 Welcome everyone to day two of the industry strategy meeting and I'm thrilled to be moderating this conversation Where we'll build on some of the themes that were discussed at Davos earlier this year many of you may have been there Where the theme was responsive and responsible leadership and today we're going to talk about what exactly does it mean to be a responsive and responsible business? So I'm Catherine Cheney and I cover the West Coast for DevX We're a media company focused on global development and that means I focus quite heavily on the role of the private sector In achieving the United Nations sustainable development goals, which may be familiar to many of you in this room. I hope so Recent weeks as you all know have brought I think a greater sense of urgency to the role of the private sector in global goals like climate action and Just in terms of the role of business in society more broadly So I'm excited to dig into some themes today given the urgency of this conversation So today the panelists that I'll induce introduce momentarily are going to help us build some connections between the conversations We've had here in San Francisco on the fourth industrial revolution and what these changes that technology is bringing to business and society Demand from chief strategy officers like all of you in the room So one of the things we're going to talk about today is the compact for responsible Responsive and responsible leadership and that was launched at Davos And several of our panelists here represent companies who are signatories of this compact And we'll discuss ways that you might also get involved in the compact if you're interested So with that I'm pleased to introduce our panelists first here is how Gregerson executive director of the MIT leadership center at the Massachusetts Institute of Technology We have Raj Kapoor the chief strategy officer at Lyft Next to him is Rena Kuprishmit-Rohas head of sustainable finance at UBS in society and a young global leader for the World Economic Forum And finally coach Saxena. He's the executive vice president of strategy and corporate development at MasterCard And since you're way down there, we're going to start with you So I spoke with each of our panelists ahead of this session and you know, we discussed We want to move past the jargon and make sure that we all get what we're talking about when we say things like long-term thinking and inclusive leadership So I want to hear what that looks like at your companies and not just what you've done in terms of moving toward Being a more responsive and responsible business, but how you've done it so that this group can walk away with some actual insights So we'll start with what that looks like at MasterCard. Sure and Look for those of you who know MasterCard We've been on this journey of inclusive and long-term growth for a while and you know, we've been very vocal about We've been very vocal about Sort of our the leadership position we can take and we want to take in the world around financial inclusion and gender inclusion and digital inclusion And in fact even consumer inclusion, right? Which is very pertinent in the world of financial services and sort of driving towards consumer choice and so on and so forth so this is something we've been at for a while and really I think this starts with a Recognition of what it is that Makes you good, right and what is the purpose for your existence? And I think that purpose can have sort of a very commercial strategic business lens that can also have a real social Inclusive purpose and my personal belief is if you're a company that's attained some basic threshold scale You must exist for a purpose So I think recognizing that and pinpointing that becomes very important in our case, you know when our CEO Ajab Anga came on, you know seven years ago There was a strategic view that could have been taken which was look We're gonna compete with the visas and the amixers and the pay pals of the world Or there was a view which could have been you know where we basically said look our purpose for existence was displacing cash cash cash has a cost cash you know cash drives a lot of activity that shouldn't be driven and Really sort of take over take over the purpose of driving that long-term goal of cash displacement So so I think understanding that purpose reframing reframing the market opportunity based on that purpose and Then defining a few lofty goals that you can really pervasively drive in the ecosystem out there and in your organization In my mind a step two of that and so our version of that was hey We want to displace cash cash has a whole bunch of evils associated with it The the lofty goals around that that we went that we really declared were you know We wanted to get 500 million new consumers Onto the onto the financial ecosystem that were unbanked underbanked across the world And we wanted to bring 40 million new merchants right and if you look at if you look at the number of merchants out there There aren't 40 million new merchants until unless you start going after these small micro merchant in Africa or India The the Lyft driver who's now an entrepreneur and a merchant themselves right for example, so So I think step two of that journey is Framing big lofty goals And then I think the moment you do that and you drive that across the culture of the company across in your narrative sort of externally It really changes the way your people begin to think about day-to-day business processes And so today when we do strategies, we do acquisitions we make investments organic or inorganic That is always at the back of our minds our people's minds And you know like I was telling you we don't even think twice about that kind of stuff and one of the things we'll get back to this but you were mentioning mergers and acquisitions and you've discussed the importance of Change what things will change, but also what things won't change, and I thought that was a really powerful point So hopefully we'll have time to return to that. Thank you Yeah, well, I think I UBS they started very early on I mean I've been a client with UBS for 18 years and I remember doing my first social responsible investment 15 years ago So and I think it became a strategy for the bank in 2014 They created an umbrella which is UBS and society and become an in three pillars So the way that we do business, which is how do we come become more sustainable? So the way our footprint is our carbon footprint and water footprints or our buildings How do we work with our clients? So how do we offer more sustainable investing and investing solutions to our clients? So how will we manage their money and also how do we work with communities? So those are our three pillars and in 2014 that became our DNA So that's the way how we work and it's our performance. So we do it in a daily basis So from employees, communities and the way we do business But in 2017 at Davos, we made this commitment that we say we're going to direct five billion USD client money on impact investing So we actually when big and said we want to mainstream impact investing and direct this into SDGs projects So we have been doing this for six months right now So we actually deploying one billion capital every year for the next five years So this is a big commitment and last year we launched the first The first I think largest impact investing fund which is half a billion dollars focused on oncology And it has been a successful phone focused on cancer care and part of that phone also going to research So we have been the first bank actually making a large community into the impact investing And we might dive a little deeper into this in a little bit But just to get a sense when we talk about approaches that this audience can learn from I know that's a challenging task to draw that kind of capital to goals where you know, some people say there's not a trade-off between profit and purpose and But with some of these goals, they're hard to measure and it takes time especially the societal pillar, right? So can you just quickly say what's the case you make to people as to why they should invest? Yeah, so actually well we take a lot of risks, right? So the cost of capital being the first one and working actually with a private equity fund managers with the traditional one Right convincing them and and have it our theory of change and making the case that no sacrifice performance So we don't sacrifice performance So we give them the traditional market returns, but also have the social impact on top So we have been able actually to work with our private equity fund managers to do that and report on the social or environmental Impact as well. So and then the way we do that is that's to partner, right? So and to report back we work actually with the work economy forum with the impact investing Taskforce very closely. So we actually last year launched to dream What we call dream teams? So we do that Rockefeller Foundation with the gene the global impact investing network and and Bridges ventures and said there is so many Standards out there how to measure impact. So we need to get organized as a as as as an industry So we brought everybody together to Amsterdam and say 50 organizations and we said this is not about UBS This is not about the gene. This is not about Rockefeller Let's get organized and give our investors some sort of kind of, you know Education around what impact measurement is is now that we want to create a global impact measurement But let's come in and a consensus and say this is at least the KPIs that you need to be measurement When you are doing impact investment and then you can customize your the measurement And what is the return of investment when you measure social social impact or environmental? But at least let's have a consensus around that and then and that's the work Then I would say how do you be inclusive and how do you actually create transparency around the processes? Yeah, thank you That's so helpful and a Raj coming from a company where I think Probably many people use lift to get here this morning on this rainy morning in part because they're looking for a Responsive responsible business. Can you tell us what that looks like? Yeah? I think it's it is quite interesting and it certainly wasn't in our master plan that being responsible and responsive would result in this Significant growth that we've seen just in the last six to nine months So I think we're it's in we're like a real-life case study that's going on right now We have a competitor. They provide similar services in many places. They have significantly more cars than we do But we've seen a dramatic shift We think it's because we're executing but I think it's definitely because people are taking a stance of where they connect in terms of values My comment on you know, how does this happen and what are the things that we did? first of all Honestly, and I was involved in the company since day one as an investor I was the first VC investor and I was in the board So I shifted recently to be full-time and it didn't it's not that this was manufactured There's always been a north star. That's the use the word that we've been using since day one the north star of our company is to improve people lives through better transportation and to be Encompassing a community and people putting people first It's something that Logan when he started the company did because he was on the board of the Santa Barbara Transportation Agency when he was in college other people were drinking beer at keg parties and he was talking about Transportation issues. This is something that was deep inside of him The north star is not how can we maximize the not the profit from consumers the north star is improve improving people's lives In doing that and so then what the other thing is that you know, it was just instinctive for us to take Stance on positions. I think when you really think about is a company responsive and responsible The test becomes when there are trade-offs The test comes when you can make a decision that is not entirely popular with everyone In doing that the test comes when you're a leader Instead of a follower in those decisions So an example of that is the ACLU decision that we had before many tech companies made a decision and the statements that they made were very kind of I would say neutral in how they presented it We took a very specific stance and said we do not agree with this We have seven hundred thousand drivers many of them are impacted from this travel ban Their families are impacted from this travel ban. We do not agree 100% and here is some money to the ACLU to fight this on behalf of our community There were no minced words about that There were definitely people who there was a delete lift campaign from those that did not agree with our position But we stood for our position because we believed in it Not because we calculated that there would be something that would come out of it in terms of doing it And it is unpopular amongst some people in doing that some you know getting to the the concept of Inclusiveness just to touch on that a little bit because I think that's an important concept I view it as independent almost of long-term alignment with societal goals But I think it can certainly help a few things that we've done to make sure that we're inclusive We don't just have a product that we sell to consumers We operate a marketplace and we have two sides of the marketplace one side of the marketplace is drivers The other side of the marketplace is consumers So one of the reasons why I think we've been successful Especially as a reason is that we've always put a significant amount of value on making sure that we understand What does the driver want and in a marketplace people and I've been studying marketplaces for 20 years You usually do have to pick one of those two because there are always trade-offs that you're gonna focus on and We decided that the driver was really important And if you naturally pick the driver the consumer should follow along But it's it's a tough one and there's arguments against that as well And so things like tipping which some people don't like but the drivers like it You know things like paying an extra cost to have a human answer the phone so that we get the feedback loop Talking to a driver versus an email Including them in that process when we come out with new features So there's a lot of inclusiveness I think is really important to understand that there's more constituents than just your shareholders and your customers Thank you really helpful So how I have to say in preparing for this panel I looked up a lot of your talks and your research because I think it gets past Some of the jargon that often comes up in these conversations about innovative leadership and really digs into what that means So I wonder if you can just comment on this theme and maybe draw on some of your recent research Bursting the CEO bubble and how that applies to an audience of mainly chief strategy officers No, thank you it I'm gonna start by saying What would it mean to be a non responsive non responsible exclusive sort of leader? How's that? Just kind of going the opposite direction alternative. Yeah, and the reason I say that is the last few years I've had the chance to interview a couple hundred of some of the most innovative and Often inclusive leaders in the world So one of them was here locally the CEO Charles swab while beddinger and he told me the number one challenge He faces is isolation It's when people start telling you what they think you want to hear and they stop telling you what they think You don't want to hear and last night we heard from Ed Catmull and he calls the same thing the dangerous disconnect And so the issue becomes, you know, how distant how isolated are we from the drivers? for example at lift and and in these organizations with these leaders who I would frame is really quite inclusive quite responsible and you know Quite responsive in that third word They are active. They consistently get out of their offices They get into the world they get on the edge of their system on a regular systematic sort of basis So quick example Fadi gondor in the Middle East grew up in Jordan found that a company called air max is like DHL FedEx UPS Delivery-oriented company very efficiency-focused, but Fadi cares deeply about drivers for example Because they're the core interface with air max with the world and so he's the CEO. He's the founder the company is quite successful He's flying into Dubai, you know those flights into that city sometimes in the middle of the night the morning so he gets in at 2 o'clock in the morning and This is classic Fadi thinking who's going to pick me up to go to the hotel So he has an air mix driver picking him up in an air mix truck Not it not a cushy limo. You're tired. You're exhausted, but he's in the truck with the driver He engages in a conversation by the time there to the hotel. It's crystal clear to Fadi. There are problems here There are driver issues or things going on that are keeping this driver from doing the work that she or he needs to do and So he goes to sleep for a few hours gets up in the morning Immediately calls in all hands all-person meeting they all come He he declares you know clemency to everybody that no one's gonna get hurt by what goes on in this room We're gonna have an honest conversation about what's really going on and at the end of that they solve some of the real problems and 15-20 years later that story still gets told at air max and that the behavior of Fadi still gets done at air max Which is those senior leaders chief strategy offers to CEOs etc They're out there close enough to drivers to customers To people who maybe are in poverty situations fill in the blank They are physically in that space and it causes them the situations force them to be wrong about something To feel really uncomfortable inside And when those two things happen and if we're listening to being wrong and uncomfortable it silences us It causes us to be quiet and those are those moments of truth when we as leaders decide, okay, do drivers really matter? We're getting that really uncomfortable wrong feedback. Am I gonna listen to it enough? Am I gonna be quiet enough that I can then respond to it? And to me that's the core of in one sense long-term leadership It's to the core of responsive leadership. It's the core obviously of inclusive leadership There's no other way but walking ourselves intentionally into a corner where we feel that kind of discomfort and being wrong I'm curious if any of our other panelists can bring up examples of you know We're tackling two big topics how to be responsive and how to be responsible as a business in some ways they go hand-in-hand But of course, I love the point that to be responsive you have to listen and it's simple But it's not always done. What does that look like at your organizations if any of you want to share what it means to listen look? So MasterCard like lifters also two-sided marketplace. We've got banks and consumers on one side we've got merchants on the other side and When we go become a payment system in a market we actually become Systemically important at some level right because you are running trillions of dollars of transactions between consumers and merchants And you are creating behavior where consumers say look I could go without cash right and life life won't stop for me Now with we see this as a bit of a political So, you know bit of a political swinging spectrum, but with a lot of what's going on in the world We are beginning to hear noises from local markets from local market participants would say You are an American corporation. We don't necessarily want to be tied and held back to you Right and so for us a big part of being responsive in that context is actually trying to figure out how we become more local Right how we become more more relevant in the context of India for India China for China Africa for Africa And if that means making tough business calls where we've got to spend a lot more money trying to do that or change our business model Or even think about how we structure ourselves differently in the context of that. That's a very real active dialogue that's going on So so in because we are a B2B to C company the notion of responsiveness and the feedback loop Obviously, we're getting from the businesses in those markets We spent a lot of time with governments trying to get feedback on what's right for that market And that's a lot of how we are sort of positioning ourselves Yeah, I think also we do our exercise to know not only focuses on our shareholders, but our stakeholders So we have a materiality matrix So we know exactly who they are and we try to listen to our clients to our employees to our community So we know exactly we get involved and we know and we play our role We do a lot of public policy as well So we also work with regulators and try to get involved and actually advocate from for green finance and all these topics that we Care about so I think playing that role in listening to our state holders. We do a lot of work on that and that from as well Yeah, one interesting thing that we do in terms of planning is that if you think about running a company It's a series of decisions that that you have to make and they're usually result in initiatives And one of the problems that happens whether it's a constituency like drivers or it's a consistency like your employees is That by the time the decision reaches them they under they don't understand why and They don't have a mechanism because they may actually have better knowledge to question Why then the person that actually made that directive in doing it? So one of the things we're trying to do and I don't think we're great at it yet But we're getting better is you can use Communication tools today like the slacks of the world or Google collaboration But what we always now do is whenever we say that there's an initiative we have to put the why next to it and then you just do a very simple thing which is allow comments and You show There's a few people you have to pick out because if you just tell allow comments and it's not in the culture No one does it because they're afraid they're gonna get skewered So you pick a few people that are at lower levels and you actually reach out to them and say I want you to comment on this and you see that it's allowed to do that and that's how you start getting it You know, it's nothing beats having a face-to-face conversation But when you have a multinational company like most of you have you have to come up with other ways to do it Just a quick comment on that. So so mark many off over at Salesforce comm The engineers in the engineering group started the grievances talk area Online about the real issues in the company and that's just an engineering logic Just like let's solve problems here and they can't they can't not do that And so they built this and they use it and it's successful and they start getting better in the engineering area and Somebody flipped the switch internally without asking senior leaders to not just have it within engineering But to have it across the entire organization Which then all sorts of stuff starts surfacing and some of the senior leaders were a touch uncomfortable with it Mark didn't even know about it at this point and then in a meeting he heard about it and He said let me see it And he looked at it. He's like there is no way we're gonna shut this thing down This is some of the most important data We could be paying attention to and and the issue becomes it's one thing to have that grievance area It's another thing to have that area and people trust it enough They're not gonna get in trouble for airing information that helps somebody solve the problem That's the issue and you know none in the research We've been doing at MIT about leaders coming out of MIT one of the things that I would summarize it as is these are problem-led leaders They love wicked edgy hard problems. They follow problems not leaders And when that happens you start being more honest you start being more open you start being more real about the real issues Yeah, the one thing the one thing I would add to that is Look, I think a lot of us in our jobs Can't tend to take the view that we are alone in the companies we are operating and on the spaces We are operating and right and I think it helps to take an ecosystem view right and how that ecosystem collectively So you the other companies the governments the players involved are collectively creating value for end stakeholders consumer merchants whoever that is I think the moment you begin to do that you sort of figure out where in the ecosystem you fit And what could you do to enable the ecosystem? Which is not you but the four other people five of the people players that are creating value I think I think you can begin to then have a very very Sort of thoughtful dialogue internally around how do you not just in isolation? But along with the ecosystem create that value right and so we go to a lot of markets like long tail developing markets Where the ecosystem does not exist right? It's impossible for us to play the role you want to play because there are no banks or banks are very unsophisticated What we found in those places is the best the best way to create value is go work with the government To drive benefits and disbursements and so on and so forth to consumers right that gets the consumer for example Onto a financial in into a financial ecosystem So I think taking that ecosystem lens which goes beyond your own lens and how you collectively fit To create end value for the end user I think is a is a useful lens that drives sort of this behavior towards responsiveness and inclusiveness I was actually gonna ask you and I'd be curious from from each of you to share any other learnings you might have From other leaders in your industry So I saw you yesterday in the big bets on digital transformation of finance and it kind of gets to this working as part of an ecosystem So I'm curious Kush if you can talk about it MasterCard What it looks like to take big bets as part of an ecosystem and how you're kind of interacting with leaders other leaders in the Ecosystem and then for any of our other panelists who might share You know, we've talked a lot about what this looks like inside your companies But as part of the ecosystem in your industry, what does it mean to be a response? so I would look I think Sort of this broader context around reframing the mock market opportunity as displacing cash and then the four or five big Lofty goals that we've declared for ourselves and gone public with all of which have a lens to sort of both the commercial side the commercial opportunity for us but also Inclusiveness and responsiveness within that context You know the role today or the role we've historically played has been that of a market organizer for the payments ecosystem That's kind of our bread and butter But we found that with the advancement of technology that role is not enough, right? And so and so there are There are several several new areas that we are constantly looking at to sort of build on top of that So for example a big a big new area we're looking at is or we've been we've been thinking about a lot is Data privacy so today we see you know today we see Billions of transactions a day those transactions come married with personally identifiable information We think that data is highly valuable both to us, but it's also highly valuable to merchants to players like left for example, right? Yet we don't want to be in a position where we are carrying that personally identifiable information That was a that was a deliberate call a difficult call You know many years ago that our CEO took and we collectively took where we said we want to strip this data of Any personally identifiable information because we don't want to carry privacy risk and it's not right Actually for the ecosystem to carry that kind of privacy risk And so made a ton of investments to be able to do that and yet keep the data valuable, right? And there's a deep that's deep analytic techniques that that make you do that Another area we're spending a lot of time on is cyber security So our network sees tens of millions of attacks a year and we spend a you know, it's a very it's a very very sort of attractive valuable target for the for the cyber attackers out there given the amount of money we move and you know we've We are trying to take a leadership position in the ecosystem because you know, we will connect into UBS or another banks Consumer vault we will take the identity of a person from there move it over our network and Authorize a transaction on lift right now something happens Somebody attacks that transaction It could impact us it could impact the bank it could impact left We need a collective response as an industry on what we are going to do And so that's another example where we've been spending a lot of time on what the right external response looks like and then Aligned with that we'll take you know, we'll make we'll make big commercial events Yeah, so just to focus on the SDG 5 on gender equality So this year we raise an impact phone Focuses on to invest on women some on companies led by women at least one one founders have to be a female 110 million dollars in the US so half of the money come from our clients, but it's not enough So we actually partnered with a UN women to launch something that is called the gender lens investing Institute And then to create a network of financial institutions to create more awareness around the topic and they's powered by UBS But it's actually to to create capacity building and other banks and financial institutions around the topic to Actually to create more financial instruments around around that not just in private equity, but also full for the least equity space So we're creating now the network So now I have around 10 banks that are joining and then it is going to be an initiative for the next three to five years So and this is something that I'm very passionate about because I was an entrepreneur one one point in my life And I came from private equity and I was you know Fortunately enough that I just raised the money within my private equity fund But I know a lot of the YGLs that actually raising money and it's very very hard I mean just three percent of the venture capital go to female founders and just six percent probably In private equity are female investors So it's really really few of the money that goes actually to female funds So I think it's a topic that you know we can we can push much more So that's it something that UBS is now pushing globally Yeah, and yeah, Raj. I'd love to hear from you, you know at a forum like this where chief strategy officers are coming together Across sectors or or even within sectors to discuss, you know big bets along some of the areas we explored yesterday What's the value you see for lift in working with the ecosystem? Yeah, so, you know, I'll give an example the probably the most dramatic and disruptive change that our industry of transportation is about to go through as autonomous self-driving vehicles and Just to give an order of magnitude for those that haven't are not deep into it, you know stuff Networks like uber and lift today represent maybe less than 1% of Miles driven, so it's a very actually small even though there's a lot of press. It's a very small piece of transportation Studies are coming out now that are showing there's one out of Stanford rethink that with AV and electric vehicles Most of them will be on-demand in on-demand networks It's the most efficient way to to deploy these vehicles. It could be as high as getting up to 95 percent of miles traveled So for us, it's a massive opportunity, but it's also it doesn't just impact us It impacts the city dramatically impacts the way people live. It impacts the pedestrian Facing a AV accelerating at them. I'm not sure they'll be excited about it At least today and so how do we make sure that we can bring along all the constituents and in doing that? I'll give you one example of a trade-off and attention that's there, which is that We are trying to as a network operator to minimize the cost per mile of a vehicle and so we may want that vehicle to be running around a city going to the highest Opportunity economic opportunities in between rides in doing that yeah now if you take a city view and You have let's say 300 fleets that are doing their own economic local maximization But the city really cares about the fact that wait a second I take a view of the city and you've just created a massive amount of congestion in all the rich areas in the city Or you're never going to the underserved communities that are out there They have a valid concern that this will impact transportation It'll impact the city if you just leave it up to Economic optimization of the local players. So how do you work with the city to resolve that? You know, do you give them an override? Do you have a kill switch? There's lots of interesting questions that are going on there that go way beyond Just what lift is doing and go even beyond what our industry is doing and start to impact Cities and redoing those cities I wanted to It's a collective comment in response to their their comments, which is You know reaching out into the city reaching out into the ecosystem I was thinking of Jeff Bezos comment in his recent annual shareholder letter, which is what he said in 1997 The first was basically Absolute customer obsession and focus and when we do that with his second principle, which is don't trust proxy data Even though they are the ultimate AI and machine learning organization, he's like it's good But it's not everything and this comes to a point about another credit card company not MasterCard We were doing some work around this innovation and I asked a group of 500 of the senior leaders in that company When was the last time one of you talked with someone of a lower in the in the lowest or lower economic status of your country Physically face-to-face and about five hands went up in the room. They couldn't remember It's that kind of Physical distance from the real problem that I think keeps us from solving the problem I think it makes us irresponsible. It makes us irresponsible. It makes us exclusive And so when we get out there, you know, and I had a fun conversation with a lift driver coming here this morning You're changing his life. He's part of the electric vehicle program is he anyway I could go on and on about it and he went on and on about it But it's amazing to be in that space And so the issue becomes when when someone gets in that world where they're on the edge of the ecosystem or on the edge of their Organization They're likely to get they're not really like to be wrong comfortable quiet That's not the point the point is it will change the questions. They're asking The reason we're isolated the reason we're not responsible for asking the wrong questions And when we get out there in the world that confronts this they almost force the alternative question So if you go to Patagonia They don't only make great clothing and other things there, but they a part of their value system One of their values is how can we make the rest of our industry uncomfortable? And if they don't act on that and if they're not operating at that level They're not succeeding. That's an interesting way of looking at the world. That's a better question And they actively do it I mean they ran across something in a in a production chain recently that the rest of the industry was kind of okay with They realized they were doing it, too They called it like we're not gonna do this anymore and the rest of this was But there was no alternative, you know, that's just what we do for Patagonia So I'm curious to hear from each of you You know, I think one of one of the things that comes up in the world economic forums framing of responsive and responsible leadership is frameworks that Eliminate the perceived trade-off between profit and purpose But I think when you're a for-profit company, that's a challenge, right? And sometimes you need frameworks and coalitions that help you figure out ways to achieve both profit and purpose so I Actually print it out the compact which we'll return to a little bit later This is the compact for responsive and responsible leadership. I was thrilled to see that number one the number one shared conviction is Society is best served by corporations that have aligned their goals to serve the long-term goals of society The sustainable development goals offer a useful roadmap for such alignment and Rena just brought up SDG 5 It sounds like some of you are thinking through this It doesn't necessarily have to be the SDGs that tends to be my focus But I'm curious what frameworks those of you who have signed the compact Maybe you can touch on that or maybe there are other gatherings forums conversations that you're a part of have helped you Eliminate this perceived trade-off to the extent that you can in your companies I'm happy to start but first I'd like to just add to the comment helmet, which is Look, I think I've been in companies where that has been the case right where the leadership is just not in touch with folks at the Edge of the ecosystem they operated What I have found in sort of the transformation journeys that I've been part of not just at Mastercard But elsewhere which I think would be useful as you guys as you guys think about this Is that the clarity of purpose helps right? So so when we declare for example, we want to get in the next five years 500 million new consumers on the network The first question people start to ask is who is this new consumer? What does that new consumer look like? Where do I find that new consumer or when I want to get a 40 million new merchants? Who is that new merchant? What do they look like and you drive that hard and consistently across your organizations across the world? The folks in your companies that are operating at the edge of the ecosystem will begin to do that right? So our market leaders are very attuned to what these folks at the end of the ecosystem look like and many times They don't own them right so we are we work through banks to get to merchants We work through banks to get to consumers But we have a very good feel for what these guys look like and it's an important part of how we how we drive that So that was just my you know, you know your your your point sort of triggered that hard I think I think clarity of purpose driven consistently is very important but You know to your point on When I think the compact is the compact is terrific So I would we were one of the early signatories. I would I would highly Recommend I would highly recommend sort of taking a look at it. It's very benign and you know and yet useful And useful how I mean is it because it brings you together with other companies that have similar goals or well useful in that it It forces you to take a position and the position is actually not a difficult position to take right it forces you to take a position and it's Not a difficult position to take it also forces a conversation at the most senior levels and it drives You know consistency of thought and so we had you know, we've had a conversation around this We are very proud of the fact that we've signed it our CEO talks about it when he's out there publicly and vocally and so You know, I would I would recommend that Yeah, and I think we are all together on this right we sign it we as an industry leaders We are on this and I think the SDG what has done is create a framework for us to navigate in a better way To understand the commitment of the industries and I think some of the Resonate better to some of the industry than the others So we know that so we have done our mapping and how Private world how how can contribute to the SDGs not to all of them But some of them because some of them are actually driven by regulation So we don't have the power to actually to move regulation that fast But probably with our client money we can do it through investments. So we do we do know that But but I think also through the framework on the strategy I think in 2015 when we were with the United Nations Foundation and the project everyone the young global leaders Actually, we did the whole mapping and also the campaign. I think to inform and educate So also that the private sector came alone in 2016. So it was the second stage So I think the framework is useful for corporations to know and understand what their role is and Me as a sustainable finance head. I know actually and actually invest in your companies I do know the matrix and I know what are the SDGs that actually apply to your companies So there are there are frameworks out there So if you don't know yet actually just go there and look for sustainability frameworks that actually help you navigate What are those KPIs that you shouldn't to be following? Yeah, and I want to prep the audience and just a moment We'll take questions. So if you're thinking of one maybe get your eye on the mic and we'll make sure to include you But Raj, you want to jump in on that? Yeah, so I want to take a little different tack on this So yes, in fact when I when I first invested in Zimride, which is now left The main driver of it was that I was passionate that something needs to be done from the private industry more around climate change and How can we do that and taking cars off the road given the fact that single occupancy vehicles made up the majority of it The fact that only 4% of the time people are using the vehicles They own just seemed really inefficient. It seemed like a network was the answer And you could get higher efficiency and that could get cars off and help climate change So that was great and and that was actually the wrong business We started because it didn't work and we had to pivot but the the premise was there But what I wanted to actually talk more about was that that's not enough Yeah, so I spent seven years in looking at probably 300 companies a year for those seven years ended up making about 14 investments and The number of times that I've seen people that really sincerely wanted to make the world better By usually following one of the seven and the 17 goals basically cover everything that's good out there probably So like you could hit it if you throw a stone in the right direction Which is great, but the point is that's not enough. There's so many startups that said we're gonna do this We're gonna cure this we're gonna do that, but the consumer didn't care like let's be honest 95% of the world 99% of the world doesn't care about the SDGs You need to provide them value and then if you can bring that along. That's the win in doing it So for us it wasn't enough that we could make the statement Hey, you should try Zimrider lift because you're gonna ultimately Fire alarm must have been something I said I was writing stars around your point Hold for just a moment and see if we can ride this out What do you do? All right, now that we're awake, I hope we were Yeah, so just to finish off what I was saying is that If it were only those goals the consumer really wouldn't care what caused this industry to take off was a breakthrough in price and a breakthrough in Experience and we had a really shitty alternative, which was the taxi So like you had a back like you know if you were trying to fix something that's not broken and add SDGs on top Good luck, but in our case it was such a crappy experience that people have no one would say Oh, I love my taxi driver or I love the cable company as an example So we were able to provide a breakthrough experience that also We think could be beneficial to the world in doing it So you have to have both that's the economic driver. That's there and people forget that Thank you. That's so helpful and I want you to jump in but I also want to get at this in your response which is what we haven't heard mentioned in this panel yet is corporate social responsibility and I really try in my reporting to look for companies that go beyond CSR and their responsive and responsible businesses, but I think Traditional CSR still exists in a big way and we're trying in this panel to go beyond it So I'm curious if you can touch on that as well. Well, what I was going to respond was actually that as well great If you think of Richard Branson the virgin group, they have made a conscious choice between profitability and making a difference It's a conscious choice if you think of Patagonia, they have made a conscious choice in terms of that and You name the number of things on there. They made a conscious choice A few months ago after the this article about bursting the CEO bubble came out Tony Shea the CEO of Zappos called me. We had a conversation And he said, you know, you need to come out to my trailer court in Las Vegas So they set up that they had a distribution facility there in Las Vegas They put their headquarters there in the north end of Las Vegas it was very run down very dangerous very problematic and He made a deep exterior commitment and it was a bit of a profitability choice But he made a deep commitment to the region the community he was now placed in He lives in a trailer court there now get granted their airstream trailers, but they're trailers and When I went up and showed up, you know, the first thing I did when I walked in was I was confronted with alpacas Who wander around in that little space and there have been around alpacas So, you know, I came up really close and this one came up really cute and it got really close to my face And then I went and spit in my face But so I was wrong on the comfortable and quiet for a moment But the point becomes he created that trailer park in order to create conversations in the community And he invites people in at the fireplace at night from all over to have conversations to have these Intersections of the ecosystem and he's put three hundred eighty five million dollars of his own money into Revitalizing that area. It's real money into it And that trailer park is sitting on the road basically where there was an invisible wall You did not walk past that road if you were going to be safe and Today you walk past that road and you're pretty darn safe. It's a different space and In terms of community at the end of my three-day visit there I happened to be in another community space made up of cargo containers where they had a big rock concert going on Not a big one a small one actually and there were all kinds of families from all sorts of socioeconomic Saddles in that place enjoying themselves, and I just sat for a moment thinking to myself Wow Tony made a choice And he's trying his best to run a very viable successful business made a very conscious choice community matters And then I walked to finish my day over to the only independent bookstore in that area in Las Vegas That Tony co-funded in part. It's got to be profitable It's not going to succeed but the front of that is all kinds of amazing books and the back of his independent bookstore is A place where kids in the community come to write their own books and produce them It's give back and the same thing for Cirque du Soleil out of Montreal, you know with Gila liberté the founder there They have made it Cirque a conscious choice We're going to be very profitable, but we're going to choose to make a difference from the world with water We're going to choose to make a difference with youth with Cirque du Soleil Which teaches kids at youth how to have purpose had a reason and so again to me these organizations where the leaders are out of their bubbles They're in the world. They're in the ecosystem. They're getting confronted with stuff that makes them uncomfortable They're the ones who are stepping up. I think to the pact like principles there and making the difference So I have a question on that But at first I want to see if there's anyone in the audience with a question to make sure to include them anybody We want to make this as useful for you as possible So make sure if you have a question you ask you can walk away with something back there So we've unfortunately seen the real or perceived I think it's real and perceived issues of social equity or inequity playing out on governance It's played out unfortunately in the hearing that's going on right now You know, so what are your thoughts about this issue of whatever you call a social equity? Inclusive economic development and how do you all see that issue because it translates To society, you know to governance, you know, I'm risking governance. I'm sorry. I should have asked before Would you mind sharing who you are and where you come from sure? I'm serving as a senior advisor to the world economic forum on accelerating Circular economy policies. Wonderful. Thank you so Just a comment there I had an interesting experience with someone you probably you may have heard of Clayton Christiansen Who's a professor at Harvard and spoke recently and he came and spoke to our 23 Union and he was really sad Almost crying on stage and he said capitalism has failed If you and you know, I won't go into the details of it But in short if there's the metric that everyone cares about which is earnings per share What we've now shown after several of the most recent recessions is that there's jobless growth and that Profit and we're sitting in a place where there's five times probably or some significant amount of capital I think at the adabos it was mentioned that is it eight families now that have more than half the wealth of the entire world so The solution is not the way that we've been doing things and so this is out of context of Lyft or anything But I'm just making the comment that We have to come up with another metric Otherwise this problem will only get worse and it actually ends up long run being a Profitable thing to do because there will be no one to buy the goods and services that we're selling except for eight families And how many toothbrushes do they need? So there's something that has to be done that has because that one metric no longer works That's about efficiency. It's not about job growth and efficiency is gonna become in the next 20 years 10 times more about artificial intelligence software Non-human jobs, and it's hitting our industry as well The quick response on that from building on that and Is basically to me that kind of inequity persists when people live in bubbles. I mean When we're comfortable we can live with inequity. That's It's that straightforward to me, and I think you know plays a good friend and I get where he's coming from and I feel the same way and And to me one of the starting points in that is us asking ourselves when was the last time? We were with somebody violently different from us Who said something or asked us a question that made us deeply and awkwardly uncomfortable? And if it doesn't happen once a week capitalism has failed Because leaders will make choices by proxy data too insulated too isolated and you know That's why I don't want that. That's less a hopeless world We've got to do something about it and to me It's it's as simple as the 50 of us sitting in this room making a choice Who am I gonna talk to in the next seven days who's not like me who has the potential to make me really uncomfortable and Maybe even if you would add this going a step further to make sure you're hiring people not like you and having people on your board Not like you Yeah, my my only thought on that question is Look technology, which is a form of capital is in my mind a big driver of some of the same equity and Conventional economic theory says okay, so you eliminate low productivity jobs and new productivity jobs will come in and people will always be constructively engaged Which makes you know, which makes the underlying assumption that The folks are able to they're actually able to take these new productivity jobs And we've had a lot of conversation here over the last couple of days We had a great dialogue yesterday in the in one of the AI breakouts on On upskilling right and I think Peter Peter Doolin made a made a really good comment here yesterday on that as well And I I think that is that is a real area of call to action for all of us We should all this is not just the government. This is not just the education departments. This is not just the universities it's all of us that need to get with doing anything and everything we can to upskill and Within within the world we operate in with the folks we interact with in my mind if we can do that if we can expose the things the technologies that we use and Create frameworks for education around those. I think you solve a lot of these challenges around inequity So I think I think that's actually a that's actually a real sort of a real opportunity For all of us to collectively work on other questions from the audience. I just want to make sure we're not missing someone who does have one Otherwise I can try and ask on your behalf what I think you're thinking. We'll see I want to make sure if there's any advice that any of you have, you know, you've touched on advice But and maybe a rapid fire here because we're coming to a close But you know, we have a room filled with chief strategy officers people making decisions in their companies People who obviously are interested in the topic of responsive and responsible business and want to get their companies To go even further down that road. What advice do you have if you haven't already gone there? Like I can't start so first I guess use this network I think it has been very useful for us as a corporation There are different task forces within the work and I'm from the probably you are aware of and probably the ones that you don't know So probably use the time here just to connect and also to explore other avenues Just talk to the people that are here and and think about not just on the industries that you are in but also try to explore Different avenues so things that that might be interesting for for your industry and also based on the SDGs and try to figure out The path that you want to go the second thing that you I think that you will encourage you You have the opportunity actually to influence your your senior leadership I think it's our job to think about where we want our corporations to be three years from now So use the ears and try to put those those thoughts in their heads and I think I never had I think a backslash from from my senior leadership when I come and and think about an idea What do you guys think about this right and then I got their attention and say oh that's something interesting, right? And what about thinking about this right now? I'm probably in three years from now. What are we gonna do? So I think it's my job actually to think about all these things. I think use that opportunity But I think that the web as a platform it has been very useful for us as a corporation and to build partnerships I think the first thing what I do and I see a challenge not also just as a young global leader But also in in my acting head right now It's just the first thing that I think is how do I activate the ecosystem? So who do I know and then and then I call the web and I said Do you know someone in this corporation that I need to be talking to so I really use the platform often And I'll broaden it to say as we wrap up advice or calls to action Things people might consider or things you really hope they'll do walking out of here Yeah, so look as chief strategy officers up some of us a lot of us We tend to analytical frameworks and profitability frameworks and PowerPoint and excels and What I found useful is really sort of to keep that aside for a second and just lean into your personal self a little bit and Ask yourself the question of you know, why why why should it matter to you personally? To be a part of a leadership of a company that's inclusive and responsible and responsive My answer my own personal answer for that is pride I love the opportunity to be able to sit here and reflect what Mastercard does and talk about it It's a it's a source of great pride for me personally So I think find your reasons because I think you'll be most convincing You will you will find the ability to bridge the sort of the commercial challenges or the profitability Challenges all the cultural challenges with with the intent on this And all of us are in positions of tremendous influence. So so I think if you're if you're able to find your reasons to do this I can you know, I think I just think that can be very very impactful So I think has been discussed a lot Davos We are living in a time where there is absolutely a lack of trust for leadership and a lack of trust in institutions and I think the the only way that we can get out of this is for every institution to really dig down deep into what is authentic and What authenticity to me is really something that? It's amazing how people can see through it now. This is an unprecedented time of consumers City governments of everyone just being able to see right through whatever you say to what your actions are You know that I would leave with that famous saying which is that? Characters how you act when no one else is looking. That's what people are looking for I just add a couple of quick comments From my perspective isolated leaders cast shadows On the people around them and to some degree on the world around them even darkness But when somebody makes that decision To be with different people to be in different places To be vulnerable at the core That's the moment trust starts getting built When we're wrong when we're uncomfortable when when the situation is so powerful or quiet Like clay was with you about capitalism has failed. It causes us to rethink things and For me instead of casting shadow. It's not just a company decision, but it's a it's an individual choice about how I spend my time who I'm with where I'm at and And to me the leaders that I've been talking about they cast light They bring light to people and they cast it and they increase it and it makes a difference and I choose light and To do that means I'm gonna be very vulnerable and I'm gonna be exposed, but that's the price That's the price of building something like you're trying to do that makes a difference So I hope we'll continue this conversation Today of course and also at Davos next year one thing I wanted to note is that we are talking about Some pretty significant shifts underway and that we hope to see in companies But it's hard to measure the impact of these shifts toward long-term thinking and inclusive leadership That's something that the World Economic Forum is actually working on measuring and they're gonna talk about that at Davos 2018 So just a little preview And so for those of you tuning in remotely Thank you and for those of you in the room if you're interested in learning more about the compact for responsible and responsive leadership You can speak with Adam Robbins who's just over here. So just raise your hand or catch his eye if you're interested in talking more Meanwhile, please join me in thanking these great panelists for a wonderful discussion