London, UK - 25 March 2006, 12:21 GMT - ATCA: From Challenge to Opportunity: The role of business in tomorrow's society

Dear ATCA Colleagues

Whilst in Geneva to deliver a computing colloquium at CERN -- European Organisation for Nuclear Research -- and to lead a meeting focussed on solving complex global challenges through the philanthropic route under the auspices of The Philanthropia Trinity -- hosted by UBS -- I was invited to pay a visit to The World Business Council for Sustainable Development (WBCSD). What I learned at the WBCSD, seems to chime very well with the aims of The World Forum on Social Entrepreneurship at the University of Oxford, next week. This year’s focus is on leveraging assets and growing social capital markets. Whilst preparing my brief talk on "New Generation Philanthropists" for The World Forum, I must emphasise the influence of the report just published by WBCSD titled "From Challenge to Opportunity: The Role of business in tomorrow's society".

The WBCSD is a coalition of 180 international companies united by a shared commitment to sustainable development via the three pillars of economic growth, ecological balance and social progress. Their members are drawn from more than 30 countries and 20 major industrial sectors. Their mission is to provide business leadership as a catalyst for change toward sustainable development, and to support the business license to operate, innovate and grow in a world increasingly shaped by sustainable development issues.

"From Challenge to Opportunity" concludes that companies able to tackle issues such as poverty, climate change and population shifts are those most likely to succeed in the future. This is a view shared by eight global business leaders including John Manzoni, Chief Executive, Refining and Marketing, BP; Paul Polman, Former Group President, Western Europe, Procter & Gamble; and Christian Mumenthaler, Chief Risk Officer, Swiss Re amongst others. "From Challenge to Opportunity" sets out a "manifesto for tomorrow's global business" as defined by the Tomorrow's Leaders group of the WBCSD. It also discusses why and how four key areas of business and sustainable development need to be profitable in order to be effective.

Björn Stigson, the President of The WBCSD, writes: "I want to thank warmly the eight members of the World Business Council for Sustainable Development who accepted my challenge to help formulate a vision of business going forward. They have provided an important thought piece that I trust will stimulate dialogue about the role that leading businesses will play in tomorrow’s society. They argue that they must address major social and environmental issues as part of their business strategies because ultimately it makes good business sense. A business’s long-term competitiveness – its license to operate, innovate, and grow – will increasingly depend on how it embraces societal challenges."

In the foreword by the Tomorrow’s Leaders, the Co-Chairs -- John Manzoni and Paul Polman -- write:

We are publishing this paper at a time of intense debate about the role of business in society, particularly in relation to major global issues such as poverty and climate change. Directions set in the next few years will have profound consequences for future generations, and in such a context, we believe business should be clear about its purpose and candid about its dilemmas.

We have therefore come together as a group of business leaders – all members of the WBCSD and all responsible for international businesses – in an effort to stimulate discussion in the business world.

We do not claim to have all the answers to the profound issues business faces, but we have taken some time as a group to order our thoughts on this subject and agree some principles.

A Manifesto for Tomorrow's Global Business:

We believe that the fundamental purpose of business is to provide continually improving goods and services for increasing numbers of people at prices that they can afford.

We believe that this statement of our purpose unites the interests of business and society at the deepest level. It makes clear that we prosper by helping society to prosper, by innovating to create new goods and services and by reaching out to new customers.

We believe that the leading global companies of 2020 will be those that provide goods and services and reach new customers in ways that address the world’s major challenges – including poverty, climate change, resource depletion, globalization, and demographic shifts.

If action to address such issues is to be substantial and sustainable, it must also be profitable. Our major contribution to society will therefore come through our core business, rather than through our philanthropic programs.

We see shareholder value as a measure of how successfully we deliver value to society, rather than as an end in itself.

In aligning our interests with the needs of society, we will follow a model based on our own experience and analysis of successful business strategies:

. We will develop an understanding of how global issues such as poverty, the environment, demographic change, and globalization affect our individual companies and sectors.

. We will use our understanding of the significance of these signals to search for business opportunities that help to address them.

. We will develop our core business strategies to align them with the opportunities that we have identified.

. We will incorporate long-term measures into our definition of success, targeting profitability that is sustainable, supported by a positive record in social, environmental, and employment areas.

In each of these phases, we will engage broadly with a range of groups and organizations, including governments, international bodies, customers, employees, partners, academics, NGOs, civil society institutions, and the general public.

We will then use our experiences to move to new starting points for understanding and action. If we can deploy this model with the full creativity, focus, and resources of business, we believe we will contribute significantly to resolving the major issues that society faces.

. We will develop technologies and products that enable the world to address its environmental and social challenges.

. We will help to create new businesses, new markets, new livelihoods, and new customers among the three billion people who live in poverty today and the three billion who will be added to the world’s population in the next 50 years.

. We will help to set global benchmarks and global frameworks that create universal standards and raise the bar for all companies.

. We will operate and compete successfully in a range of countries, markets, and cultures, maintaining consistent global standards while acting as part of the local community.

. We will responsibly manage the challenge of moving assets and activities between regions to make the most of the benefits of global scale.

. We will devise strategies to address the issues raised by ageing populations in the developed world and growing populations in the developing world.

. We will attract new generations of employees, creating an inclusive culture, advancing more women, and enabling people from any nationality, race, or background to fulfil their potential.

. We will set high standards of corporate governance, demonstrating openness about our business activities and building trust.

By pursuing these aspirations we believe we will move our companies into new areas, pushing the boundaries of business activity as we seek greater synergy between our goals and those of the society we serve.

-- Signed --

Frank Dassler, General Counsel, Adidas-Salomon

John Manzoni, Chief Executive, Refining & Marketing, BP plc

Andrew Brandler, Chief Executive Officer, CLP

Julio Moura, Chairman and CEO, GrupoNueva

Paul Polman, Former Group President, Western Europe, Procter & Gamble

Idar Kreutzer, Chief Executive Officer, Storebrand

Christian Mumenthaler, Chief Risk Officer, Swiss Reinsurance Company

Peter Bakker, Chief Executive Officer, TNT

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We look forward to your further thoughts, observations and views. Thank you.

Best wishes

For and on behalf of DK Matai, Chairman, Asymmetric Threats Contingency Alliance (ATCA)

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ATCA: The Asymmetric Threats Contingency Alliance is a philanthropic initiative founded in 2001 to understand and to address complex global challenges. ATCA conducts collective dialogue on opportunities and threats arising from climate chaos, radical poverty, organised crime, extremism, informatics, nanotechnology, robotics, genetics, artificial intelligence and financial systems. Present membership of ATCA is by invitation only and has over 5,000 distinguished members: including several from the House of Lords, House of Commons, EU Parliament, US Congress & Senate, G10's Senior Government officials and over 1,500 CEOs from financial institutions, scientific corporates, voluntary organisations and academic centres. Please do not use the material circulated without permission and full attribution.

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