Member Article

What ideal future are you working to create?

Describe how you are altering the trajectory of humanity towards a better future.

This was the question that arrived in my inbox at 10.30pm last night, from what appears to be a curious person determined to figure out how to make the world better. I dug a bit deeper into the profile of Jonathan on Quora. Turns out there is a subculture of people combining the technical obsession of science, futurist thinking, and an extreme academic style attempting to answer philosophical and practical questions around how would, should, or could the world look if we focussed our energies around solving large social problems. You can see for yourself here. My answer follows…

“ I am working on altering the current trajectory of business within our capitalist system, particularly as it pertains to business’ impact on society. In other words, I want to fix the system we have to create the future we want. That’s because the capitalist system is an elegant system and has great potential as a positive force for global cooperation.

However, just as business and capitalism were nearing a mature phase in 1970, it became infected by an obsession with Shareholder Value. This was started by then soon to be Nobel Prize winning economist Milton Friedman. While it was not likely his intention to promote a perversion of business and the entire capitalist system, it did. And our pivot point can be traced to his piece in the New York Times Sept. 13th 1970: The Social Responsibility of Business is to Increase its Profits.

My first approach to altering the current trajectory of business, was through the creation of several social enterprises [businesses with social purpose at the core]. However, this always felt separate and inconsequential to the impact of business in the world. I felt this alternate system of social enterprise probably wasn’t the elegant solution to altering the trajectory of business. But, where was a solution?

I don’t feel like the answer is corporate social responsibility. However, it does feel like business is key, given it’s impact on every part of our lives.

Then, in 2010 I read Reclaiming the American Dream Amidst Global Financial Chaos , better known as The Puritan Gift by Hopper and Hopper. The Hoppers’ book is a treatise on the positive impact of wisdom on management. I took much more from it.

I think we need to put the soul back in business.

The Hopper’s helped me imagine what would happen if most businesses, not just a few outliers, were built on Intrinsic Value instead of driven by Shareholder Value. So what occurs when businesses like mine and others adapt this alternate strategy: building Intrinsic Value?

Something peculiar happens, instead of diminishing shareholder value as argued by Friedman and assumed by most business leaders, these businesses increase shareholder value while creating positive impacts beyond the business. How? We asked the ourselves the same question and decided to make an attempt at coding the traits of Intrinsic Value business.

We want you to build the same kind of business.

Those traits and their impact on business and subsequently the system of capitalism were condensed down to 4 principles or approaches remarkable businesses exhibited. Hopefully, you recognise the simultaneous simplicity and depth of complexity in these four principles of Intrinsic Value:

Positivity: a positive bias and a mentality towards positive-sum scenarios. + This leads to a system which is more cooperative than competitive. Although competition still exists, it has significantly diminishing value inside organisations.

Generosity: of spirit and action. Acting to help others first. + This leads to a more dynamic system, because sharing is increased. The positive engagements between organisations creates more value for actual people.

Storytelling: building a culture of creating and valuing stories. + This leads to a system where long-term value is prized. This is part preservation of wisdom in the organisation and part a focus on creating value for those inside and working with the organisation first. (Importantly, this is not marketing — that is focussing on the organisation first.)

Integrated Impact: building positive social, environmental, and economic impacts for people both inside and outside the organisation into the business model. + This leads to a system which lessens the burden on Charity and Government while integrating business with society. But, it must be baked into the business model. And it must be helpful to the organisation’s overall economic health. (This is not CSR)

In short, your business is more profitable, durable and sustainable when building Intrinsic Value.

In an ideal future, we have only 3 distinct parts of a capitalist system: Charity, Government and Business. Each has it’s clearly defined responsibilities, although it’s likely there will be some overlap between Charity and Government at the detailed level of operation. However, it’s the change in approach of Business under the new principles as outlined above that will have the greatest impact on our efforts to improve society.

If these are the pieces of what might be involved in a better future, what is the big picture result or ideal future?

A capitalist system which is a force for good: social, economic, environmental.

Because..

Business is acting with a balance of self and societal interest with long-term goals based on building significant Intrinsic Value.

This should lead to a future of sustainable harmony (a term promoted by Matthieu Ricard in How to let altruism be your guide);

Instead of growing quantitatively, we grow qualitatively.

To alter the current trajectory of business — which is creating severe inequality and affecting society in number of negative ways—I took action at the microeconomic level. I built a business based on Intrinsic Value both as part of a larger solution (perhaps replication) and as a model for other businesses to follow. However, that business ( Home — Shine ), while making a significant impact, is geographically based.

As such, I am making it my life’s work to encourage businesses (and charities and government) to adopt Intrinsic Value principles. Currently, I am trying to spread this idea through writing, speaking, and advising. But, importantly, Intrinsic Value must be built by the business itself or it will be just like every other change programme: unsustainable.

As such, my long-term goal is to create an ecosystem of curated and original content for smart people (self selecting, of course!); providing compelling, eclectic, entertaining, educational and relevant content which helps them to become the leaders and linchpins we need to remake business built on Intrinsic Value principles. Engage with us via our monthly Review at shine50.

What ideal future are you working to create?*

*Let me know in the comments…

This was posted in Bdaily's Members' News section by Todd Hannula .