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JUST - Corporate social responsibility - How do you pay and treat your workers? How do you treat your customers?

Posted by ProjectC 
'We have to rethink what corporate stewardship is, we have to rethink the way that management and shareholders share with: employ[ers], customers, community, or otherwise we are going to be back to Milton Friedman and 90% taxes.'

'In the pursuit of Justness, Just capital.

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Philanthropic sector is about 360 billion a year, the government sector is about 4 trillion, the private sector is 15 trillion.

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If you gonna have true social change, real societal betterment, it has to start with the private sector, it has to start with business.

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3 trillion dollar ESG social governance industry .. which was so fractured .. and a lot of them always had an agenda.

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The first question we asked ourselves was; 'How do you define what is just?' .. Lets ask the American public:

The seven drivers are in order of importance:

  1. How do you pay and treat your workers? (23%)

  2. How do you treat your customers, do you respect their privacy, do you respect them individually? (19%)

  3. Products, do you make high quality, low cost and socially beneficial products (17%)

  4. Environmental sustainability (13%)

  5. Communities (11%)

  6. Domestic job creation (10%)

  7. Do you serve your shareholders and managers ('managing for profitability') (6%)


How do we get where we are today? In today's definition of what a companies mission is?

You go back to 1970. Milton Friedman famously said: 'The social responsibility of a company is to improve its profits.' That's how we got to this shareholder management, I shouldn't say 'me first', but, uhm, certainly their concentration on their benefits.

When Milton Friedman said that, tax rate has just come from 91% to 70%. Income inequality was one fifth of what is today. So you can see that 47 year old definition of capitalism which every CEO, every shareholder began to adopt. You can see how it is relevant to the time fast forwarded where we are today. It is a different deal.

In 1985 35% of the wealth of this country was owned by the bottom 90%. Today [2018], 23% of the wealth of this country is owned by the bottom 90% and that 12%[-point] difference has gone to the top one-tenth percent.

So capitalism may need modernizing.

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Corporate social responsibility (see the 7 points - The seven drivers)

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So: 'JUST" Company impact vs. companies excluded from index

- Twice as likely to pay nearly every worker a living wage
- Create U.S. jobs at a 20% greater rate
- They emit 45% less greenhouse gasses
- Paid 71% less in fines
- They donate 2.4 times as much to local communities and charities
- They have on average a 7% higher ROI (than the bottom ones)

This is just based [on] those socially responsible metrics that the American public said are so important.

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The first three are a pretty good business formula.

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State pension funds to tick of all your ESG, to have J.U.S.T. on your portfolio.

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[In] 2013, when we first started this, we took the basic ESG characteristics.

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We've got to start the dialogue, we've got to start the debate. Because we have to modernize the definition of capitalism. I don't think you can have this kind of income stratification without the government come in at some point. That is the worst of all outcomes, because that's the worst way to redistribute income. So hopefully this is an organic way, where we can drive resources through investments towards more JUST companies. We give out a seal to the top 100 companies, the most JUST companies and they can use that seal on their products.

So five years from now, I hope when you are in a store .. you'll buy with the one with a JUST capital [seal].

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We have to rethink what corporate stewardship is, we have to rethink the way that management and shareholders share with: employ[ers], customers, community, or otherwise we are going to be back to Milton Friedman and 90% taxes.

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About amplifying the public's voice, amplifying what the Americans think companies should be doing.

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Income stratification is that we have today is creating a lot of problems. 62% Of [the] Americans distrust corporations, 76% of young people will not identify themselves as a capitalist. I think we have to find someway to attack these issues of trust and I think aligning yourselfs with the public .. over time its gonna preserve this very system.'

- Paul Tudor Jones, ..interview with Paul Tudor Jones, June 12, 2018



Context

Holacracy – ‘..to fully harness the power of every human sensor..’

'..tell your boss you think the company has a love deficit.' - Hamel

'The "Manic-Depressive" Economy .. spirit becomes corrupted .. are of high human and personal cost..'


Our Obsession with Consumption — while Ignoring Saving and Investment — Is a Big Problem

'..a replay of the reckless U.S. mortgage Credit episode, only on a much grander global scale.'

'.."financial slavery" that grips the world .. are of high human and personal cost..'


'..a “monstrous” (according to Clemente de Diego) legal institution..'

'..a process of transition toward the only world financial order..' - Jesús Huerta de Soto

'..a truly stable financial and monetary system for the twenty-first century..'