Posted on August 12, 2011 at 8:31pm 0 Comments 1 Like
One of my heroes, Ray Anderson, Founder and CEO of Interface Carpet, the largest commercial carpeting manufacturer in the world, passed away this week. He is my primary inspiration for what I do. Although the Corporation has done great damage to our planet, I believe, as Ray did, that this is the only institution that has the ability to make things right.
Ray liked to tell a story about a visitor to his company. She was a consulting client at the LaGrange, Georgia…
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How this is done is simple: We invest in companies that do the right thing, and we divest in companies that do the wrong thing. We begin to align economic incentives in a positive way for corporations to do the right thing and we also penalize companies that do NOT do the right thing. If your oil company has an enormous accident that pollutes the Gulf of Mexico because you tried to save money on safety precautions, then your company loses half it's value. If your financial statements are fiction and you get caught, your company is done. On the other hand, if you treat employees fairly and encourage and empower them to treat customers like visiting royalty, you are going to be rewarded because more people will want to buy your product and people will want to own stock in your company. Not to mention that the most loyal and hardworking talent are going to want to work for you, so you will be more innovative and creative.