Bombing Your Own Business and Values Statements

Most businesses of significance today publish a values statement.  The French department store Leroy Merlin, as one would expect from a company with 22,000 employees, published their latest on January 15, 2020.  Their value statement follows, "We share six values ​​that we embody on a daily basis: trust, respect, autonomy, commitment, proximity and audacity.  More than words...they define who we are."

Leroy Merlin After Missile Attack

I would suggest that actions, rather than words are what truly defines an organization.  I read on Forbes.com today that Leroy Merlin "became the first company in the world to finance the bombing of its own stores [in Ukraine]." How?  They had refused to stop operating in Russia even when their competitors withdrew in protest against the invasion of the Ukraine.  It seems Leroy Merlin see the war and international sanctions as a growth and money making opportunity for themselves in Russia. Their strategy now helps fund Russia's unconscionable war against the Ukraine. Hoping not to lose any money making opportunities, Leroy Merlin also continues to operate in the Ukraine.  They've got both sides covered. 

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. 

Innovation for the Purpose of Human Flourishing

We are drawn to profits like a moth to a flame.  Although the window of opportunity for humans to flourish may be open, we turn away away away to chase the dollar.

We have lived through the invention, innovation and evolution of social media which could have united us in friendship, kindness, love, and compassion, but used it to create social conflict, agitation, divisiveness, disinformation, mistrust, depression in our kids, and to weaken our democracy and diminish our ability to respond to a global pandemic with a unified front.  All for the purpose of generating increasing profits.

We are witnessing the deployment of low-cost lethal drones that can swarm, follow, and attack a person silently from the air using artificial intelligence, facial recognition, and lethal weapons.   These are developed and sold in the pursuit of profits.  Profits don’t respect borders, and these technologies will soon be available to be purchased by all - a fearful thought.

The Greater Good - Technology on Purpose

Adam Smith wrote about the concept of rational self-interest, which posits we work together for the greater good when it benefits ourselves.  Is this argument valid in the context of robots, automation and employment? I think so.

I believe most of us would agree that replacing large numbers of humans with machines that result in wide scale unemployment and suffering is not in our rational self-interest. Having massive numbers of jobs terminated by the Terminator does not result in a safer, healthier civilization or vibrant economy; therefore, it is not in our best interest.

Just because something is possible, does not mean it is good. A powerful ruler that takes all the food, property and means of production away from his people resulting in their suffering, quickly becomes a target of community wrath.

Businesses that replace human workers with machines and software, out of self-interest, will over time find it increasingly difficult to sell their products to their unemployed or underemployed consumers. At what point do businesses seek to expand employment opportunities out of a rational self-interest rather than decrease them through automation? Is it a realistic option for profit maximizing businesses to seek the greater good?

In the short-term, factories hope to benefit from automation faster than their competition in order to gain advantages, while there are still sufficient numbers of consumers employed elsewhere to provide a market for their goods. In the mid-term, entire industries will automate and terminate large numbers of jobs, but hope other, slower-to-automate industries will employ their consumer base. In the long-term, however, when digital transformation has swept through all industries, who is left to employ the consumers and provide them living wages, and who is left with capital to buy goods?

As jobs that require little training or education diminish in numbers, we have important choices to make, 1) Increase education levels to equip our population for the digital future, or 2) subsidize the unemployed and underemployed with a sufficient income to survive and maintain their dignity. 3) Fund infrastructure development in areas that employ people and benefit the common good.  If there are still not enough jobs for those that work hard to increase their level of education, then we are reduced to only two choices.

There are plenty of problems left on this planet to be solved. Solving these problems could employ many. Today, however, not all of these problems have economic values assigned to them. Fresh water sources, clean air, forestation, peace, better health, better education, etc., all of these have the potential to generate enormous economic benefits, but they need society to place a value on them and reward innovations and employment in these areas.

A vibrant economy, and a safe and secure society depend on healthy employment numbers, adequate wages, property ownership and rights, hope, peace and purpose. Digital transformation must foster these goals or risks accelerating a break down in our society and economy – two things that can diminish our future.

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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.

Purpose Led Future

The future is not unexpected.  Yesterday’s future arrived today.  It’s an inevitable pattern.  I have been reading a lot about inevitability lately.  Last week I listened to Bill Gates and Rashida Jones on the Ask Big Questions podcast.  In this podcast Bill Gates shared that we have already damaged the earth and the negative consequences are inevitable.  

In my work over the past few months, I have written a series of articles under the title of The Future of Information, Truth and Influence.  Many of the articles address the negative and unanticipated consequences of social media on our society.  Many authors of the research I have been studying seem to have a fatalistic view.  We have let the genie out of the bottle and there is no going back.  It’s inevitable. 

Digital Transformation for the Greater Good

Adam Smith wrote about rational self-interest, which posits we work for the greater good when it benefits ourselves.  But what is the greater good, and how does digital transformation impact it?

I believe most of us would agree that replacing large numbers of humans with machines that result in wide scale unemployment and suffering is not in our rational self-interest or the greater good. Having massive numbers of jobs terminated by the Terminator does not result in a safer, healthier, happier civilization or vibrant economy.  So what is the greater good that we, out of rational self-interest, can strive for?

Just because something is possible, and VCs will fund it, does not mean it supports the greater good. Technology that takes all meaningful jobs away from humans resulting in their suffering will soon become a target for their wrath.  I can already imagine brands placing badges on their products that certify "Human-Made" to gain a competitive advantage over machine-made production.

At the macro level, if businesses increasingly replace human workers with machines, they will soon have difficulty finding employed customers that can pay for their products.  At what point do businesses seek to expand employment opportunities out of a rational self-interest rather than decrease them through automation? Is it even realistic to expect profit maximizing businesses to seek the greater good of the societies they operate in?  We must seriously ponder these issues as gathered humans.

I think there is value in playing out future scenarios:

• In the short-term, manufacturers want to automate faster than their competition in order to gain economic advantages while there are sufficient numbers of consumers employed elsewhere to provide a market for their goods.
• In the mid-term, entire industries will automate and terminate large numbers of jobs, but hope other, slower-to-automate industries will employ their customer base so there is money to spend. 
• In the long-term, however, when digital transformation has swept through all industries, who is left to employ the consumers and provide them with living wages so goods can be purchased?

As jobs that require little training or education diminish in numbers, we have two choices, 1) Increase education levels to equip humans for employment in the digital future, or 2) subsidize and fund employment opportunities that benefit the greater good, so there are sufficient incomes available to support a healthy economy.

There are plenty of problems left on this planet to be solved, and solving these problems could employ many. Today, however, not all of these problems have economic and greater good values assigned to them. Fresh water sources, clean air, litter removal, forestation, sustainable farming, peace, better health and wellness, improved education, beautification of public spaces, etc.  All of these areas have the potential to generate enormous benefits for the greater good, but they need society to place a value on them and fund employment in these areas which are not always profit generating but support the greater good.

A vibrant economy, and a safe and secure society depends on healthy employment numbers, adequate wages, property ownership, human and property rights, hope, peace and purpose. Digital transformation must add to the greater good, or it risks accelerating a break down in our society and economy.

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Kevin Benedict

Futurist/Founder

View my profile on LinkedIn

Follow me on Twitter @krbenedict

Join the Linkedin Group Digital Intelligence

***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.