The Global Megatrend of Conscious Capitalism

Patricia Aburdene

www.patriciaaburdene.com

ExpoMin 2012: April 12, 2012

2

What is

Conscious

Capitalism?

What is a

Megatrend?

3

Megatrends of Conscious Capitalism:

1. The Dawn of Conscious Capitalism

2. Conscious Leadership

3. Sustainability, Branding & Marketing

4

1. The Dawn of Conscious Capitalism

Purpose + Stakeholders = Profit

Conscious Capitalists beat Capitalists at their

own game – making money.

Towers Perrin 25 “Stakeholder Superstars” beat the

S&P 500 by 126% (15 years).

The Fortune “100 Best Companies” up 176% vs 39% for the S&P 500 (7 years).

Firms of Endearment. 28 firms -- eBay, Toyota, J&J, Google up 1111% vs 100% S&P 500 (10 yrs).

5

The Flavors of Conscious Capitalism

Europe: Grounded in the social contract.

Latin America: More stable society is good for

business.

Asia: Buddhist, Shinto, Hindu concepts.

Australia: Conscious Capitalism May 1, 2012.

Africa: Quest for more sustainable investment.

US: What model is more profitable?

5 Despite our differences we’re united by Global Warming

6

Conscious Capitalism Transforms Global Investing

Socially Responsible Invest/ESG Global $10 trillion market

Europe $6.5 trillion; 375+ funds.

US $3 trillion; 12% fund dollars

SRI: A Global Trend

Asia: ASriA

FFV Latin America Fund

Africa Sustainable Invest Forum

Is responsible investing best way to reverse Climate Change?

7

2. The Megatrend of Sustainability

7

Sustainability impacts competitiveness:

•Great competition for natural resources

•Increased government regulation

•Investors measure green house gases

•Public pressure to be stewards of Earth

•Growing investment Renewable Energy

Sustainability is a critical theme in the mining sector

The verb “to sustain” means to use, not destroy resources

8

Megatrends for Mining

Volatility (2012-2013)

Increased demand from China and India (China is our best customer, says Diego Hernandez, Codelco)

Massive investment: $82 trillion global est. (Deloitte)

Mergers & Acquisitions

Sustainability and Social Responsibility: more important than ever.

Growing need for skilled labor. “War for Talent.”

8 Which mining Megatrends will most impact your company?

9

Sustainability, Mining, and Your Brand

• Perception: not a “green”business.

• Solution? Total Transparency.

• Global Reporting Initiative (GRI):

• BHP Billington,Codelco, & others.

• Third Party Independent Verification

• New Alliances: NGOs,environmentalists, UN

• World Biz Council Sustainable Development:

• Accion RSE: WBCSD:Regional Network:

• Annual Prize Best Sustainability Report

•

9 It is not what you say, but what you DO.

10 Conscious Consumers are committed to Sustainability

Public Perceptions Impact Your Brand

LOHAS (Lifestyles Of Health And Sustainability)

About 25% Americans; 30-50% Europeans

$540 billion global market

Akatu Institute, Sao Paulo

Helio Matter, former CEO & government minister

50-80% Latin American “conscious” consumers

Including low income people. How? The media.

11

3. What is Conscious Leadership

Conscious Leadership requires:

Awareness

Values

The Ability to “Engage” People

How to lead with values, awareness? Engage people? How will this benefit my company?

12

Leading with Awareness

Awareness Larger Environment

Sustainability

Conscious Capitalism

Julio Moura. CEO Grupro Nueva (Terranova)

renewable forest products;

Ceo retailer Cencosud.

“No successful business in a

failed society.”

Awareness: Earning a profit while contributing to Life

13

Conscious Leaders Latin America

Leading with Wisdom Peter and Kristen Pruzen. Stories of 31 Conscious Leaders.

Alvaro Cruz. Columbia Governor Cundinamarca. Intuition, meditation, survived assassination attempts.

Federico Cuneo. Chairman NGO Peru 2021, says he was an “angry man.” Now more,

patient, tolerant.

13

14

How the Value of Trust “grows” Profit

Greg Merten HP inkjet. A “tough” boss.

Tragedy & a Commitment to Trust.

Each month: Are we destructive? Trusting?

Business Expansion: The Dublin factory.

Contractors, developers, County Kildare.

Factory: 2X as fast as any HP factory.

Trust ↑ Speed ↑Costs

14

Dublin factory alone: hundreds of millions to annual HP profit

15

How do leaders “Engage” People?

Meaning

“People don’t come to work to be No. 1 ... [but] to get meaning from their lives.” Christopher Bartlett Harvard Business School

Profit

Towers Watson study 360,000 in 18 countries. Result? Engaged employees: profit +19%.“disengaged” -33%

How to Engage People?

Give them a voice. Listen. Codelco Values Statement: dialogue 6,300 people

Engaged People Create Meaning & Profit

Text

The Age of Information to the New Economy of Consciousness

• There is no innovation w/o consciousness

• Hire Creative People

• “Listen to them tell you what they want then do

it!” Arthur Levinson, CEO Genentech.

• Reward engineers with time for pet projects.

• Technology is consciousness externalized.

Consciousness trumps money, fossil fuel, technology. It is the

one true source of corporate innovation & money-making.

Case Study: How to Kill Innovation.

3M one of world’s top innovator

1/3 sales products 5 years old or less.

Post-it Notes. Scotch Tape. Thinsulate.

Engineers: 15% time to pet projects.

New CEO cut innovation spending

Sales fall; Innovation rating falls

Enter George Buckley new CEO Innovation Champion

Innovation is the key whether technology--or mining!

18 www.patriciaaburdene.com

As investors, consumers, managers

and green business people,

We the people have the power

to transform capitalism into

Conscious Capitalism.

Capitalism Evolves to Reflect Human Consciousness