0:00:00.492,0:00:03.924
The entire model of capitalism

0:00:03.924,0:00:06.103
and the economic model that you and I

0:00:06.103,0:00:07.782
did business in,

0:00:07.782,0:00:09.609
and, in fact, continue to do business in,

0:00:09.609,0:00:13.232
was built around what probably Milton Friedman

0:00:13.232,0:00:14.950
put more succinctly.

0:00:14.950,0:00:17.530
And Adam Smith, of course, [br]the father of modern economics

0:00:17.530,0:00:19.879
actually said many, many years ago,

0:00:19.879,0:00:21.397
the invisible hand,

0:00:21.397,0:00:23.053
which is, "If you continue to operate

0:00:23.053,0:00:25.166
in your own self-interest

0:00:25.166,0:00:27.922
you will do the best good for society."

0:00:27.922,0:00:32.653
Now, capitalism has done a lot of good things

0:00:32.653,0:00:35.455
and I've talked about a lot of good [br]things that have happened,

0:00:35.455,0:00:38.841
but equally, it has not been able to meet up

0:00:38.841,0:00:40.777
with some of the challenges that we've seen

0:00:40.777,0:00:42.438
in society.

0:00:42.438,0:00:44.652
The model that at least I was brought up in

0:00:44.652,0:00:46.932
and a lot of us doing[br]business were brought up in

0:00:46.932,0:00:48.641
was one which talked about

0:00:48.641,0:00:51.069
what I call the three G's of growth:

0:00:51.069,0:00:52.658
growth that is consistent,[br]

0:00:52.658,0:00:54.184
quarter on quarter;

0:00:54.184,0:00:55.622
growth that is competitive,

0:00:55.622,0:00:56.952
better than the other person;

0:00:56.952,0:00:58.514
and growth that is profitable,

0:00:58.514,0:01:00.003
so you continue to make

0:01:00.003,0:01:02.922
more and more shareholder value.

0:01:02.922,0:01:05.714
And I'm afraid this is not going to be good enough

0:01:05.714,0:01:08.374
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

0:01:21.800,0:01:23.675
of creating value.

0:01:23.675,0:01:26.400
Of not just creating economic value

0:01:26.400,0:01:28.854
but creating social value.

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

0:01:31.654,0:01:35.019
that will actually embrace the fourth G.

0:01:35.019,0:01:38.044
And the model of 4G is quite simple:

0:01:38.044,0:01:41.816
Companies cannot afford [br]to be just innocent bystanders

0:01:41.816,0:01:44.151
in what's happening around in society.

0:01:44.151,0:01:47.718
They have to begin to play their role

0:01:47.718,0:01:49.878
in terms of serving the communities

0:01:49.878,0:01:51.976
which actually sustain them.

0:01:51.976,0:01:53.673
And we have to move to a model

0:01:53.673,0:01:55.766
of an and/and model which is

0:01:55.766,0:01:59.248
how do we make money and do good?

0:01:59.248,0:02:01.056
How do we make sure

0:02:01.056,0:02:02.636
that we have a great business

0:02:02.636,0:02:05.508
but we also have a great environment around us?

0:02:05.508,0:02:06.828
And that model

0:02:06.828,0:02:09.797
is all about doing well and doing good.

0:02:09.797,0:02:12.118
But the question is easier said than done.

0:02:12.118,0:02:14.255
But how do we actually get that done?

0:02:14.255,0:02:15.601
And I do believe

0:02:15.601,0:02:18.691
that the answer to that is going to be leadership.

0:02:18.691,0:02:20.048
It is going to be to redefine

0:02:20.048,0:02:21.918
the new business models

0:02:21.918,0:02:23.264
which understand

0:02:23.264,0:02:25.269
that the only license to operate

0:02:25.269,0:02:27.406
is to combine these things.

0:02:27.406,0:02:29.338
And for that you need businesses

0:02:29.338,0:02:32.097
that can actually define their role

0:02:32.097,0:02:34.182
in society

0:02:34.182,0:02:35.826
in terms of a much larger purpose

0:02:35.826,0:02:38.657
than the products and brands that they sell.

0:02:38.657,0:02:41.890
And companies that actually define a true north,

0:02:41.890,0:02:43.636
things that are nonnegotiable

0:02:43.636,0:02:46.196
whether times are good, bad, ugly --

0:02:46.196,0:02:47.463
doesn't matter.

0:02:47.463,0:02:49.629
There are things that you stand for.

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

0:02:54.121,0:02:56.256
drivers of software

0:02:56.256,0:02:57.968
that are going to create

0:02:57.968,0:03:00.034
the companies of tomorrow.

0:03:00.034,0:03:01.440
And I'm going to now shift

0:03:01.440,0:03:05.458
to talking a little bit about my own experiences.

0:03:05.458,0:03:08.338
I joined Unilever in 1976

0:03:08.338,0:03:11.471
as a management trainee 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,

0:03:16.140,0:03:18.247
"Do you know why you're here?"

0:03:18.247,0:03:21.544
I said, "I'm here to sell a lot of soap."

0:03:21.544,0:03:24.630
And he said, [br]"No, you're here to change lives."

0:03:24.630,0:03:26.922
You're here to change lives.

0:03:26.922,0:03:28.552
You know, I thought it was rather facetious.

0:03:28.552,0:03:31.367
We are a company that sells soap and soup.

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

0:03:34.239,0:03:38.254
And it's then I realized

0:03:38.254,0:03:40.577
that simple acts

0:03:40.577,0:03:43.009
like selling a bar of soap

0:03:43.009,0:03:44.498
can save more lives

0:03:44.498,0:03:45.975
than pharmaceutical companies.

0:03:45.975,0:03:47.597
I don't know how many of you know

0:03:47.597,0:03:50.932
that five million children don't reach the age of five

0:03:50.932,0:03:53.808
because of simple infections that can be prevented

0:03:53.808,0:03:56.748
by an act of washing their hands with soap.

0:03:56.748,0:03:58.200
We run the largest

0:03:58.200,0:03:59.429
hand-washing program

0:03:59.429,0:04:00.334
in the world.

0:04:00.334,0:04:02.495
We are running a program on hygiene and health

0:04:02.495,0:04:04.997
that now touches half a billion people.

0:04:04.997,0:04:06.597
It's not about selling soap,

0:04:06.597,0:04:08.558
there is a larger purpose out there.

0:04:08.558,0:04:10.616
And brands indeed can be

0:04:10.616,0:04:12.623
at the forefront of social change.

0:04:12.623,0:04:14.280
And the reason for that is,

0:04:14.280,0:04:16.890
when two billion people use your brands

0:04:16.890,0:04:18.542
that's the amplifier.

0:04:18.542,0:04:21.743
Small actions can make a big difference.

0:04:21.743,0:04:23.281
Take another example,

0:04:23.281,0:04:26.551
I was walking around in [br]one of our villages in India.

0:04:26.551,0:04:28.194
Now those of you who have done this

0:04:28.194,0:04:33.368
will realize that this is no walk in the park.

0:04:33.368,0:04:35.943
And we had this lady

0:04:35.943,0:04:40.083
who was 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

0:04:49.815,0:04:52.041
and her sister-in-law behind her.

0:04:52.041,0:04:54.113
The social order was changing

0:04:54.113,0:04:55.863
because this lady

0:04:55.863,0:04:57.999
is part of our Project Shakti

0:04:57.999,0:05:00.283
that is actually teaching women

0:05:00.283,0:05:02.154
how to do small business

0:05:02.154,0:05:03.333
and how to carry the message

0:05:03.333,0:05:05.976
of nutrition and hygiene.

0:05:05.976,0:05:08.183
We have 60,000 such women

0:05:08.183,0:05:10.035
now in India.

0:05:10.035,0:05:12.488
It's not about selling soap,

0:05:12.488,0:05:13.941
it's about making sure

0:05:13.941,0:05:15.981
that in the process of doing so

0:05:15.981,0:05:18.174
you can change people's lives.

0:05:18.174,0:05:21.371
Small actions, big difference.

0:05:21.371,0:05:23.090
Our R&D folks

0:05:23.090,0:05:26.719
are not only working to give us [br]some fantastic detergents,

0:05:26.719,0:05:29.488
but they're working to make sure we use less water.

0:05:29.488,0:05:31.652
A product that we've just launched recently,

0:05:31.652,0:05:35.180
One Rinse product that allows you to save water

0:05:35.180,0:05:37.356
every time you wash your clothes.

0:05:37.356,0:05:40.381
And if we can convert all our users to using this,

0:05:40.381,0:05:42.614
that's 500 billion liters of water.

0:05:42.614,0:05:44.908
By the way, that's equivalent to one month of water

0:05:44.908,0:05:48.092
for a whole huge continent.

0:05:48.092,0:05:49.768
So just think about it.

0:05:49.768,0:05:53.335
There are small actions that [br]can make a big difference.

0:05:53.335,0:05:54.953
And I can go on and on.

0:05:54.953,0:05:57.050
Our food chain, our brilliant products --

0:05:57.050,0:05:59.419
and I'm sorry I'm giving you [br]a word from the sponsors --

0:05:59.419,0:06:03.121
Knorr, Hellman's and all those wonderful products.

0:06:03.121,0:06:05.181
We are committed to making sure that

0:06:05.181,0:06:07.138
all our agricultural raw materials

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

0:06:09.944,0:06:12.044
100-percent sustainable sources.

0:06:12.044,0:06:13.592
We were the first

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

0:06:15.801,0:06:17.763
from sustainable sources.

0:06:17.763,0:06:21.683
I don't know how many of you know that palm oil,

0:06:21.683,0:06:24.096
and not buying it from sustainable sources,

0:06:24.096,0:06:26.701
can create deforestation that is responsible

0:06:26.701,0:06:29.243
for 20 percent of the greenhouse gasses in the world.

0:06:29.243,0:06:31.759
We were the first to embrace that,

0:06:31.759,0:06:36.157
and it's all because we market soap and soup.

0:06:36.157,0:06:38.355
And the point I'm making here

0:06:38.355,0:06:41.878
is that companies like yours, companies like mine

0:06:41.878,0:06:44.001
have to define a purpose

0:06:44.001,0:06:46.282
which embraces responsibility

0:06:46.282,0:06:48.982
and understands that we have to play our part

0:06:48.982,0:06:51.819
in the communities in which we operate.

0:06:51.819,0:06:53.719
We introduced something called

0:06:53.719,0:06:56.463
The Unilever Sustainable Living Plan, which said,

0:06:56.463,0:06:59.349
"Our purpose is to make [br]sustainable living commonplace,

0:06:59.349,0:07:01.176
and we are gong to change the lives

0:07:01.176,0:07:03.901
of one billion people over 2020."

0:07:03.901,0:07:05.701
Now the question here is,

0:07:05.701,0:07:07.225
where do we go from here?

0:07:07.225,0:07:09.145
And the answer to that is very simple:

0:07:09.145,0:07:11.278
We're not going to change the world alone.

0:07:11.278,0:07:13.868
There are plenty of you and plenty of us

0:07:13.868,0:07:15.338
who understand this.

0:07:15.338,0:07:16.503
The question is,

0:07:16.503,0:07:19.134
we need partnerships, we need coalitions

0:07:19.134,0:07:21.590
and importantly, we need that leadership

0:07:21.590,0:07:24.550
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.

0:07:28.695,0:07:32.510
(Applause)