Nobel Prize winning economist Milton Freidman is best known for his “Maximizing Profits” line of thought. Arthur Laffer, the Reagan era economist is best known for the “Laffer Curve” and the theory of Trickle Down economics. The era of the 60s through the 80s is the closest thing we have to a modern-day gold rush where profits and capital were the gold. The trend was so prevalent that it transcended the halls of money and power and pierced the bubble of popular culture finding its way into the zeitgeist of the day. There is no better example than Michael Douglas’s character from the movie “Wall Street”, where the line of the movie came as the character Gordon Gecko proclaimed, “Greed is good….” Nothing represented present day thought better than those 3 words. It was the beginning of the end for a mindset where companies saw their only responsibility as standing before gathered shareholders focused on purely profits. That was the beginning of the end for greedy capitalism and the impetuses for finding a better way, a more sustainable way, viewing corporate profits as more than just dollars at the end of a balance sheet. We began the journey to Corporate Social Responsibility with an understanding that if done right, if done well, we could be profitable, more productive and good stewards of the environment, the people, our greatest resource and sustain that approach well into the future.
We have all heard the saying, “Can’t see the forest for the trees.” When we talk about ROI or return on investment, that represents the single tree we tend to focus on. A successful company not only sees the single tree, but the vast rich forest. Looking at ROI is the way of business past. It is a myopic view that loses the results that bring forth greater potential, profits and a visionary view to the issues of the future creating legacy and longevity. If we look beyond that single tree. My challenge to businesses that I call on is to alert them to the vast untapped potential, the rest of the trees in the forest. Therefore, I want to change the mindset of return on investment (ROI) to a much broader view of Return on Inclusion. Still ROI but modernized to reflect the single goal of business, to answer to shareholders, to maximize profits while keeping pace or reducing costs. In what I call the “Old” or “Outdated” way of looking at ROI where we recognize it as simply the standard for measuring our investment based on a simple monetary function towards a goal of sustainability. In the modern era, our current business environment, our thinking has evolved to encompass a much broader look at sustainability. We have recognized that business has an even greater role than simply being profitable. Corporate Social Responsibility is now a key component in the overall sustainability of business. There are three pillars to CSR
Financial
Social
Environmental
As I have stated it has become necessary for a company’s sustainability to evolve their thinking from that of purely financial. In my estimation CSR as it relates to a company’s sustainability moves the needle from purely serving shareholders to the necessity of incorporating society as a whole. CSR coupled with the new rebranded ROI or return on inclusion is not just hyperbole, it is a very real resource that up until now has either been unrecognized or simply ignored because no real explanation has been offered. I hope to provide you with a fresh and yes, very different approach to this thought process.
In a post 911 America we have witnessed just how we look at those who serve in our nation’s Military as well as how we view First Responders. Until that tragic day we would see them, maybe waive and say hello but our thoughts never went beyond those very basic human interactions. That was until we were forced to see them, forced to recognize the heroism, their sacrifices. Not just these public servants, but the impact their sacrifice caused, the collateral damage to families, and the societal damage wrought. These amazing people provided an environment where we are safe to even have conversations such as these. These conversations I believe to be the seeds of what we now call CSR, were sewn in that wake. We now recognize them, use them as examples of excellence, we market to them and those businesses who recognize their contribution and their value. They have been rewarded with unwavering loyalty to their brands by these individuals and the close-knit group of consumers they represent. I don't want to be insensitive here, but the reality and truth is that we as business witnessed the cost benefits of becoming inclusive in that arena, of embracing a group of people who until that sunny day in the month of September awoke us all to their presence.
My goal is to make the same case for potential growth and profitability when business looks at an entire class of people who up until now have largely gone unnoticed and therefore marginalized. The World Health Organization estimated that there are some 300+ million blind individuals worldwide. Add to that number those with low vision. When I use that term, it simply means an individual who requires assistance day to day to accomplish tasks that require sight in a world that I call a modern “Hyper-Visualized” society, you may know them as legally Blind. Once you factor in those numbers, estimates explode exponentially to the higher end of hundreds of millions of individuals worldwide who are merely written of. The return on inclusion of these individuals means that those businesses who are first to market in recognizing the consumer potential of hundreds of millions of people who thus far have simply been left out of the equation demonstrates a very real sense of Corporate Social Responsibility and proves they are ahead of the curve, that they are not myopically focused on that single tree, they show their desire to see all the trees in the lush rich forest of maximizing profitability. It is what I call a win-win. A company who embraces inclusion for all creates an image of them as different than the competition, identifying that inclusion for all is their business philosophy. It is imperative that I mention here that I am not comparing the dysfunction of societies attitude towards the blind and low vision individuals with the sacrifice of those in the Military or the First Responders I spoke of earlier. The only comparison I want to emphasize is the failure at recognizing a class of people and their meaning to the marketplace coupled with the stated mission of a company who preaches a very real commitment to CSR. Understanding that when we as business reach out to those markets, those communities who are either unappreciated or marginalized or undervalued is not just good business, it is a differentiator. It separates those who have a true understanding of CSR and D&I from those who merely pay lip service to this modern-day business imperative. The single issue that shows evolutionary thinking and a desire to not just be sustainable, but a company bent on being a leader and someone who wants to leave a legacy that isn't just built on the bottom line, but also built on their commitment to societal prosperity.
As an example, there is a new company that has introduced a new and disruptive technology aimed squarely at following the new paradigm. They offer a new tool that aligns with the purpose and content of this article. It brings new customers to your doorstep. There is no large capital expenditure required for infrastructure, these customers come to you with the tools and equipment in hand. All that is required of business is as simple as flipping a switch. A small fee then grants access to an untapped and unrecognized consumer base for business. This opens the door to a world where someone isn’t just talking about CSR but shows it, shows the blind and low vision community that they are welcome, and valued. This is a very loyal community who frequents businesses that make it possible for them to participate on a level playing field. The product is AIRA and it is the visual description of life for the blind and I would encourage those reading this to visit www.aira.io to witness this groundbreaking, transformational technology. Aira has transformed the lives of countless individuals including many of those who served our country. Veterans who have lost their sight defending liberty, now enjoy a sense of independence they never thought possible. Aira is committed to not just these veterans but has an aggressive hiring program to employ military spouse as live agents for the visually impaired utilizing the service. Aira is a company who takes seriously the tenants of Corporate Social Responsibility. They are dedicated the being a Diverse and Inclusive company because they are on the front lines as a tool for the blind and low vision community. Aira recognizes the untapped market, the marginalized community numbering in the hundreds of millions and has developed technology that can introduce them to the world and make them part of the consumer base.
There have been many articles written on CSR with a focus on sustainability and businesses turn from the old model of ROI through the lens of cost benefit analysis and risk assessment. One that stands out to me is from the Harvard Business review titled:
The Comprehensive Business Case for Sustainability
By Tensie Whelan and Carly Fink
October 21, 2016
This is an excellent resource for understanding the shift that has taken place in the business community as they come to understand viewing business through a newer and more dynamic lens. It is a comprehensive look at the reasoning and rationale of business as they peer into the future and how CSR and sustainability are no longer mere abstracts but are necessary to the long-term viability and future of business. Choosing not to embrace the future reality of creating a sustainable business that embraces true CSR dooms a company, leaves them atop the dust pile of history. However, while this is an excellent resource that explores the importance, the value and the absolute need for sustainability via following the tenants of Corporate Social Responsibility and its many facets. I find myself back standing in that forest looking at what is now a few more trees yet I I feel as though I am still missing the forest. While CSR is on the move, I believe that we are still wrestling with how Diversity and Inclusion fits in. The Harvard Business Review article referenced above feels good, it scratches many of the itches. It shows the importance of taking into consideration environmental concerns and shows the rewards of companies who do so by increasing their customer base and through employee retention. It shows the financial rewards and explains the social rewards but fails to mention what I consider to be the missing link in the CSR and D&I chain and that is dealing with and solving for those still living in the shadows.
Organizations like “The Valuable 500” sum up nicely some of the realities of where we are in this effort. Caroline Casey was quoted as saying “Let’s solve the Inclusion Delusion and think about the 1.3 billion disabled people in the world when we consider Diversity.” She went on to say that “90% of boards say they’re committed to Diversity. Only 4% consider disability.” It is abundantly clear in that comment that while business us investing in the concepts of good Corporate Social Responsibility and being truly Diverse and Inclusive, disability lags as a serious consideration. So, exactly how far have we moved the needle? When you visit the website for The Valuable 500 you will be greeted by this:
If disability is not on your board agenda, neither is diversity (Nor is innovation, productivity, brand experience, talent, risk, reputation…)
We learned from the above referenced Harvard Business Review article written by Whelan and Fink:
“…..revenues from sustainable products and services grew at six times the rate of overall company revenue.”
A thorough review of the HBR article authored by Whelan and Fink reveals how Sustainability, CSR and D&I are inextricably linked. The content is prescient and their bottom line conclusion exposes a real evolution from the words made famous by Michael Douglas where ROI once upon a time worshiped at the altar of “Greed is good”:
“The preponderance of evidence shows that sustainability is going mainstream. Executives can no longer afford to approach sustainability as a “nice to have” or as solid function separated from the “real” business. Those companies that proactively make sustainability core to business strategy will drive innovation and engender enthusiasm and loyalty from employees, customers, suppliers, communities and investors.”
When combined in the same thought pattern with what we have learned from the Valuable 500, we are left still standing in the forest. Admittedly we are now beginning to see more of the trees, however, our view is still obscured because we are failing to see the contributions and value still undeveloped when it comes to those with disabilities. In order to seat Sustainability, Diversity and Inclusion comfortably in the center, or a circle of true Corporate Social Responsibility, we must include those with disabilities, part of the necessary practices that will transform Return on Investment into the new and more impactful Return on Inclusion. The simple fact is that the disabled community has been ignored and marginalized for far too long and their abilities ignored in favor of focusing on their disabilities. This community doesn't lack in ability or discretionary spending money. Begin transforming your vocabulary and begin a real belief in the new definition of ROI or Return on Inclusion for all. Then and only then will you begin to lose that myopic fixation on that single tree in the forest and begin to see the advantages of what I believe is true CSR, understanding that if you truly comprehend the meaning of Diversity and Inclusion you will have unlocked the Rubik’s Cube that will lead to increased profitability. It will allow you to tap into a marketplace that most ignore and a talent pool that can thrive in and drive your company well into the future. Incorporating those we have marginalized into the marketplace and workforce is the definition of sustainability. This focused approach will remove them from the sidelines by recognizing the richness of their potential rather than what amounts to little more than a simple difference from a flawed view of what society sees as normal.
**Picture accompanying are the letters - ROI - In capitalized bold blue print with a red arrow indicating an upward trajectory.