An Exciting Shift in the Business World
In his recent New York Times Op-Ed titled "We Need a New Capitalism", Marc Benioff provided an outstanding overview of one of the most important transitions taking place in the world today. Mr. Benioff, CEO of SalesForce.Com, clearly points out the reasons as to why the currently dominant business model in America needs to shift from short-term, investor-focused management to a more inclusive and socially responsible focus on making money for investors while also acting as a force for positive change in the world.
From the Mouth of a CEO
The thing that makes this article so refreshing and encouraging is that it was written, not by an academic, politician or high-priced business consultant. Rather, it was written by a CEO, one who is out there in the trenches, building a global business, making money for his investors and actually doing it with an eye towards doing good in the world.
Mr. Benioff is the perfect example of the type of enlightened business leaders that we will need over the next 50 years to tackle the enormous challenges we now face after the past 50 years in which American businesses have, for the most part, operated with a singular focus on short term profitability and shareholder returns.
Social Responsibility and Profits go Hand in Hand
There is a large and growing database that clearly demonstrates a strong correlation between higher social responsibility and better financial performance. Dr. Raj Sisodia’s recently released second edition of his book “Firms of Endearment” provides details as to how and why companies are making more money for their shareholders by taking an inclusive stakeholder focused approach to their decision making.
In a recent analysis done by Torrey Project it was shown that companies that are independently recognized as being one of the “Most Ethical Companies in the World” have also demonstrated significantly better financial performance for their shareholders over the last 20 years. (For a copy of the full report contact email@example.com.)
The Salesforce Example
Torrey Project exists to help create, foster, and support entrepreneurs, business leaders, investors, and thought leaders who embrace this new, stakeholder-focused, form of capitalism. We believe that business can and should be a force for good in the world.
We congratulate Mr. Benioff, his board of directors and his executive management team for showing by example that it is possible to operate a large publicly traded company for the good of both investors and all of the company’s other stakeholders.
This post was written by David J. Ferran, CEO of Torrey Project