Takeaways from reading the book:
How important is it to find purpose?
- Page 51: Purpose is about losing yourself in something bigger than you.
- Page 64: A net positive company helps people, who work for the business, to find their purpose.
- Page 66: Two Harvard business school professors, Nitin Nohria and Paul Lawrence, found out that people want to acquire, defend, bond with others and understand the world. Michael Pirson discovered that a company, which works to satisfy these 4 drives, is built around performance, growth, connection and purpose.
- Page 73: Some Unilever executives self-identified as uninterested in purpose, including the then marketing director. About 70 of the top 100 executives were replaced.
- Page 77: Having a purpose creates more unified organizations, more motivated stakeholders, and more profitable growth.
- Page 77: Purpose attracts talent, engages people, and provides psychological well-being.
- Page 77: Purpose attracts customers. 2/3 of consumers say they are willing to switch to an unknown purpose-driven brand, and 70% say they pay premiums for more sustainable products.
- Page 77: Purpose-led companies can tap into a growing, multitrillion-dollar market for sustainable and ethical products.
- Page 85: An important part of a 1-week Unilever leadership development program is helping each leader find her or his individual purpose.
How important is innovation?
- Page 59: At Unilever’s annual leadership conference, Paul Polman gave every one of the hundreds of executives a book to drive new thinking.
- Page 117: The Wallenberg family has a credo which dates back to 1946: “To move from the old to what is about to come is the only tradition worth keeping.”
How important is the health of people?
- Page 34: The pressure to constantly outpace competitors on short-term financial metrics has driven companies to stray from what is clearly right. A well-known example is Boeing losing its focus on safety.
- Page 40: More than 650 million people are overweight. 460 million people are underweight.
- Page 78: The Lever brothers, who founded Unilever, created the company’s first brands, Sunlight detergent and Lifebuoy soap, to improve health in Victorian Britain. Lord William Lever spoke in terms of shared prosperity and serving society. His early aim was “to make cleanliness commonplace and to lessen work for women.
- Page 87: Are there kids or slaves working in your supply chain?
- Page 116: In 2014, CVS Health took cigarettes off the shelves of its 8,000 stores. The move wiped out about USD 2 billion in sales.
- Page 149: When Merck helped Johnson & Johnson produce its Covid-19 vaccine to speed access, it put the world and its sector ahead of itself, helping a much-criticized industry garner praise. Net positive companies understand that despite the pressures to perform, we should not compete on the future of humanity.
- Page 206: 150 million children are working in conditions that are dangerous or deprived them of schooling.
- Page 255: Some measures of company success should grow almost without limit: Customer satisfaction and joy. Engagement and purpose of employees. Community well-being.
How important is diversity?
- Page 9: A net positive company offers extensive opportunities for inclusion of all races and abilities.
- Page 9: A net positive company achieves gender balance in management and pay equity.
- Page 212: A McKinsey study found that top quartile companies in ethnic and cultural diversity outperformed the bottom quartile by 36% in profitability. A BCG study concluded that companies with more diverse management teams have 19% higher revenues from innovation.
- Page 212: Disabled employees have equivalent or higher productivity, lower absenteeism, and lower turnover. The one billion people making up the disabled community, along with their families, control more than USD 13 trillion a year in disposable income - about the size of household spending for the entire EU.
- Page 223: A Goldman Sachs study found that the stock prices of companies with more women in management and on boards rose 2.5 percent per year faster than at male-dominated companies.
How important is equality?
- Page 6: Kraft Heinz serves a handful of owners of capital and directs the gains to them. It maximizes shareholder returns and obsesses over cutting costs to raise profits now. It takes limited responsibility for externalities - or spillover impacts on others - of the business.
- Page 9: A net positive company ensures that everyone working in the value chain earns a living wage.
- Page 9: A net positive social media company helps people find truth and strengthens the democratic process.
- Page 14: At the current pace of change, it will take 257 years to close the gender pay gap.
- Page 15: A RAND Corporation study estimated that if the income distribution in the USA had held steady from the mid-1970s, the bottom 90% would have gained USD 50 trillion in wealth. The median income would have doubled from USD 50,000 to about USD 100,000 today.
- Page 34: A net positive business puts stakeholder needs first. The word "positive" means better outcomes for stakeholders.
- Page 37: A 2019 Stanford survey showed that 5% of CEOs and CFOs believe that stakeholder interests are more important than shareholder interests. Investors hold a dominant position in the minds of CEOs.
- Page 148: A net positive company treat suppliers as partners, not as low-cost providers of
commodities, and looks for joint value creation.
- Page 156: A net positive company works with civil society partners, for example because of the knowledge they have. These stakeholders are major actors to help them succeed.
- Page 159: Unilever helped the Vietnamese government develop pension systems and stock ownership plans so the company could offer employees the same benefits everywhere.
- Page 189: During protests in Indonesia in the 1990s, rioters burned and looted a number of factories. They left Unilever’s facilities alone. Unilever's country general manager asked one of the military leaders why. He said, “It’s simple. You take care of your employees and communities. We don’t need to protect your buildings with the army. The community protects you.” The military leader was General Susilo Bambang Yudhoyono, who later became the president of Indonesia.
- Page 194: Over 8 years, Amazon paid USD 3.4 billion in taxes on USD 960 billion in revenues and USD 26 billion in profits.
- Page 201: When CareCentrix, a health-care services company, froze pay for 20 top executives, the savings from just holding those 20 high salaries flat was enough to increase the wages of 500 entry-level employees from the US minimum wage of USD 7.25 per hour to USD 16.50 per hour.
- Page 211: IBM decided not to make any political donations at all.
How important is the the climate / the environment?
- Page 9: A net positive financial company funds only clean technologies.
- Page 9: A net positive food and agriculture company makes the soil richer and protects biodiversity.
- Page 23: Young millennials and Gen Zers care much more about sustainability and climate change than their elders and want to see change.
- Page 31: Extreme weather caused by climate change is costing companies money. A company that produces something cheaply with fossil fuels is more profitable because the company did not pay the costs that carbon and air pollution impose on society.
- Page 38: When investors challenged Apple CEO Tim Cook to commit to only do climate projects that were clearly profitable, he told them that if they did not believe in climate change, they should sell their Apple shares.
- Page 40: We do not eat 40% of the food we produce. The food system is responsible for almost 30% of global greenhouse gas emissions.
- Page 56: The cement sector produces 8% of global carbon emissions. Dalmia Cement is building the largest carbon capture and sequestration facility in the industry. It’s an attempt to make carbon neutral cement by capturing CO2 in the production process and repurposing it for fuels, chemicals, or materials.
- Page 76: The insurance company AXA started divesting from coal in 2015, thereby delivering on its stated purpose to “act for human progress by protecting what matters.”
- Page 87: Why do you use so much plastic in packaging?
- Page 87: Why are you still using fossil fuels?
- Page 90: Goldman Sachs offered all US employees access to clean energy for their home or subsidies for employees to purchase electric vehicles.
- Page 109: In early 2020, Microsoft set the most aggressive climate goal in the world. Not only would the company, by 2030, be carbon negative (i.e., net positive), but by 2050 it would remove from the world the carbon it had emitted since it was founded.
- Page 109: Google committed to use only renewable power (and battery storage) on-site for all its data centers worldwide by 2030.
- Page 110: IKEA generates 32% more electricity from wind and solar than it needs for its operations.
- Page 112: Australian insurer Suncorp stopped underwriting new investment in oil and gas.
- Page 178: Unilever left the US Chamber of Commerce, Business Europe, and the American Legislative Exchange Council. All were reluctant to fight climate change or actively worked against progress.
- Page 184: China and the USA are the two biggest economies in the world and also the two largest emitters of greenhouse gases. The next two mega-emitters are not the 3rd and 4th largest economies, Japan and Germany. It is Brazil and Indonesia because they cut down and burn a lot of trees, which releases vast amounts of CO2. Deforestation produces roughly 20% of the world’s greenhouse gas emissions.
- Page 254: Less than 9% of everything, which is produced, gets reused. Less than 20% of electronic waste gets recycled.
Other research mentioned in the book:
- Page 19: Data shows that companies focusing on environmental, social, and governance (ESG) performance get equal or higher returns in the market. In 2020, 81% of sustainable indexes outperformed their benchmarks, and over a 4-year period, portfolios weighted toward higher ESG scores "outperformed their benchmarks by between 81 and 243 basis points."
- Page 33: Research shows that boards are the top source of pressure for short-term results - above investors.
- Page 46: In company financial statements people are not considered assets because a company cannot own people. On the balance sheet, people appear as a liability. For example, salaries and pensions are future payments that the company will make. In other words, what is counted is what a company owes people. Paradoxically, the value that people bring is not counted.
- Pages 38 and 71: Three weeks into his job as CEO of Unilever, Paul Polman told investors that Unilever would not report quarterly earnings. Mr. Polman believed that that was the best thing he could do to make investors focus more on the long term. The initiative by Paul Polman told managers that they could think bigger, make investments in innovation, and make decisions for the long-term.
- Page 54: The word "courage" comes from the Latin word "cor", which means “heart.” Over time, it shifted to represent bravery.
- Page 63: How do we heal the world? The solution, perhaps, is as simple as love.
- Page 65: 20th century economists, mostly led by the Chicago School of economics, found out that what motivates people is more money.
- Page 71: People remember what you do more than what you say.
- Page 73: For most companies, finance is the most difficult area to change. It was no different at Unilever. Finance executives feel the analysts and investors breathing down their necks more than any other company leaders.
- Page 120: While 73% of global respondents to the 2021 Edelman Trust Barometer say they trust scientists, 48% say they trust CEOs, and 41% say they trust government leaders.
- Page 237: Hellmann’s mayonnaise, a 125-year-old brand, started growing again due to initiatives like these: 100% recycled plastic packaging, 100% cagefree eggs, and featuring farmers, who supply
the eggs, in advertisements.
- Page 255: USD 600 billion is spent annually on advertising.
- Page 257: GDP measures the speed with which money and things pass through the economy. GDP does not measure peace, justice, quality of education, mental health, air quality, or the protection of natural capital needed for our survival. As an alternative to GDP, the happy planet index multiplies life satisfaction and life expectancy, then divides by the ecological footprint.