The Global Megatrend of Conscious Capitalism
Patricia Aburdene
www.patriciaaburdene.com
ExpoMin 2012: April 12, 2012
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What is
Conscious
Capitalism?
What is a
Megatrend?
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Megatrends of Conscious Capitalism:
1. The Dawn of Conscious Capitalism
2. Conscious Leadership
3. Sustainability, Branding & Marketing
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1. The Dawn of Conscious Capitalism
Purpose + Stakeholders = Profit
Conscious Capitalists beat Capitalists at their
own game – making money.
Towers Perrin 25 “Stakeholder Superstars” beat the
S&P 500 by 126% (15 years).
The Fortune “100 Best Companies” up 176% vs 39% for the S&P 500 (7 years).
Firms of Endearment. 28 firms -- eBay, Toyota, J&J, Google up 1111% vs 100% S&P 500 (10 yrs).
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The Flavors of Conscious Capitalism
Europe: Grounded in the social contract.
Latin America: More stable society is good for
business.
Asia: Buddhist, Shinto, Hindu concepts.
Australia: Conscious Capitalism May 1, 2012.
Africa: Quest for more sustainable investment.
US: What model is more profitable?
5 Despite our differences we’re united by Global Warming
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Conscious Capitalism Transforms Global Investing
Socially Responsible Invest/ESG Global $10 trillion market
Europe $6.5 trillion; 375+ funds.
US $3 trillion; 12% fund dollars
SRI: A Global Trend
Asia: ASriA
FFV Latin America Fund
Africa Sustainable Invest Forum
Is responsible investing best way to reverse Climate Change?
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2. The Megatrend of Sustainability
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Sustainability impacts competitiveness:
•Great competition for natural resources
•Increased government regulation
•Investors measure green house gases
•Public pressure to be stewards of Earth
•Growing investment Renewable Energy
Sustainability is a critical theme in the mining sector
The verb “to sustain” means to use, not destroy resources
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Megatrends for Mining
Volatility (2012-2013)
Increased demand from China and India (China is our best customer, says Diego Hernandez, Codelco)
Massive investment: $82 trillion global est. (Deloitte)
Mergers & Acquisitions
Sustainability and Social Responsibility: more important than ever.
Growing need for skilled labor. “War for Talent.”
8 Which mining Megatrends will most impact your company?
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Sustainability, Mining, and Your Brand
• Perception: not a “green”business.
• Solution? Total Transparency.
• Global Reporting Initiative (GRI):
• BHP Billington,Codelco, & others.
• Third Party Independent Verification
• New Alliances: NGOs,environmentalists, UN
• World Biz Council Sustainable Development:
• Accion RSE: WBCSD:Regional Network:
• Annual Prize Best Sustainability Report
•
9 It is not what you say, but what you DO.
10 Conscious Consumers are committed to Sustainability
Public Perceptions Impact Your Brand
LOHAS (Lifestyles Of Health And Sustainability)
About 25% Americans; 30-50% Europeans
$540 billion global market
Akatu Institute, Sao Paulo
Helio Matter, former CEO & government minister
50-80% Latin American “conscious” consumers
Including low income people. How? The media.
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3. What is Conscious Leadership
Conscious Leadership requires:
Awareness
Values
The Ability to “Engage” People
How to lead with values, awareness? Engage people? How will this benefit my company?
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Leading with Awareness
Awareness Larger Environment
Sustainability
Conscious Capitalism
Julio Moura. CEO Grupro Nueva (Terranova)
renewable forest products;
Ceo retailer Cencosud.
“No successful business in a
failed society.”
Awareness: Earning a profit while contributing to Life
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Conscious Leaders Latin America
Leading with Wisdom Peter and Kristen Pruzen. Stories of 31 Conscious Leaders.
Alvaro Cruz. Columbia Governor Cundinamarca. Intuition, meditation, survived assassination attempts.
Federico Cuneo. Chairman NGO Peru 2021, says he was an “angry man.” Now more,
patient, tolerant.
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How the Value of Trust “grows” Profit
Greg Merten HP inkjet. A “tough” boss.
Tragedy & a Commitment to Trust.
Each month: Are we destructive? Trusting?
Business Expansion: The Dublin factory.
Contractors, developers, County Kildare.
Factory: 2X as fast as any HP factory.
Trust ↑ Speed ↑Costs
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Dublin factory alone: hundreds of millions to annual HP profit
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How do leaders “Engage” People?
Meaning
“People don’t come to work to be No. 1 ... [but] to get meaning from their lives.” Christopher Bartlett Harvard Business School
Profit
Towers Watson study 360,000 in 18 countries. Result? Engaged employees: profit +19%.“disengaged” -33%
How to Engage People?
Give them a voice. Listen. Codelco Values Statement: dialogue 6,300 people
Engaged People Create Meaning & Profit
Text
The Age of Information to the New Economy of Consciousness
• There is no innovation w/o consciousness
• Hire Creative People
• “Listen to them tell you what they want then do
it!” Arthur Levinson, CEO Genentech.
• Reward engineers with time for pet projects.
• Technology is consciousness externalized.
Consciousness trumps money, fossil fuel, technology. It is the
one true source of corporate innovation & money-making.
Case Study: How to Kill Innovation.
3M one of world’s top innovator
1/3 sales products 5 years old or less.
Post-it Notes. Scotch Tape. Thinsulate.
Engineers: 15% time to pet projects.
New CEO cut innovation spending
Sales fall; Innovation rating falls
Enter George Buckley new CEO Innovation Champion
Innovation is the key whether technology--or mining!
18 www.patriciaaburdene.com
As investors, consumers, managers
and green business people,
We the people have the power
to transform capitalism into
Conscious Capitalism.
Capitalism Evolves to Reflect Human Consciousness
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