How should companies and their managers behave in the face of the threats that come from progressive populism that today put the freedoms and well-being of our societies at risk?
In fact, in several Latin American countries, political currents whose method is to deepen divisions, fragment the social fabric and erode trust, with the aim of conquering and staying in power, are becoming fashionable. A pillar of this strategy is the demonization of capitalism and, in particular, of large companies, identified as the main cause of all the ills of our society.
Now, there is no doubt that a certain rapacious capitalism is harmful to society and that there are companies that do not care about the environment and the minimum rights of workers. But to make a bundle of all the grass, is to deny that the big companies today are still the most adept at guaranteeing lower prices for consumers and better salaries. It is unaware that large companies, compared to small ones, provide more and better benefits, including health care, overtime pay and retirement benefits. It is ignoring that your workers are less likely to be fired.
So, faced with the threats that a certain populism represents today, companies are called to become increasingly aware of their social responsibility, and of their role as agents of change. They have to recognize that we live in a time of profound transformation, that the global pandemic has accelerated, creating new opportunities and destroying businesses. Above all, the meaning we give to work has changed; Employees today require more flexibility and purpose from their employers.
Against this background, in his annual letter, BlackRock’s Larry Fink invites managers to recognize that companies today have an opportunity to lead. “It has never been more urgent for managers to have a consistent voice, a clear purpose, a coherent strategy, and a long-term vision,” writes Fink. “The purpose of your company is the North Star in this tumultuous context.” For the president of BlackRock, this means adopting a “stakeholder capitalism”, that is, a capitalism concerned with benefiting everyone, and not just the shareholders.
Ricardo Sierra, manager of Celsia, an energy company of Grupo Argos, tells me: “In his letter, Larry Fink invites us, those of us who lead companies, to get away from the daily news maelstrom, but come closer to talk with our collaborators, customers, suppliers and communities on the issues in which society is debating and which are important for the success of society and the companies. It invites us to raise our voice.”
Therefore, in this era of disruption, companies must have a higher purpose, coherence with their values, and the ability to relate to all the elements of the system of which they are a part.
eldiariony.com
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.