The inherent goodness of business as a calling for service – Alejandro Cañadas | IECO – Harvard

TL;DR

BlackRock CEO emphasizes the need for companies to contribute to society, leading to the discussion of a theory of good business and its impact on the common good.

Transcript

we have with us now via Skype from we have dr. Alejandro conatus who is an associate professor of economics at the Baltic School of Business at Mount Saint Mary's University where he teaches corporate finance financial analysis economics and ethics in business he's also with the Eco Research Institute at the University of Valencia dr. Kannada earne... Read More

Key Insights

• 🍉 Companies need to contribute to society to gain support and thrive in the long term.
• 👋 Business has an intrinsic good and can positively impact the common good of society.
• 🤪 Ethical decision-making is essential in finance and goes beyond legal requirements.
• ❓ Measuring the positive contribution of companies requires a holistic framework that includes ethical considerations.
• 😀 The Triple P framework can be enhanced by adding the Organizational Ethical Quality component.
• 💗 The demand for measuring social impact is growing, with a focus on profit, planet, and people.
• ❓ Organizational ethical quality is crucial for sustainability and human development.

Questions & Answers

Q: Why does Lorenz Fink believe that companies need to contribute to society?

Lorenz Fink believes that in order to thrive in the long term, companies should have a social purpose and show how they make a positive contribution to society, in addition to delivering financial performance. This is aligned with societal demands and the need for companies to gain support from organizations like BlackRock.

Q: What is the intrinsic good in business and how does it contribute to the common good?

The speaker argues that there is inherent value in business, and it can contribute to the common good of society. Business, when carried out ethically and with a focus on serving others, can positively impact the lives of individuals and communities. By respecting human dignity, businesses can have a good and positive impact on society.

Q: How does the CFA program emphasize the importance of ethical decision-making in finance?

The CFA program, a prestigious finance program, includes a significant portion of its curriculum dedicated to ethical decision-making. Finance professionals understand that trust is crucial in the financial markets and that ethical conduct is essential for maintaining this trust. The program highlights the importance of making good ethical choices and acting in an ethical manner in the absence of clear laws and rules.

Q: What is the Triple P framework and how can it be improved to measure the positive contribution of companies?

The Triple P framework, which stands for Profit, Planet, and People, is a useful way to measure the impact of companies on society. However, the speaker suggests adding an additional component, the Organizational Ethical Quality, to this framework. By considering the ethical policies and actions of an organization, the holistic measurement of the positive contribution of a company can be achieved.

Summary & Key Takeaways

• Lorenz Fink, CEO of BlackRock, urges companies to make a positive contribution to society, not just focus on profits.

• The speaker emphasizes the intrinsic good in business and the need for a theory of good business connected to good work and good human action.

• The importance of measuring the impact of companies on society is discussed, with the concept of the Triple P (Profit, Planet, People) framework and the addition of organizational ethical quality.