tv Leaders with Lacqua Bloomberg October 31, 2015 9:00am-9:31am EDT
x it is right is one of the top companies, its products are used by 2 billion people every day. in over five years paul taubman has had a positive impact on the environment. in an exclusive interview i speak with him about sustainability, cop 21 and what it takes to be a good leader. >> think is a much for speaking to bloomberg. there is a lot of talk about spend ability. paul: i'm very confident that we
we have 169ement, targets. in this decade, we have seen a few forces coming together. monetary bond is starting to show up. we see disaster hitting our planets, with scarce resources. we see poverty and migration issues. all these problems are what is being addressed. we will address it in a more sustainable and equitable way. no business as a case of dealing with out poverty. if the society does not function, it is very difficult for us to function as well. >> are you confident businesses will translate into the increase? to the real go back reason for this, i'm sure there are exceptions.
hopefully we will solve some of the problems that are out there. the problems are for security. the proms of climate change. although there are challenges, they are enormous opportunities to invest. technology allows us to do that. funding has to come from business. it is about 60% of global gdp. 80% of the financial flow. so, if business does not get in, i do not think we will achieve these. responsible business people come increasingly realize not only from a more point of view that this very thing to do, is x a good for business. if you look at our see high you probably volatility and supply. their business model is being impacted. you can see enormous parts of the world where people are not
participating. in this you cannot sell your products. business is increasingly seated, it makes sense to be part of the solution. it, the problem is that it is often long term. when you have shareholders coming of pressure, capitalism needs to be inclusive. but, again, is there a certain momentum that you think businesses need now? erik: often shareholder pressure is confusing the short term. i think we should put these two apart. there was a short-term pressure were certainly has been healthy. the average length of a company's life is 18 years. a lot of companies run on quarterly profits, items that they get them there sold sometimes into dysfunctional decision. if you want to solve food accessy, climate change, to water, then obviously it requires long-term goal.
his long-term is in the interest of shareholders. we make long-term decisions that are effective. and our i.t. system have investment in people. an investment in humanity and our planets. increasingly, businesses see good reasons to do that. technology is there. the opportunity is there. actually, the alternatives of not doing it is starting to cost businesses more. let's take the drugs in sao paulo, not long ago, their water reserve was one third of what it should be. that is not a good situation. the hydro dams do not give good electricity. people do not have water. when they do not have water they did not take showers, they do not wash their hands, their electricity stops a few times during the day, if you have ice cream like us.
business is hurt by failures. the solution to avoid this is a good business opportunity. bed hungrythey go to are an opportunity to grow the market for food. have an enormous opportunity to provide nutrition for these people. business good opportunities. >> and paris, do you think will get an agreement? paul: you will get an agreement impairs. we had good discussions for financial development. in fact, we should not forget that even today, the deadline is the first of october. we currently already have 58 countries that have submitted, i've these 50 countries that have submitted a 78% of the carbon mission. where would it big companies
like brazil and india, there is some encouraging noise coming from there. i was in brazil three weeks ago. i was in india a few months ago, we are waiting for that. what you see in the submissions we have done we can get to 30% of what is needed. there has never been an agreement globally. now, we need an agreement for 34%. frankly, that is more than anybody have thought. starting point. foragreement in paris is like the g7. two and your omissions by the end of the century. we need a point that is very important for business. once we have a clear agreement that is reached, as this will reach forward. we have investments to accelerate this to a carbon free society. >> wire you confident we will have agreement?
paul: this is a 21, 21 stands for something. suddenly, we have realized it is time to move. we never thought the impact of be as much. >> coming up, we continue the conversation on sustainability. for consumerim choices responsible purchasing power, and the bottom line. worldis our duty in this to set an example and be sure we are not doing something that. we are driven by the needs of our consumers. >> we will be back in a few minutes.
>> in 2015, it was a worthy topic ranking prize and the leaders survey for the fifth consecutive year, paul holman speaks exclusively about how this has shaped the market. wantxample, your customers a company that is more sustainable, i have always been told that some of your rivals say that everybody would love a shampoo that does good, but when it comes between one that gives you healthy hair or does good, we always choose the one that gives us good hair. paul: i would not disagree with that sentence, but is not the right comparison. obviously, you need a product that performs, you need it adding a formal cost, that is the job of any company. once you have done that, consumers differentiate. you want to buy from the company that has child labor and its value chain? or one that has a
sustainable practice you go -- practice? come citizens of this world, with the benefit of transparency of the internet are able to separate. expectations go up. who move from based materials up to 55%. it is a tremendous improvement, we've done this five times in last five years. we put our emphasis in it. we have seen the importance of moving closer in our value chain. a more equale value chain. we have made changes in our business model, but, even though you have done more the last five years, the expectations go up again.
have betterhat you wages in your value chain, or better conditions, but are these conditions good enough? it is a continuously moving playing field. christ you think because people share more information, is there an age group that is more obvious in sustaining the goals. absence ofook at the government, the world has become so interdependent, it is very difficult for government to work under a system. designeditutions were at the time of a percent of the world at europe and u.s.. now that the world as much of global, we have seen a shift to the east. these institutions have not yet really adjusted. we have a challenge for all of us. it is not really to bring the politicians down. what you really see is that business needs to step up.
what you see a citizens in this world, but wealth might be concentrated in a few people. 70% of the citizens of this world have access to a mobile phone. over half of them have access to the internet. most of the phones are smart phones. increasingly, they realize they are connected. there are a enormous movements of driving change in the country. there are many examples of that. the groups that drive it is the millennial. millennials actually want work for a big corporation. because of the issue of trust or transparency. it is the same with government. millennials also say it is fine. we have a certain level of well-being, but what i'm looking for is more meaning.
they tend to look and seek out companies that have that purpose. they put the business model in place. we are the most looked up company after linkedin or google. we get one million people kind of you. then, we look at the people who come in in the engagement scores we get. it is driven by a positive business model. impacting the right people and energizing the correct people is a key ingredient for long-term success. what is your water footprint? what is her carbon footprint? that not only makes you more accountable because of that transparency, it also gives more information to the financial markets, in this case there is a lower risk for them. ofre's probably a lower cost capital. that results in a higher return as well. >> not make people understand that.
we talk about purpose building a business, does this come from you? does it come in a turning point? wanted you realize this has to be done? i always felt that we are not here for ourselves. the role of business is to serve society. they even called it the life one outvictoria britain of two babies did not make it past the age of one because of issues of hygiene. they're the same issues as africa or sub sahara africa. duty asthat it is our leaders in this world to set an example and be sure that we are driven just by shareholders, but that we are driven by the needs of consumers, and if we cater to them very well, business will perform. you must be disappointed that
nuts more ceos think like you. paul: you cannot sit here and get frustrated by the attitudes of others or the speed with which things move. you should just continue to focus on bringing the right people together and moving these barriers. sometimes, you think why can we move faster? whom i to judge? the best thing to show is that we can have a business model where we do well, but also do good for the shareholders. that, the more we see other people work. one of the reasons that you see is reallyes with ceos because a lot of the ceos are not equipped for the challenges of today's world. >> which are what? paul: faster moving, more compact.
issues of water, energy, food. you squeezable at one-sided pops out the other. you need to work in a partnership. it is not something that comes so easy to everybody. you need to navigate the field of government and civil society having to deal with a lot of pressure on you. some people have more capability to move these boundaries and overcome that than others. in you to help each other. we have a lot of initiatives. >> next, we continue the conversation about leadership and key values. paul: to me, a leader is not just because i have this job. somebody who leads from the back like a shepherd with the sheet. >> moore, next.
♪ >> welcome back. this is only top companies the world work for a company in the final part of my conversation with paul holman, we discuss leadership. paul: leaders are not relegated to a level of the company. for example, the medical that went to west africa to fight ebola, those are real leaders. i work a lot with the blind and deaf, people who train themselves 24 hours for the availability of people with disabilities. those are real leaders.
often, in fact come the teachers and nurses, these people who are real leaders that really impact others are undervalued. so, to me a leader is not just because we happen to have a job. a leader is not necessarily only somebody who leads from the front, a good leader probably leads more from the back than the front, like a shepherd does. ultimately come i hope they see that they do not like near let i, but i would hope that could say that there is respect, because ultimately, i think the jobs that we do these are very challenging jobs. it also means some of the decisions are involved in our decisions that are not that easy. otherwise, they would not arrive at you. you tend to not make friends. if you try to make friends, you will not do a very good job. if you want a friend get a dog. often you make tough decisions. that is why it is so important
to be purpose driven. that is probably the only beacon that you can have. it helps you navigate a more volatile environment. >> how must you think about the world? dear member at what age you yuccad thinking about about? >> hard,i had to work very because a lot of things were deprived for my parents. they help their children would give them a better future. they were tremendously involved in the communities. i was in boy scouts. i have always felt that the purpose is to help each other's. i would to be a priest or doctor. life sometimes goes in a different direction. i'm in business, but i find that in a company like this i can make a big positive inflows, and
sometimes even more than anything else. so, it is all about leadership. at the end of the day it is all about influencing others. if you can do that, wherever you are your leader. >> what you look for in the managers that you bring up? well, there are a number of values that you have. at any level leadership there is a certain level of intelligence you need. in today's world to integrity and other things that you know, i think you want people in this world that have a high level of awareness with issues that are going on. another high level of awareness will be able to engage themselves. ultimately, that is what counts. do that with a high level of humanity and humility. i think those will make the better leaders. these are leaders that need to have some new skills like systemic thinking and stuff, had he put this complexity together?
taylor to simplicity. leaders that can work in partnership with others. understand that it is about the common good. leaders that maybe take a longer-term and a provision in. i think there are many of them. as i have said, where shorts of leaders and trees in the world. the more we can create, the better will be. > how do you create? paul: for example, we have a lot of social entrepreneurs that we attract to our business model. they bring in a fresh way of thinking. so, we have created a social entrepreneur. we have 800 or 900 people applying every year. in any the projects that we do we want to work with a partnership. we do not really do anymore small projects.
the at the social compliance in your chain, or working with your partners to get a sustainable sourcing, we really try to put these partnerships in place. organizations like unicef, it keeps us honest, because this is a moving thing. we do not have all the answers. we cannot do it alone. we have to be sure that in the approach of creating a cost of a total value chain, and be sure that everybody's included, they have equitable and sustainable wealth, is that everybody is protected, that can only be done if you work in harmony. or a bigre another ceo influence in your life that you admire? paul: there are many that you admire. the answer you normally get our look it nelson mondale, are rosa
parks some of what they tell you is that these are people who are driven by strong sense of purpose. if a person like rosa parks like nesting and up in a bus can change the face of racial segregation than any individual and their own circle can credit difference. what you have to do is encourage it. we have a lot of efforts in place. foundations.these give a lot of people there. it changes the conventional career path. we bring in examples from other companies. there are many others that have shown they have a lot of courage. alternately, what gives us purpose to do what we do, and it should be true for everybody is that we realize why we do this. alternately, we do this because we belong to a very small percentage of the population. 2% that is actually educated. that has a comfortable job. that can do what they want, work or they want. they do not have to about their family.
that is not trivial and 98%. i always believed that it is our duty to put ourselves to the service of the other 98%. the moment in life that you really become a leader, wherever you are in the world, whatever function or job as we discover that it is not about yourself. >> do think capitalism will be more inclusive? paul: i hope so. there's nothing wrong with capitalism. it is just a word. this year, we have a unique opportunity. we have good development goals to alleviate poverty. with climate change negotiations in paris we can never have to deal anymore with the issue of climate change. actually, we have the truth the next 50 years to do it. can we drive the morality of pimco it is more capitalism more than anything else.
♪ emily: it has changed the way we watch video, redefined going viral, challenged governments, and even launched the career of justin bieber. today, youtube, now owned by google, has more than 1 billion users, uploading 300 hours of video every minute. it all started a decade ago with a trip to the zoo. and one of the founders says he is not quite done changing the way we are entertained. joining me today on "studio 1.0," youtube cofounder and former ceo, chad hurley. chad, thank you so much for being here. it is so great to have you. chad: an