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Business as a Change Agent
for Economic and Social Good
Dr. Joseph Williams
Dean
School of Business, Government, and Economics
E N G A G I N G T H E C U L T U R E , C H A N G I N G T H E W O R L D .
What the SBGE Stands for
The School of Business and Economics seeks
 To prepare students for service and leadership in business and
society by developing their professional competence and
integrity in the context of Christian faith and values.
 To develop an academically and theologically rigorous
understanding of business and economics and to effectively
promote this understanding through teaching, pursuit of
scholarship, and engagement with the broader business
community.
The School of Business and Economics is committed to developing
and evangelizing a paradigm that challenges business to achieve
more than simple profit maximization by committing to investments,
activities, and outcomes that enhance human and community
flourishing in a more just and sustainable world.
©2001 Seattle Pacific University
Goals of the SBGE
Learning Goals
 Competence: SEB graduates will be able to articulate discipline-specific
knowledge and apply skills essential for service and leadership
 Character: SBE graduates will embody personal and professional integrity by
serving the public good in doing what is right and doing so with an awareness of
the consequences
 Community: SBE graduates will cultivate a life of friendship, civility and
community through responsible discourse and respect for each other
Influence Goals
 SBE will develop an academically and theologically rigorous understanding of
business and economics grounded in Scripture and the traditions of the Church
 SBE will continue as a learning community which prizes excellence in
scholarship and will effectively promote its understanding of business within
SPU and to the broader academy
 SBE will present its theologically-informed understanding of business to the
broader business community
©2014 Seattle Pacific University
Business as an Agent for Economic
and Social Good is not a new idea
©2001 Seattle Pacific University
USA had deep roots in the idea of
Business for the Common Good
But Business disconnected from Society
 “Global” – little or no loyalty
to nation or to community
 Views public policy interests
as immoral restriction on
pursuit of profits
 Profit maximization is sole
focus, accrues to the benefit
of executives and
shareholders
 Employees are resources to
be used, not developed or
invested in
 If you can’t grow revenues at
least you can cut costs
©2001 Seattle Pacific University
Business as a Force for Good is on
the rise
 Don’t be evil
 The rise of Benefit
Corporations
 Environmental
Activism
 Invest in people and
communities
 Healthy outcomes
 Sustainability
 Eradicate Poverty
Do Companies doing good make
good investments?
 Studies so far shows no better financial
outcomes for amoral corporations than those
that have a “common good” focus
 “Common good” companies have happier
and more motivated employees and they
have more loyal customers
©2001 Seattle Pacific University
Business is reconnecting with Society
 Values matter
 Millennials (in particular) want to work at and
buy from companies that recognize and
contribute to a social purpose
 Social Venture entrepreneurship is exploding
©2001 Seattle Pacific University

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BizAsChangeAgent-Jul24-2014

  • 1. Business as a Change Agent for Economic and Social Good Dr. Joseph Williams Dean School of Business, Government, and Economics E N G A G I N G T H E C U L T U R E , C H A N G I N G T H E W O R L D .
  • 2. What the SBGE Stands for The School of Business and Economics seeks  To prepare students for service and leadership in business and society by developing their professional competence and integrity in the context of Christian faith and values.  To develop an academically and theologically rigorous understanding of business and economics and to effectively promote this understanding through teaching, pursuit of scholarship, and engagement with the broader business community. The School of Business and Economics is committed to developing and evangelizing a paradigm that challenges business to achieve more than simple profit maximization by committing to investments, activities, and outcomes that enhance human and community flourishing in a more just and sustainable world. ©2001 Seattle Pacific University
  • 3. Goals of the SBGE Learning Goals  Competence: SEB graduates will be able to articulate discipline-specific knowledge and apply skills essential for service and leadership  Character: SBE graduates will embody personal and professional integrity by serving the public good in doing what is right and doing so with an awareness of the consequences  Community: SBE graduates will cultivate a life of friendship, civility and community through responsible discourse and respect for each other Influence Goals  SBE will develop an academically and theologically rigorous understanding of business and economics grounded in Scripture and the traditions of the Church  SBE will continue as a learning community which prizes excellence in scholarship and will effectively promote its understanding of business within SPU and to the broader academy  SBE will present its theologically-informed understanding of business to the broader business community ©2014 Seattle Pacific University
  • 4. Business as an Agent for Economic and Social Good is not a new idea ©2001 Seattle Pacific University
  • 5. USA had deep roots in the idea of Business for the Common Good
  • 6. But Business disconnected from Society  “Global” – little or no loyalty to nation or to community  Views public policy interests as immoral restriction on pursuit of profits  Profit maximization is sole focus, accrues to the benefit of executives and shareholders  Employees are resources to be used, not developed or invested in  If you can’t grow revenues at least you can cut costs ©2001 Seattle Pacific University
  • 7. Business as a Force for Good is on the rise  Don’t be evil  The rise of Benefit Corporations  Environmental Activism  Invest in people and communities  Healthy outcomes  Sustainability  Eradicate Poverty
  • 8. Do Companies doing good make good investments?  Studies so far shows no better financial outcomes for amoral corporations than those that have a “common good” focus  “Common good” companies have happier and more motivated employees and they have more loyal customers ©2001 Seattle Pacific University
  • 9. Business is reconnecting with Society  Values matter  Millennials (in particular) want to work at and buy from companies that recognize and contribute to a social purpose  Social Venture entrepreneurship is exploding ©2001 Seattle Pacific University

Editor's Notes

  1. Public good and Business have been intertwined since the dawn of civilization. Producers and merchants historically operated in a context where individual initiative was encouraged by grants from a ruler or government of some kind and, in return for the right to keep profits, producers and merchants were expected to provide value that contributed to the vitality of the empire or kingdom. Roman wine or olive oil producer Marco Polo – merchant opening new markets for Venice A long historical record of business structures being created to attract private money to fund public projects for the “greater good” that dates back to the Greek and Roman empires The evolution towards the modern corporation found profound expression in the 1602 creation of the Dutch East India Company that was chartered to further Dutch colonial interests in Asia without putting a strain on the Dutch government’s coffers. In addition, the DEIC was able to return an annual 18% dividend to its Dutch shareholders for 200 years, creating enormous prosperity back home.
  2. Prior to the 1929, US business typically focused on achieving a reasonable profit while ensuring the livelihood of its employees and the well-being of the community. Many companies were either founded to provide economic prosperity to a community and/or to further a specific cause. 1851 – Corning- founded as a science company for scientists to sell innovation 1905 – HEB Grocery Stores, Community flourishing & Christian company 1927 – Marriott founded on business principles that support church, charity, and country The crash of 1929 led to a serious debate in this country about the purpose of business between profit maximization versus social service but companies were still being founded with a social agenda. 1929 – ServiceMaster (Terminix) founded as a Christian company 1938 – REI founded as a coop to support the climbing industry 1950 – Interstate Battery founded as a Christian company and for community flourishing Since Milton Friedman and the 1960s, focus has shift to profit maximization for the benefit of shareholders and/or management. Corporations have increasingly divorced themselves from obligations to their employees, their communities, or social purposes. And now many of them are divorcing themselves from national interests.
  3. GE – Jack Welch (“we are a global company that just happens to be headquartered in the US) * Ford: Alex Trotman, CEO (90s): Ford isn’t even an American company, strictly speaking * IBM VP Ralph Gomery (2007): “the interests of companies and counties have diverged” Koch / Grover Norquist – shrink government so you can drown it in the bathtub and let business operate unfettered IBM: Relentless cost-cutting, offshoring, lack of R&D investment to boost stock price * IBM tried to patent its offshoring blueprint in 2009 * In 2013 IBM lost huge CIA cloud deal to Amazon because “not technically competitive” even though cheaper ** Cutting costs without innovation eventually fails; look at HP Walmart: 80% of its products now made in China; many employees on government assistance Sunbeam: Al Dunlop (cut so much the company went bankrupt in 2001)
  4. Google: wording in their 2004 IPO filing Benefit Corporation: Adds consideration for social and environmental outcomes to corporate charter Patagonia: 100% recycleable materials; 1% of revenue / 10% profits to environmental causes Costco: Living wages, “duty to give back” – Charlie Munger: “COSTCO does more for civilization than the Rockefeller Foundation” O Revolution Foods: trying to ignite a healthy food revolution for children in school food programs; food education Biogen idec: Focus on unmet medical needs (orphan drugs) and massive investment in sustainable footprint Produits du Sud (Root Capital): invest in gum and sesame processing plants in Mali
  5. http://iveybusinessjournal.com/topics/social-responsibility/the-top-ten-reasons-why-businesses-arent-more-sustainable