0:00:00.585,0:00:04.340
The entire model of capitalism

0:00:04.340,0:00:06.203
and the economic model that you and I

0:00:06.203,0:00:07.836
did business in

0:00:07.836,0:00:09.656
and in fact that didn't do business in

0:00:09.656,0:00:13.434
was built around what probably Milton Friedman

0:00:13.434,0:00:15.104
put more succinctly.

0:00:15.104,0:00:16.425
And Adam Smith of course

0:00:16.425,0:00:18.737
the father of modern economics actually said

0:00:18.737,0:00:21.424
many many years ago the invisible hand

0:00:21.424,0:00:23.536
which is if you continue to operate

0:00:23.536,0:00:25.168
in your own self interest

0:00:25.168,0:00:27.984
you will do the best good for society.

0:00:27.984,0:00:32.946
Now, capitalism has done a lot of good things.

0:00:32.946,0:00:35.579
And I've talked about a lot of good [br]things that have happened

0:00:35.579,0:00:36.796
But equally

0:00:36.796,0:00:39.250
it has not been able to meet up

0:00:39.250,0:00:40.994
with some of the challenges that we've seen

0:00:40.994,0:00:42.562
in society.

0:00:42.562,0:00:44.715
The model that at least I was brought up in

0:00:44.715,0:00:47.086
and a lot of prospering businesses were brought up in

0:00:47.086,0:00:48.641
was one which talked about

0:00:48.641,0:00:51.146
what I call the "3 G's" of growth.

0:00:51.146,0:00:52.658
Growth that is consistent,[br]

0:00:52.658,0:00:54.262
quarter and quarter.

0:00:54.262,0:00:55.669
Growth that is competitive,

0:00:55.669,0:00:57.152
better than the other person,

0:00:57.152,0:00:58.730
And growth that is profitable,

0:00:58.730,0:01:00.127
so you continue to make

0:01:00.127,0:01:02.922
more and more share hold of value.

0:01:02.922,0:01:05.854
And I'm afraid this is not going to be good enough.

0:01:05.854,0:01:08.374
And we have to move from this 3G model

0:01:08.374,0:01:10.688
to a model of what I call

0:01:10.688,0:01:12.234
the fourth 'G' --

0:01:12.234,0:01:16.123
the 'G' of growth that is responsible.

0:01:16.123,0:01:19.560
And it is this that has to become

0:01:19.560,0:01:21.800
a very important part

0:01:21.800,0:01:23.768
of creating value.

0:01:23.768,0:01:26.190
Of not just creating economic value

0:01:26.190,0:01:28.854
but creating social value.

0:01:28.854,0:01:31.654
And companies that will thrive are those

0:01:31.654,0:01:34.758
that will actually embrace the fourth 'G'.

0:01:34.758,0:01:38.091
And the model of 4G is quite simple.

0:01:38.091,0:01:41.816
Companies cannot afford to be just innocent bystanders

0:01:41.816,0:01:44.198
in whats happening around in society.

0:01:44.198,0:01:47.566
They have to begin to play their role

0:01:47.566,0:01:49.878
in terms of serving the communities

0:01:49.878,0:01:52.700
which actually sustain them.

0:01:52.700,0:01:53.766
And we have to move to a model

0:01:53.766,0:01:55.766
of an "and, and" model which is

0:01:55.766,0:01:59.510
how do we make money and do good?

0:01:59.510,0:02:01.056
How do we make sure

0:02:01.056,0:02:02.652
that we have a great business

0:02:02.652,0:02:05.678
but we also have a great environment around us?

0:02:05.678,0:02:06.830
And that model

0:02:06.830,0:02:09.797
is all about doing well and doing good.

0:02:09.797,0:02:12.180
But the question is easier said than done.

0:02:12.180,0:02:14.317
But how do we actually get that done?

0:02:14.317,0:02:15.601
And I do believe

0:02:15.601,0:02:18.784
that the answer to that is going to be an issue.

0:02:18.784,0:02:20.172
It is going to be to redefine

0:02:20.172,0:02:21.965
the new business models

0:02:21.965,0:02:23.264
which understand

0:02:23.264,0:02:25.254
that the only license to operate

0:02:25.254,0:02:27.406
is to combine these things.

0:02:27.406,0:02:29.523
And for that you need businesses

0:02:29.523,0:02:32.144
that can actually define their role

0:02:32.144,0:02:34.182
in society

0:02:34.182,0:02:35.720
in terms of a much larger purpose

0:02:36.001,0:02:38.657
than the products and brands that they sell.

0:02:38.657,0:02:41.890
And companies that actually define and do not

0:02:41.890,0:02:43.452
Things that are non-negotiable

0:02:43.452,0:02:46.196
when the times are good, bad, ugly --

0:02:46.196,0:02:47.494
doesn't matter.

0:02:47.494,0:02:49.629
There are things that you stand for.

0:02:49.629,0:02:54.121
Values and purpose are going to be the two

0:02:54.121,0:02:55.934
drivers of software

0:02:55.934,0:02:58.023
that is going to create

0:02:58.023,0:03:00.158
the companies of tomorrow.

0:03:00.158,0:03:01.750
And I'm going to now shift

0:03:01.750,0:03:05.458
to talking a little bit about my own experiences.

0:03:05.458,0:03:08.446
I joined the Unilever in 1976

0:03:08.446,0:03:11.471
as a management training in India.

0:03:11.471,0:03:13.806
And on my first day of work

0:03:13.806,0:03:16.140
I walked in and my boss tells me,

0:03:16.140,0:03:18.309
"Do you know why you're here?"

0:03:18.309,0:03:21.714
I said, "I'm here to sell a lot of soap."

0:03:21.714,0:03:24.954
And he said, "No, you're here to change lives.

0:03:24.954,0:03:27.138
You're here to change lives."

0:03:27.138,0:03:28.938
You know, I thought it was rather facetious.

0:03:28.938,0:03:31.367
We had a company that sells soap and soup ...

0:03:31.367,0:03:34.239
what are we doing about changing lives?

0:03:34.239,0:03:38.531
And it's then I realized

0:03:38.531,0:03:40.685
that simple acts

0:03:40.685,0:03:43.117
like selling a bar of soap

0:03:43.117,0:03:44.622
can save more lives

0:03:44.622,0:03:46.653
than pharmaceutical companies.

0:03:46.653,0:03:47.813
I don't know how many of you know

0:03:47.813,0:03:51.102
that 5 million children don't reach the age of 5

0:03:51.102,0:03:54.044
because of simple infections that can be prevented

0:03:54.044,0:03:56.933
by an act of washing their hands with soap.

0:03:56.933,0:03:58.416
We run the largest

0:03:58.416,9:59:59.000
hand washing program

0:03:59.300,0:04:00.643
in the world.

0:04:00.643,0:04:02.526
We are running a program on hygiene and health

0:04:02.526,0:04:05.086
that now touches half a billion people.

0:04:05.086,0:04:06.782
It's not about selling soap,

0:04:06.782,0:04:08.558
there is a larger purpose out there.

0:04:08.558,0:04:11.678
And brands indeed can be

0:04:11.678,0:04:13.030
at the forefront of social change.

0:04:13.030,0:04:14.480
And the reason for that is

0:04:14.480,0:04:17.046
when 2 billion people use your brands

0:04:17.046,0:04:18.542
that's the amplifier.

0:04:18.542,0:04:22.144
Small actions can make a big difference.

0:04:22.144,0:04:23.605
Take another example,

0:04:23.605,0:04:26.789
I was walking around in one of our villages in India.

0:04:26.789,0:04:29.613
Not all of you who have done this will realize

0:04:29.613,0:04:33.431
that this is no walk in the park.

0:04:33.431,0:04:35.943
And we had this lady

0:04:35.943,0:04:40.083
who is one of our small distributors

0:04:40.083,0:04:43.695
beautiful, very, very modest her home

0:04:43.695,0:04:46.103
and she was out there

0:04:46.103,0:04:47.655
dressed nicely

0:04:47.655,0:04:49.815
her husband in the back, her mother-in-law behind

0:04:49.815,0:04:52.015
and her sister-in-law behind her.

0:04:52.015,0:04:54.330
The social order was changing

0:04:54.330,0:04:55.863
because this lady

0:04:55.863,0:04:57.999
is part of our project "iShakti"

0:04:57.999,0:05:00.407
that is actually teaching women

0:05:00.407,0:05:02.247
how to do small business

0:05:02.247,0:05:03.720
and how to carry the message

0:05:03.720,0:05:05.976
of nutrition and hygiene.

0:05:05.976,0:05:08.183
We have 60 thousand of such woman

0:05:08.183,0:05:10.079
now in India.

0:05:10.079,0:05:12.519
It's not about selling soap,

0:05:12.519,0:05:14.311
it's about making sure

0:05:14.311,0:05:15.967
that in the process of doing so

0:05:15.967,0:05:18.174
you can change people's lives.

0:05:18.174,0:05:21.495
Small actions, big difference.

0:05:21.495,0:05:23.063
Our R and D folks

0:05:23.063,0:05:26.719
are not only working to give us some fantastic detergents,

0:05:26.719,0:05:29.535
but they're working to make sure we use less water.

0:05:29.535,0:05:31.745
A product that we've just launched recently,

0:05:31.745,0:05:35.180
one-rinse product that allows you to save water

0:05:35.180,0:05:37.418
every time you wash your clothes.

0:05:37.418,0:05:40.366
And if we can convert all our users to using this,

0:05:40.366,0:05:42.614
that's 500 billion liters of water.

0:05:42.614,0:05:44.878
By the way thats equivalent to one month of water

0:05:44.878,0:05:48.308
for a whole huge continent.

0:05:48.308,0:05:49.953
So just think about it --

0:05:49.953,0:05:53.335
there are small actions that can make a big difference.

0:05:53.335,0:05:55.006
And I can go on and on.

0:05:55.006,0:05:56.236
Our food chain,

0:05:56.236,0:05:57.853
our brilliant products and I'm sorry

0:05:57.853,0:05:59.845
I'm giving you a word from the sponsors

0:05:59.845,0:06:03.198
(unclear), Helman and all those wonderful products

0:06:03.198,0:06:05.212
we are committed to making sure that

0:06:05.212,0:06:07.138
all our agricultural raw materials

0:06:07.138,0:06:09.944
are sourced from sustainable sources.

0:06:09.944,0:06:12.152
100 percent sustainable sources.

0:06:12.152,0:06:13.592
We were the first

0:06:13.592,0:06:15.801
to say we are going to buy all of our palm oil

0:06:15.801,0:06:17.825
from sustainable sources.

0:06:17.825,0:06:21.760
I don't know how many of you know that palm oil

0:06:21.760,0:06:24.082
and not buying it from sustainable sources

0:06:24.082,0:06:27.225
can create deforestation that is responsible

0:06:27.225,0:06:29.536
for 20 percent of the greenhouse gasses in the world.

0:06:29.536,0:06:31.929
We were the first to embrace that

0:06:31.929,0:06:36.358
and it's all because we market soap and soup.

0:06:36.358,0:06:38.494
And the point I'm making here

0:06:38.494,0:06:41.878
is that companies like yours, companies like mine

0:06:41.878,0:06:44.054
have to define a purpose

0:06:44.054,0:06:46.390
which embraces responsibility

0:06:46.390,0:06:48.982
and understands that we have to play our part

0:06:48.982,0:06:51.958
in the communities in which we operate.

0:06:51.958,0:06:54.015
We introduced something called

0:06:54.015,0:06:56.463
The Unilever Sustainable Living Plan which said,

0:06:56.463,0:07:00.015
our purpose is to make sustainable living commonplace

0:07:00.015,0:07:02.887
and we are gong to change the lives of 1 billion people

0:07:02.887,0:07:04.687
over 2020.

0:07:04.687,0:07:05.887
Now the question here is,

0:07:05.887,0:07:07.038
where do we go from here?

0:07:07.038,0:07:08.992
And the answer to that is very simple.

0:07:08.992,0:07:11.310
We're not going to change the world alone.

0:07:11.310,0:07:13.638
There are plenty of you and plenty of us

0:07:13.638,0:07:15.462
who understand this

0:07:15.462,0:07:16.503
the question is

0:07:16.503,0:07:19.015
we need partnerships, we need coalitions

0:07:19.015,0:07:21.807
and importantly, we need that leadership

0:07:21.807,0:07:24.550
that will allow us to take this from here

0:07:24.550,0:07:25.839
and to be the change

0:07:25.839,0:07:27.375
that we want to see around us.

0:07:27.375,0:07:28.695
Thank you very much.

0:07:28.695,9:59:59.000
(Applause)