At a time when people believe that the power of corporations exceeds the ability of government institutions to be a positive force for change in the world, Milton Friedman’s “the business of business is business” is being roundly rejected. Thankfully, enlightened CEOs worldwide are taking it upon themselves to integrate philanthropy into the corporate culture and design solutions to social, economic and environmental problems.
Timberland is a great example of a company that is succeeding on both fronts. Over the past five years, earnings have averaged 20% growth, sales averaged 10% growth and the company has zero debt. At the same time, the company has carved out space as a global values brand, structuring itself to do business differently, merging together for-profit structures with social justice, sponsored volunteerism, and an improved environmental footprint.
One of my favorite Timberland initiatives: the company has added an eco-nutrition label on each of its packages, calling attention to the environmental and community impacts of manufacturing this pair of shoes. They’ve raised the level of discourse, creating a platform for conversation about the role of sustainability in production. Imagine if other consumer products followed their lead…in addition to studying trans-fats and carbs on package labels, we would be able to make brand selections based on environmentalism. It would take corporate transparency to a new level and give everyday consumers the data they need to make informed decisions.
So often we see that the true innovation ecosystem is our people and planet. Are you making business decisions that make this world a better place to live? And if not, why not? The inspiration…and the need…is everywhere.
(If you’re looking for more inspirational stories, examples and CEOs, check out Marc Benioff’s The Business of Changing the World)
