Showing posts with label profits. Show all posts
Showing posts with label profits. Show all posts

Thursday, October 25, 2012

Excerpt from Chapter 6 -- Constructive Capitalism


Chapter 6  --  page 100

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One of my guiding business principles is what I referred to as “Constructive Capitalism."  Let’s face it, I got rich simply by making the world a better place.  That was always my goal from a young age.  I’ll be honest and admit that I also went into business for recognition, wealth and challenge.  However, I always operated with the philosophy that I would like to build a legacy that would be respected.  When my company developed the efficient food product known as “NutrisHouse” Bars which delivered a person’s complete nutritional daily requirements, then that really was the fulfillment of my dreams.  I ultimately have far surpassed any and all of my hopes.

Upon my company’s ultimate success in the USA and Europe, we then started developing the same food products for poorer countries.  The products for these regions cost about a third of the more consumer-oriented products that were being sold and marketed in the western areas.  Of course, everyone knows that the flavor was not as good and the packaging was not as elaborate, but the nutrition value was the same.  Every single country in the world that imported NutrisHouse Bars saw improved health almost immediately.  Even where there were still dictators and civil wars at the time, the health of the citizens improved.

 “Constructive Capitalism” evolved as a concept that in essence requires a company in order to be successful to do doing something tangibly beneficial to improve the state of the world.  This was not necessarily a unique concept that I developed, rather a progression of the changing consumer-mindset and some companies realizing that it was in their best interest to go this route in order to maximize profitability.  “Constructive Capitalism” was also not just about financial contribution either.  Just writing a check to a charitable organization seemed unsettling to most people after the success of NutrisHouse Bars where genuinely positive results were being realized.  Consumers would not accept anymore that if a company does business they just cannot hand over a payment to make them feel or in the worst case scenario, look good.  The contribution of the company must be genuine, involve the resources of the company and be done with the spirit of improving the conditions in the surrounding areas.  Even in the US, the spirit of corporate contribution became more about first-hand infrastructure development rather than continuing to do “fun runs, bake sales and raffles”, as Bill Gates put it in 2007.

Wednesday, October 24, 2012

Excerpt from Chapter 1 - changing perspective towards wealth


Chapter 1 -  Pages 8 & 9

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Historically, where the personal valuation had gone awry, however, was in terms of the origin of one's individual wealth.  The mere possession of money had come to supersede the means of accumulating it.  In the early twenty-first century, any individual could accumulate wealth with no regard to the impact one made on other individuals or society. The worst aspect of that system, however, is that one could accumulate wealth at the expense of others.  This was a flawed model, as the most aggressive people and organizations, that seemingly prioritized wealth and power, ended up accumulating a disproportionate amount of both and subsequently started persecuting and taking an authoritative position in relation to those who had less.  This ultimately led to the “Occupy Movement” in 2011 and 2012.

America fortunately came to realize that accumulation of wealth at the expense of others is not wealth that should be judged as valuable or honorable. Through the “New Freedom Initiative” (NFI), wealth that was accumulated without adding value to individuals or society, started to become less respected or desired, and per my initial point regarding human judgment, “unsavory money” actually became judged as negative by a great majority of Americans.  Just as an easy example, banks in America came to refuse drug money out right by 2015.

The effect of this unsavory label was to encourage individual and corporate wealth-building as a result of benefiting a wider group of society.  It would also serve to keep those who had amassed their fortunes in a less than honorable manner from having personal influence or access to broader political, business or social institutions.  No one ever argued that any individual could not make money in America any way they liked.  What came to pass, however, was that the holding of that money did not automatically include power and influence along with it.

By the mid-2030s, ethics have since returned and are now a key component to wealth-building such that the amount of money that one accumulates is reasonably proportionate to the contribution one makes throughout that process.

In today’s world, those individuals that provide the greatest benefit to society receive the greatest return in terms of money, property, power and authority.  As a result, most people can claim a higher level of happiness and stability in 2043 than they ever could in 2013.  This claim to happiness extends well beyond American borders into parts of the world where in 2013 even having a claim on clean water was rare.  The world genuinely has improved significantly as a result of changed attitudes toward money.

Tuesday, February 28, 2012

"Ethical Capitalism"...The Next Big Thing in Corporate Profitability

Corporate America is the foundation of America's strength.  The greatest hope for America are its corporations...really!


Many people would likely argue that corporations are self-interested, money-grabbing organizations devoid of any human empathy.  And, this is in fact in most instances is probably quite true. But, embedded inherently within that attitude lies the potential for that self-interest to make a significant positive impact on Americans.


The business movement that is currently evolving is that corporations will see increased profits as the direct result of benevolent actions. I refer to this as "ethical capitalism".


Case in point is the "green" movement.  As public pressure and business opportunities are created due to a demand for cleaner environmental initiatives then it has been demonstrated that this is an area where companies will focus their attention.  The decision by corporations to pursue profits in the environmental arena is a business one and not personal.  To my earlier point, businesses will naturally gravitate to the revenue opportunity and therefore environmental initiatives have become part of the American corporate mindset thus providing a strong sustainability platform for long into the future.


What should be the next step in the green revolution of profitability is that corporations profit more from doing societal-friendly activities.  From a marketing perspective, companies have long known that being seen as part of the community and a good corporate citizen is good for business. Companies will line-up for opportunities to sponsor charitable causes and to provide safe products because the consumer population demands them and it is good for their brand building objectives. Therefore, corporations know that the appearance of being a good citizen is good for business in terms of building brand value and from a product standpoint safety leads to a reduction in the number of law suits and reducing insurance premiums.


The next tactic then in the evolution of corporate contribution is to go well-beyond charitable support, fund-raising and brand building and to make resources and expertise available to the public at large.  For an easy example, one area where corporations can have a dramatic and immediate impact is in terms of disaster relief.  Whenever something happens around the USA the corporations should be the first ones on the scene to help.


The Hurricane Katrina flood in New Orleans could have benefited dramatically from local and national corporations by having access to their expertise in order to provide relief, rebuild the city and care for those affected by the devastation.  A wide variety of companies could easily have pitched in by providing human expertise, labor, supplies, management coordination rather than just providing funds or basic supplies like water and blankets.  Further, corporations are used to working within an integrated network of other companies and suppliers to achieve their goals which is something that governmental agencies cannot claim.  It would have been much easier for a home improvement retailer to work with engineers and contractors to rebuild parts of the city rather than having to wait for governmental resources to coordinate the effort.  Corporations also have the luxury of operating by objectives and have to be less considerate of public attitudes.


If corporations actually pitched in first-hand to actually address the immediate problems then they would be rewarded by increased brand recognition, sales increases and consumer loyalty...all of which which would lead to enhanced profitability and stock price for the company. The result of "ethical capitalism" is increased corporate benefits to the bottom-line through benefiting America.