Business Isn't Always about Business

We live and die in a transparent and networked world.  A world that is one invasion and/or viral video away from completely changing the market and business climate for a company.  In 2020 I wrote an article titled, Swarming and the Need for a Chief Values Officer, where I stated,  "The key to winning in a network of swarming consumers is to strategically be swarmed for good reasons.  It’s about being recognized for the societal good your organization is doing as demonstrated by purpose-driven advocacy and practiced values."  Today, under the dark clouds of war and senseless violence, it is all the more important to be recognized for your "practiced values."

In just the first two weeks of Russia's unconscionable invasion and continuing attack on Ukraine, over 300 large multinational companies announced they were restricting business and pulling out of Russia.  The companies that are still doing business with Russia will increasingly be shamed by their customers, employees, shareholders and history. 

The speed of events happening around the world, and the immediacy of social media and a 24-hour a day news cycle means companies can no longer afford not to have a Chief Values Officer or equivalent team that can review and monitor global events, trends and movements in real-time to ensure their company is truly representing their values, not just "green-washing," where organizations claim good practices, but take no real action of significance.

For years businesses have invested in risk management teams to monitor supply chains for events that might disrupt production and deliveries.  Today the definition of "risk" must be expanded to include risks to sales, employee retention and recruitment, shareholder value and brand value. 

This week the New York Times reported that even eco-friendly electric car manufacturers get caught up in political battles, and find themselves defending their values against accusations and attacks.  "The factory, to be built by the upstart electric automaker Rivian, is being heralded by many as a transformational $5 billion investment that will invigorate the local economy with 7,500 new green jobs and help accelerate the transition away from fossil fuels and toward clean energy.”  Yet politically motivated vocal, local critics see nothing but conspiracies and cultural change which forces Rivian leadership to invest time and effort to address them.

Lions, Ukraine

Extreme events are not easy to manage, and often involve difficult decisions.  It is a challenging ethical and business environment, which is even more of a reason to have a leader and team involved in making decisions that represent a company's values.  Agco, an agricultural machinery company that has stopped selling new machinery in Russia, describes the challenge, “[We] carefully considered how best to serve farmers” because “Russia and Ukraine are vital to the world’s food supply.”  As the Washington Post reported, "Together, Ukraine and Russia produce 30 percent of the wheat in global markets, as well as more than three-quarters of sunflower seed oil exports and one-third of the barley supply, according to the U.N. World Food Program."  Acting purely out of marketing interests or TikTok appeal is not the right answer.  Difficult decisions lie ahead.

In this transparent world, companies need to rethink and recommit to their values, because the gaze of history will be relentlance - and it's the right thing to do.  Companies will increasingly need to have team's of people, leadership and technologies to help them monitor extreme events around the world, and respond to them in a manner that truly reflects their stated values, and benefits both our humanity and our planet.

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Kevin Benedict

Partner | Futurist at TCS

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***Full Disclosure: These are my personal opinions. No company is silly enough to claim them. I work with and have worked with many of the companies mentioned in my articles.