tv Leaders with Lacqua Bloomberg October 30, 2015 7:00pm-7:31pm EDT
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us. what is your biggest hope for unilever? decade, we in this have seen a few forces coming together. planetary bonds are showing up every week. we're seeing poverty tiered we're seeing the migration crisis. always problems -- all these problems are being addressed. we want to use our planet in a more sustainable, equitable way. has a case for making an enduring property. francine: it looks good to say that. are you comfortable that businesses will actually translate that? mr. polman: most are already. if you go back to the reason for , there are some the
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problems out there in society. food security. water. climate change. opportunitiesmous to invest behind funding ultimately has to come from business. business creates the global gdp. 80% of the financial flow and 90% of the job creation comes to business. peopleible business alize this isrel the right thing to do. it is good for business. francine: why? mr. polman: if you look, the issue of climate change for havele, you might not even a supply if it moves around the world. your business model is put at risk. participatingnot
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in economic development. you cannot sell your products. business it increasingly -- business is increasingly seeing that it helps to be part of the solution. francine: is often longer-term, right? when you have shareholders, you have pressure. capitalism must be inclusive. there's a certain momentum that you think this misses -- think businesses need now? mr. polman: the shareholder confuses the short-term and long-term. there's a short-term pressure that is not healthy. most runmpany life, only 18 years on quarterly profits. solve issues of food security, employment, climate change, access to water, it requires a longer-term.
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that's in the interest of shareholders, provided you are a long-term shareholder. we want to pay out over five to six years. our biggest investments are in people. increasingly, businesses see good reasons to do that to invest in the planet. the technology is there. of not doing it is costing business more. we have parts the world like sao paulo. the water resources there are only 1/12 of what they should be. people don't have water. when they don't have water, don't -- they don't take showers. they don't wash their hair. electricity stops.
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business feels the cost of these failures. is to create business opportunities. hungryple who go to bed have no opportunity to go by food. -- buy food. francine: do you think this year we could get an agreement? mr. polman: we will. a lot of work has been done. good discussions are there for financial development. we should not forget that the deadline is october 1 when these countries can put in their contributions. we currently, already, have 58 countries that have submitted. 70% of thewe have carbonation in the world --
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carbon emission in the world. i was in brazil three weeks ago. i was in india a few months ago. what we see is that we more or --ss can get to 30 to 30% or 40% of what we wanted. it's a starting point. agreement says we will make a commitment like the g7 did. let us have a point. it is very important for business. once the agreement is reached, this work must be invested again. francine: why are you confident that we have an agreement?
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it has taken us seven years? 21.polman: this is number francine: why 21? mr. polman: because it is time to move. francine: we continue the conversation after the break. i challenge the ceo of in lever over consumer choices and the bottom line. it is important in to be driven by the needs of the consumers. back in a minute with more on that exclusive conversation.
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francine: in 2015, unilever was given the top breaking plies -- prize in the sustainable leader award. the ceo about how this has shaped the business. francine: do believe your customers want a company that is more sustainable? i've been told arrival say everybody would love a shampoo that does good, but when it comes to choosing one that gives you glossy hair or does good, we always choose the one that gives us glossy hair. mr. polman: i would not disagree with that, but obviously, if you need to provide a product that performs, it must be a cost that is affordable. that is the job of all businesses. once you do that, then it's different. would you want to buy a product
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that uses child labor? would you want to buy a product that contributes to the problems in the society? arecitizens of the world increasingly able to separate. this is a moving thing. there's tremendous improvement. grown.0 years we saw the importance of changing the value chain, to .etter manage, to even though you've done more in the past five years in the
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previous 150, the expectation goes up. -- it is fineou that you have better conditions, but are they good enough? it is a moving thing. is there a specific age group that is more militant in wanting sustainability? mr. polman: the world has become so interdependent. , it is verystems difficult for governments. some institutions were designed at a time when 80% of the world was in the u.s. and europe. with a more global world, we say shift -- see a shift to the south and east. this is a chance for all of us. not to blame the politicians. a businessman has to step up.
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you see with the citizens in this world is that wealth is now concentrated in a few people, which is not good. world has access to a mobile phone. cap has access to the internet -- half has access to the internet. drivesup that really this are the millennials. few of them- very business. to have that it is fine a certain level of well-being, but what i'm looking for smart meeting, more purpose -- is more
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meaning, more purpose. when you put in a business plan we are the third most well applied to company, after google and linkedin. attracting the right people and driving the right people are the key ingredients for the long-term success of the company. there that goals out what ise with society, your water footprint, your carbon footprint, makes you more accountable because of the transparency. it also provides more information to the financial market. in this case, a lower risk. ultimately, a lower loss of capital. francine: not many understand that.
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when you talk about the purpose of this business model, does this come from you? is there a turning point where you thought this has to be done for myself and my business? wencine: i always thought are not doing this just for ourselves. in victoria britain, -- in victorian britain-- our business is very much a business that addresses these basic issues of society. sustainable development agenda. ceos to set anas example and make sure we are not driven by the shareholders but by the needs of the consumers. we cater to them very well. the business will also perform. francine: you're disappointed
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that not more ceos think like you? frustrated byam -- i'mitudes of others not frustrated by the issues of others. you just keep moving forward to these barriers. sometimes you think, why are not more people doing this, but who am i to object? model wheresiness we can do well but also for our shareholders and the other stakeholders. the more we do that, the more we see people enroll. the role of the ceo has changed. of these reasons is the short tenure of ceos, which is 4.5 years now for the fortune 500 companies. companies are more complex,
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faster moving. the need to work in partnership is not something that comes that easy to everybody. d to navigate governments, civil society. thee are lots of pressures point you toward the shorter term. some people have more capability to move those boundaries and overcome them than others. we have a lot of issues. francine: next, we continue the conversation with paul polman about leadership and key values. mr. polman: a leader is not someone who just happens to have a job. world leader in today's leads like a shepherd does. francine: more on that interview, next.
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francine: welcome back. nilever is one of the top ranked companies to work for. its products are used by 2 billion of us everyday. mr. polman: leaders are not related to a level in the company or a title. for example, the medical community that went to west africa to risk their lives to fight a bola our leaders to me -- to fight ebola are leaders to me. schools.ers and
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often, the teachers, nurses, those that positively affect others are undervalued, strangely enough. you're not a leader just because you have a job. world leader in today's leads more from the back them the front, like a shepherd to sheep. i would hope to get respect, because ultimately, i think in the jobs that we do, these challenging jobs, it means most of the decisions you are involved in are not that easy. otherwise, they would not arrive at you. friends --m not make you tend to not make friends. jobs, you have to make tough decisions without all the facts.
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that is why is important to be purpose driven. it is the only beacon you can have in difficult waters. much do you think about the world, about making the world better place? at what age did you start thinking about what's important for the generation ahead? mr. polman: when i grew up, i was born after the second world war. i worked very hard. --versity was hard fo i was the first person to go to university and other things. weary sheer force to help others. -- the purpose we are here for is to help others. in a company like this, i can have a positive influence. leadership att
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the end of the day. it is about possibilities to influence others. whoever you are, you are you. francine: what do you look for in managers in the company? empathy, respect? mr. polman: the normal values in any leadership position that we all have. , i think oforld integrity. i think you want people in this world that have a high level of awareness of the issues that are going on, not only a high level of awareness, but people who can engage themselves. they do that increasingly so with a high level of humanity. that need toders have new skills like systemic thinking. how do you put these complexities together?
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work inthat can partnerships. it is not about them, but the common good. leaders that are purpose driven. i think, there are many of them, but as i have said many times, some of the leaders, and the more than we can create, the better we are. you concern you did fight them when they come in. we have a lot of social entrepreneurs that we attach to our business model. they really bring in a fresh way of thinking in tomorrow's world. unilever younge social for newer award. we get a lot of strength from that. we work on any subjects. -- many subjects. we don't do products alone. we work in partnerships.
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we are working with partners to get sustainable sourcing. we really have tried to put this partnership anin place. this is a moving thing. we don't have all the answers. we certainly cannot do it alone. we want to be sure that in the approach of creating value across the total plane and ensure that everyone is included, we want everyone to create, we want everyone to be protected. that is only possible if you work in partnerships. francine: is there another ceo or influence in your life that you admire? mr. polman: the answers you normally get our to look at nelson mandela or rosa parks.
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these are people that are driven by a strong sense of purpose. it's a person like was a parks who can change the face of racial segregation in the u.s. see and feel is that everybody can be a leader. sometimes, you have to encourage them. we worked with -- we work with foundations. we're trying to change the conventional career path. we bring in examples from other companies. there are many ceos. ushink ultimately what gives the power to give -- to do what we do is that we realize why we do things. we belong to a small percentage of the population, 2%, that is educated, that has come from jobs, the can do what they want. -- of that can do what they
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want. duty.eve that it is our whatever level you are at, wherever you are in the world, it is the function of every job to know that it is not about yourself. do you think --. francine: do you think capitalism in three years will be more inclusive? mr. polman: i hope so. this year, we have unique opportunity with the sustainable developing goals 20 -- to eliminate poverty. if we decide to do so. we have the tools in the next 15 years to do that. we could send somebody to mars. how can we drive them around the drive thee them around th
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we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. >> shares of solar city collapsed 20%. what happened? explain the sunburn, next. ♪ corey: i am cory johnson. businessmen left and right are talking about who came out on top. hp is hoping to is better than one.
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