The Week That Shook the Oil Industry to Its Core
The Week That Shook the Oil Industry to Its Core
A Turning Point for the Oil Industry
It’s been an extraordinary week.
In a major coup for people and the planet, Exxon Mobil shareholders voted two new
directors onto their board this week to ensure the oil giant does more to tackle climate
change and re-direct its business toward a sustainable future.
In the same week, two other corporate giants were brought to their knees by
those determined to make a difference. Chevron Corporation, the owners of Texaco and
Noble Energy, was forced to adopt a resolution by its shareholders to reduce its carbon
emissions. Meanwhile, on the other side of the Atlantic, British-Dutch oil and gas
multinational Shell was ordered by a Dutch court to lower its greenhouse gases by 45%.
A Battle for the Future of Business
What we are witnessing is an ongoing battle for the future of business, not just in
the oil industry but across the corporate landscape. It’s a battle between the
old guard defenders of the status quo and a fast-growing vanguard of investors,
consumers, and employees who are tired of listening to the self-serving motives of
short-term-focused executives and financial opportunists.
Time is quickly running out for those who still believe that profit comes before people and the planet.
Sustainability at the Core of Business Strategy
Sustainability is moving to the core of business strategy—exactly where it
needs to be in the 21st century. Treating CSR/ESG as a ‘nice to have,’ a bolt-on
afterthought, or merely a ‘social license to operate’ is no longer enough.
The Tools for Change Exist
There are tried and tested tools, technologies, and approaches developed over many years that ensure change is not only possible but practical. Change is deniable, but it is also inevitable. Those who embrace it will not only ensure their business survives the coming decade but thrives in a way that meets the needs, wants, and desires of all stakeholders.
About the Author
Neil Gaught is the conceiver of Single Organizing Idea (SOI®) and the author of two books, CORE and The CORE Playbook.
Find CORE here:
There Be Dragons – Or Are They Dinosaurs?
There Be Dragons – Or Are They Dinosaurs?
Dragons’ Den and the Future of Business
Dragons’ Den, the international reality TV franchise that originated in Japan in 2006, pits fund-seeking entrepreneurs against celebrity-seeking venture capitalists. Last week, on Canada’s CBC channel, the show aired an ‘Up-cycle Special,’ featuring fledgling businesses aiming to make the world a better place.
By coincidence, I was in Montreal with my Canadian Associates, Umalia. As part of our work, I spent a morning talking with the founders of the business that would later set the Den on fire that very night.
Norden: A Business with Purpose
Norden was inspired by CORE, and the power of a Single Organizing Idea (SOI). The book sparked an epiphany, leading two visionary individuals to create a world first—outerwear made entirely from recycled plastic water bottles.
Every aspect of Norden’s garments—the shell, lining, and insulation—is made from traceable, digitally numbered fibers supplied by Repreve®. Only the zips and fastenings are not made from waste materials. Founders Mayer Vafi and his silent partner, investor and mentor Michael Eliesen, have demonstrated how being organised around a single compelling idea can lead to practical, sustainable solutions.
A Harsh Reception in the Den
During the show, Mayer delivered his pitch with enthusiasm. The Dragons initially responded with excitement:
“Wow!”
“It’s so fashionable.”
“Hard to believe.”
“Very cool.”
“A good buy.”
Models showcased Norden’s designs, and the Dragons eagerly tried on various styles. But then, the mood shifted.
The Dragons’ Short-Sightedness
What the Dragons failed to understand is that Norden, like other emerging sustainable businesses, represents a new breed of company—one whose primary focus is not on maximizing profit but on saving the planet.
When Mayer explained that he would welcome competitors into his space, he was met with ridicule:
“That’s not true, that’s not true, tell the truth!”
“No one puts $1.2m in just hoping everyone else takes a market share.”
But actually, that’s exactly what Norden is doing.
A Collaborative Future
As Michael explained earlier that day:
“Our objective is to lead change; to help make our industry sustainable. It’s not at all easy, and we can only do that if we all act together—not just with our suppliers and partners, but also with our competitors.”
This approach makes total sense to leaders in sustainable fashion, such as Stella McCartney, Community Clothing’s Patrick Grant, Eileen Fisher, and Patagonia’s Yvon Chouinard. It even extends beyond fashion—at NY Climate Change Week 2018, the Chairman of French multinational Suez stated:
“The only way to deliver real change is for all competitors to act together.”
The Problem with Dragons’ Den
I’ve always had an issue with Dragons’ Den (and don’t get me started on The Apprentice). I understand that reality TV thrives on drama, but what aspiring entrepreneurs truly need is encouragement, constructive guidance, and empathy.
One of the Dragons stated at the start of the show:
“I think the Den has always been a reflection of what is happening out there.”
Sadly, that may be true. To change the system, we need a shift in attitude, and that must come from business leaders—whether they are Dragons, Titans, or Sharks.
Business as Usual Is Outdated
Sustainability isn’t a business “trend to plug into,” nor is it an act of charity “because I have a foundation.” It is our future.
Perhaps Norden was on the wrong show. Maybe Dragons’ Den is also outdated.
About the Author
Neil Gaught is the author of CORE: How a Single Organizing Idea Can Change Business for Good, published by Routledge.
Find CORE here:
CORE was a finalist at the 2018 Business Book Awards.
The Time for Business to Act Is Now
The Time for Business to Act Is Now
A Call to Action
This agenda introduced 17 Sustainable Development Goals (SDGs) and 169 targets designed to address global challenges such as poverty, hunger, health, education, climate change, and environmental sustainability.
The ambition behind the SDGs was groundbreaking—unlike the Millennium Development Goals, which primarily focused on developing nations, the SDGs were universal. Their promise? A fairer world where reduced poverty, improved health, and better education would generate wealth that is more equitably distributed. At their core, the SDGs presented an opportunity for capitalism to evolve by doing good.
Three Years Later: A Sobering Reality
Fast forward to September 25, 2018, during Climate Week NYC, and the optimism had waned.
Jeffrey Sachs, economist and special advisor to the UN Secretary-General on the SDGs, did not mince words:
“We’ve achieved almost nothing. Markets don’t do social justice.”
Sachs argued that markets not only fail to deliver social justice but actively work against it. He described a world obsessed with wealth accumulation, where environmental and social concerns are continually pushed aside.
Earlier that evening, Jean-Louis Chaussade, CEO of the French multinational Suez, voiced his own frustrations:
“What do we do? How do we move from A to B? How do we close down our cash cows? Companies cannot and will not move alone. It’s a simple question of supply and demand; if there is a need, companies will meet it. They will not change.”
Hope from Innovation
Not all perspectives were as bleak. Bertrand Piccard, the visionary behind the Solar Impulse project, pointed to technological breakthroughs as drivers of change:
“Businesses can understand that growth can be achieved in a sustainable manner. Some can even see beyond the short-term when necessary, but the argument needs to be logical, not just ecological, to get them to change.”
Customer Activism: A Key Driver
One of the most striking comments of the evening came from Chaussade:
“We need to accelerate the activism of customers to focus minds.”
At the 2nd London Core Dinner Debate business leaders reflected on this statement. Nick Davies, CEO of Neighbourly, emphasized that customer activism is vital, but so is business education:
“Businesses need to do much more to educate their customers.”
The debate, which included representatives from M&S, Sodexo, The Climate Group, HSBC, EDF Energy, and others, highlighted the ongoing struggle between sustainability teams and short-term financial targets.
The Power of Media
A guest at the event pointed to the impact of Blue Planet II as an example of how media can drive real action:
“We’ve been banging on about sustainability for 30 years, and then suddenly this program comes from nowhere and the impact is instant. People leave plastic packaging on supermarket floors, plastic straws and cups are banned overnight, and plastics companies go bust—it’s been remarkable.”
Despite decades of climate education, many still fail to grasp the urgency. The key question remains: how can we make climate change feel real and immediate?
The Business Imperative
Many attendees acknowledged progress within their supply chains but admitted that sustainability is still often treated as an add-on rather than a core business priority. This urgency was reinforced when, on October 8, the Intergovernmental Panel on Climate Change (IPCC) released a critical report warning:
“Climate change is not the next generation’s issue. It’s ours.”
The Role of Business Leadership
Businesses have the resources, influence, and ability to drive meaningful change. Companies like Unilever have shown that a strong purpose, structured around a methodology such as Single Organizing Idea (SOI), can accelerate sustainability efforts.
For businesses, this means:
- Turning sustainability commitments into concrete actions.
- Expanding sustainability efforts beyond supply chains to entire business models.
- Rethinking operations from the ground up to align with a core purpose that benefits all stakeholders.
The Time to Act Is Now
The IPCC report made it clear: businesses cannot afford to wait for governments to take the lead or pass the responsibility onto others.
Sustainability must be woven into the fabric of business operations—not just as a CSR initiative or a marketing strategy, but as a central pillar of business strategy.
About the Author
Neil Gaught is the author of CORE: How a Single Organizing Idea Can Change Business for Good, published by Routledge.
Find CORE here:
CORE was a finalist at the 2018 Business Book Awards.
Royal Dutch Shell Searches for a Purpose Beyond Oil
Royal Dutch Shell Searches for a Purpose Beyond Oil
This article summarises an original piece from the Financial Times, part of an FT series exploring the risks and trade-offs businesses encounter when defining a broader purpose.
Navigating an Uncertain Future
In May 2017, Ben van Beurden, CEO of Royal Dutch Shell, convened a meeting with top executives in The Hague to discuss the company’s long-term future. The company was facing numerous challenges, including falling oil prices, a $53 billion takeover of natural gas giant BG Group, and scrutiny over a controversial Nigerian deal.
At the heart of the discussions was a pressing dilemma: how should Shell, one of the world’s largest oil and gas companies, navigate a future where political and public sentiment is turning against fossil fuels?
Reevaluating Purpose
As companies across industries reassess their role in society, Shell executives debated the implications of the Paris Climate Agreement, the impact of reducing oil and gas production, and whether the company should take responsibility for customer emissions.
The outcome of these discussions was a strategy that embraces low-carbon energy while still relying heavily on oil and gas, which remains Shell’s primary source of profit.
Shell’s Energy Transition Strategy
Shell has pledged to cut the carbon intensity of its products by 50% by 2050, taking inspiration from corporate sustainability efforts at companies like Mars. The company has invested in:
- Natural gas (as a lower-carbon alternative to oil)
- Renewable energy (wind, solar, and hydrogen fuel projects)
- Electric vehicle infrastructure
- Home energy storage solutions
Despite these initiatives, two-thirds of Shell’s cash flow still comes from oil. While CEO van Beurden hopes to eventually balance oil, gas, and renewables, there is no clear timeline.
Balancing Profit and Sustainability
Shell faces criticism from multiple sides:
- Investors expect high returns, making an aggressive transition to renewables risky.
- Environmental activists accuse Shell of greenwashing.
- Industry peers question whether Shell truly wants to move beyond fossil fuels.
According to Adam Matthews of the Church of England Pensions Board, Shell’s investment in renewables remains disproportionately small compared to its continued focus on oil and gas.
The Challenges of Change
Shell executives acknowledge that the transition away from oil will take time. Van Beurden himself has stated that the company cannot afford to abandon fossil fuels prematurely, emphasizing that the profitability of low-carbon businesses must improve before significant capital shifts can occur.
The article notes that Shell is not alone—many energy giants face similar dilemmas as they attempt to balance financial sustainability with increasing pressure to embrace a low-carbon future.
Looking Ahead
Shell’s ability to maintain shareholder value while transitioning toward sustainability will be a test of its leadership and strategy. As van Beurden puts it:
“We have to find a way to preserve our dividend-paying capacity while growing the value of the company and changing its makeup.”
Whether Shell can successfully reposition itself as a clean energy leader while maintaining profitability remains to be seen.
Further Reading
- Full article: Financial Times (Subscription Required)
- Shell’s Official Sustainability Page
- Paris Climate Agreement
Raising the Purpose Banner (Again) Is Only the Start
Raising the Purpose Banner (Again) Is Only the Start
Bringing communications and CSR (Corporate Social Responsibility) teams together under a shared purpose is a step forward.
But to deliver sustainable success for all, it is critical that Executive Teams and their Boards grasp the initiative and hot-wire purpose into the core of their business strategy. When that happens, purpose is elevated and given the status it requires to affect real change. It subsumes old-school generic mission/vision statements and becomes THE Single Organizing Idea (SOI) of the business and the ecosystem it both influences and relies upon.
The Measurable Impact of an SOI
A Single Organizing Idea (SOI) is a methodology that ensures a business is fully aligned with its purpose, embedding that purpose at the core of its strategy and operations. The impact of an SOI is both tangible and, in some areas, almost immediate:
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Internally: Employees feel connected to a meaningful movement that enhances both the success of the business and their own personal fulfillment.
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Externally: ESG (Environmental, Social, and Governance) initiatives aligned with an SOI designed for sustainable value creation attract attention from long-term institutional investors.
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Talent Attraction: A well-defined SOI resonates with purpose-driven professionals, drawing top talent eager to contribute to a meaningful mission.
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Innovation & Partnerships: Transformative innovations emerge through dynamic new partnerships and strengthened collaboration across supply chains and beyond, all driven by the SOI.
Where Are the ‘Activist CEOs’?
It’s all very positive and, of course, all very possible. But to make any of this happen, we need the ‘activist CEOs’ touted by Edelman @Davos in January and referenced in various publications like Harvard Business Review and CEO Magazine to show up, get involved, and start delivering.
This does NOT mean speaking out or standing up for ‘cherry-picked’ causes. That is just cynical, short-term brand management dressed up as CSR or Shared Value, with an eye on the perceived ‘brand preferences’ of Millennials.
Realignment, Not Greenwashing
No. This is about radical realignment and organizational development that will deliver practical outcomes. It’s about fundamentally redirecting the businesses they lead to deliver actions at scale that will save both the planet and people.
About the Author
Neil Gaught is the author of CORE: How a Single Organizing Idea Can Change Business for Good, published by Routledge.
Find CORE here:
CORE was a finalist at the 2018 Business Book Awards.
Purpose Without Total Commitment Is Meaningless
Purpose Without Total Commitment Is Meaningless
Can Companies Do Well by Doing Good?
Prof. Ioannou’s latest article on sustainability and strategy in the Harvard Business Review confirms that companies can do well by doing good:
“Our exploratory results confirm that the adoption of strategic sustainability practices is significantly and positively associated with both return on capital and market valuation multiples, even after accounting for the focal firm’s past financial performance.”
This is good news, but how should companies react to it?
The article suggests that companies considering the adoption of sustainability practices are arriving at a crossroads that questions their motivation: “Are we doing this to survive or compete?”
Of course, it is both. But there is a third and more important factor to consider that makes adopting sustainable practices in the hope of achieving either objective a fool’s errand. That factor is commitment.
The Problem With Half-Hearted Sustainability
Unless a business is totally committed and motivated by a genuine human desire to contribute to a future that benefits all its stakeholders, any actions it takes will be seen as little more than a branding makeover. A company that simply adopts sustainability to gain competitive advantage or to appear to care is bound to fail in the long run.
There are many examples of this, but ExxonMobil is a case in point, as highlighted by the #ExxonKnew campaign and The Economist’s recent article on the oil industry and climate change.
Only by defining or redefining the core purpose of the business and putting ‘doing good’ front and center of its strategy—ensuring every single function of its operation actively aligns with a cause that matters beyond making money—can a business truly demonstrate that it is worthy of the support and essential resources (money, time, ideas) of its stakeholders.
Commitment: The Key to Sustainable Business
In the final chapter of my book CORE, I tackled the need for commitment. To introduce the subject, I quoted the acclaimed economist and strategist Pankaj Ghemawat, whose 1991 book Commitment: The Dynamic of Strategy helped shape my early thinking about the potential of Single Organizing Idea (SOI). He wrote:
“Commitment is the only general explanation for sustained differences in the performance of organizations… What needs to be emphasized is that the degree of commitment in regard to choices ensures that they can lead to sustained differences rather than merely transient ones.”
For further reading, David Grayson, Chris Coulter, and Mark Lee underline the need for total commitment in their aptly titled 2017 book All In. It’s time businesses and business leaders made that commitment.
Making Purpose Real With SOI
Single Organizing Idea (SOI) is a proven methodology conceived by Neil Gaught that enables businesses to integrate purpose at the core of their strategy, operations and decision-making. It aligns commercial success with positive social and environmental impact by ensuring that a company’s purpose is embedded in every aspect of its business model. Rather than being an add-on or marketing tool, an SOI serves as a guiding principle that shapes how a business operates, competes and delivers value to all stakeholders.
About the Author
Neil Gaught is the author of CORE: How a Single Organizing Idea Can Change Business for Good, published by Routledge.
Find CORE here:
CORE was a finalist at the 2018 Business Book Awards.
People Don’t Get It – But Business Can Help
People Don’t Get It – But Business Can Help
A Problem and a Solution
Here’s a problem: People don’t get sustainable development. Thankfully, there’s a solution.
Last week, it was my great pleasure to be in Oslo to host the second CORE Dinner Debate with my friends and colleagues from Pure Consulting, Norway’s leading sustainability consultancy, and Ipsos’ Sustainable Development Research Centre.
As with the London debate a month earlier, the specially selected group of public and private sector leaders, investors, media, and academics gathered around the table were quick to engage and share their opinions, expertise, and experiences.
Chaired by Pure’s Founder Stine L. Hattestad Bratsberg, the debate focused on the key question:
“What stands in the way of businesses pursuing a core strategy (Single Organizing Idea) that is good for people, planet, and profit?”
At the end of this article, you can see a list of the main remarks and conclusions the group reached, but what stood out most for me was the lack of knowledge.
Findings from Board Members
Prior to the debate, Stine and her team had conducted a set of interviews with 13 board members representing 160 Norwegian companies to gauge their understanding of sustainability. As in many other countries, a small group of people appear on a lot of boards! The main findings were:
- Large variation in knowledge about sustainable development at board level—and little systematic approach to gaining or growing this knowledge.
- Large variation in understanding the terminology of sustainability.
- Few see having a sustainable strategy at the core as a competitive advantage, even though most state sustainability is a part of their business strategy.
- Sustainability is rarely on the agenda at board meetings, yet they state they have a proactive attitude towards it.
- Little knowledge of the Sustainable Development Goals (SDGs).
Consumer Attitudes in the UK
Back across the North Sea, the London debate was aided by the results of a specially commissioned survey undertaken by Ipsos into the attitudes of UK consumers toward sustainability-related questions. Key findings included:
- 49% of people in the UK would not take a job with a business they believe behaves unethically.
- 37% of consumers believe businesses should put social purpose ahead of making profits.
- 47% of consumers believe that ethically run businesses are better for the economy.
- 48% of consumers prefer to use or purchase from businesses that act ethically.
- 70% of consumers are more likely to purchase products or services from businesses paying employees a fair wage.
- 18% of consumers agree that the current economic system is working well for them, and less than a third believe it is working well for business.
A Need for a Practical Strategy
What was interesting was Jonathan Glennie’s reaction to the results. The Director of Ipsos’ Sustainable Development Centre asked:
“Why is it that only 37% of consumers think businesses should put the needs of society ahead of making profits?”
It’s the kind of comment that makes you stop and think. It’s the kind of comment that makes you want to join the dots.
Taken together, the ignorance of boards and consumers is alarming. Especially if you consider the combined effect these two groups have on executive decision-making, which always finds it easier to think about the short rather than the long term.
In the face of such challenges, declarations of social purpose based on the ideals of an informed few stand little chance of changing anything. What is required is the defining and rigorous implementation of a practical strategy that informs and influences decision-making—one that consistently and constantly asks questions of decision-makers, whoever and whatever their role may be.
Set at the core of a business, a Single Organizing Idea (SOI) provides the opportunity to realize that ideal.
Oslo Debate: Key Remarks and Conclusions
- The pursuit of a sustainability agenda cannot compromise businesses’ ability to make profit.
- Companies will only ever focus on what they can measure.
- Intangible value is hard to measure; like brand value, the value of sustainability is not completely clear.
- Price is the main driver of consumer behavior—this is the number one challenge.
- People are the key. More change-makers are needed in key positions in companies, and Boards need to be rejuvenated with younger people.
- Complexity stands in the way—multiple drivers of change need to be addressed.
- Investors have an enormous role to play and, with one eye on the future, they are beginning to exert their influence. In general, investors want long-term stability.
- Companies need to speak up about the good they are doing—but not in a promotional, self-serving manner; it’s not about selling more stuff—it’s about leading change for good.
- Companies need time and space to change and evolve.
- CSR is low-hanging fruit; changing the core purpose of a business is tough, but entirely possible.
- Courageous politicians are required to change policy and systems.
About the Author
Neil Gaught is a strategic advisor and author of CORE: How a Single Organizing Idea Can Change Business for Good, published by Routledge.
Find CORE here:
Not All Systems Are Bad – Just the Ones That Dehumanize Us
Not All Systems Are Bad – Just the Ones That Dehumanise Us
If you were to ask most Facebook employees about their company’s core purpose, they likely wouldn’t say it’s about making money at any cost. Yet, for many of us, it increasingly feels like that has become its primary focus. To me, this shift represents another example of a human-created system that, instead of enhancing our lives, dehumanises us. Facebook has transformed connection, emotion, and community into mere digital data to be exploited, mirroring the way financial markets prioritize profit over everything else.
The System Problem
When I researched a chapter on capitalism for my book CORE, I sought out the thoughts of Colin Mayer, the Peter Moores Professor of Management Studies at the Säid Business School, Oxford and author of Firm Commitment.
Mayer’s thesis is that while corporations have brought us many good things—including extraordinary innovation, prosperity, and employment—they’re also responsible for much that’s very bad, including poverty, pollution, and a succession of financial crises. But he actually doesn’t blame the corporations; he blames the system they are slaves to for these failures. As he puts it:
“…unless there’s a fundamental root-and-branch change to the way shares in companies are held, boards and directors of corporations simply can’t change and will continue to fail us.”
He argues that our dependence on the current system won’t get us where we need to be because the system only promotes good conduct in relation to what it values, and it values only one thing: profit.
Mayer goes on to ask: “If the market values profit above all, do we share the same values?” Of course, we don’t, and neither does Mark Zuckerberg or anyone else working in his company. So why has Facebook seemingly fallen into the profit-obsession trap?
Humanizing Business
I recently collaborated on projects for Lacoste and Danone with Innate Motion, whose sole (or soul) purpose is ‘humanising business.’ It’s a simple, obvious, but compelling idea that is attracting corporations from around the world that want to change for good.
Christophe Fauconnier, Founder and CEO of Innate Motion, business humaniser, soul engineer, and gutsy disruptor, thinks:
“Mark is good, his system was good, but like all systems that are homo-deus made, they become bigger than us and they bring out the worst in us, not the best. Blaming Mark is wrong, we are all part of the problem and we can all be part of the solution. What Mark needs to re-humanise his system is not more technology, but more shared vulnerability that makes us better.”
This is a uniquely human and empathetic point of view. Leaders in business circles may feel uncomfortable with it, but it’s true.
Fellow ‘business humaniser’ Yasmin Kathoria responded to my request for comments on the Facebook crisis by saying:
“Personally, I feel sad that a space which is about making the world more open and connected is making me feel more isolated.”
In the end, the problem isn’t the systems themselves, but how they have evolved to prioritize profit over people. While systems like Facebook were created with the potential to connect and empower us, they’ve instead become tools that dehumanise. As Colin Mayer suggests, the failure lies not with the corporations themselves but with the systems they are bound to. To shift the narrative, we need to humanise business—aligning it with shared values, empathy, and a focus on what truly matters. If we can do that, we not only transform companies like Facebook but also ensure that the systems we create going forward serve humanity, not the other way around.
About the Author
Neil Gaught is the author of CORE: How a Single Organizing Idea Can Change Business for Good, published by Routledge.
Find CORE here:
Millennial Minds: Lean In and Listen
Millennial Minds: Lean In and Listen
I am embarrassed to admit that at the conclusion of my environmental science class in high school, my thoughts were consumed by how to suppress the devastating facts I’d just learned. I had been taught about how our consumption of greenhouse gases was destroying entire ecosystems, causing the mass extinction of animals, disproportionately harming poorer nations and communities, and I had been fed grim predictions for the future of our planet. What I had not been taught, however, was how to prevent this dismal destiny.
I had not been taught about the companies bringing solar energy to remote villages, or the advances in plant-based food production, or the resiliency species displayed when hunting regulations afforded them the chance to repopulate.
This is not to say that we should coddle students, plucking out examples of advances in sustainability to paint a rosy picture of the planet’s future, yet we also must not be scaring them into resignation. I spent the first part of my college career believing that since my interest was not in science, I could not be a part of the climate solution. It did not become evident to me for some time that it would be a fool’s errand to address any of the issues I am interested in—whether it be inequality, public policy, human rights, or development—without simultaneously confronting the climate crisis. It is not a noble or ethical decision to incorporate sustainability into any field of work – it is a logical one.
Climate Change: A Logical Business Decision
The film Our Planet, Our Business makes that point abundantly clear. Two interviews in the film really resonated with me—one with a Canadian fisherman and one with a Texan mayor, who both explain protecting the planet as a purely logical business decision.
In America, climate change has been branded as an issue point of the far left, a point of contention on par with abortion or welfare that the left and right squabble over. Images of icecaps the size of Manhattan skyscrapers crashing into the ocean or sloths clinging onto a lone tree amid the wasteland of a former forest are used to appeal to our pathos. Yet this strategy has failed to mobilize the majority of people, and it will continue to fail.
Climate change is not a moral issue nor an issue that can be relegated to a certain field. Rather, it is a reality that will permeate every aspect of the business world and as such, it is purely a logical decision to confront it. While businesses have long been the enemies of sustainability, they have the power to be its champions. As Our Planet, Our Business explains, the same innovation and speed that the business sector infused into the Industrial, Technological, and Digital Revolutions can be harnessed into the Green Revolution.
This requires a complete shift in the way we approach the purpose and actions of businesses—it’s not enough to just tack on a CSR team or adopt a trendy sustainability motto and call it a day. What, then, is enough?
Millennials Expect More from Businesses
This transition is not only a demand of our planet, it is one of customers too. Millennials expect more from businesses—our generation represents a fundamental shift in seeing businesses’ sole imperative as wealth creation to expecting businesses to deliver some form of social impact.
The prevalent misconception is that pursuing the latter requires abandoning the former. Single OrganiZing Idea is chipping away at that belief, proving that operating at the intersection of growth and social impact provides benefits to all. There does not have to be a trade-off.
A Call to Action
There are countless inspiring young people—the Greta Thunbergs of the world—who see and feel climate change at a visceral level; they are fighting to save our dying planet with a level of tenacity and vehemence many could only fight for a loved one with. While their efforts are significant, we cannot rely on them. They will not be enough.
A crisis of this magnitude requires the innovation, speed, resources, and creativity of the entire business sector. As Our Planet, Our Business explains, humans are the greatest problem solvers this world has ever known. Our job is simply to provide them with the direction and tools to solve our greatest problem.
About the Author
Larkin Dennison is an SOI Ltd research intern. She is currently reading Political Economy at the University of California, Berkeley.
Looking Back, I Predict a Riot
Looking Back, I Predict a Riot
December is a time when many of us reflect on the past year and look ahead with predictions for the future. Here’s mine.
In the second half of 2017, I traveled the world promoting my book CORE while simultaneously seeking to understand what holds businesses back from identifying, defining, and embedding a core strategy that would allow them to become forces for good.
I wanted to know why companies can do good “some of the time” (i.e., when it suits them), but struggle to do good all of the time. While some videos from my tour show me in an evangelical light, the journey itself was less about pushing and provoking, and more about probing, listening, and learning. Ultimately, I came away with two key insights:
1. Business Leaders Don’t Know How to Make Change for Good
In response to the UN’s 2015 Sustainable Development Goals (SDGs) and the growing buzz around “purpose” in 2017, many business leaders have begun to think more about their company’s role in society. But the truth is, there’s no clear, “approved” method for changing a business at its core to make it a force for good.
By “approved,” I mean that there’s no formal business school curriculum (to my knowledge) teaching leaders how to reorient a business’s core purpose for societal benefit. Sure, CSR programs are widespread, and ideas like Harvard’s Shared Value Initiative have introduced new thinking, but these concepts tend to be cautious and limited. Big ideas that come from large institutions and consultancies are often tied to corporate interests and rarely challenge the status quo beyond the “when it suits you” mentality.
But here’s the truth: I do know how businesses can make lasting change for good. Enter the Single Organizing Idea (SOI). Throughout my travels, I’ve seen firsthand how this practical methodology has helped businesses move beyond the rhetoric of purpose to create real, transformative change.
2. Evidence Alone Doesn’t Make Business Leaders Want to Change for Good
For decades, pioneers in sustainability have championed the social and economic benefits of a business becoming a force for good while increasing profitability. However, the impact has often been “underwhelming,” as one pioneer described it to me.
Despite the growth of CSR, sustainability, and community-focused roles within companies, the conversation hasn’t shifted enough to make doing good a core part of business strategy. And more evidence, at this point, won’t necessarily help.
But here’s the kicker: fear can.
Fear of being left behind is driving a growing need to understand and adapt among forward-thinking business leaders. While the existential threat to our planet isn’t enough to spark action in corporate boardrooms, the fear of a company’s survival being at risk is. When the future of a business’s revenue and success is at stake, that’s the real motivator.
We may not yet be on the brink of a riot where businesses are violently challenged, but the tide of discontent is swelling. According to motivational speaker Simon Sinek, it will take 15% to 18% of businesses to create a tipping point. And that tipping point? It’s coming.
Bring on 2018.
*Cities visited to date: London, Oslo, Boston, Toronto, Montreal, New York, Washington DC, Copenhagen, Beirut, Sydney, and Auckland.
About the Author
Neil Gaught is the author of CORE: How a Single Organizing Idea Can Change Business for Good, published by Routledge.
Find CORE here: