billion people use your brands

  • that's the amplifier.

  • Small actions can make a big difference.

  • Take another example,

  • I was walking around in one of our villages in India.

  • Now those of you who have done this

  • will realize that this is no walk in the park.

  • And we had this lady

  • who was one of our small distributors --

  • beautiful, very, very modest, her home --

  • and she was out there,

  • dressed nicely,

  • her husband in the back, her mother-in-law behind

  • and her sister-in-law behind her.

  • The social order was changing

  • because this lady

  • is part of our Project Shakti

  • that is actually teaching women

  • how to do small business

  • and how to carry the message

  • of nutrition and hygiene.

  • We have 60,000 such women

  • now in India.

  • It's not about selling soap,

  • it's about making sure

  • that in the process of doing so

  • you can change people's lives.

  • Small actions, big difference.

  • Our R&D folks

  • are not only working to give us some fantastic detergents,

  • but they're working to make sure we use less water.

  • A product that we've just launched recently,

  • One Rinse product that allows you to save water

  • every time you wash your clothes.

  • And if we can convert all our users to using this,

  • that's 500 billion liters of water.

  • By the way, that's equivalent to one month of water

  • for a whole huge continent.

  • So just think about it.

  • There are small actions that can make a big difference.

  • And I can go on and on.

  • Our food chain, our brilliant products --

  • and I'm sorry I'm giving you a word from the sponsors --

  • Knorr, Hellman's and all those wonderful products.

  • We are committed to making sure that

  • all our agricultural raw materials

  • are sourced from sustainable sources,

  • 100-percent sustainable sources.

  • We were the first

  • to say we are going to buy all of our palm oil

  • from sustainable sources.

  • I don't know how many of you know that palm oil,

  • and not buying it from sustainable sources,

  • can create deforestation that is responsible

  • for 20 percent of the greenhouse gasses in the world.

  • We were the first to embrace that,

  • and it's all because we market soap and soup.

  • And the point I'm making here

  • is that companies like yours, companies like mine

  • have to define a purpose

  • which embraces responsibility

  • and understands that we have to play our part

  • in the communities in which we operate.

  • We introduced something called

  • The Unilever Sustainable Living Plan, which said,

  • "Our purpose is to make sustainable living commonplace,

  • and we are gong to change the lives

  • of one billion people over 2020."

  • Now the question here is,

  • where do we go from here?

  • And the answer to that is very simple:

  • We're not going to change the world alone.

  • There are plenty of you and plenty of us

  • who understand this.

  • The question is,

  • we need partnerships, we need coalitions

  • and importantly, we need that leadership

  • that will allow us to take this from here

  • and to be the change

  • that we want to see around us.

  • Thank you very much.

  • (Applause)

The entire model of capitalism

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A2 TED soap sustainable model growth purpose

【TED】Harish Manwani: Profit's not always the point

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    CUChou posted on 2015/02/27
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