Profit to be proud of
February 2, 2009
The good thing of the crisis is that the need to change the way we run the economy is obvious. It is non-disputable that a new balance has to be found between the long and the short term, between shareholder and stakeholder value, between people, planet and profit. A recalibration of values will have to result in a way of doing business that generates “profit to be proud of”. “Just making money” is not good enough (anymore): one has to create value in a way that meets ethical standards, and is fulfilling and rewarding also in a non-monetary way.
The last two weeks we saw an interesting example of how generating income and living once values can cause a conflict. When it was announced that Dutch energy company Essent was to be taken over by German RWE, the Dutch chapter of the World Wildlife Fund (WWF) expressed concerns. Accrording to WWF RWE does not have a reputation, nor a track-record of being sustainable. Whereas Essent and WWF had a sponsorship agreement, the latter felt this could not be continued after the take-over. Values and credibility are more important than sponsorship income. WWF terminated the sponsorship agreement.
Hopefully this will be a stimulus for RWE to start and even accelerate a sustainability drive. And surely the decision will help WWF to maintain its position as a credible and ethical steward of its legacy.
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The discontinuation of WWF's arrangement with Essent is a clear signal. It is doubtful whether RWE will suddenly become more aware of other strategies to follow. When do we know whether we have really reached the next stage of corporate responsibili