Social Capital: Changing The World By Changing How The World Does Business – International Business Times

We discovered a whole world of world-changing leaders who are there for their customers and their employees in ways that are transforming lives, families and communities. Photo: iStockPhoto/gerenme

Next month, we will be celebrating the IBTs first official TOP 100 Social Capital CEOs for 2020-2021, and we could not be prouder or more excited. Thank you all for coming with us on this exciting journey.

As a run up to that incredible and exciting event, we are featuring not 10 but 20 Social Capital honorees this month, running the gamut of exemplary Social Capital behaviors for which they are being honored.

But, of course, they all have one thing in common: They understand that capitalism and business in general are done best when we realize and remember the value of people --and that the real bottom line is that people make profits happen.

We started this important journey almost a year ago, and we value and appreciate all of you who have taken the time to read and ride along with us. During that time we have looked at Social Capital from many different perspectives and angles. Here are the links to those articles again if you feel like revisiting them.

Along the way, we expected to meet incredible CEOs and business thought leaders who were leading the charge for a better world through business. But what we never could have expected is just how vast and powerful a network community of caring, high-level business leaders we would be tapping into.

We discovered a whole world of world-changing leaders who are there for their customers and their employees in ways that are transforming lives, families and communities. In fact, one could argue that corporations whose leaders understand how to do business right might be reaching a level of efficacy and compassion that rival major governments of the world. Some of our CEOs have even written about the ability for companies to surpass the potential good of government, at least when government is stuck, which it increasingly seems to be lately.

Well, regardless of whether you agree with that or not, we hope you all agree that when business is done right and with the full potential of Social Capital, life is better for everyone. And that, ultimately, that is what we are all here on this planet to do to make life better for everyone. So, thanks to this months honorees for doing exactly that.

And be sure to check out the Top 100 next month!

IBTs TOP 20 Social Capital CEOs for August 2021. Photo: IBT graphics

Sarah Paiji Yoo: Blueland

Yoos company came directly out of her desire to protect humanity first and foremost her son from the dangers of plastic. That inspired her desire to protect the rest of us.

After doing research on what water she should use to make her sons formula, she realized pretty much all water contains plastic about 90%, according to Sarah. So, she decided to change the world for her son and everyone else -- and set out to create cleaning solutions that were effective, non-toxic and free of single-use plastic.

I was horrified to learn that all the plastic I was throwing away was contaminating our water supply and generating hundreds of micro-plastics in the water and food I was feeding my baby, Yoo shares. I wanted to do my part to help, but it was impossible to find household products like window cleaner, lotion and toothpaste that didnt come packaged in plastic.

So how did she make a difference? By inventing and selling customers tablets they could pop into glass bottles with a bit of water, wait for them to dissolve, and then use the resulting hand soap or window cleaner just as they would any other but without the plastic bottle left over at the end. Bluelands tablets not only cut down on plastic pollution but the fuel and carbon emissions to facilitate all the shipping of those bottles.

What we love most is that Sarah and Blueland made the polluting of the planet with plastic personal and human rather than strictly environmental. Not to be kicking environmentalism, but the whole idea of Social Capital is about putting the people back into the solution and the purpose of business. Its a theme you will see in several of our honorees this month.

The oceans are being polluted by microplastics to the point where even seafood is becoming contaminated . . . About 14 billion pounds of trash is dumped into the ocean each year, explains Sarah. About a third of the fish that we consume is thought to have microplastics in their system. We are consuming, as adults, a credit cards worth of plastic each week, so it is pretty scary,

Sarah is doing all she can to make the world safer for her son and everyone else, and she reminds us how everyone else can, too, if every company in the cleaning supply sector used plastics re-use their packaging, Our calculations would say that if everyone shifted to a re-usable system instead of consuming a new plastic cleaning bottle every time they need new cleaning products, we could save 100 billion plastic bottles from entering our landfills as well as oceans, she says.

Way to go for the power of people-centered business.

Bill Nash: CarMax

CarMax president and CEO Bill Nash has steered the company to significant profitability, but what we are honoring him for in our Social Capital section is the bottom-line importance he places on maintaining a people-first culture in an industry not, historically, known for that.

Says Nash, proudly, I always tell folks, when theyre looking for advice, they should think about their work environment. I say, Look, you work for a very long time. You have to love what you do and love the people you work for. I absolutely do that here, so much so that it is very easy to get up in the morning and go to work. I dont get up dreading going to work. I love coming to work, and Im excited about where were going.

Bill recalls CarMaxs origins with a small group of people selling used cars at a time when no one wanted to walk into a used car dealership, much less work for one. Becoming CEO was not on his radar; he simply wanted to run the best auction business he could.

It was his experience as an accountant at Circuit City that molded his view of corporate culture. I remember coming home and telling my wife, Wow, that culture is very different than any company Ive experienced through my accounting days, Bill says. The culture is what attracted me there. Its almost as if they put on a show -- everybody seemed to be happy.

Now as CEO of CarMax, he says, The thing I continue to worry about: How can I foster that environment? He recognizes that a big part of it is hiring the right people and instilling the values of continuous improvement. He notes that what were actually delivering is an experience, and the experience is all about treating people the way that people should treat one another.

Its about integrity and transparency and treating people the way they should be treated.

Well I guess if we can envision a world where even used-car dealerships are about integrity, then Social Capital can truly change the world.

Joth Ricci:Dutch Bros.

Dutch Bros. may seem like just another coffee purveyor cashing in the quick cup of fancy flavored Joe obsession, but it is much more. It is a community-centered, value-based business driven by a dedication to kindness, empowerment and helping others to succeed.

In fact, all that is what its leadership would rather it be known for over and above its coffee. So much so that its in Dutch Bros. slogan, Coffee is what we do, but it is not who we are.

The real-life Dutch Bros., Dane and Travis Boersma, founded the company in 1992. And they consistently put their money and their efforts to proving that t hey really wanted to do good in a whole lot of ways beyond making a darned-good cup of coffee that has cars lined up around the block. The programs they have put in place and that have been augmented and/or supported by the current CEO, Joth Ricci, prove that.

Dutch Bros. is a community-centered, value-based business driven by a dedication to kindness, empowerment and helping others to succeed. Photo: Istockphoto

Dutch Luv (this year on February 14th) gives $1 from every drink sold to help feed families in the community.

Drink One For Dane is a day when they celebrate the founder, Dane, who passed away from ALS, to support those who have ALS and their families. All 450 Dutch Bros locations will be donating a portion of their proceeds to support ALS research.

Buck for Kids day donates $1 of every drink sold to local youth-focused organizations in the community.

In general, through the Dutch Bros. Foundation and local franchisees, Dutch Bros. donates millions of dollars in philanthropy each year.

But all that being said, and not to bury the lead, we saved the best for last. Dutch Bros. is also extremely generous and caring to its own Dutch Community employees by exclusively allowing them the opportunity to run and own a Dutch Bros. location themselves. And that squarely hits the bulls-eye when it comes to the whole Social Capital idea of how business, capitalism and companies can help people improve their lot in life.

Eric Artz: REI

Though Eric Artz is steadfastly committed to sustainability, as his company is built on a reverence for the value of the out-of-doors, that value is inexorably connected to the power of nature to touch, transform and heal the human soul. That powerful understanding of the importance of helping humans to be better and happier by also protecting and conserving the environment that fuels us and supports us is why we honor him here in our Social Capital section.

And access to the out-of-doors is not just a nice to have but has repercussions on quality of life: Science and research continue to prove that time in nature can and does have a positive impact on those suffering. REI has supported some of that research at universities like Cal Berkeley, UCSF, the University of Washington and Harvard, and it all leads back to a simple, powerful conclusion: Outdoor recreation must be more accessible for veterans as part of their overall care, especially those beingtreated for mental health challenges like PTSD.

For REI, this issue is greater than the products and knowledge it offers through its retail operations. In fact, sustaining the health of the company is intrinsically intertwined with sustaining the health of our planet. Says Eric, Climate change is the greatest existential threat facing our co-op. I believe we do not have the luxury of calling climate change a political issue. This is a human issue. And we must act now.

The company is involved in encouragingpublicpolicy that supportsthe goal of sustaining and increasing recreational opportunitiesand ensures everyone can benefit from time spent outdoors.

In fact, it has hosted bipartisan fireside chats with lawmakers, in hopes that, as Eric explains in one of his blogs, these conversations can remind us that as a country, we can still find policies that bring people together.

Back to Erics commitment to people, more than 70% of REIs annual profits are invested back into the outdoor community through dividends to REI members, employee profit-sharing and retirement, and investments in nonprofits dedicated to the outdoors. As its website states, Being amember-owned co-operativeallows us to focus on shared values, not share value.

John Schlifske: Northwestern Mutual

As the nations largest life insurer, one might incorrectly assume Northwestern Mutual no longer needs to be so attentive to its customers, or that it might get lost in the profits and lose site of the people. But nothing could be further from the truth.

In 2020, the companysurpassed$1 billion in new lifeinsurancesales, but, says Schlifske,Our persistency rate -- the number of policy owners who stayed with us -- was 97%, the highest in the industry. Clearly Schlifske is even prouder of the latter.

Moreover, the reason for the companys record growth has a lot to do with its unique business model in the insurance world and its commitment to helping customers achieve financial security and empowering colleagues.

Thats because all of Northwestern Mutuals profits return to its policy owners. That makes customers feel much more like they are on the same team with the company rather than a customer or a client. That goes a long way to creating a trust-like atmosphere, something of paramount importance to the CEO.

Across industries, the notion of trust is often at the forefront -- even rising to the level of being a buzzword in some cases, he explains. But I think we are having an incomplete conversation and companies that implore customers to trust them have it backwards. They should be focused on being trustworthy -- which is significantly more important and reflects a much deeper commitment.

That may be the reason John often jokes that, short of a religious career, his work at Northwestern Mutual is as mission-driven as you can get working within commercial financial services.

Ken Fisher: Fisher Investments

If only you could find an investment company that does not charge any commissions for trades . . . Oh! We just did. It also doesnt hit you with hidden fees or extra service charges. Instead, it charges a competitive fee based on the size of your portfolio. That kind of simple transparency and honest trade made Fisher Investments a great pick to include in our list this month.

Despite the fact that Fisher doesnt collect the kind of colossal commission that many other brokers charge, it still delivers every client top-notch service. Fishers clients receive a personal point of contact -- their Investment Counselor who is committed to understanding them on a personal level and keeping their financial plan on track.

We like doing the new and never done, says Ken Fisher. Photo: Gerd Altmann from Pixabay

Before we recommend anything, we get to know you. We ask questions about your goals and needs, your expenses, your health, your family commitments and more -- to better understand what you need your money to accomplish, Ken explains. This enables us to recommend a personalized portfolio designed to meet your needs and to help you enjoy the retirement youve earned.

Thats all part of Kens philosophy of questioning the hell out of everything that is regarded as conventional wisdom because, he says, Most of our conventional wisdom is simply thatand often wrong hand-me-downs from the past.

And in an industry where conventional wisdom often promotes greed over the good of the customer, no wonder Fisher is a little bit different, in a great way.

He applies this philosophy to developing his workforce, as well. We almost exclusively hire and promote from within. We by-pass the MBA world trying to hire kids right out of college and then motivate them to never leave. We ban concepts like best practices (which are great if a lousy firm wants to become a B-firm) in favor of what we call never-done-yet-practices, by which we mean to define what will become future trend changers others will have to follow.

Its a formula for expanding knowledge. As Ken says, We like doing the new and never done.

Its also a formula for how to make a great Social Capital company.

Danny Meyer: Shake Shack

When Danny Meyer opened his first restaurant in the competitive New York market, he knew it needed more than great food the secret was the people power.

He was intent on finding and hiring servers who loved their customers, and suggested innovative concepts like telling staff to take notes on customers favorite table or menu items dish.

Ultimately, he even came up with six emotional skills that he includes in what he calls "HQ," or "hospitality quotient." Those include kindness and optimism, intellectual curiosity, work ethic, empathy, self-awareness, and integrity. Identifying applicants with those skills is a key element in his restaurants hiring process.

What that resulted in was Meyer building an award-winning restaurant chain of more than 240 restaurants worldwide from the single restaurant hed opened when he was only 29 years old.

And he built that empire on the realization that, no matter how big your company is or wants to be, its all about improving the human interaction and relationship.

Or, as Meyer puts it: "In the end, what's most meaningful is creating positive, uplifting outcomes for human experiences and human relationships. Business, like life, is all about how you make people feel. It's that simple, and it's that hard."

We agree.

Lorna Borenstein: Grokker

Empowering people with the tools to take control of their well-being is Lorna Borensteins goal, and through her company, Grokker, she helps businesses provide that opportunity to their employees.

Citing her experience running public companies and divisions in large public companies like eBay, HP and Yahoo, Lorna says, I worked at these amazing companies that talked about work-life balance -- talked about, but didn't really create an environment where the employee felt supported and encouraged or that wellness and well-being actually mattered.

So, she founded Grokker with the aim to provide all employees from full-time to the oft-overlooked hourly and "gig" employees access to well-being resources that instill a sense of purpose, belonging and balance. Grokker is a subscription-based website and app that publishes short health and well-being videos featuring activities like yoga, meditation, nutrition and more.

Lorna Borenstein founded Grokker with the aim to provide all employees access to well-being resources that instill a sense of purpose, belonging and balance. Photo: iStockphoto

I think if you're really going to build a company and you say you want your employees to be well but then don't do anything to make them feel that you really care, you haven't really quite done it, Lorna says.

She believes they should and can create a 24/7 culture of health built on the double foundation of giving them permission to take care of themselves by providing them both the tools and the time and also providing the emotional support for them to do so.

That emotional support also has two legs: meeting everyone where they are with respect to their personal level of fitness and showing that they are recognized as individuals.

The thing that people are so surprised about with us is that we provide very personalized experiences for everyone, no matter your level of fitness or competency, proudly proclaims Lorna. I think there's this misconception that there's a one-size-fits-all plan to wellness. There really isn't. You have to be able to personalize, so they know that you know what they care about, Lorna explains.

No wonder she called her book, Its Personal: The Business Case for Caring, which was released the beginning of this year .

That kind of thinking is at the heart of Social Capital and a better world for all.

Ernie Herrman: TJX

TJ Maxx may be known by most for quality products at extremely affordable prices, and as great as that is for customers, what is truly extraordinary is that its parent company, TJX, doesnt cut corners in its supply chain to make that happen.

In fact, TJX is impressively committed to ethical sourcing to a degree that makes it a real model for Social Capital companies.

More than 1,100 associates in the companys buying organization actively source products from more than 21,000 vendors and more than 100 countries around the world, and all are required to comply with TJXs Vendor Code of Conduct that requires goods be manufactured and shipped not just in accordance with all laws, regulations and industry standards, but also with a commitment that goes way beyond the letter of the law to respect the rights of the workers who manufacture products.

TJXs long list of requirements in its code of conduct include such expected items as no forced labor or indentured labor, but also prohibits vendors from asking employees to regularly work more than 60 hours per week, and requires that all overtime must be voluntary. Moreover, it goes the extra mile to make sure all vendors ensure subcontractors and any other third parties they use comply with the principles described in this Code of Conduct, which can complicate the buying process but is something TJXs leaders believe is non-negotiable.

One of the most impressive of the companys commitments was the Rwenzori Trade Project, a sustainable trade program they helped to develop in Uganda in 2008, when TJX Europe partnered with Save the Children with the aim of supporting education in the cotton-growing communities in the Rwenzori region of Western Uganda. They began with 12 communities, funding classrooms and teachers housing as well as donating money to supply educational materials, clean water, and toilets but soon discovered that much more was needed.

As our program evolved, we learned that to sustain a long-term impact, these communities needed ways to generate greater and more reliable income for their families, TJX explains on its website. We began working with local partners to help create a sustainable trade program. Our goal was to help families living in this area increase their incomes so they could better care for themselves and send their children to school.

In 2011, TJX established a trade project to support the production of cotton, coffee, cocoa and handmade crafts. Together with local partners, they taught farmers not only how to develop better crop yields but a range of business skills from bookkeeping to product development.

What was the result?

According to TJX, Higher earnings, combined with consistent sales of their crops, give families in the region a more reliable and increased income stream, helping them pay for basic needs, school fees, and other necessities. We believe our support has made a difference.

So do we!

Tristan Walker: Walker & Company Brands

Allowing people to be their authentic selves is at the heart of Tristan Walkers creation of his Walker & Company Brands. The companys mission is to make health and beauty simple for people of color. I started years ago with Bevel out of a frustration that I couldnt find the right products for myself, he explains, noting that the retail experience for people of color at that time left a lot to be desired. This is my opportunity to not only educate the majority of the market but to also fill a void.

Noting his is the first and only brand to launch a line for curly and coily hair, Tristan says, Folks have been attempting to cater to this market for centuries -- we just felt they werent doing the right thing for centuries. Our goal is to showcase empowering messages through our brands. Tristan became the first Black CEO under the Procter & Gamble umbrella since its founding in 1837, and his flagship brand, Bevel, also became a category leader with distribution in Target and Walmart stores across the nation.

The population he aims to serve is more than a market. Tristan is also the founder of CODE2040, a program that matches high-performing Black and Latino undergraduate and graduate coders and software engineering students with Silicon Valley startups for summer internships.

The aim and mission for our Fellows Program is to support emerging Black and Latinx tech talent. We provide the students with all the tools to be successful. Were in the innovation economy, and companies need to hire talent that understands that. They need to recognize the benefits of hiring a diverse talent base, Tristan explains. I see the work that were doing here as the greatest opportunity of my lifetime.

Being authentic requires being proactive with respect to what interests and motivates him. As he says, A lot of people say they wont start because they need extra validation from others, who most of the time cant see what you can see. And people think they need to secure a certain level of funding before moving forward with an idea. How much has been left on the table because of people not simply starting? The advice he gives to others is what he, himself, follows: Just start.

From a Social Capital perspective, there can be no better way to show support for diversity than by empowering individuals in diverse populations with a way to make life better for them. And thats exactly what Tristan did.

Philip Behn: Imperfect Foods

Imperfect Foods found the perfect formula for how to care for the environment by making everyday life better for people through its mission to reduce food waste by saving perfectly good but imperfect produce targeted for the dumpsters and turning it into affordably boxed groceries delivered to peoples doors.

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Social Capital: Changing The World By Changing How The World Does Business - International Business Times