UConn Storrs presentation. The vast majority of corporate value is in intangible assets thus providing a business case for sustainability. Also linking capitalism - economic model - with freedom.
2. I help organizations turn their values into
successful business models
20 years+ career including corporate
communications/organizational development,
public/community relations, sustainability and
CSR
Corporate executive
Co-founding board member of the Sustainable
Business Network of Washington (SBNOW)
Sustainable Business blogger for Huffington Post
www.sbnow.org
twitter: @JohnFriedman
3.
4.
5. How wrong can one be?
Capitalism doesn't need Capitalism at the expense of
defending, and nobody worth someone else's freedom is
listening to claims profit is a not right no matter how
dirty word happy it makes you.
You are living in an alternate universe,
nothing at all like one we live in where
You are correct. Capitalism
capitalism is founded on greed, ruthless thrives when the economy
exploitation of workers, including the thrives.
poorest in 3rd world countries, and
rapacious of the earth's resources.
I suppose it is necessary to use words like 'sustainability' in a post like
this, but it seems a bit fantastical. Capitalism works as long as energy
is cheap and the promise of unlimited growth can be fueled by
commensurate unlimited resources. Capitalism - as a vestige of
civilization- will follow Nature into catabolic collapse.
6. Capitalism is an economic, not a political
model
Culture (nationality, faith, etc.) define how
capitalism is implemented
Individual wealth creation – the ability to earn
and retain capital – is a tremendous force for
change
Short-term thinking is inconsistent with
long-term best interests
7. On Average 70% of market
value comes from:
Intangible Assets
90% for technology companies
Brand Finance
7
8. S&P 500 Companies
80% of market value comes
from:
Intangible Assets
Monks/Lajoux, Corporate Valuation
8
12. Relationship with
◦ Customers
◦ Employees
◦ Owners/Investors
◦ Suppliers
◦ Competitors
◦ Communities
◦ Government agencies/regulators
13. To improve company valuation,
Improve CSR relationships!
Good CSR Relationships Lead to a
Sustainable Corporation
14. (self interest considered upon the whole)
Financial
Reputational Capital
Capital $$$
INPUTS
Physical Output Sustainable
Conversion
(Goods/ Customers profits;
Social Capital Process
Services) maximum
Capital value
Human
Capital
RETURN ON CAPITAL
(preserve adequacy of capital inputs)
15. There is one and only one social responsibility of
business–to use it resources and engage in
activities designed to increase its profits so long
as it stays within the rules of the game, which is
to say, engages in open and free competition
without deception or fraud.
That responsi-bility is to conduct the business in
accordance with their desires, which generally
will be to make as much money as possible while
con-forming to the basic rules of the society,
both those embodied in law and those embodied
in ethical custom.
Milton Friedman, 1970, New York Times Magazine
16. (self interest considered upon the whole)
Financial
Reputational Capital
Capital $$$
INPUTS
Physical Output Sustainable
Conversion
(Goods/ Customers profits;
Social Capital Process
Services) maximum
Capital value
Human
Capital
RETURN ON CAPITAL
(preserve adequacy of capital inputs)
20. The culture that follows upon successful
economic growth is a global one, rooted in
American consumerism ... that subverts
traditional elites and values.
Global business is the carrier of this culture,
responding to consumer demands. It is
legitimate for business to deliver what people
want, but at the same time business should take
care that local cultures are not permanently
asphyxiated.”
Business has a responsibility to moderate its
impact on those communities, which can hardly
protect themselves against the intrusions.
Moral Capitalism
Steven B. Young
21. Business has an obligation Business must be respectful
to promote progress and protective of local cultures
22. Business has an obligation Business must be respectful
to promote progress and protective of local cultures
23. Increasing access to information is creating
an ‘empowered’ consumer for a more
conscious capitalism
Capitalism is the best way to advance
conditions for the individual, communities
and societies
Empowering individuals, communities and
societies from within is vastly preferable to
imposing from outside
Notes de l'éditeur
kyosei means living and working together for the common good enabling cooperation and mutual prosperity to coexist with healthy and fair competition
Each relationship is an intangible asset of the business (assets can appreciate or depreciate)Lowering risk for each relationship enhances the quality of intangible assets and increases business valuation