Alright, welcome back. Today, we're talking about kind of a bigger topic
about corporate social responsibility and why it's important. I'm a small
business owner. But when you talk about you know corporate, it's kind of a
foreign world to me. So I brought in Devin Thorpe. This is the topic that even
as a small business or you want to pay attention to. Let's first talk about what
is corporate social responsibility? -So, we talk about corporate social
responsibility. We're talking about corporations distinctly, specifically
trying to do something good in the world. Typically not just for their customers,
not just for employees but usually we're talking about doing some sort of
activity that benefits people outside their traditional stakeholder base. But
certainly and it could include those people. -So, in previous videos, we've
talked a lot about individuals and how I can change the world as an individual or
you know impact the world through my business. But now, we're talking on the
corporate level. What's... What difference is? What's the main difference between an
individual or small business owner versus a corporation? -Well, you know,
corporation. When we think about corporations, we think about you know,
Apple and Google and Facebook. General Motors and General Electric and you know,
the old economy companies. I mean, they are big companies with lots of money and
lots of employees. Lots of activity. Big footprints around the world and they
have the power with a relatively small investment of their total energy to make
a big difference in the world. Relatively quickly. And a hiring practice change
makes it can make a big difference. You know, if they decide everyone's going to
make $15 an hour or more, huge difference, right? So, there are all kinds of things.
If we're going to stop having an you know, heart hurting the environment quite
so much, makes a big difference. So yeah. -We've talked about the importance of
somebody who even achieves influence without intending to be
influential. Maybe they become a celebrity. They're just an NBA star,
there they're a movie star. That they, I believe that they have a responsibility
then to use that that position to influence world for good. So this is now
translates these large corporations, they have such an impact on
their employees lives, on in so many different areas that there is definitely
a responsibility. Even I'm assuming we're going to talk about
even if laws don't require it or whatnot. But there's just this
responsibility that we need to take a look at everything that we're doing and
and see the impact that it makes make sure that it's it's not just beneficial
for the bottom line but benefiting the world. -Yeah, yeah. So and you know, the
interesting great thing about corporations is that they have some
scale at which they can have some impact right off the bat. So, once a
corporation decides to have impact in an area they can have meaningful and... -It
could align themselves with a cherry. -Yeah. -Nonprofit. -Yeah. -Or you know, just
changing their corporate policies on, you know, how you deal with waste suddenly. A
huge impact on the environment. When... If General Motors tweaks the way it
operates you know, it makes a big difference. If Walmart you know, put solar
panels on its roof which it does, right? In a lot of places, that makes a big
difference on the environment of the planet, right? Because it's megawatts of
solar that one company, one decision can deploy. It makes a huge difference, right?
And you and I when we make a decision, we don't make decisions typically at that
scale. And we don't... Our influence doesn't start there. But that's what the distinct
advantage of Corporation has. -So if I make a decision, I've got a piece of
garbage and whether I'm going to find a recycle bin versus just putting it in
the regular trash, sometimes I thought in my mind how big of an impact is this
make. But if I make that same decision as as a you know, leader of a corporation,
that we're going to have recycle bins available for... I haven't actually, haven't
thought about that before. -So, it's huge scale. Huge difference. I want to point
out. It is really tempting to vilify corporations. And I'm not saying that
they've never done anything bad. But what most people in this world want is a job
or a better job. And among those who are the poorest, you know, they're eager just
to have a job. And it wouldn't occur to a lot of the people in this world without
a job that they want a job with all kinds of benefits and safety assurances
and they just want a job. $3 a day, $5 a day. A job that would
pay that much. And for a lot of people that would be a good job. I hate to
advocate for crappy jobs. But the fact is, corporations all around the world are
engaging people in low-wage jobs. And we sometimes think of that as a bad thing
and in fact, there is much to be said for that. If you're a subsistence farmer and
you go through the dry season, wondering if you'll survive and your total annual
income is the equivalent of 300 bucks. If you've got a job that paid you 5 or
8 dollars a day. I mean, we're talking about 5 or 8 times as much ... 10
times as much income. It would be radically life-changing and you would
never again worry about whether you would have food to eat. You're not going to
buy a Tesla but at least not a new one. But you're going to... You're going to eat, right? And
so, I think corporations are doing a tremendous amount of good in the world.
-Yeah, I've got a... I've had a unique perspective on that because I've
definitely heard those conversations about you know, how big corporations
who outsource an offshore. Different manufacturing or they're their customer
service departments. And we think about it about things that are being taken
away from from us here in the States but not necessarily the opportunities
providing. I've got 10 full-time employees in the Philippines. And I've
been hiring there for almost 9 years now and
really to see the impact that I've made in their lives, really it didn't dawn on
me. Because at first, it seemed like I was... I was really just so amazed that the
benefits I was receiving from it. -Mm-hmm. -And I'll just be transparent. The average
wage that I pay to my staff in the Philippines ranges between 4 and 5
hundred dollars per month. -Mm-hmm. -You know, in considering their skill level,
they're... They're great value to me and my company, if I were to hire somebody like
that here, we're in Utah. You know, that would that would be many fold. -It would
be cost you 10 times as much. -Exactly. But as I as I've been able to look at it.
Like, I haven't given any money in a charitable way as a donation to people
in the Philippines. But yet, I provided a livelihood for many people. You know, my
longest team members been with me 8 and a half years. And you know, his whole
life has been changed and kind of dependent upon me and the work that I've
done, the clients that I brought in. It's just... It's just interesting to think
about that impact. So obviously, we're talking about corporations but
it's... The world of technology and the Internet has made
kind of this opportunity the corporations have kind of had
exclusively now to available to people like me. -Right. -Small small business
owners. -But they... You know, the theme here is not everything a corporation does is
bad. Alright? Hiring people even at low wages is good
because so many people that are taking those jobs, they're alternative is so
much worse than a 5 or 8 dollar a day job in a factory. You know, their
option may be starvation. And so, should they make their work you know, safer?
Should they make the hours reasonable? Should the wages be higher? Yes, yes, yes,
yes. All of those things we can do better. And that's what corporate social
responsibility is about. But I want to make sure that we don't go vilify
unnecessarily corporations, yes. They do... There are corporations that are not
mindful of the environment. There are too many in my mind that are continuing to
use and produce fossil fuels justifying that with the idea that well we're
dependent on that because of them in part. We, need to be collectively
proactive. So I don't want to be... To dismiss all the harm that corporations
do. But I don't want corporations to be viewed as the bad guys in the
world on the planet. And because we need them. There isn't a better alternative to
corporations and capitalism that we found. -So, maybe here's a... There's a.... Maybe
a question that might twist the conversation. But is there an
appropriate way to ensure corporate responsibility? -Yeah. -Because I you know,
in governments, there's different types of governments where there could
be you know, a dictator or a king or something like that versus more of a
democracy or a republic where you know, people can sound their voice in a
company. You've kind of got a dictatorship where you've got the CEO or
the President or the founder of that company. I mean is it... Is it just done
through governments and through getting laws enacted or what's the best way? -That...
That's a great point and there's... There are many layers to that question.
Let me try to jump on 2 or 3 of those that I think are key points. One
problem that we are facing today with corporations is that some are clearly
more powerful than nation-states. That is I think fundamentally a problem. And yes,
Apple, Google, Facebook, I'm looking at you. I think it is scary to think about
corporations that are so massively profitable. That their resources, their
financial resources clearly outstrip the government's who seek to regulate them.
That is inherently a risk for the planet. We need to be thoughtful about that. We
need to be thoughtful about our forms of government. We all need to be active in
our government. So, I don't know whether this will air
before the midterms but remind people to vote. If it's after the midterms of
writing to do vote the next time. There's always a next election. But we need to be
active in our democracy. Certainly democracy is a more I think a profoundly
better form of government than the alternatives. Finally, you asked a
specific question. How do we impose? How do we force? How do we control corporate
social responsibility? India has formula corporations of a
certain size are required to spend a certain percentage of their income. Not
their revenue but their income on corporate social responsibility
initiatives. It is rather small. I fear that because it is essentially
now a tax, right? They're required to do this. That the minimum becomes you know,
the minimum required will quickly become the maximum. No one will do more than
that because that is viewed as the standard. So, I'm not a big fan actually
of requiring corporate social responsibility by the government. It's
not crazy. But I would rather see consumers demand it. Because when
consumers demand it, when shareholders demand it, when employees demand it, it
can continue to grow. What may be acceptable as a corporate social
responsibility initiative. The first year may not be acceptable 5 years down
the road. We make continually incrementally force greater compliance
in corporate social responsibility. And it can be profitable, right? If the
employees and the customers and the shareholders are all demanding it, how do
they demand it? They demand it with their pocketbook. So really what we're saying
is we will pay up one way or another for corporations to behave better. And so, the
better, the more we force them, the better they'll behave. And more profitable they
will become. Everyone can win in this cycle. -So on one hand, yeah we can we can
elect politicians that understand the importance of corporate responsibility.
We can you know, try and enact laws or things.
But on the other hand, in a way that might be more effective is as a customer,
we can support companies that demonstrate social responsibility. We can
sound our voice, we can have discussions, we can talk about it so that the message
of corporate responsibility and in the specific things that mean most of us
that we can we can talk about it. And spread the words so that it catches the
eyes and ears of corporations and others of their customers. That's what I mean.
-Yeah, yeah. Absolutely. And now, I don't mean to suggest that governments don't
have a role. Because they do in regulating minimum wages, governments
have a role to play. In regulating how we manage environmental issues, right? How we
manage workplace safety. There are clearly all kinds of roles for
government to play. -Does it ever get to a point and probably... I mean, maybe this is conspiracy
theory. But you get to a point where can we need to regulate fossil fuels? We'll
just use an example. But corporations have their lobbyists that then say, "Well,
we're going to fund your campaign so you better not put this forward." -Right, yeah.
Oh that. It clearly is happening and that's why the you know, consumers play a
role in all of this and not you know, to be all of those things, right? Because a
consumer often times as a shareholder, is may also be an employee of a corporation
even though it's not the same corporate. So, we we have a lot of influence
especially collectively. And so we need to keep putting pressure on people to
keep our air and water clean, to reduce carbon output. Etc., Etc. -So, you know, I love
Toyota. But me and I love I know that they're taking steps with electric
vehicles and whatnot. If I then you know, I could more attack them and try and
fight with them where I can just support their electric vehicle initiative or
I can for support companies like Tesla. -Yeah. -And I've seen that even just in the
last few short years as Tesla started become more and more popular and trendy
and whatnot that other companies have like, "Okay,
maybe we need to..." -Oh yeah. So, that I would see that as being way more impactful. And
this is just my observation. And I see it as being way more impactful and speeding
it up with the other car manufacturers than laws perhaps have been. -The...
There's no question laws can do a lot. You know, these cafe standards are very
controversial in the United States. You know, the Republican Congress and
president just lowered the cafe standards. Those are the corporate
average fuel economy standards for US automakers. And they literally just
lowered those requirements so that theVy can make more gas guzzlers than they
were before which is kind of a sad development in my mind. And so, it's a
great example of how government can play a role. If the government raised those
standards, not back to where they were but above that, it would force more
electric vehicles. And you know, ask a typical test Tesla driver if they're
unhappy driving an electric vehicle. I'll tell you, no. Some people will argue
quickly. Let me just interject this little point here that a lot of electric
vehicles are effectively powered by coal. And it's not that there's no truth to
that but let me point out 2 or 3 things that in my mind mitigate that
concern. Not that there's no concern. We clearly need to get off coal and as
quickly as possible. But the demand for electricity from
electric cars is growing rapidly. But it is far smaller than the rate at which
renewables are growing. So, if you looked at the incremental growth of demand for
electricity from electric vehicles and the supply from renewables. Renewables is
far outstripping the new demand for electricity from electric vehicles. So
you could argue that in effect, all of that incremental power demand is being
supplied by renewables. You could argue that. You could also point out... And this
is vitally important. A Tesla uses a lot of electricity relative to my Nissan
Leaf. But it's still probably 4 times as efficient as an internal combustion
engine the car that would be comfortable. So, take a Porsche Panamera that has a
gas engine. The Tesla is at least 4 times as efficient as that Porsche. In
terms of total energy use. So it may be getting that power from a coal-fired
power plant. But it's a tiny amount of power. A quarter as much energy, as you
have to put into that Porsche in terms of a regular gas. So... And then of course,
there are all sorts of ways for a lot of people who own electric vehicles to
ensure that they are powering their vehicles with green energy. And most
utilities have programs where you can sort of pay a premium for green energy
and you... Of course you can do boot cuffs rooftop solar. So, that a hundred percent
of your car power is going coming from the Sun. So yeah, I think the argument
that we're powering our car fleet with coal is kind of a specious argument that
the oil companies like to make. -But it's definitely... If you understand the whole
picture your just said, it's a great step. -Yeah, yeah. We're definitely... Electric cars
are unequivocally, environmentally friendly. -Alright. Well, I appreciate
this conversation on corporate responsibility. Why it's important? What
we can do about it? Thanks for joining us. I'll put a link to
Devin Thorpe's YouTube channel down below. So definitely check them out there.
Be sure to subscribe. This is a longer episode. If you've watched this whole
thing, you're obviously enjoying it. We've got more episodes with Devin and other
great influencers. So come back tomorrow. We'll see you then.