 Good afternoon everybody. Let's start as you've been good enough to come here through the snow or through lunch to get here on time I'm Nick Gowing and thank you very much indeed. I'm chairing this on behalf of the the forum to try and get a real buzz going about the issues of Leadership of business of governance and the new realities out there We're going to run until about 225 It would be great if you could stay on as long as that if you if possible because What I want to do is get a sense in this room of where the new cutting-edge is where the new front is are and Frankly, how brave you're prepared to be about thinking about the new realities in business and first particularly leadership That we want to lay out in front of you all of you are part of this brainstorming So don't think you can just sit on your hands and remain silent If at 226 you come to me and say I didn't get a chance to say anything Then that's your fault because I'd like to hear from you sooner rather than later We're trying to develop the whole theme of the the annual meeting is about the great Transformation with new models finding new models and the the challenges of business particularly for leadership are very clear I'm very stark as we'll hear in a moment. There's great scrutiny of business new Expectations even if it's based on public perceptions and emotions some of which you don't agree with that's the reality out there as Confirmed in much of the polling that's going on So we're looking for transformative ideas not for ten years, but maybe ten months from now It's that urgent new models to match those public expectations and the perceptions Try and break out of that mindset if you can here on this Wednesday afternoon in the Heaviest snow that Davos has seen for 66 years. So I'm told it's an opportunity for business to reposition itself particularly through leadership I'd like to hear from you big bold ideas, please if you're sitting on them and you want them heard and you want them debated Now's the time to start as a springboard as a catalyst for the next three or four days here in Davos and You perhaps might want to provide an acceptable reason Why some of what is out there is simply misunderstood, but you're gonna have to argue that Pretty pretty toughly. I think now we're webcasting live. I'm not doing this for the BBC I'm here in a personal capacity. It is being webcast live and part of the fun of this is trying to get social media to work We have a live Twitter feed with the public and in the room and you can see on the central screen there There's a Twitter feed. It's quite distant. I know but that's the Twitter feed both from in here and out there And on the right hand side of is the the address for you If you want to Twitter and talk to me here without necessarily raising your hand immediately Then my job is to try and put that into the debate. It's an experiment. Let's see how it works and If you don't like Twitter or you don't like what you've got in your pocket or you don't use a mobile phone I'm quite happy to take a bit of paper from you and We'll convert it into a tweet or some way of getting it into the space here now Who do we have in the room? By invitation we have a lot of business leaders You know who you are and we'll hear from many of you over the next hour and a quarter And the new introduction for the forum this year the global shapers they're between age 20 and 30 From the new shapers community their young entrepreneurs Successful entrepreneurs selected because they're already shaping our future and frankly They may have a different view of leadership than some of you in the room We want to hear from them also the global agenda councils have been working on this kind of issue for the last three years Representatives of those GACs are in the room. I want to hear from you about whether this is meeting The kind of challenges you've already laid out. Have you frankly been bold enough now? We'll end the conversation around 2 15 Because I'm hoping then that Bill George professor of management practice at Harvard Will then somehow bring together what you've done and what you've not done whether you've been bold enough or not But bill I think I want to just turn to you at this stage and say do you think those gathered in this room? Can be bold enough on these critical issues Absolutely, but it's exactly what you said. It's all about leadership. I just came from a session where everyone's talking about What's I don't know Mirko gonna say when just afternoon? I think we need to stop waiting for government leaders and other people to tell us what to do He the real actions are gonna be taken by individuals by companies by entrepreneurs who start things make something happen now The government systems are probably gonna be frozen for the next decade I hate to say that and so I think yes They will do their job, but I think each of us are the only ones that can grow the economy around the world are us as individuals And we need everyone to step up and lead at all levels It's not a question of title or size or anything like that It's a question of leadership at all levels of an organization. All right bill. Thank you very much indeed Let me just give you two minutes for a bit of speed dating around your table Would you just introduce yourselves? Let's loosen the atmosphere a little bit and I'll come back to you in three minutes Please All right, well, I hope you've speed dated enough and no doubt you'll get to know each other Even better in the next hour. Let me give you a sense if I can of the kind of tweets We've already been getting coming in before and during the beginning of this session There you can see some of them and I refer you there to number 11 which is from Zakiya Ibrahim Narrowing the gap between the rich and the poor The the brainstorm needs to narrow the gap between the rich and the poor Salaries to be in line with costs of most basic products Anico Mikkelson I've got a long list. They're coming in very quickly here So bear with me as I just give you a sense of what's coming in Saying the business is part of society That's needing and feeding it must be sensitive to even political surroundings to adapt and survive Here another one which is just come in earlier on number 10 I'm looking at Evaluating the true social and ecological costs of products and services and secondly equal support and payment for women and Thirdly design That's the kind of sense as you can see we're well up to 43 already I've got to somehow harvest this for your benefit to input into the discussion I'd like now to to ask Two chief executives and presidents to give us some of the metrics that are out there from the polling In a moment to Richard Edelman President and CEO of Edelman, but first to Barry Salzburg global CEO from Deloitte because the metrics and the data are Important to inform your view of how mindsets have got to change Barry the floor is yours. Thank you Good afternoon everybody We at Deloitte have done a number of surveys of the millennial generation In order to really understand the views of that group of folks as it relates to a fundamental set of questions What is the purpose of business? How are we improving society through business? How can we achieve even greater positive impact on society? So up on the screen in front of you is the answers to the first set of questions that we asked And I think that there is resounding alignment although about a 30 percent differential in terms of the support for the concept of how Do you measure businesses success with with the result being that that 92 percent of the Millennials and 71 percent of business leaders that we also surveyed concluded that success should be measured by more than profit So first data point incredibly important for us to begin the dialogue if you look at the second slide We asked them to identify What is the purpose of business and this little wordle what we call it up on the screen is the response from the Millennials The bigger the font the more the response So when you look up on this slide our millennial generation puts as number one societal development and number two innovation both ahead of profit prosperity and livelihood if you go to The next slide you can see what the business leaders responded to the very same question Profit was the number one response by a wide margin with with society and value being right behind it So what we have in front of us are three different data points And I think we'll set the stage for the conversations that we need to have today Questions that we need to deal with about what is the role of business in society? One other point that we asked we asked what does your core business contribute to society? 71% of business leaders were clear that their business makes a really valuable contribution to society But only 25% of them believe that anybody else believes that and So that is the fundamental discussion that we could have today Nick anything particularly barrier of the quality of leadership And the way leadership has to change The the the millennial survey also indicated to us that the number one Attribute for the millennial generation to describe future leaders was inspiration and number two was long-term goals Focusing on the long term not just on short term. So that's a little bit more about what the millennials were looking at Okay, Barry. We'll come back to you later. Let's now pick up Does anyone want to to challenge Barry or just get any clarification on any of those data points and particularly the graphics at this point? Please feel you can come in at any point. Yes at the back Geographical distinctions could you just Malini? Could you just say it again, please? Yeah, whether any distinctions in terms of geography? Remember the millennials that we tested we're just over a thousand Deloitte Employees who are millennials through 11 countries. So we got a pretty nice dispersion, but no no real difference by Geography or by age group even within the millennials nor anything Differentiating from the business leaders that we we surveyed as well. Anyone else want to come in any of the global shapers? Here no, I see you're gonna have to put your hands up quickly. Otherwise, I'm gonna move on Richard Edelman President and chief executive of Edelman and you said earlier today Richard. I was at your breakfast briefing that You mustn't think you can go forward based on the business practice of 08 Okay, let me try and give some detail. You stand in the light a little stand in life. So we can see you. Okay Perfect. All right. So we do a study across 25 countries 30,000 people and it's on trust trust in institutions What we saw this year is an incredible demise of trust in government government had seized the initiative after the debacle of 0809 bailing out business Obviously, re-regulating but what's happened as professor George said so accurately as business Can see is government's gone into paralysis and our strong Suggestion to all of you is don't wait for government to come out of paralysis Go and lead and I'll give you some data points and then I'll come around to a hypothesis The first data point is to understand just that business is still not trusted CEO trust in one year dropped from 50 percent to 38 percent. It's much worse in some other countries The issue is not making jobs and also this pay Differential people are saying I'm mad about you know, sort of the Occupy Wall Street thematic Who is credible look at an average person an employee an average employee is twice as believable as a chief executive That is a important thing to see Second I want you to see on the screen. I think it's behind me if I can go to the next slide we asked specifically 15 criteria what gives you trust in a corporation and In 2008 before the crash it was do you make the numbers? Do you have a terrific CEO? Are you delivering a lot of new products in? 2011 and 2012 those criteria are at the very bottom of what gives you trust in a corporation I think Barry's data is exactly right. We're going to corroborate it. What does it treating employees? Well Absolutely having a sense that that business is delivering on societal goals That you're an open and transparent operation so societal and engagement factors the Operative parts people are sort of taking for granted. They're assuming that business operates well What they don't assume is that business understands its role as a positive force in society so hypothesis We think that business has to take on the issues of the day whether it's fracking whether it's fees for financial services Make your case, but do it differently The theory that we have is stop riding your car right on the guardrail Drive your car in the middle of the lane Realize that you have to have societal acceptance not to shareholder acceptance that you have to also and go for this concept of Radical transparency that you've got to tell your employees what you're doing why you're doing it, but also be accountable Say here's our goals. Here's the measurability. We've achieved this far and recognize also that In the end it's not just operational things that you should measure. It's societal and engagement factors Mr. Gowing over to you sir before you sit down though make your case is what you said What kind of case does have to be made based on your sampling? Nick it's clear to us that the thing that people want is jobs and That business is a jobs creator Jamie Diamond had a press release that was very smart this morning It leads with not the figures for JP Morgan, which the quarter is usually pretty decent But how many jobs we created how many small businesses we financed what we're doing to make Business go better. That's the lead story. You can't go back to 08 and just say because we make money. We're good That's not good enough All right. Thanks Richard. Does anyone want to come back at Richard asking about data points data sampling and the next stage Anyone please in the room Yeah Is it Ernst? What would you just introduce yourself Ernst? Ernst Lichtling global reporting initiative global reporting initiative sets the standards for environmental social and governance reporting Richard just referred to the importance to show what the impact is on jobs and that is at the moment a concern For this moment last year. It was climate change. What I think is the higher level concern is what is business actually doing for? the planet for Society wider than that. How are it actually profits being made and there? We do need more clarity to actually maintain this license of operate and maintain trust One thing that people do not trust is if there is a gap between Say the spoken language and the body language of a company and in order to achieve more trust there Richard calls it radical transparency the transparency of business results needs to broaden if I may for a moment The global agenda council on the role of business underlines the importance of that in their summary Which is widely available here. That is to talk of the need for long-term sustainable wealth creation to be actually the focus or call it more shared shared value generation that is the Goal if a company doesn't demonstrate is nowadays anymore trust is very difficult to achieve But not only the spoken words It is also you have to demonstrate as a company now how you're going to do it and that's why reporting and Transparency is becoming so key. This is rapidly developing. This is becoming more mainstream as Is shown particularly in 2011 research by KPMG last data point three out of the four countries Research in 34 countries the majority of the large companies are now disclosing their ESG reporting Companies that don't do this have really more to explain nowadays and companies that make it their habit to talk about their financial as well as the Social environmental and governance results. Thanks dance A sense of what's coming in at the moment from some of you on the floor and also elsewhere On the the tweets, please if you could just switch, please Dan Okay Can you get it up there or not? Well, I'll tell you it's from Rappel and grumbana. Let's articulate the roadmap for companies to transform their role in Society and the reason that's up there is because before we gathered here there was an invitation through social media since Monday morning to Come up with your their views out there I'll just give you forgive me the switching takes a little bit of time here That's one of the the views which is out there and also from Here and a post up who is saying crisis is an opportunity, right? This is one of the questions which was put out on social media from Monday evening now It's difficult to read but I will read a sense of what is coming back from out there Top there of how business can do better or be better is about ethical business practices put customers ahead of profits Enhancing giving place for and incentives for creativity more transparency innovate make business Accountable to society. Let me move on with the next bit of data coming in What's the responsibility of business towards society win-win service and Sustainability between all parties involved and then much smaller responses on working for the markets along with corporate social responsibility and company keep being company that is the first most important and finally The other data points which are out there again This is the kind of thing we've been getting in About evaluating the true social and ecological costs of products and service equal support and Payment for women and design There are two or three others now. Let me is Jim Wallace here on table seven Jim Could I just come to you because you were on the you are on the Global Agenda Council on values in decision-making Give us your affections keep pushing the limits of this discussion, please Crisis has led to a breakdown in social contracts Implicit explicit things that we thought were the case are no longer So we're actually drafting a social covenant What does it mean to have a new covenant between Stakeholders and let me give you from the faith community a Old religious question. Jesus one wants asked who is my neighbor? Okay, take your cell phone your iPhone your blackberry that you live with every day all day, right? This is your constant companion. I would say whoever helped make this device Is your neighbor? Think about that. So from a business point of view, how can supply chains? become also value chains These are the new kind of questions. We have to start asking who is my neighbor who helped to make this how can supply chains? Become value chains. So the Global Action Council values is asking how can trust? Be reestablished we've lost trust trust will be stuck with new kinds of covenants that we agreed to make together to each other Are you being radical enough do you think in your in your council? Given the way the debate is going given the data points that are coming through from the surveys I think we're asking the final question of trust because Trust isn't good for business or politics or society and we've lost trust We've lost our whole sense of confidence in how Decisions are made like we've had since the crisis at Davos up there We've had plenary sessions. I've been a part of we've had a value seminar At Davos since the crisis However, the crisis came when bad decisions got made Because of bad values. I would say we're having a better conversation about our change in values so far from our changes in decision-making is Decision-making really changing on Wall Street or wherever else that's I think the hard The radical issue is to say how our decisions changing not just having a good discussion at Davos about values Thank you anyone of please Marjorie Marjorie Krause I just had something I wanted to add as a factor for people to think about and that is During 2012 while we're having this discussion about the realignment between business and Society and government more than 50% of the world's population will experience some kind of election or change of government and so We have amidst all of this whether you think it's uncertainty as an opportunity or a problem What's going to come out of the recession or governments that are smaller that have less resources that are less experienced that Will probably be less innovative There's a huge opportunity in that too if we can get this right to create a very different kind of model and it's just Something I thought was interesting in light of what we're talking about Marjorie That's a useful useful aspiration, but from your corporate perspective. Where is leadership failing at the moment? What what more needs to be done? Well, I think there is no there's no certainly on the government side there's no leadership and we've I think Moved into a situation where there is paralysis. So there There is and then in government. I think I mean in business. I think most people are just wanting to Not get in trouble is the best way I could say it So there's a real opportunity and I think there's some very progressive companies that take the lead and I agree with the CEOs That don't get credit for it And so part of this is also figuring out not only what to do But how to convince people that what's being done is actually in everybody's best interest Thanks, Marjorie. I don't pose that are you here? Please I would come to you because you're tweeting a lot on this please and you you could you all introduce yourself Yes, hi, I'm Anna bossa. I am a global shaper from Manila for the beans Yeah, and your view because you're beginning to tweet and you're you're expressing concern about the role of business in this new environment Yes, and your perspective. Okay. Thank you I think there just needs to be a lot of intergenerational responsibility when we make decisions in business also There has to be a multi stakeholder dialogue because you know environmentalists for instance think that all corporate There's a standard all corporations are bad Which which it's not the case if we just open the dialogue and learn more about each other's points of view And I think that I tweeted earlier that crisis is an opportunity I mean we've been seeing economic and political crises the past few years and it's a perfect opportunity to create new models Do you think there's a will for new models? Yes, definitely Richard Edelman's point was that there's a danger of defaulting to where things were in 0809 There's more well now, and I think there's also greater awareness from younger people to push for that I was in the social media session earlier and it says that 20 years ago Graduates of MIT usually start businesses when they're 37 and now the average age of entrepreneurs is 27 years old So you see that there's a growing Interests from younger people to shape the world. Okay. How disappointed are you at the moment in the quality of leadership from what you see? Very disappointed, but I also think that if I tweeted it earlier as well that if the people will lead the leaders will follow I'm sort of in this position that I don't rely on the government anymore I wouldn't say I'm apathetic because I still need them to propel my my agenda forward But I'm not gonna wait for them to do something and I'm not gonna make excuses for myself as a young person I'm not gonna say that which is because I'm 23 years old. I'm incapable of doing things Okay, thank you very much indeed. Could you just put up the tweets, please? Hi, my name is Catherine Moshonski. I'm a global shaper from San Francisco And I direct a public-private partnership that works to address climate change called the business council on climate change And I think what was said before about how business really needs to integrate externalities into their business models and that's where the real change can come and that's where the real Transformation is coming and I say that I think in response to something that was said during the global business context Event this morning. You had some amazing CEOs from wonderful companies talking about the challenges that they face as CEOs and and what they're doing to address some of the issues that society faces and all of them were talking about Crisis management and disaster relief and addressing world hunger and energy poverty and Amazing issues that they're taking on as part of their CSR departments or their foundations Which is is great But how much more impact could you have if you transform your business model to not create those problems in the first place? And as an example of something we're doing in San Francisco that I think is really inspiring is in this public-private partnership We are harnessing the ability and the opportunity that all of these businesses have to actually create the social change through their firm So we ask our businesses to take certain actions to transform their business models to address these pressing social issues What's your challenge here in Davos to this kind of gathering at the beginning of the whole session? I think create a roadmap for how your business can address some of these social Issues in you in your business as the core of your business while also generating profit Which I recognize is is the most important thing that a business needs to do just to survive. Please My name is Havil Khuraki Wala. I am the chairman CEO of Wokat, which is a healthcare Pharmaceutical biotech company. I believe the business has to recreate a new business model In the sense that I think we will agree on that The model which I'm suggesting is that the in addition to business I think one must create relevancy of your business with the society and community as a part of a business model not as a part of CSR activity and And this makes two very good business sense One that one is always relevant to what you are doing and long-term sustenance of business is possible And therefore we'll just give you an example of our own company where we are in pharmaceutical healthcare. We have a foundation Which takes care of healthcare delivery into the whole system, which is part of CSR activity But the very fact that we are in that you do research you do innovation and that is where you continue to become Kind of a relevant and I think that is where one has to revisit the business. Thank you very I saw you nodding your head there Do you want to just come in and then I'll go to others on your table Yeah, just a quick affirmation of your point of view that that from from the research that we have done The millennial generation absolutely wants that integrated responsibility of societal and business impact together so that the core of business is business and to drive societal impact We need to consider new models new ways of doing business But stay true to the underlying product and services that each of the businesses are producing. Thank you Pause the microphone to your right. I am Tay you with Cisco I think that this is a really rich dialogue that has been happening for a long time inside corporations You probably aren't familiar with it But I want to be very careful that when we talk about CSR quote activities that they're not CSR isn't a bunch of activities It's really about sustainability and how you manage the company how you treat your employees How you look at the supply chain and the impact it has on the environment And I think that what one of the trends that you can see is rather than saying we need to create the business use the CSR Agenda to integrate and work on and influence the new business model So for instance a lot of us are looking at health care and we you know IT is going to play a huge role in health care is delivered and the quality of the care and access to health care and To build a business around something that addresses a social issue But is part of your core profit-making business is where the CSR is integrated into your business So I want to be very careful We don't just separate as a bunch of activities that you do just to make things right from a PR perspective because it's much deeper than that Let me just pick up and then pass the microphone across give you a sense of what else is happening out there and maybe from within the room I don't know you or of course 130 up there the problem is the world is a monetary system take away that money and change it to a resource System the next one down intergenerate intra-generational approach will create new models of business Responsibility we no longer depend on governments and corporations anymore I'm just giving you a sample here of the kind of thing that's that's coming in at the moment We need to change our business culture. Nadia Zen is tweeting a lot. Are you in the room? You are okay. I'll come to you in a moment Scary thought the average employee is more believable than the CEO Weff results will be measured not only with numbers, but what you are doing for the world That's the sense which is coming through digitally, please Hey, I'm Geronimo. I'm a global shaper, too Just a follow-up on Yes, exactly and you run a company called euphoria. Exactly. It's a social business actually so I just think to that We walk to talk already from I'm originally from Bolivia, but I live in Switzerland, okay, and I Am I'm not sure if in your survey you also looked at values in in general We're also very impatient and I feel very impatient right now because everyone is talking it sounds like we agree, right? We need to change things. Let's walk to talk this morning. I was in a session in Muhammad Yunus, and he was saying Businesses should ask themselves. What's my USP and then Look to what is the problem that I can solve with that USB and how can I integrate that? Without necessarily making, you know only a financial profit, and I would like to start talking about that like the concrete solutions Thank you. Thank you. Okay. Well, I might come back to you at the end and ask you whether we've satisfied your concerns Please across here, and they will come who else over here get the microphone there Yes, Stuart Wallace from the New Economics Foundation and also on the Values Council and in the past I've run some businesses as well. I think the key thing that we got to do is a major shift from seeing profit as the end purpose to seeing profit as the means to an end to a wider purpose and We still have to make profits crucial But I think businesses need as entities to define wider purposes and they'll vary But until we have a sense of a wider purpose and profit being the means to an end We won't make a big transformation What are the implications there for for leadership and those on board to have to set the tone and the course Well major corporations some leaders say we're stuck with the markets I think the most the strongest leaders say no we can deliver for the markets But we will deliver a wider purpose So it's actually setting out a vision and the purpose agreeing it with their stakeholders and going for it And they'll probably make better profits as a result, but the profits becomes the means Can you just spin the microphone forward again to Barry but because Barry profit was one of the big words on your cloud there Do you want to respond to that quickly based on the data you have? The data that we have would just indicate that there's a difference of perspective in terms of today And I think that the dialogue that we need to have here today in brainstorm is how to how to migrate in that the world of inconsistency Okay, thank you. Please. Hi. My name is some deep night. I'm a young global leader and Private equity investor so some of this might sound a bit dry But I struggle with this kind of a conversation because the content here is extremely rich in terms of what's been said But in terms of walking the talk or some of the people saying that that's not a part of your CSR activity It's a part of the business How do you actually implement it and unless I fundamentally believe that unless there's a carrot or a stick That actually gets people to walk that talk it becomes very difficult for people to actually implement it It's a great dinner table conversation, but the end of it. No, there's no action that results from When you say it's a rich and you find it overwhelming should we be slowing down the discussion? I mean, I'm trying to push it forward. I'm not being facetious here But these are critical issues as we just heard from her on about here that that there's an impatience out there I think we should slow it down a bit because what we're getting is we're getting a lot of flashpoints of ideas But if you can take a couple of them and really drill down to the next level as to okay What do we do with it? And what's the most tangible thing that the leaders in this organization can do with within their businesses? I think it it might be helpful at least for Richard Richard Edelman, can I come to you because Impatience being expressed here, but a concern that this all may move too fast Even if that's the perception that your survey like yours is recording an expectation of something happening swiftly. I Think that Business leaders who are smart are gonna set out a long-term vision and if they try to meet it every quarter they're gonna have a problem and Frankly, I think Paul Pullman is wise at Unilever and saying I'm not gonna do quarterly estimates I'm gonna be setting myself a five-year plan and you can measure other things besides profit You can actually measure your supply chain. You can measure customer satisfaction You can be quite open with your employees and letting them be up on Twitter So I think you have to have different goalposts If you don't measure the societal and the engagement aspects just like you measure operational You've got problems because we only measure operations now mostly but what about the impatience and the fact there's a danger If it going too fast this contradiction We've already exposed here based on your data, you know Nick I think you see just tremendous Disgust for business in terms that CEO statistic and you see real disdain for government Go forward. The greater risk is to do nothing right now. Okay, please Oh Hi, I'm Tara set you on it from from you just stand up. Sorry Tara set one in from South Africa Just a couple of points. I think one of this one of the issues we're missing here is that Part of leadership is following It and and society is basically telling us they have certain expectations of us Whether we like it or not we have to respond as businesses to those societal expectations expectations part of the problem is That the way businesses are rewarded and I'm not talking individuals I'm just talking markets and what have you I'm not aligned with the societal expectations So a sensible starting point for me Would be to look at how we align societies expectations with the rewards That we put businesses under because a lot of chief executives will be very nice and tell you about all sorts of things And and and and many of them mean it but at the end of the day The reward systems in terms of their share price in terms of everything are totally different from society's Expectations and that is what they're going to put on the table What the new realities mean for the new direction for leadership the new direction for leadership for me Says you're you're going to have to have some hard difficult conversations with your stakeholders As to why there is a long-term benefit in going down certain routes that may not Necessary give them short-term benefits on the quarter writers syndrome that we all suffer from in our businesses Right right at the back. You've got the microphone Thank you Could you introduce yourself, please and speak up a little bit. My name is Linda freed I'm the Dean of the School of Public Health at Columbia University And I actually want to follow on the gentleman who just spoke We are I Understand Richard's comments on the paralysis perceived paralysis of government on the potential Perception of failure of corporations to lead one of the challenges We might have is that we are confronted with a number of what I call silent Emergencies as a world and as a society which all sectors have to be part of the solution of them We have to have some compact I think Around where those solutions are because they require a long haul Working together and not in silos and so I would be interested from from this Eminent group in terms of what those structures might be that could accomplish them Thank you, who's got the microphone next microphone here, please and then to you and then we'll go to table 11, please Hi, Michelle green from NYSE euro next. I just want to Attack a premise that seems to be underlying a lot of these comments, which is that Sustainability necessarily has to be in conflict with profits I don't think that's the case and I actually view one of the roles of CSR within a company as Identifying those opportunities and making people throughout the company in this idea of infusing it throughout the company making people throughout the company See and identify those opportunities in their own areas of operations where we can align sustainability and profits And I think that's what good CR is actually about don't sit down up there a tweet 153 CSR is not enough change the whole business model That's my point exactly my point exactly is that CSR is not a standalone Do it over here in a silo those people in that room are responsible for sustainability What CR done well is is? Reimagining every aspect of the business and integrating the ideas of CR to everyone within the organization so that they can see the Opportunities within their own area to do their business in a sustainable way and it can create it can actually enhance profits You can create opportunities that weren't there when you weren't thinking through this lens, right? Let me go there, please David Harland I've run a second David Harland I run a private mediation organization. Thank you very much Nick what strikes me about the debate so far is To what extent there is agreement at the the headline level headline Bumpers sticker level and I very much agreed with the point about slowing down for a second and asking how how can the corporate good citizen be that and still be profitable as a means to a greater end and one of the things that strikes me is that the Poverty comes up in a lot of these tweets the single biggest driver of poverty in our world is armed conflict armed conflict is Whether it's Congo or Sudan or elsewhere that provides tremendous opportunity for the corporate sector to to engage Okay, but I want to keep you focused on the quality of leadership in the existing Organizations and the way Barry and Richard have set this up. So keep on that that act for sure And it seems to me there is in there is an aversion to risk that is very much Understandable and it's very hard-wired into our systems that our corporate sector and its leadership will avoid the risk areas And yet there is a good model already for engaging and creating the partnerships that can not only produce great profits But can produce wider good as well. Thank you. John DeGioia. You're on the council for values in decision-making Thanks, Nick. I just want to pick up on a point that Jim Wallace made and connected to Geronimo's point If we think about the smartphone and we think about the value chain that the supply chain that enables us to create that smartphone Are we prepared for the sacrifices that may be required of all of us? We recognize that from Stuart Wallace's work We know that the inequalities that we deal with Require significant changes in the models that we're talking about But if if we walk that supply chain We're going to find some things that we know we can't live with and all of us are going to have to make some Sacrifices and are we prepared to do that? What do you think the art John before you sit down? What do you think the answer to your own question is in terms of the mindsets the willingness to change what Richard said make your case? No, I think that this is the most significant challenge that we all face every one of us is Going to have to find a way to be able to move forward innovating creating Adapting and building new models, but we we are all going to have to make some sacrifices along the way We're gonna have to do with less. Thank you, John. Bill. Can I just come to you? Are we making progress or are they sitting on the hands of it? No, I think we're definitely making progress I think we're in some ways. We're talking around each other saying the same things But I think we're recognizing that more than every four business has to justify Its role in society society is demanding that but there is a straightforward way to do that And that's what I'm at the new model. So what's your challenge now for the next 25 minutes? Who's gonna step up and lead and do it instead of asking someone else to do it? Okay, right. I can see suddenly the hands go up. We have 25 minutes to run I'm gonna make a rule here, which is if you can persuade the microphone in your direction you speak Okay, rather than waiting for me. Who's who's got it next here? I'm you can work it out We've got about I say 20 people who want to intervene at this moment introduce yourself. I'm Manju George I'm a global shaper from India Social entrepreneurs are people who have started with a societal consideration and have tried to create a business around it I'm wondering if there are any learnings from there. Can that be seen as leadership already? Demonstrated and trying to integrate business financial considerations and social considerations. What's the challenge? Would you like to put on the table then from your view as a global shaper? What what would you like to hear from here from a meeting like this? So I've seen a lot of good work done by social entrepreneurs I would like to see how can that how can larger corporations do something similar because social entrepreneur activity is really Limited but they've shown that you know, you can do business and yet have a societal impact Right. Thank you. Let's move the microphone. Who's got the microphone now? Fine Can I just hold for a moment because one or two other people haven't spoken to you Is that or would you mind who else has got the microphone there? Let me just jump in the campaign foundation. I owned a company and we sold in 2006 I think the reason we're here is not because CSR. I think that question and I think it was Olenna Was very good. You know, it's not just CSR CSR where all it was We might not be here because CSR theoretically is better today than was two years ago I think the reason we're here is two reasons number one the financial crisis started in the United States and second is the European debt crisis So here's two sort of very simple questions for everyone is number one is would we have had the United States? Financial crisis if we had more downside capitalism real capitalism as opposed to upside only capitalism So I think the business the United States today has a lot of CEOs people aren't happy They're unhappy because they're making money because they don't they're not an owner in the business They don't downside and secondly would we have debt crisis in Europe if everybody had a KPMG or Ernst & Young or Deloitte or a price waterhouse audit in governments if governments were audited Then there'd be a lot of change in the world. I think people wouldn't lend those countries money A if they broke their audit, they would go to jail as fraud right now We get internal audits nobody accepts them So we wouldn't lend a penny to any company's public in the world without an audit independent audit by a big four But we'll lend billions to any country that wants to politicians with no audit So I think those two things it might change the if those two things didn't happen. We wouldn't be here today Richard or Barry do you want to respond on that? Would your would your surveys have produced that kind of data if we weren't At the end or the next stage of what happened in 2008 Richard or Barry anything particular? Quickly if not Barry Richard you want to talk? Yes, or no, no, okay, Barry you know, okay, right Yeah, I'm getting me as our global shippers from Tokyo hub. I'd like to share the Japan's case Before and after the disaster last year. It's a perspective of a long-term Sustainability business Leadership especially on leadership. Yeah, given the pressures on the government and TEPCO. Yeah You know earlier was the disaster area leaders and didn't cut the jobs after the quakes and you know, you know basically What they thought at that time is Living close together in this area and the community and the employment. So That's a basement of their management of that area and the leaders so So the average of their and unemployment rate is Improved only in Japan before the quake and after the quake. I think it's a very important Sustainability to the local under the leadership. I think can I encourage you to be moving down? What John said and what Bill said it's everyone else's problem rather than mine to paraphrase them And so I know you've spoken already, but you have been trying to get the floor Let me come back to you now because there was that one comment about CSR quickly, please Barry's figures showed CEOs largely concerned with profit. That's also on the whole on the short term That's not what majority of society is interested about and that's where a big of the a lot of the trust gap comes from This morning was a comment in in the discussion of the global agenda council the role of business A lot of CEOs in their heart are really really good people. It's the system that blocks them from doing often the right thing I think that every CEO actually has a great opportunity to start to be a leader to change that and it is to start to talk about The other results of the company the other impacts and that is actually about the relationship to society in environment The system exists. There is no reason not not to not to do that anymore And by doing that we really change the discourse at the moment the reason why so many are so shy about it is the dominant discourse Is if you don't tell what what your quarterly results are and how you're doing that then you're not a CEO that Easily makes the the headlines that needs to change. Thank you down here, please Geo kill. I'm head of the UN global compact and I Get my phone up a little bit. I'm getting extremely Encouraged by many of the comments made what I want to speak on leadership is the following first trust Of course must be earned over time. So I'm afraid there's bad news for a quick fix which you can achieve immediately So you need a long-term approach and what Richard in his findings what KPMG has come out And what the council has produced are extremely That's Deloitte not Deloitte sorry apologies Secondly, I think a lot of corporations have started their journey already But the good news is they are getting deeper and deeper in what they're doing and more and more serious But the bad news is there's still a minority worldwide scene They don't add yet up to transformation and you can be a leader only if the others follow If the others don't follow then you actually a fool when you're out there alone by yourself So I think the biggest challenge for leadership is actually to really make best practices mainstream Everywhere so that transformation happens if five or ten percent of CEO are committed and are Integrating environmental social and governance into their business model are reshaping strategies to pursue dual strategies great But five percent won't change countries won't change markets. We need critical mass We need to go to scale. How can you build that critical mass education? The CEOs are committed should work more in platforms where they inspire and carry along others through their value chain supply chain We they should engage in platforms which help to create coherence around the world You need some anchor and goalposts. We have three or past 20 upcoming Which is an opportunity but to mainstream leadership now I think is the big challenge So we don't just look at one or two CEOs But you really make transformation by getting it mainstream and what Ernst just said the systemic barriers are still very tremendous Because if investment does not recognize Good practices if consumers don't reward it then clearly we will stay a small movement and we won't go globally either So we need to work on all tracks and the paper here actually is pretty pretty solid and good Right move the microphone across could I tell you you're not alone here? 1,400 people are watching the webcast at the moment looking to see how radical you're prepared to be I'm going to ask at the moment. Is there anyone who's a senior executive a CEO who's involved in leadership? Who thinks that this is an arid debate and you're comfortable with what you're doing and you don't have to change? Because I'd like to hear from you here Maybe it's just you Others are out there who wouldn't want to be at this about this question All right. I'm close CEO could you just tell us who you are Doug Frye with collars international and I'm the president and CEO We do have to change But I did want to answer that question or address the question a little differently in that we have to we're talking about change What we're really talking about is changing the environment So we have to change the environment as well. We keep talking about the a lot of great ideas In order to change the environment. I think the media has to help. It's missing from this discussion This is a great discussion But the greater discussion that's taking place on the news every night is a short-term discussion And my example is last night if anyone watched the news what covered the news the financial news all night 75% Apple's short-term earnings. So how do we use the media? How do we get the media to help us in this discussion because we need to change the environment? You think we're meant to help you? Well, I think you shape. Well, I do think you should Richard I've got to come to you because part of your findings was about the role of the media In leadership and how the media is keeping leaderships feet to the fire Well actually trust in media grew in the last year substantially two reasons Really being smart about covering the financial issues in the eurozone and the US Second because media is now the big tent. It's not just mainstream media. It's social. It's blogs It's all of it And so I actually feel that the way you're doing this debate is Indicative of how companies are going to have to run their investor conferences in future just as a theory So this could be an investor conference. I mean if you're thinking 10 20 years from now. Why not? What about that out there? What about 10 to 20 months? That's a little quick But forgive me Richard. I've got to press you but do if the if the issues of that urgent What we're seeing here in the frustration and the impatience is not a tolerance of waiting too long on these issues I mean Nick look what happened in the bill in Congress the SOPA bill basically last year sort of grassroots rebellion by Stimulated by the tech companies absolutely killed that bill. So it really was this kind of initiative So let me just come back to you. There you are. The media is already keeping your feet to the fire It's a question of how much you are able to preempt and move forward rather than the media catching you up Well, I believe that social media is heading in the right direction I think social media is going to give us a bigger push I think the traditional media however can help and again I point to what's being covered right now. What's interesting? In quotes. So yes, I am looking for the media to hop on a topic such as social giving Important things the companies are doing that are not directly short term Impacting the bottom line. Let's have a conversation about what's impacting the bottom line over a 10-year period It's not happening very often. Thank you. Who else has got the microphone, please? So I'm from the media, but I want to speak about something different Ross Shaw from CNBC I want to say that if we want to look at the quality of leadership We have to look at the composition of leadership and it's very hard to trust that Leaders have really worked as hard as they could do in in gaining our trust when they are still largely men and A large proportion of the talent out there is not being represented and so, you know If you try to say to us trust us We found the best people to administer this task the best people for our board and they're all well mainly men You know, it just doesn't fly with 50% of the population So start by doing those basic things like getting the best people and a broader representation of society and then hopefully some trust might follow from that Thank you. Who else has got the microphone, please? Yes, I'm sorry. I hadn't forgotten you Monica Leroux from Canada. I'm a CEO of a larger financial organization and one suggestion But I would like to share I Agree with you who said that profits are Essential essential and very important But they have to be a tool to achieve a long-term vision for the business as Well as achieve prosperity for people and society One of the things that we should discuss is that we are very often talking about Organization profit organizations and nonprofit organizations Maybe we should develop a new model which is enterprises or businesses for benefit benefit of people the benefit of society Benefit of stakeholders shareholders, so a broader role in business I'm highly concerned about you know the fact that there could be you know This continuous trend in you know trust lack of trust between business and people I think that if this trend continues, we will be facing a big issue to conclude Another suggestion when we talk about businesses we talk very often about large public corporations Very important in the world, but there are other type of business models like family-owned business for example and cooperative organizations and they follow a different logic and maybe much more balance between the interests of people and Money, thank you. Thank you. Could I just ask you? Do you feel under pressure on on this leadership issue on these these elements which are being put on the floor at a session like this today? well Those issues are in my mind and certainly when I look at some of the discussions that we have internally in My organization and with our members and customers Those issues are really important So I think that we need to work on that and it's With that kind of discussion I think that we can each of us we can contribute to you know Provide solutions and do you feel an urgency on this? Yes, of course, okay I'd like to get a Chinese view if I may from table three Can I just tell you we have about 12 minutes to run before we begin to conclude and I go to to bill at others? So keep up the momentum, but I want to take up what Bill and John said about thinking how this is going to be done And Nadia, I want to come to you because you're being extremely active on tweets And I want to just for you to reflect from your perspective towards in the next five minutes Where you think this is going because you're laying down a number of challenges on your tweets which I'll come to in a moment Let me go to Lee Kai-foo, please Okay, I think all of these changes are very much needed. I should say your founder and chief executive for innovation works, right? Thank you. I Think in China and probably many parts of Asia one of the additional challenges in trying to make these transformations is that it's often tradition it's often family owned business and or Founder driven and majority owned businesses So there is not the same level of accountability and governance and the question would be it's perhaps more difficult for the people to sort of Push up request or demand or even shareholders to for to cause the changes to happen So I think it's really important to think about how in the more traditional family owned spaces people can Gain the self motivation to make the changes needed the second comment I want to make is that so we were discussing earlier about a social entrepreneurship versus profits, and I think Doing the right thing being good for users and customers and as balance with short-term profit is important but Companies are often very very difficult to run with dual missions So I would ask if people have ideas on how to better balance so that both of these goals are Accomplished rather than one that the complete expense of the other. Thank you. Please don't sit on your hands We have ten minutes to run. I'm gonna go to the back first and then you Jim. Yeah, really Paul's CEO of bipartisan technology pioneer I just want to add a point to Nadia in terms of action my experience in the last year in Raising a lot of capital was rather than going to the stock market's actually address People with resources and it was very remarkable to note that more than 50% were asking we're not only investing in a company and technology With a long-term goal I thought and I think long-term goals and addressing medical society and needs are are important But one of the key points was Is my money is my investment going to make any difference? So I truly believe that although the climate is very important that how all has to change I think CEOs can already take the first steps in this environment What but just be a bit more specific about about what needs to be done late put something more precise on the table I think I fully agree with what is said here. We have to go back and look at the long term What is it the kind of products we're developing? Are these really truly addressing? Society needs and and and do we develop products that in the long term really at value? That's number one number two is who are backing up these companies? founders family friends But I see also an increasing interest of large industrial groups family offices to really step into this and say okay We're backing you up broader than the short-term market pressure, which which a lot of CEOs are under. Thank you. Okay This is a where we go from here I am encouraged to by the shared values, but the Operationalizing of them is still the issue. There's a convergence of values, but there's conflicts between the values Until you get to the conflicts. We won't get to moving forward for example on the Congo issue You use of minerals to fund militias We had a big conversation last week and Washington or Trafficking and apparel in industries for example. We had an apparel industry say we'd like to look at our supply chain We would but if we do We will lose Competitive advantage with other apparel industries who are not looking at their supply chain We'd like to it's our value, but we can't or we'll lose profits So we got to identify here the conflict between short term and long term Between shareholders sometimes and stakeholders so that apparel industry said if you'd NGOs could get us together as apparel Industries so we could together decide to look at our supply chains Then we could do it and not lose our competitive edge So until we get down to that level of how to operation how to walk that talk We're talking about shared values But until we talked about how to implement them and what the conflicts are we're not going to go forward here Thank you Hi, my name is Aga who I am a CEO of a large conglomerate from Istanbul, Turkey I am against this concept of dual purpose as my friend just said there if I am so sure that if we have a list of Profitable companies around the globe and much less profitable companies around the globe and compare Those two lists into the into the way how ethical they have been working and how much They contribute to the society I am sure that the profitable ones will win many times over the less profitable ones because this is a Pavlov's Needs basis if you are not profitable if you are struggling you don't contribute You are you are trying to get things done by moving around being flexible doing under under the table jobs Etc and you don't contribute to the society But if you are very profitable you can contribute much more and the problem here is that it's not about this profit versus everything else Societal impact and innovation etc. It's how much the investors Investors who invested into those profitable companies will allow those profits to be used in for the for the good of the society So investor investor education is much more than than the than the top management education I don't tell me just do you feel under pressure from this kind of debate as a chief executive? No, I am not because I feel comfortable in what we do. We are profitable and we contribute a lot to the society as well Right move the microphone move the microphone back quickly please to there You've got to a Marvin Romano, I'm the chief executive officer of a large Canadian international oil and gas company We've achieved a lot of success in many parts of the world some developing countries and how we develop projects and how we move them forward Making sure they're sustainable making sure we consult with local communities. We reduce the pace And it's really led to more and more business opportunities for us one of the things That would be helpful for us to move even further and faster and quicker I think in the last 10 or 15 years. I probably had 7,000 meetings With investors and analysts and shareholders and prospective shareholders, and I cannot recall out of one of those Where a question came to me and said Marvin, what are you doing to build a better world Marvin? What are you doing on the sustainability front? We could use a little more encouragement from the capital markets because that's what we fundamentally compete for to be able to do our stuff in society and While we create these valuable products for society to procure a little bit for our shareholders Do you feel under pressure on this issue? Well, I think there's an advantage to moving forward So I actually think if you can do a good job on this front you can build competitive advantage But it would be really helpful if the capital markets I think recognize that a little more because I don't see them paying for it Could you pass the microphone back to Nadia Nadia? You've been very prolific and I'm coming to you at this point because I'm not gonna read every single From Ghana, I Just want to look up there number 150. No, it's moved 160 why are we brainstorming? We're agreeing we know the answers We need action. Are you frustrated sitting there Nadia? Well, I guess a little bit So what what have we failed to do and deliver from your perspective coming from Ghana from the position you have? I don't know if it is that we're failing I don't know if it is that it is our responsibility as Companies as opposed to as individuals to make this change But ever since I got got myself involved in social Social economic development I go to all these talks I go to all these summits I go to all these and I'm sure a number of the people in this room do it And I'm sure we're so full of resolve and solutions and strategies Why are certain things still why are certain things they're going wrong all around the world? Why are we spending so much money? So many of these companies are having all these CSR initiatives all these sustainable initiatives investing a lot of money Corporate social investment is a term right now. I'm not corporate social responsibility anymore I'm not seeing anything All right, well, you've laid down a very significant challenge. I'll come to you a heronima in a moment Please what one thought here Samir Bricko. She's executive of a Mac. I have I have a couple of remarks I have an offer and I have a couple of requests The first thing you would have been asking Siri this question They will be telling you it's the investors the shareholders and actually you and us One of the things which Marvin has been saying is that exactly the same thing I go quite a lot of meetings with all shareholders Nobody asked me this question and nobody's interested even in that question and nobody's judging me on that question So what is my offer? My offer is I'm going to write to the hundred chairman of the footsie hundred in the UK Asking them in order to introduce new values new KPIs in making a judgment about whether the companies are doing well or not And that could be also part of the bonuses which are also the management me team are based on now What is my request? I have a couple of requests one We need to have if other people's actually writing to the New York Circle exchange market to Singapore to Shanghai to whatever it is in the world because the London Stock Exchange market is not working in silo Second thing is that what we need to do you need to vote? Because nobody of you are actually owners of the shares is actually taking an active role in Voting on what we are done what we are designing as a management team and I think that's a good change which we could do Could you be having an easy ride because to pick up Richard's point if this kind of environment with this kind of input from outside? Not just attending a meeting were to be the way of Annual meetings of the future you could feel under a lot more pressure very quickly Well, that's exactly the start I mean if we feel now a shift executive that there is a great opportunity to create value and at the same time think about the Environment think about other values which we are creating. That's a good start which we can actually multiply all right move the microphone across to Geronimo a Malini mayor at the back Matthew Bishop. You've been Tweeting quite a lot as well. Can I come to you as well the microphone to Matthew? Thank you to Malini first I'm young global leader from from India. I quickly want to share also this with my counterpart here from China in in the spirit of shared value point now I want to make is action action to address this trust and an action gap I think the part of the problem is that you know we first of all reality check folks We are all part of the 1% We are all in this room because we are part of elites and we Individually are influential within our networks. So I think part of the challenges we need to personalize this issue Why we go nowhere when we get out of rooms like this in Davos is because it becomes too abstracts But remember the individual is the source of the aggregate at the national level. So my challenge to you is this One of the reasons why business and Governments are so deplored right now is because people feel quite rightly that they're getting away with murder They're not governing the company the the polities and economies well, and they're not paying their way What are some of the ways in which we give back? Individually, I want each of you to think how are you giving back? This is an abstract level about you know what your company is doing in terms of CSR. What are you doing number one? Are you paying your taxes every single person in this room should be paying their fair share of taxes because that's creates the common Wealth secondly each of us should be involved in our communities I would have far greater respect for people who Who stand up and say they speak for social responsibility if I knew that they were actually really involved in their grassroots Communities in the homes and neighborhoods that they live in and I would also propose a change To the next brag sheet for the World Economic Forum's kind of list of who's here instead of Bragging about what we do which panels where on which awards we're doing Let's say this is how much I pay in taxes and this is what I contribute locally I'm involved in XYZ community and I think that will have a fundamental change in our mindset and the values that we espouse a forum like this and the role of This social media environment, which has been a bit of a test today Malini in Nick This is all about disclosure. It's fantastic that we've got so many eyes who are watching this and engaging Let's go one step further in terms of personal disclosure Matthew Bishop New York bureau chief and America business editor for the Economist. You've been tweeting about technology Well, I'm technology has been part of it, but actually I've been treating much more really about three other things one is that You know fundamentally the I think there's been a failure of Shareholders to Take things seriously take long-term sustainability seriously and that we are all shareholders I think over the last 20 years. We've all become used to being ethical shoppers. We buy coffee And we ask about all sorts of other products and we say well How have they been produced but we don't do that with our own money when we've handed over to a pension fund And we need a revolution of ethical Investing ethical capitalism to go alongside ethical consumption a second point that I've been tweeting about is The most company boards big company boards are still Homes of group think they're largely male dominated They're largely people over the age of 55 and they fundamentally don't get how the world has changed And so I propose that every company board should have at least one person under the age of 30 and ideally one social entrepreneur on it and That we might find the company's behavior in a much more what I call philanthropic Capitalistic way I'd lastly I'd like to add that I do think the point about the media is absolutely right the media is a Procyclical force we focus on the good news when things are going well the bad news when things are going badly And we need to actually have a serious debate about how the media Focuses on long-term performance and sustainability of our companies rather than getting carried away with all this Meaningless short-term noise. Thank you Matthew Just before I go to Geronimo because I need to understand if you're still impatient Let me just tell you there are 1500 people now watching this outside in other words The audience is building towards the end quite often it falls away. Secondly, I mean You may think this is a bit of a gimmick having social media here, but what it's done for me as a moderator It's allowed me for those of you who've decided to tweet both inside and outside to get a sense of the kind of reaction Doesn't need a hand going up, but it's allowed me to input and guide the discussion in directions Which are clearly on your mind even in 140 characters So that from my perspective being transparent about it why this has been such a useful experiment I'll come finally to Barry and Richard to find out and then we'll go to Bill But first of all Geronimo's you said you're impatient Coming from euphoria your company. Are you still impatient or even more impatient even more impatient and You should be feeling my pulse right now because it's very high It's not just impatient. I'm I'm out. I'm actually angry right now If there are people because I like your question regarding Do you feel under pressure, you know, and when people say they don't feel under pressure Dancing something is wrong because I feel under pressure and I'm not a CEO of a huge company I really feel under question and I know that one day I'm gonna be a bit older I'm gonna be in a position of responsibility and The next generation is gonna hold me accountable and They're gonna not be as nice as we are right now Because they're gonna be facing challenges They're gonna be so much bigger than the ones which we're facing right now. It's just gonna be a disaster and I see all these people everyone is pointing at someone else They're gonna say yeah, but it's the investors and the other say no it's business leaders and that is they know they're the politicians and I don't want to point at anyone, but I want to point at myself And we're gonna tell you what I'm gonna do. There's some of us Global shapers we have over 100,000 followers on Twitter The comparative advantage of you integrating social business into your into your business model It's not gonna take 10 years. It's it's happening right now We're making Conscious decisions when we choose what products we buy from what company I Think the next step is that it really becomes massive and I'm gonna engage I'm gonna talk to my generation and sits and I'm gonna mobilize them to make this happen and to contribute our part that the Framework changes to make it possible for you to take the decisions you pretend to really want to take John, I'm a thank you Could you pass the microphone to Barry please Barry Salzburg from Deloitte final thought of what you've heard And what it might mean for the next sampling then we'll go to Richard and finally to Bill So I really thought that the conversation was great Stimulating and lots of different perspectives One of the thoughts that I would add to the dialogue, which I think the gentleman on the table number seven made Is I think that there's a level of accountability that is required I am all for profit with purpose I do believe that there is a fundamental societal impact that business makes from the core business of business And I think that it's time that we as business leaders report on it and identify the societal impact That we make beyond corporate social responsibility related issues all very much part of that But I think it's time for us to be able to step up and indicate what the core business of business contributes to society I think if we can do that it will foster a level of trust It will increase the level of focus by business on societal related issues And as a result of that drive innovation entrepreneurship and ultimately jobs Thank you Barry Richard has the case been made has there been movement towards what you said at the beginning You know to me the big problem is that The basic perception out there is both business and government are unable to tell the hard truths and I think the Goal for business ought not to be trying to regain the license to operate it ought to be to get the license to lead And the license to lead is gained by taking on the hard issues Talking straight to your constituencies having radical transparency and also making sure that your employees are out there as your Partners in helping solve the proposition. It can't go back to 08 and just party on as was Thank you Richard. Thank you Barry bill your final reflections from the relative luxury of Harvard First of all not from hiring from Davos first of all I can't mention that can waver on this session because I think many ways it's a metaphor for how Organization are going to operate in the future both with their internal people with their customers and with their all their constituencies And I think this kind of lack of hierarchy this kind of Engaged dialogue and all the people coming in from the outside really is a metaphor for how we're going to operate in the future Actually, many of you had to argue for a new model of business. There is a new model emerging I think Michael Porter put the issue on the table a year ago when he talked about creating shared value It's no longer about CSR as a staff function. It's about the mainstream core of business That's what you said Barry And this is what it's all about and I think the capital markets are ever more short term That's not going to change anytime soon But I think we and business have the whether small business or a long term We have the obligation to create a sustainable company and ryan murthy founder of infosys said the best measure of business It's just longevity Took gentlemen 50 years to go out of business But eventually they did because they were not focusing on their customers They're focused on the short term shareholder and so to have sustained success The model that I see is you start with their mission and values. That is what motivates people That's what allows you to attract the best people And they're the ones that create customer satisfaction by creating great products and great service And that in turn leads to profitability But the externalities at several you have mentioned must be an integral part of that equation If you're going to have long term success if you want to cut corners your short term get away with it Many many the good news many the corporate leaders that today recognizes precisely the case The leaders of companies like you know talk to you know leaders of companies like walmart They used to be the company everyone loved to hate they recognize these things are perfect and everyone's saying today This is good business. It's not bad business This is good business to incorporate all these things and that's how companies going to sustain long term success So actually I come away optimistic that we have I love the global shapers young global leaders I love the you know, if you will the millennium and the gen X And I think the the new CEOs are really recognizing that my generation made a lot of mistakes And we're finding ways to come out of it back to final comment on trust richard You cannot command trust Trust is going to have to be earned a brick at a time until we get it back And we're going to have to we're going to have to build that not by making trade-offs between constituencies But capable leaders are going to have to satisfy the needs of all their constituencies And just before you leave when we hear Bill when we hear uh heronimo here at the front saying he's even more impatient After this discussion I started off by raising the issue of mindsets How swiftly can mindsets change? Is there even a realization of why they must change? Is his pulse going to be racing even faster in the coming days? At first I was skeptical dr. Ono that you were you're going to be criticizing everyone else And you said no, I'm going to step up and do it. That's what we all have to do Don't wait for the hierarchy and if you're in a company of 50,000 people Don't wait for somebody else to do it You've got to step up and do it the great organizations Large or small will have people that step up and take the lead and they will empower people at all levels Because the new leaders are not hierarchical leaders They're people that operate much more like the internet than they do like the old hierarchy of the past All right, thanks bill Can I just tell you that we're going to capture all the tweets and all the incoming social media on story fi So if you want to go back and look at the kind of record that is out there of what Came in both from inside the room and outside you can see it there story fi HTTP Wef dot ch you know that slash brainstorm and also this is only the first Springboard for many more discussions like this. I hope we've energized it Pointed it in the right direction got you disagreeing with each other Maybe the pulses are racing a little bit But make sure if you want to continue this discussion There are at least Six more events which are going to be addressing exactly this Finally the last tweet that I've got Thanks for the live stream gives small fry like me to express gray matter Not an everyday event in the analogical world Can I thank you all very much indeed and for staying here throughout the 90 minutes and moving it forward in the way you have I appreciate it. Thank you