A Better World, Inc. : Corporate Governance for an Inclusive, Sustainable, and Prosperous Future

The first edition of A Better World, Inc . showed how companies can profit by solving global problems. Increasingly, companies and investors are capitalizing on these opportunities. The three factors necessary for success were revealed to be effective corporate governance, stakeholder engagement, and collaboration. Racial equity and justice, and gender equity, were also themes in the original edition. By drawing on new research and case studies, this updated edition shows that inclusion and sustainability are in fact fundamental prerequisites for prosperity for companies and society. Specifically, racial inequity and injustice, and gender inequity, are systemic problems that impede businesses from achieving their greater potential in the global marketplace; in the meantime, society suffers as well. The second edition of A Better World, Inc. builds on the first by showing that companies have the power and incentives – and their boards of directors have the responsibility and the authority – to drive solutions to social, economic, and environmental challenges. Readers will learn how companies and their boards, together with nonprofits and governments, can drive prosperity by centering equity and sustainability. This edition is organized to address environmental, social, and governance practices, which are priority interests for investors, media, the public, government, and others to assess company practices and profitability. Preface Acknowledgements Praise for A Better World, Inc. Contents About the Author 1 Introduction: An Inclusive, Sustainable, and Prosperous Future A Vision of a Better World Racial Equity and Justice are Fundamental to Build a Better World Gender Equity Is Fundamental to Build a Better World Valuable Lessons Have Emerged from Efforts to Address Global Challenges Some Companies Invest in Women-Led, Locally Driven Supply Chain Solutions Companies Benefit by Addressing Social, Economic, and Environmental Challenges This Book Is Organized According to Major Global Challenges Creating an Inclusive, Sustainable, and Prosperous Future References 2 Climate and Environment Climate and Nature Are Inextricably Linked Climate and Environmental Injustice Plague the World Climate Change and Ecosystems Loss Are Security Matters Businesses Can Gain Opportunities Global Governments Convened for Three Conferences of the Parties in 2022 The Conference of the Parties (COP27) Focused on Climate Change The Conference of the Parties (COP15) Focused on Biodiversity The Conference of the Parties (CoP19) Focused on Endangered Species The World Watches to See the Extent to Which COP Agreements Are Fulfilled Some National and Local Governments Are Advancing Progress Markets Create Incentives for Companies to Act on Climate Change Investors and Companies Grow Value by Driving Decarbonization The Opportunity for Companies to Decarbonize Cities Trane Creates Business Value by Advancing Decarbonization Intel Creates Business Value with Energy Solutions Scores for Climate Impacts Displayed in Google’s Market Summary Snapshot Carbon Pricing Allows a Company to Translate Goals into Financial Terms Markets Create Incentives for Companies to Conserve the Natural Environment Climate and Environment Are Inextricably Linked Colgate-Palmolive Was an Early Adopter for Water Security and Climate An Industry-Led Collaboration for Sustainable Production and Sourcing of Commodities Food Systems Summits Address Hunger, Farmer Livelihoods, and Climate Change Businesses Can Lead in Addressing Climate and Environment Challenges References 3 Economic Development Global Trends Present Threats as Well as Opportunities for Business Companies Benefit by Investing in Economic Development Income Inequality Poses a Threat Gender and Racial Inequities Exacerbate Income Inequality Poverty Threatens Business and Society Increasing Global Migration Affects Economies Companies and Nonprofits Partner to Invest in Human Capital Mobile Money Drives Systemic Change for an Inclusive Economy Vodafone and Safaricom Launched M-PESA in 2007 The Mobile Money Industry Is Growing in an Era of Economic Disruption Mobile Money Advances the UN Sustainable Development Goals (SDGs) Inclusive Employment Benefits Business and Society Investing in Supportive Housing Is a Business Opportunity in the United States Investments in People Will Advance the World’s Economic Potential References 4 Education Businesses Can Play an Important Role in Advancing Education Inequities in Education Inhibit Economic Mobility Inequities in Higher Education Limit Opportunities Inequities in STEM Education Further Limit Opportunities Hybrid Models Are Uniquely Suited to Drive Solutions in Local Communities A Vision of the Hybrid Model An NGO in Kenya is a Model of Grassroots Organizing HP’s Ambitious Goal to Accelerate Digital Equity Worldwide HP’s Successful Approach to Investing in NGO Partnerships HP’s Model to Accelerate Digital Equity for 150 Million People by 2030 Additional Companies Invest in Nonprofits to Advance Education Girls Who Code and its Corporate Partners are Building a Pipeline of Engineers Technovation and its Corporate Partners Inspire Girls to Be Leaders and Problem Solvers Per Scholas and its Corporate Partners Prepare BIPOC Women and Men for Tech Careers Businesses: In Partnership with NGOs and Governments—Can Make the Education Vision Possible References 5 Health Healthcare Matters to Companies Companies Partner with NGOs to Improve Health in Some of the World’s Poorest Communities Companies Provide Technical Expertise in Logistics in Sub-Saharan Africa UPS Helps Solve Last Mile Logistics for Access to Life Sustaining Care Kuhne Foundation Models Supply Chain Logistics for Humanitarian Aid Companies Help Advance Healthcare for Women and Children in Africa Companies Help Establish NGO’s Infrastructure Companies Help Advance NGO’s Longer-Term Growth Company Supports Partners in Health in Establishing Haiti’s First Teaching Hospital Businesses Benefit by Improving Access to Health Services References 6 Human Rights Stakeholders Expect Businesses to Adhere to Human Rights Principles Companies Seek to Address Supply Chain Violations of Worker Safety and Security Businesses Combat Human Trafficking to End Forced Labor and Sexual Exploitation Carlson Was the First US Company to Sign a Code to Protect Children from Trafficking Companies Join Together to Combat Human Trafficking RISE Brings Together the Apparel Industry’s Women’s Empowerment Programs Company Challenges: Cybersecurity, Privacy on the Internet, and Protecting Freedom of Expression The UN Guiding Principles Provide a Human Rights Framework for Companies The Golden Rule Is Good for Business and Society References 7 Corporate Governance for an Inclusive, Sustainable, and Prosperous Future Boards Have the Responsibility and the Authority to Shape the Global Agenda Boards Are Becoming Better Qualified to Lead Board Diversity, Equity, and Inclusion (DEI) is Critical The Consumer Interests of BIPOC Americans Represent a Business Opportunity Directors Must Bring an Understanding of Global Risks and Opportunities Investors and Regulators Are Driving ESG Companies Are Expected to Disclose Their Material Impacts ESG Company Ratings Are Important to Investors and Other Stakeholders Valuable Lessons Have Emerged from Corporate Efforts to Address Global Problems Nonprofit Board Service Provides Valuable Experience for Business People Creating an Inclusive, Sustainable, and Prosperous Future References Index