 Well, thank you. Thank you to everyone who is joining us today on this very important panel this afternoon 2017 has shown a new trend from some corporate leaders Taking a public stand on issues not necessarily related to their own businesses now traditionally, of course a private sector has taken internal Organizational actions on issues like racism sexism or sustainability But now it seems that more and more again in certain countries Corporations are engaging in public activism more broadly and also taking non-economic business decisions. Some CEOs have raised questions sometimes There's also been a strong repercussion from shareholders now from speaking out against the US travel ban to support in the Paris climate Agreement over laws affecting transgender people or protecting human rights defenders more and more CEOs seem to be taking a Stand so let's me welcome our panelist for today Sharon Burrow general secretary international trade union confederation Andrew Leveris chairman and chief executive officer Dow Chemical Company Pop Holman chief executive officer of Unilever and Rajiv Shah president at the Rockefeller Foundation So welcome to the panel Paul. Let me kick off with you You're one of the CEO spearheading the movement for companies to be better Was it easier or more difficult than you thought it would be? Well, so the first thing I want to say is that I don't think you see that they are speaking up of other issues than issues related to business I do think that many of them speak up for issues that are related to business But fortunately increasingly companies are starting to understand that business is just more than the bottom line That business really has to ensure that society's function that business has to be sure that they make positive Contributions and many of the issues that you're related to like climate change like human rights sexual reproduction rights Slave labor child labor deforestation Business leaders increasingly understand that that affects their their business and that's why you see them speaking up Perhaps more so now because the political situation is a little bit difficult Perhaps you hear it more now because social media stands to amplify it a little bit bigger But most of these issues I would say are directly related to making societies function so that your business can be successful Sharon do you believe this is for the workers? Is it for the shareholders? Why are more CEOs seemingly speaking up? Well, it's for everybody. You can't have a sustainable future if we have the fractured world We have so business won't operate if we have people trapped in modern slavery if we have a continuing labor arbitrage without settling some of the measures around Transition and decent work and human rights and for working people we need to rebuild trust All the indicators tell you that through no fault of necessarily any individual But because we haven't operated together as well as we should human beings shape the future and because we've actually become Fractured then nobody wins. So the 1% is creating a lot of anger from the 99 We can fix that shared prosperity is in our hands. We created this world We need to fix some problems in it and together we can build a more sustainable a more equal And indeed a just world and so Paul's right. This isn't just about You know a kind of sense of of a Nobel, you know kind of values based CEO It is about that, but it's actually about sustainability. Do you agree with that? Andrew, how much does it have to do with I don't know a CEO with a conscience And how much does it have to do with just good business sense? I think the attitude one has to take is when you say business Are you thinking narrowly like a profit and loss statement and a balance sheet and what we file at the sec? Is that what you're thinking? What are shareholders? Yeah, but but that's what I'm saying So so businesses actually the community in the ecosystem that gives us the right to operate and the right to operate to generate Further value over time needs to be done over time And whether we have owners today that think in the very short term or the future owners who will need to be owners in the Long-term the leader of the business ecosystem is in excellent in essence running a community and it's a community that Incorporates every aspect of the what the two leaders have already said and in fact if you look at Dow We're in a hundred and fifty communities. We call ourselves a community company. It's our neighbor. It's our Stakeholder that is a supplier. It's our it's the NGOs that actually advises them to be better It's the whole ecosystem that you have to take into account I think the narrow definition of business i.e. the financial definition is way too narrow Especially in this world where every piece of information is available to everyone at all times Well, you know the sustainable development goals that we all agreed to and the climate accords from Paris lay the foundations of what social progress should look like and I think it's clear to anyone who's looked at this challenge of fighting poverty and protecting the earth from climate change That we're not going to achieve our goals in a just manner Unless there are strong public-private partnerships and businesses are part of the solution there's just no other alternative and so, you know, I we have Seen the power of that kind of partnership be transformational in community after community after community Dupont has seed companies that help Propagate improved hybrid varieties of maize in more than 20 African countries through our Alliance for a Green Revolution in Africa Which the Rockefeller Foundation helped start back in 2006 today more than nine million Families are moving out of poverty because of that long-term commitment to public-private partnership Unilever has had incredible efforts to promote a hand-washing and sanitation Paul's selling soap but doing it in a way that targets children who if they get sick because they have chronic Multi-pathogen diarrhea could very well die Often under the age of five if we're serious about creating justice in this world We need companies to do what they do well Philanthropies to help bring problem solvers together and frankly governments to do their share By making investments and creating an environment where we can work together to create change Right, but would you for every Paul Pullman how many CEOs talk the talk and don't actually follow through well look I'll be honest there are a lot of people who have aspirations To achieve something and then don't necessarily have the mechanics in place to get there And and that's what we spend a lot of our time on structuring partnerships that deliver those outcomes Another example is is the Global Alliance for Vaccines and Immunization working with the biopharmaceutical industry countries public sector and private financiers Immunized 460 million children in lowering 70 lower-income countries over the last 15 years These efforts take time and they take time because you need time to figure out what's not working fix it and stick with it and What we need from our partners in the business community But also in governments is the willingness to say we're going to achieve this goal We are going to succeed at ending energy poverty in the next 15 years And if we make mistakes along the way, we're going to fix them and continue at it Paul it takes time, but you haven't always had the shareholders a hundred percent behind you Well, interestingly now is if you look at the latest Edelman survey 75% of the people expect CEOs to take a more proactive stand your employees are a hundred percent behind that especially the millennials very few exceptions It really Increasingly there's data available that it does build your corporate image and and frankly The citizens of this world expect you Increasingly to take a stand on many of the political issues that are not being solved. We're living in a very very difficult time politically and Globalization potentially under threat I've always seen our role first of all as a CEO. I always felt first and foremost I'm a human being so I will always speak out and defend the values that I believe in the fact that I'm a CEO should not Prevent me from speaking up for things that I think potentially could undermine the future of humanity And the second thing is because that that silence would be a tax on the truth and I would not be able to live with that and Secondly, I've also realized that if you're in these fortunate positions that we are in Increasingly you take need to take a role risky as it might be sometimes to help de-risk the political process and move it forward Interestingly with shareholders now, we see increasingly on take for example a topic like climate change that much was talking about 75% of the shareholders want you to go to publish your exposure because it makes good sense They're starting to realize the dangers of not attacking the issues of climate change Which happens to be at the heart of the sustainable development agenda So us trying to move it forward creating level playing fields taking political Dislocation away if you want to call it is I believe is is nearly our duty to do this But we have to be sure that we don't do this for ourselves that it really has to be linked to our businesses ideally and Hopefully done with a broader group of people. I would never work alone on these things I would always Sharon and I work a lot together I would always do that with civil society there But I'm afraid of is that we are certainly not elected officials. So we should be careful that we The the the possibilities that we've given bring with it an enormous responsibility as well And that needs to be taken into account. But Andrew you can have a CEO with great values But how do you pass on those values to all of your employees or make sure that your supply chain if you're a producer or that the Mechanisms of actually doing your business share the values of the CEO. Well, I'd flip the point. I mean I'm privileged to work for this great company. That's a hundred and twenty years young and it started by a founder Who brought values to his community that we have today and the values of integrity and respect for people Which are the values he started with humanity. We've just added one in the last ten years, which is protecting our planet We've changed the notion of what a community is it's where Paul was landing the community isn't just the small little community Where we have our factories we touch everyone on the planet and actually having the privilege of running a global enterprise like this Means that we are actually integral part of the global community So I'll give you a story as a young manager in the Dow system I was sent to go help our operations in Thailand get built And when I went to Thailand the government of Thailand was nascent in the chemical industry did not have standards that we had From our evolution in the US and elsewhere in Europe and those standards and our principle is to always ingrain in our People as a young manager was ingrained in me to go to that government and say we're gonna build to this standard Not to your standard even though it was cheaper to build to their standard and that eventually over time You will learn that our standard is better for you for the long term. It's better for your ecosystem It's better for your rivers for your for your sea for your emissions We will build to that standard and then for sure for a while will have competition That will try and actually take our share of demand because they can build things and have built things cheaper over time What happened and now the system is called responsible care around the world Everyone evolved in every country in the world every community in the world in this industry now operates to that standard So all the tragedies of the past that happened in this sector can in fact in effect not happen again Because we're all operating to that standard now, of course, no one's perfect But this is why you have to have it in your values You have to transport it in your people your people are your ultimate ambassadors This has to be known on the shop floor. This has to be known in your supplier base This has to be your community advisory panels which we have in every one of our communities where we bring in these other Constituencies who advise us and we have to be willing to take the critique as improvement And by the way, we insist on living in our communities. We don't have ivory towel locations Okay, we've had our headquarters in that same community the founder founder the company So that we are always mixing with the people who are in our factories who are in our supply chains So we never get this notion that we're better just because we're part of this one percent Sure, and you must be toss of CEOs that don't think like this, right? Yes, right Oh, how do you know? I mean, well, what's your a few times a lot of factors But but let me let me sort of expand why that is. I mean we got off track the world got off track I grew up in Australia and you know companies weren't 100% trusted and of course I represent workers and it's my job to make trouble where there's a problem but also to negotiate the settlement and But now the trust is broken all institutions governments corporations, you know any public institutions since when Financial crisis. I think it's the been the model of globalization that has pushed So fast and so hard that we haven't had a good look at what the impact is There's a group of companies now studying to do that and I would say just to the point you asked Paul We of course represent workers and you know, that's my core business But we have 30 trillion dollars of workers capital invested in the global economy So we're shareholders too and we want our companies to be Humans to be to look after working people and we've we don't understand when a perfectly decent Senior official or CEO or business manager who is in their community They're an upstanding citizen gets through the door of their business and suddenly humanity goes out the door for the bottom line So Paul's right. We wanted to see that humanity that Fundamental human rights and Labor rights are part and parcel of doing business and just to give you an example of how tough that is 94% of the workers in our supply chains are a hidden workforce And we've allowed collectively governments CEO's all of us a model where You know low paid Insecure often unsafe work is in fact the way in which we've created the wealth of the nations with three times richer Then we were 30 years ago And yet when I tell you that Fermi in the Philippines can't buy baby formula without Anxiety every week because one day's wages equals one week's baby formula Or I found a woman in in the new wave of low-tech low-cost Textiles last week in in Ethiopia paid 20 US dollars a month feeding three children then we can share our prosperity and it's a simple recipe So why do Paul and I and Andrew work together on the B team? Because we have to create a new dialogue We can all stand and you know talk about shareholder value and we can spit at each other about you know a lack of values transported through Business practice, but it's a much more adult and value-laden Challenge to actually sit down and say well, how do we work this out? And in addition to the net zero commitment and a commitment to just transition that the B team works on We we also have a working group that Bob Collymore from Safari com and I co-chair and in fact It's called a hundred percent human Paul's company many of them are part of that and what it says is We value the human beings based on the UN business Guidelines for guidelines for business and human rights, but and the due diligence the company should undertake But it also tackles questions of the human being so for example this group of employee of employers with People like Mary Robinson and I and others on the team have spoken out about LGBTI rights We have actually taken a stand and are going to focus on violence against women I mean these are issues that affect our families our children and our co-workers But sure now how can I as a consumer make a better decision? A lot of the times you say well I'd like to be a better consumer doing better good, but I don't know where the information is Do we need to standardize practices? Do we need to regulate? How can we make informed choices? I'm a bit radical about this I mean I say if a pharmaceutical product goes on the market and it's toxic or going to cause somebody's death has to be recalled If a car goes out and it's unsafe you might get a bit of obscuring of the truth for a while But about emission standards or break controls, but ultimately they have to be recalled now Of course, we want consumers to ask questions particularly of You know of where their shareholders, but we also want if we get the due diligence right that people can trust That that's not going to be a major issue that you're not going to be able You're not going to have slavery in your supply chains and we do and you're not going to have informal work where people have no rights No minimum wage and we do we can clean this up, but it will take all of us Well, and it's not just on a global basis, you know Part of what drives the lack of trust and institutions and companies governments philanthropies in the United States Is the fact that if you were born in 1960 or 1950 there was a 90 plus percent chance you would do better than your parents over the course of your life Ironically unless your parents were named Rockefeller, which made it harder Harder to be in the right category there Today, it's less than 50 percent if you're born after 1980 in the US and they don't have the numbers yet for born in 1990 or 2000 but undoubtedly it's lower and so there's been a real lack a real structural change in the American economy in terms of access to opportunity and you know these efforts and investments in creating a just transition as you point out Sharon or Creating a community mindset around corporate Investment and business practices is all about recognizing that if we don't bring everyone along We are going to be less prosperous and less effective as a single nation or as a global community and I'll just say I'll come back to the sustainable development goals because globalization cannot be a successful over time So long as two billion people are effectively left out if a billion point two people don't have access to basic Electricity, they're not going to be able to be productive. They're not to be able to move their families And those are the fastest-growing populations in communities on the planet And we have an opportunity in just the next decade to solve that challenge by working together as others have described And we should embrace that opportunity I want to help answer also the question of why aren't there more polls out there poor poor ones? My observation of my colleagues and it's an observation of myself I like to say I'm on my fourth or fifth reinvention of myself in this job I think my bandwidth for today this topic is way more than it was at my beginning year or two And then I've been in the job almost 14 years. So I've had longevity. I've had I've lived with decisions I think one of the things that happens in the world that we and I live in and being a global us based is different than being Global European based what happens to the CEO? There's a couple of forces that have been touched on that I kind of the way I think about them and Paul and I belong to some other groups that are working on this firstly Everyone's a shareholder But not every shareholder knows it the savers your the workers the employees whether it's their pensions or their savings goes up To an asset owner that gets to an asset manager that gets to a financial institution That interfaces with boards and public companies CEOs and management that make decisions that impact that saver That savers often the worker But what that worker doesn't understand is that the forces that are going on that are leaving people behind Which are huge are not being explained which is giving rise to populism. What are those forces? Firstly, we're automating like crazy This this world of ours is becoming efficient and productive and we haven't seen anything yet with digitalization So we're eliminating Work and we're not explaining what future work will look like We're not changing our education system We're not helping the ordinary person on the street who goes to work every day Understand that this force is creating a lot of pressure on financial returns You know, the Amazons are creating lots of pressure on returns The chain is changing and all of us are being forced to respond to it in the short term the second effect I'll finish the second second effect is Pretty much every government in the world has responded to this by monetary policy, not fiscal policy Only lately are we starting to see Fiscal policy answers. Why is that because election cycles three and four year election cycles means I've you know, I'm not sure I'm gonna get Re-elected so I better do what's you know, what's right in the short term this short termism is Coming around now in the financial reporting side So all of our owners as much as they care about these metrics like the ESG metrics When they finally actually measure you they're not measuring you on ESG metrics or innovation metrics or Sustainability metrics, I mean they talk it but they don't measure you on it And therefore the longevity of these CEOs is going down and down and down it's going from five years to four years So that effect is not well understood. I think one of the answers is this term inclusive capitalism I think capitalism is not working as it was first contrived in Western democracies I think inclusive capitalism and leaving no one behind with these two forces one not well understood the technology of Disruption and the other not well handled by current governments So new types of governments are being elected and I think there's some good signs there You know, I use President Macron of France is a great sign that we're getting pragmatic government in place But I wanted to make sure I got those two points over because Paul and I are also working on that end of the spectra To try and get more people who are in our jobs To actually take up and make a stand on the greater goal What what Andrew really is referring to is basically even with CEOs. I've otherwise is not was living There's no CEO who wants more unemployment more air pollution more people going to bed hungry there aren't you know They're basically good people then you might say why doesn't that match with their behavior? It's because the the the drivers around them that Make them behave in a certain way Are are not being moved in the right direction often on politics It has become so short-term that we tend to look at symptoms But not go to the underlying causes and if our incentive systems around us are wrong It forces us into these wrong choices So what business who likes to be around for a longer period of time can is more concerned about issues like deforestation Or like poverty or like climate change because it really affects increasingly their own business models We're unfortunately and I say unfortunately at a good point in human history Where business increasingly understands that the cost of not doing things is actually higher than the cost of doing things So it becomes increasingly more economically attractive if you don't have that Moral value to get involved in these issues and that's what you're starting to see as a groundswell Now why is business not doing it more and because we are in a little bit of a trap of Race to the bottom or a zero sum game where since the financial crisis we've pumped in so much money in this world economy 12 trillion dollars now is zero or negative interest rates. They're chasing any opportunity to get a return a stock market That is ridiculously inflated putting increasingly more pressure on financial on the on the companies Who starting to discover that it makes more sense to play the financial market than the real economy? Not surprising in the US more in share buybacks and special dividends than investing in the company So we're not creating the jobs or the right economic environment So we come out with the sustainable development goals 17 goals every first of Lee eradicate poverty in a more sustainable and equitable way 169 targets way too much for a CEO way too confused I barely can keep my head above the water So we created this commission business and sustainable development commission where we asked Mark Malik Brown to chair this Where we showed actually that the sustainable development goals is not only the only moral framework We have on the global level, but it's also actually the best plan that we have $12 trillion of incremental opportunity Nearly 400 million more jobs and we've explained that was a goal to get we wanted to get a thousand CEOs We cut 2000 CEOs in the last survey we looked at the top 500 companies in the fortune 500 The top 250 45 percent of them are now internalizing the sustainable development goals into their operating plan And that's actually good news. It's only year two of the sustainable development goals But to have these numbers is actually good news Because what that basically says is that these companies are starting to bring purpose to business And these companies are starting to understand that if you don't bring purpose to business If you don't can if you can't explain as a business what you do to make this a better world Then the citizens of this world will very quickly ask the question. Why are you around in the first place? Sharon well Both Paul and Rajiv have touched on it and Andrew as well from a different perspective, but in 2015 the world's leaders Un unheard of world's leaders made two amazing decisions One was the sustainable development goals the others the paris climate agreement And we all know because we joined forces around the paris agreement what a fight that was But that's the pathway to a sero poverty sero carbon world The the point is it's a pathway and unless we take the journey unless we change what we do We're not going to get there and so when people say but should ceo's be involved in you know politics or value sets this isn't about You know democratically elected leaders the world's leaders said with us with business This is where we want to go So therefore what's the business plan for that? What's the community plan? What's the government plan whoever's elected? And so we have to think about what a radical shift that is and Paul's right the business sustainable development commission Um, actually, you know committed to a new social contract. We've got to figure out what that means I can tell you that We believe that if you no one's perfect So ironically trade unions, uh, you know, we'll make trouble where there's a problem But I've just cut a deal and and the iLO has a three-year agreement as a result with the government of Qatar We will eliminate modern slavery for two million migrant workers Five years ago when we uh, you know went after that model It's fair to say really until five months ago. I was probably their worst nightmare Now we're on the team helping them implement that proposition and we've got to do that with everything So when I tell you that 85 of the world's people tell us in our global polling that they want The rules of the global economy rewritten. They want to change the rules There's SDGs and the Paris climate accord. That's the recipe Um, first of all Sharon and then Rajiv. It's the Paris agreement. The u.s. Is pulling out So does that embolden? CEOs to do more or does it mean that a lot of CEOs will take shortcuts? Well, you know the CEOs or say this better than me but You know, I don't I actually think it doesn't matter long term like it's disappointing We all took a stand against that We don't think that's what leadership at any of any government should be about But people have more wisdom than they're given credit for investment shifting You know, does it make our members comfortable that we have to exit from coal and fossil fuel? No But we know it's an imperative. So instead of saying we're going to fight against it We say we want to make sure it's a just transition So you don't have stranded assets, but you don't have stranded workers or communities well And the new jobs being created in renewable energy not quite there yet But we have partnerships with businesses who are Are exiting that will make them good jobs What we don't have at the moment is government action I you will be shocked when I tell you that less than four Governments in the world are talking to their workers and their employees about an orderly exit from coal And we're already out of time. Why let alone fossil fuels. Why only four? It's a good question Well, look, I have a similar but also a different point of view on the climate piece I think my parents are Indian immigrants. They moved from India to the United States in the late 60s They came for educational scholarships went on to my father worked at a Ford motor company for a long time My mom was a teacher who started a Montessori school that was very successful Uh, they came because America in that moment Represented that shining city on the hill. It was where you went to seek opportunity in a rules-based system that was hopeful and open and much of the world Over time, especially after the fall Especially after the cold war came to abide by the idea that a rules-based Order that brings us together that is optimistic with open borders and open trade and and the Opportunity for growth is the best way to usher in the best outcomes of globalization And I I think American leadership. I I agree. I think look changing the food system changing the way we produce power In the world are the two biggest things we can do to reduce carbon emissions Excellent analysis by paul hawkin in this book drawdown kind of details that specifically the underlying technologies and economics will take us there With or without american participation in the Paris Accords, but for america to pull out As everyone on this panel has said in other venues Sends such a negative signal about what global responsibility and what is possible by working together That I think it is highly detrimental But here again, I think that's Obviously is bad news because we really have to have maximum peaking by 2020 We have to be net zero by 2050 if we want to stay below the two degrees So and the us if we like it or not Set the standard for many countries in the world still we would not have gotten the paris agreement without john carrey's active involvement For example, this man went beyond the call of duty Unfortunately now in the u.s I went to the white house trying to convince them to stay in the paris agreement Because I couldn't live with myself being critical of them if I wouldn't have tried So I think that's a role of a ceo because the the profits of a food industry would be wiped out In 20 years just for climate change alone if we don't address that But there are other reasons why we do it. So if the u.s now Doesn't want to use the word climate change anymore in their policies and taken it off of all the public sites If they don't finance anymore the data that would be supporting it because this is science based And I think there's enough evidence on that if they try to change the rules of the game of what globalization looks like Or morality looks like or basic fundamental values, then yes, I hope that there are CEOs that speak up in climate change We created a we are still in movement Which is an enormous movement now in the u.s of of non-governmental actors But jerry brown very active cities very active in that ngo's obviously as well And in fact it probably rallied them to do a little bit more than they otherwise would have done But I still think we would have all been better off having the us be proud of it because now we're going to 2018 Difficult already as it is we have poland a difficult country when it comes to climate change Germany who's always been a strong proponent with merkel has a shake here political environment, so that's not helping us either and 2018 is crucial because we need to ratchet up the targets from paris And and if we don't do that in 2018 we really missed the boat And so that's why we're pushing so much But fortunately not only in davos but in many other forums again The CEOs might not speak up so you might not hear that many But they certainly are part of the movement to see the CEOs did speak up I mean, you know we led a charge And had 29 sign a massive ad in the wall street journal the day it happened Uh, we had done the work paul had mentioned. I was there at the white house constantly But you know look it hasn't withdrawn I want to stay on the optimistic side and paul was heading in this direction There are a lot of people in the united states who are working on getting the right plan in place There are a lot of ceo groups that have formed including the energy industry The body politic is what I said earlier populism is causing a misunderstanding of the big topics We are partly responsible for that. We are not taking these topics down To the job level on the factory floor I will tell you in the months of august september october where most of my factories are In where the president was elected in the sweet in the states that weren't expected to go that way I could have predicted he would have been elected Because they they are frightened for their jobs We have not done a very good job of explaining to a lot of your your union members Where their future jobs are going to come problem. So who knows is it a problem that no one's explained it? Who knows what the jobs of tomorrow are we a lot of us can work on that In fact, I've been in many sessions already in this davos on what future work would look like It actually is the imperative. I mentioned that earlier, but on this climate change thing I don't want to I think it was amazing to get that agreement Many of us remain very committed with our us base We will keep working on this. There's election cycles. Remember, right? So who so we got to keep remembering it's just like tpp You just got to keep working on it because it's the right thing to do And over time the right thing to do will occur But I don't think we should be too despondent about it either But could we agree that the jobs of tomorrow are not getting paid 11 cents per hour to be sent into a textile factory where you know it's collapsing Could we agree that the jobs of tomorrow are not having to send your 12 year old child to work in a cocoa Plantation could we agree that the jobs of tomorrow are not the jobs where they take away your passport and where you become a bonded labor And the consumers are speaking out, but we are the citizens of this world But I happen to be a citizen of this world and with the sustainable development goals We've all discovered that there are two and a half three Million people that we might have been focused on what is too big to fail But we've also said said to a big group of people you are too small to care And unfortunately that isn't going to pass the test anymore the test of humanity But also the test of business what we see is the more we work these issues The more organizations like ours get closer to the reality of what this world is all about The more opportunities we actually see to respond to that and to grow our business So what i'm trying to say to business people don't be stupid don't wait to be voted out of office You know be part of this because it's probably the biggest opportunity you have To become a very successful and very like business and we are seeing that we get 1.8 million people applying to our company Our corporate reputation goes in the right direction. We continue to grow at twice the rate of the market So this is not a bad thing if you are in the toilet cleaning business It's not a bad thing to fight for open defecation if you're in the food business It's not a bad thing to fight against stunting if you are selling even a brand like dove It's not a bad thing to fight for women's self-esteem and the consumer actually appreciates that that you do something that makes positive sense People want to buy or work for things people that leave this world in a slightly better place than they found it And hopefully touch some others a little bit more positively along the way than what we've done until now But the the point that paul makes is absolutely right. We need a new social contract and it's a very simple recipe It's a minimum wage on which you can live with dignity evidence based It's a capacity to bargain with your employer for a share of the productivity that you've been engaged in creating It's about uh making sure that you have grievance and remedy the the compliance and rule of law And it does take businesses to say we will engage in due diligence We are committed to human rights to sustainability and we'll put the grievance procedures in place where we can negotiate Whatever it is is the solution if we don't do this what andrew raised about You know the states, uh, you know, we're working people basically Chose uh at odds with perhaps their own. Uh, well, I would say definitely we're outside of their own self-interest That's an indicator that that what is at risk what the collateral damage will be if we don't actually Fix the fault lines of the current work force even as we talk about the future Is democracy and ultimately peace Because I can tell you working through the middle east You know working across desperate countries if there are no jobs. What happens to young people? They're desperate to survive. They're attracted to crime to gangs or they go into terrorist cells You know and and the recipe is so simple to give social protection floor for everybody something the whole Of the un structures now in the stgs. It's less than 6 of gdp Less than 6 in uh developing emerging economies and that would actually give people a basic security And it would build a basic economy creates jobs in care and services But it also allows people then to build a future without the fear of actually having to go to the populace version because they are They just don't trust democracy anymore and just to give you an example of that I don't know if it frightens anyone else But it was uh actually richard trump who raised it with me the first time and showed me the studies from harvard Where you know 30 of millennials basically either don't care or are opposed to democracy now You know, I don't think it's all fashioned to actually be committed to democracy and that frightens me Then I start to look at the statistics around the world And that's why you're getting the phenomena that we're seeing through throughout europe and in the us And my plea about this is let's sit down and talk about it because the us corporate model has got further and further away I'm not suggesting andrew for a minute individual CEOs but Further and further away from the dialogue the collective bargaining the agreements have built their middle classes It's contesting the european social model and thank goodness The uh the european commission last year committed recommitted to a social model because We can't have a global economy. We've got contestable value sets in the way we do business not in humans Being's value set but in the way we do business Assurance you worry about the advancement of technology again If you look at the pace of change in technology in the last five years if we go through the same What does it mean for a lot of of the world's workers? I was being to a car company CEO telling me well a baby born today We'll probably never know how to drive. What does it mean for the millions of truck drivers in america? Well first of all, let me say that again the polling shows because I always want to know what people think Not what I think they think it tells us that people aren't Actually worried overly worried about the the technology technology is part of life They do accept there'll be some ethical issues and some workplace issues But again if we actually get that right we can solve some of those and collectively as societies We can make decisions what they are deeply anxious about is their jobs and jobs for their children goes back to andrew's point We've got a simple set of demands around the framework of this Again, it's about just transition for our workers and the dialogue in terms of designing the business model to make it possible Because you're going to have a lot of interaction anyway increasingly between technology and the worker But on the policy front It seems to us that again the human values are very simple They are that we would all agree that human beings will be in control of deployment of technology That human beings will be in control of data commons And all of the security and privacy associated with that that human beings will there will be human mediation It'll be human beings that mediate grievances, you know problems destruction And that we will have a human rights platform Now if we got those things right and we worked out what that meant Then the future can look exciting. We can say no to that. Yes to this But it's in our hands. We built this world that is fractured We've got to heal it for the current workforce and for the current business community And so on that foundation we can then use the same dialogue same set of principles adapted to another world to fix the future Here's here's what's both challenging scary and creates the you know opportunities for even more progress You said if the pace of change in the next five years is like it was in the last five Actually, it's always going to continue to accelerate Right the technology is moving faster. It always does it always has so the pace of change itself is going to continue to accelerate And in that context, we've really never been all that good at predicting the jobs of the future You know from a particular vantage point in the present new entrepreneurs will come up With new business models and new jobs in an environment where AI and technology is doing a lot more by the way the AI and technology can Put a lot of people out of work as it will whole whole sectors sections of workforce But it will also create a set of tools and capabilities that allow us to hopefully do extraordinary things in terms of Predicting wiping out disease and disease burden changing the health people experience all around the world Transforming access to energy and eliminating energy poverty. So it obviously is is is multifaceted I do think there's a core element of fairness that I keep hearing from Sharon that I think is so important to recognize and and You know the reality is new business models require different ways of thinking about fairness if you're a gig economy worker today You know working on care.com or or driving uber lift Where are you getting your benefits? We set up a public but we set up benefits system in the u.s Where your your health benefits and other benefits often come from your employer and your position as an employee If that fundamental relationship is changing for a large percentage of workforce We have to rethink portable benefits and do experiments to figure out how to usher in a different policy environment to protect those workers and create A sense of fairness in a new and much more digital economy The last thing I'll say about this is I think of the sustainable development goals in the In the frame of of someone from Detroit You know Henry Ford famously Paid employees five dollars a day at the time to build the Model T And it was an extraordinary increase in their wages and it created these famous lines of people signing up To be work working at the river rouge plant in In Detroit and people would ask him why did you do it and he said I want these folks to all buy My cars and drive them around and in many ways the commitments. We made in 2015 We're not Some fanciful expression of a deep moral objective although I believe there's a moral purpose to it They were basically saying if we want a successful truly global future We have to create an opportunity to participate for everyone And we now have the tools technologies and partnerships in place to actually achieve that goal by 2030 Yeah to come back. I think building on what is said by the two previous speakers the I think more CEOs are now discovering that you cannot just celebrate the goodness of your business model For example, if it's based on technology without also taking responsibility of some of the other consequences We're now starting to see that social media has major consequences on the way people interact on the way Kids are being raised on the way that the definition of jobs is changing We've seen that models like uber have a major consequence in the value chain of what the nature of work is and how People are being treated. We see models coming in that that Not only significantly shift jobs, but obsolete jobs if you're in the food industry I've always said, you know in your value chain a lot of people think if you outsource your value chain You can outsource your responsibilities. I don't think so if you're in the food industry Then you have to think about the issue of deforestation If you're in the technology industry, you have to think about issues like privacy you have to think about issues like job creation and With the force industrial revolution as it's being called here if we like it or not It is more likely that there will be jobs disappearing than jobs will be coming So we have to look at the future of work in a broader aspect. We have to look at new labor contracts or employment contracts We have to look at ways in companies on how do you can continuously Retrain and re-school our employees and in fact what we are starting to think about much more is For the jobs that will disappear in our own value chain, which I can see even in a company like ours How can we create more jobs? Africa wonderful example a little bit over 1 billion people going to 2 billion people They can't even have enough jobs now Africa things we can become the manufacturing basket for the world with low production But you hire a few robots and you beat any Ethiopian on nigerian and you can put the factory in the us right now So it's not going to happen. So we need to think about especially the food chain How do we create more jobs for small of the farmers? 85 percent of the people that live in poverty are actually monocrop farmers They have nutritional or stunting problems because it's monocrop They can't have their income so their kids need to work with them on in whatever Crop they're they're growing and they live in perpetual misery So why don't we use this wonderful opportunity that we now have in a world that is abundant of funds Where interest rates are zero where we don't know what to do where we play We continue to pay a higher price for our failures than the investments that we need to create our successes When this world at this moment spends 12 to 14 percent of its GDP On conflict prevention and war Whilst the implementation of the sdgs is only four to five percent of gdp I don't think we can call ourselves the most intelligent species That's uh Andrew, please follow up. No, that's a very tough line to follow that one, but I uh, I just want to build on insult it No Never I'm an optimist and I mentioned that earlier I'm also someone who lives on the numerator is the way I call it Versus the denominator and I think if we take all these as headwinds and problems and negatives And then we let the body politic articulate it on short-term election cycles We'll let the wall streets dominate it in terms of short-term returns Then we are all failing so the collective will of all of us has to be organized in a way And there are organizations who are organizing in a way that integrates This collision that we've just been describing Business government civil society is really one and we call it humanity and that's what it is But we are the leaders of humanity So we've got to find a way to actually bring everyone into the conversation And these are now new business models and this is where I'm definitely in your camp of optimism I think we are going to find ways to liberate and create new opportunities for people And we got to generation skipping places like Africa and Ethiopia and fix the fault lines Absolutely right. You can't ignore the transgressions of today's show and all the work you're doing But as you build to the future, what are those new ways of redefining and how we get our value proposition? I'll suggest one Paul's very familiar with this is on my board And that is we've integrated into our sustainability goals the stg-17s We've got our own sets of goals that we've internalized like every company does But we've put one in there which is actually pretty game changing And that is every business decision we make on every asset we build values nature It's beyond carbon pricing carbon pricing is just the co2 issue, which is huge. Don't don't be wrong But I'm talking about valuing nature. I'm talking about this one planet I'm talking about every aspect of nature. I'm talking about water air That type of model is available to all my business planners So when they come and justify something at the board, it's already valued in the long-term cost of ownership In fact, if you think about that proposition and you think about Looking at work as work wherever it exists people work And so how do we do as Rajiv said, what's the benefit base? But if you think about the global commons that we all depend on I think Paula correct me if I'm wrong or you will Andrew Andrew, but I think one in six oxygen molecules comes from the amazon alone We all need air to breathe but What are we doing about collectively valuing that in a way that says, you know, the indigenous people who care for that forest Should be paid It's a pittance to give them the dignity of work. I want to make sure I factor in the one thing. I we have a model It's freely available to all of you Okay, it's we've we've worked with the nature conservancy WWF and EDF it's available to all of you to use in your business planning It's not mandated yet, but it should be I'm just trying to make sure I get that How do people get it? We have a website. I'll send it. It's email But I'm just trying to let you know that these models are happening. Yeah, we just got to get them out there Let me the other thought I wanted to finish because you guys grabbed it. We're going to value human beings We're going to put a model. I haven't developed this model But we've got to collectively put a model out there so that you never get these issues that you guys You you mentioned more than once I'd like to finish on a personal note So we have only a couple of minutes left for do you do you remember the time? I don't know if it was a year if it was a week where you decided to Work for values to protect the values that you believe in and what would you say to a ceo listening today that says Actually, I want to be a little bit better. I want to do a little bit more good, but I'm not sure how to go about it Well, I'll give you an example. I don't know it. This isn't necessarily instructive for today's CEOs But you know we I ran USA to the Obama administration our biggest program for many years was in Afghanistan and In one of my visits we visited a In one of the hospitals we built and supported a child nutrition ward for for young kids and I held a young child who was being fed through One of the targeted feeding programs and you realize these children are so stunted so deeply malnourished and so outright hungry That it was it's just I know we work on these issues all the time and we've been successful in so many environments that Fighting hunger and improving malnutrition But holding a child who just is About to perish because they have not gotten enough food or when they've gotten food They haven't gotten enough protein or micronutrients And knowing the tools at our disposal in all of these businesses and all of our capabilities as a modern global economy To solve that problem We then put in place major nutrition and health programs in afghanistan and over A number of years, you know Admittedly in a war zone We we got health coverage of a basic basic package of things unbelievably simple Handwashing is the first and foremost thing but but others up from something like 18 percent to something like 65 percent And just a couple years ago. I saw the Outcome of all that was captured in something called the demographic and health survey Which is actually a super rigorous analysis of of population health And it showed that afghanistan over the last decade is actually the place in the world that is experienced The fastest and most consistent drop in child death and maternal death That was preventable anywhere in the world and I feel like if we can succeed, you know as Using modern tools using modern technologies using old school supply chain management and a focus on delivering against milestones In the toughest part of the world at the toughest and even unsafe time There's no reason that five or six million children still have to die of simple diseases around the world There's really no reason a billion people have to live in energy poverty And and that's what that knowledge that we can be successful and do so quickly in partnership is what Motivates my optimism And then the technologies that we talked about and just the spirit of if you're going to lead an institution You have a window of time to do it. You will look back on that window and ask yourself What did you do and and that ultimately is the test we all face Paul Same question. Same question. Well, I think the the moment in life that you discover is not about yourself That's probably when you unleash this potential that we're after and and get to a higher level Where you put the interest of others first, you know, I was fortunate to be born just after the world Where but it took me a while to discover that my parents wanted us to go to the better schools and Worked very hard to that wanted their communities to be better again They put themselves to the surface of others We actually unfortunately still only belong to the two percent or Or less of the world population that can do what they want live where they want Spend the money they want Work where they want and then it's really our duty to put ourselves To the surface of the other 98 percent and the interesting thing is the more you do that The the better you're off. It's actually very selfish Some people might say greed is good, but unfortunately too many But I would say generosity always wins and that's the same for business the human values Bringing these into business, you know and humanizing business is probably the best solution My wife wrote a book that is called the immaculinal cells and deals with the golden rule And it really boils down to that if we imply the golden rule and everything we do Do unto others if you would have liked to be done unto yourselves You find it in every religion. It was probably invented before we came here If we would just simply apply that also as business people become a little bit more human We would probably solve 95 of the issues that we're talking today Well, I have the most privileged job in the world I have a family in every nation or colors or religions or ethnicity Workplaces communities, but I want to leave you With the image of one woman who's who really kicked off our demand for decent work in supply chains for due diligence It's a woman in the Philippines She's an incredible woman. She actually couldn't Really afford to stand up against in human treatment wages on which she could barely live Was escorted to the toilet by a man But when I asked her what was the one thing that would make her life better She said I want you to get them to abolish forced overtime Because she was told she had to work one month contracts had to work two or three minutes before the end of the day 10 12 often four in the morning and why she had a 12 year old son No family support and she actually Said I can't tell him if I'll be home at night. I'm worried about him. He's almost a teenager We're on our own. I can't even say good night to him on a regular basis We can do better than that and working together We can change the rules. We can make this economy work for everybody Andrew You know, I want to return to youth Um and this piece about leaving the world better off than what we found it I've had the same privileged path, but I've come from a working class Immigrant family in Australia and fortunate they were courageous enough to put me as the first through college And I I get to these privileged positions. I'm in this privileged environment And I wonder what should I be doing and along the way? I've made sure that I've helped youth in every country in which we operate in I want to be our chief recruiter But I want to take the farmers off the fields of thailand and give them skills to work in our complex plants I've done that in all my jobs, including this job. I think we have a job to do with the youth of today We've got to give them something to look forward to we've got to give these call them millennials But it's more than millennials and the line I use often is if I could do it all over again Okay, what would I do with my life and my career? I would join a company like Unilever liked out right now Because this generation has an opportunity to reverse what we have created Which is capitalism that's not working well Which is democracy that is getting challenged which has lost this proposition of doing well and doing good is the same thing And then if we are going to run out of time, why would we be on our watch? Okay, we've got to infect them with that so they actually make that better and I'm here to help them Thank you so much all for a wonderful panel