Sir Richard Branson agrees with Archie Mclachlan

Sir Richard Branson makes a call for enlightened capitalism

In the last fifty years, $2.3 trillion was spent on foreign aid, yet we still have not managed to build a fairer world: in 2009 Wall Street bonuses topped $20 billion—more than the annual GDP in 64 countries—while half the planet struggled on less than two dollars a day.
This inequality is set to worsen as we continue to deplete the world’s natural assets. As we debate the reality of climate change, we are missing the bigger picture that is impacting our planet. Indeed, there is no scientific debate—every single one of our natural ecosystems is in decline.
Our only way out is to turn business itself into a good cause. Here are some ideas on how.


Change the rules of the game 
The other day (and in the middle of a hurricane – but that’s another story) I spent some time with Ben Cohen and Jerry Greenfield, the ice cream people. When they started, they were so terrified of becoming “business people”, they deliberately did everything opposite to normal. They handed ownership of their business to their employees. They handed it to their local community. They used their profits to create jobs through their supply chain. They ploughed their money into community projects. They used their voices to shout about issues. They were incredibly successful.
Doing good pays. Involved employees work harder. Involved consumers are more loyal. Equitable supply chains are more stable.
Interface Carpets knows this. In 1994 it set out to do good beyond the balance sheet in everything it did. Wal-Mart knows this. Its recent efforts to make everyone better off from what it does are making a difference and are saving them money. At Virgin we have a long way to go, but we are also doing our best to make a positive impact on people and the planet.
A whole new economy is emerging that puts the focus back on people and the planet, not just pure profits. In order for this new economy to thrive, governments will need to create new incentives and the financial sector will need to direct more capital towards businesses that are driving change.
Move from charity to investment
We (rightly) spend billions salving the horrors of war and disaster. But who invests in lasting enterprises that will lift people out of poverty? We’ve found a few leaders in this area: Ayurvaid hospitals in India deliver high-quality health care to rich and poor alike. The rich subsidise the poor, and Ayurvaid makes money, which it invests in more hospitals. Grofin, in partnership with the Shell Foundation, creates jobs in Africa through small—and medium-size business investments. These aren’t charities; they are companies directed towards a social purpose. They exist to solve a problem. They are entrepreneurial.
Entrepreneurs find and solve problems. We need more of them. Workers must be able to contribute intelligently to their businesses. If we can start working with our people we will go further than we would just writing cheques.
Embrace the biggest entrepreneurial opportunity of our lifetime
Let’s create wealth and jobs from the business of saving the planet. Harnessing and protecting our natural resources is the new frontier for entrepreneurs. We have the technology to capitalise on this opportunity, we now need the funds and right government policies to help scale these opportunities. The World Economic Forum projects that it will take approximately $550 billion to create a clean economy. That’s not even one per cent of the private world’s capital.
Re-think global leadership
The climate meeting in Copenhagen in 2009 showed that national leaders still struggle to find solutions to these global issues. NGOs, governments and businesses will have to work together to ensure we find ways to provide access to energy for everyone and can create an overarching set of rules to govern research in areas such as geo-engineering. All of this will need new forms of global leadership.
What kind of leadership? Well, to take an example close to home, I’ve had the great pleasure of working with cross-sector partners and Virgin Unite, our Foundation, to create the Elders: a group headed by Nelson Mandela, Graca Machel and Archbishop Tutu. These leaders are at a point in their careers where their only focus is on humanity. Consequently, they can tackle the tougher challenges such as seeking peace in Kenya, Sudan and the Middle East, or tackling global social issues, such as child marriages.
A better future
Our decisions now will determine whether our children get to see fish in the sea, or have clean water to drink. To ensure our children’s futures, we must create a better world. Join us in making sure that 2011 will be a year of enlightened capitalism.