The fireside chat with Chris Marquis, titled "Elevate Your Sustainability Practices with Insights from Chris Marquis," delves into themes from his book "The Profiteers: How Business Privatizes Profit and Socializes Cost." Marquis critiques the current model of shareholder capitalism, highlighting the legal and corporate governance changes that prioritize short-term profits over long-term sustainability. He discusses the pervasive nature of externalities, such as carbon emissions and plastic waste, and emphasizes the need for a shift towards regenerative business practices. Marquis illustrates how businesses can innovate and lead in creating a more sustainable and equitable future. This engaging discussion challenges traditional notions of profitability and offers insightful perspectives on the role of businesses in addressing global challenges like climate change and inequality.

Like many facets of today’s economy, listing on traditional stock exchanges incentivize short-term returns while neglecting long-term resilience. Expectations of analysts and other market participates intensely focus on quarterly earnings, which strongly shapes executives’ decisions.  

In my new book The Profiteers: How Business Privatizes Profit and Socializes Cost, I discuss a number ways for the financial system to shift its focus from short-termism to creating a more lasting and positive impact on the world.

One organization I have studied is the Long-Term Stock Exchange (LTSE) and how this new marketplace prioritizes sustainability and future-thinking over the fleeting allure of hitting quarterly numbers. I had the privilege of speaking with Michelle Greene, President Emeritus and Board Member of LTSE, to delve into how this innovative exchange is reshaping the landscape of public markets by creating institutions to foster long-term value creation and resilience among companies. Below are some key points from my Forbes article on the Long-Term Stock Exchange:

• The Genesis of LTSE: Greene describes LTSE as a response to the traditional market's short-term pressures, emphasizing, "The companies that are thinking much longer term...have a very different orientation than those that were overly focused on 'Are we going to make this quarter's numbers?'" This perspective underpins LTSE's mission to provide a platform for companies committed to long-term strategies and sustainability.

• Principles Over Prescriptions: Greene explains that the LTSE "wanted to create a public marketplace that was focused on long-term incentives," but it doesn't impose rigid rules. Instead it operates on five core principles designed to orient companies towards the long-term. Greene points out that these principles revolve around broader stakeholder engagement, sustainable performance metrics, and a commitment to environmental and social governance.

• Supporting Sustainable Practices: Greene's experience has shown her that long-termism is intrinsically linked with better environmental, social, and governance (ESG) practices. "Long-term focused companies take a broader perspective...this is how we were really going to make traction on sustainability," she shares, underscoring the belief that a long-term outlook is essential for integrating sustainability into core business strategies.

• Shaping the Future of Business: Greene envisions the LTSE as a catalyst for systemic change, promoting a shift in how companies measure success and engage with their stakeholders. By prioritizing long-term strategies, LTSE aims to inspire a new generation of businesses that are sustainable, responsible, and aligned with broader societal goals.

The Long-Term Stock Exchange offers a blueprint for how businesses can thrive by focusing on long-term value creation, breaking out of systems that reinforce the pressures of short-term profitability. This is not only a challenge to conventional market practices but also shows pathways for companies to integrate sustainability and social responsibility into their core operations. In an era where the future of our planet and societies is increasingly under threat, the principles and practices championed by the LTSE offer hope for a more sustainable and equitable global economy.

As I discuss in my new book, The Profiteers: How Business Privatizes Profit and Socializes Cost, poverty creates many systemic barriers, including reliable transportation and child care, access to healthcare, housing instability and other inequities. In addition to a good paying job, these elements need to be addressed, or else an employee could just get caught in a trap of poor attendance and performance as they deal with trying to overcome these lingering issues.

Many companies are strategically hiring people from disadvantaged communities. These companies are using new and innovative business practices to effectively support their workers, from open hiring and providing income advances to forging innovative supply chain partnerships and using technology to support workers with disabilities. Over the years I interviewed several leaders who focus on these hiring strategies to learn about the strategies they are using.

Some of the key leaders I have talked to include Joe Kenner from Greyston Bakery, Ted Castle from Rhino Foods, Thomas Ng from Genashtim, Fred and Christina Keller from Cascade Engineering, and more. Here are some of the key themes:

Innovative Hiring Practices: One leader shared, "We've committed to inclusive hiring practices that prioritize individuals from underprivileged backgrounds, recognizing the untapped potential within these communities." This approach not only fosters diversity but also drives social change by offering stable employment opportunities to those often overlooked.

• Skill Development Programs: Highlighting the significance of education and skill development, another executive mentioned, "Our programs focus on equipping individuals with the skills needed for today's digital economy. It's about creating pathways out of poverty through education." These initiatives demonstrate a long-term investment in individuals' growth and the community's economic health.

• Sustainable Supply Chains: A key insight from the discussions was the emphasis on sustainable supply chain practices. "By ensuring fair wages and humane working conditions, we're directly impacting the lives of countless individuals in our supply chain," noted one business leader. This reflects a broader commitment to ethical business practices that support economic empowerment.

• Community Investment: Companies are increasingly recognizing the value of investing directly in the communities they operate in. "Our projects aim to address the root causes of poverty, providing both immediate relief and long-term solutions," said a founder. This holistic approach underlines the importance of businesses acting as stewards of societal welfare.

• Innovative Financing Models: Financial inclusion remains a significant barrier to overcoming poverty. An innovator in the field shared, "Through our microfinance initiatives, we're offering a lifeline to small entrepreneurs, enabling them to grow their businesses and, in turn, support their communities." These models provide essential capital to those who traditionally lack access to banking services.

• Leveraging Technology for Social Good: With the digital divide widening, one tech leader highlighted, "We're leveraging technology to bridge gaps in education, healthcare, and employment for underprivileged communities." This approach harnesses the power of technology to create scalable solutions to systemic problems.

These conversations underscore a critical point: businesses possess immense potential to drive positive social change. By integrating social innovation into their core strategies, companies can play a pivotal role in alleviating poverty and building more inclusive economies. Leaders across industries can learn from these examples, recognizing that the pursuit of profit does not preclude a commitment to social responsibility. It becomes evident that the path toward a more equitable society requires a collaborative effort, with businesses at the forefront of this transformation.

Radio Flyer, the maker of The Original Little Red Wagon™, is an iconic brand that instantly transports many people to a happy time —the best parts of childhood. In September 2022, Radio Flyer became a Certified B Corp, becoming the first global toy and eBike manufacturer so recognized for its commitment and progress toward positive environmental and social impact.

I recently had a chance to catch-up with Robert Pasin, the Chief Wagon Officer of Radio Flyer. I am also looking forward to visiting the Radio Flyer HQ in my upcoming trip to Chicago, to talk about my new book The Profiteers. 

Pasin told me how he has focused the company on sustainability and practices such as carbon-neutral shipping, aiming to stand apart from the fad-driven, packaging-heavy nature of the toy industry. While families have trusted and loved Radio Flyer for 105 years, Pasin had to pave his own path and reinvent the company to ensure the brand could continue to evolve to meet customers' needs without losing the brand nostalgia that so many know and love. Here are some key points from my article on Radio Flyer:

• Much effort has gone into making Radio Flyer’s product sustainable. “Our entire product line is now 99.6% PVC-free, and we have started replacing polybags with more paper-based packaging, saving more than 43,000 pounds of single-use packaging per year,” Pasin says. “In addition, the carbon emissions from each item purchased on RadioFlyer.com are 100% offset through a verified emission reduction project.”

• Traditionally a toy manufacturer,  Radio Flyer recently launched its its first line of adult eBike, The Flyer™. “This shift made sense for us because most of our products are designed for active play and aim to get kids outside, which is the role these eBikes play for the whole family,” Pasin says. “We are passionate about helping parents rethink transportation and consider a more sustainable and convenient mode for the whole family.  In fact, we are hearing so many stories about parents using the eBikes to skip the dreaded school carpool lines.”

• Pasin says that toy industry while seeking to become more sustainable, faces unique challenges including the broad use of plastic and the reliance on overconsumption. “This is a large part of why we at Radio Flyer feel a unique responsibility to do better. We recognize that sustainability is not just a passing trend and are looking to be a leader in this space,” he says.

• Pasin believes that consumers are becoming aware of the sustainability issue and will increasingly endorse brands with good track records. “We have found that consumers understand the value of products that cause less harm to the environment,” he says. “Consumers are looking for sustainable options and products they can feel good about purchasing and I think our efforts in this space give them one more reason to consider Radio Flyer.”

• Apart from its sustainability effort, Radio Flyer is also determined to create positive social impact. Employees are given the chance to provide feedback to the company on how to improve diversity and inclusion, which resulted in an action plan that touched on five areas of practices, including Hiring, Leadership & Education, People Practices, Organization Culture & Benefits, and External Partnerships.“We are committed to being anti-racist and creating an inclusive environment that makes Radio Flyer a world-class workplace,” Pasin says.

What Radio Flyer shows is that a legacy brand with more than 100 years of history, can change to prioritize positive environmental and social impact. “There is still work to be done and our push to create positive change will never stop but we are proud of the progress made to-date, and I cannot wait to see where we go next,” Pasin says with hope.

Climate change, biodiversity loss, and environmental degradation threaten the very foundation of our global ecosystem. However, there is still room to not only reduce harm but also create positive good, according to Patagonia's Director of Philosophy, Vincent Stanley.

I recently spoke with Stanley about his new book, The Future of the Responsible Company: What We've Learned from Patagonia's First 50 Years, to understand how Patagonia is pioneering the regenerative business model. Regeneration, as Stanley emphasizes, goes beyond traditional sustainability by actively creating positive good for the world.

This conversation aligns with themes I explore in my forthcoming book, The Profiteers: How Business Privatizes Profit and Socializes Cost.

Key Insights from Vincent Stanley and Patagonia

• Patagonia Provisions: "One of the most significant strides we've taken towards regeneration is through Patagonia Provisions," Stanley said. This venture advances regenerative agriculture, aiming to produce high-quality food products while restoring soil health, enhancing biodiversity, and sequestering carbon. "It's about giving back to nature as much as we take."

• Circular Thinking and Waste Reduction: Stanley highlighted the importance of reusing and recycling. "One business’s waste can become another company's feedstock," he explained, emphasizing Patagonia's efforts to foster a virtuous cycle of positive impacts. This approach reduces the environmental footprint and promotes sustainable production and consumption.

• Regenerative Agriculture: Discussing Patagonia's focus on the food business, Stanley noted, "Regenerative agriculture has huge potential, not just forgoing chemicals but adopting practices that bring the soil back to health." This commitment extends to all Patagonia products, encouraging customers to repair, reuse, or recycle, contributing to a longer product lifecycle and a more sustainable consumer culture.

• Ownership Reform: In September 2022, Patagonia underwent a significant change in its ownership structure, transferring ownership to the Patagonia Perpetual Purpose Trust and the Holdfast Collective. "This unique arrangement ensures the company operates with a long-term perspective, prioritizing environmental goals over profit-making," Stanley explained.

• Mission Statement Evolution: About five years ago, Patagonia changed its mission statement to "We're in business to save our home planet," reflecting its commitment to addressing the environmental crisis urgently. "This shift has profoundly influenced how our team approaches their work," Stanley said.

• Future Vision: Looking ahead, Stanley expressed hope for closer relationships with customers, not just commercially but as partners in environmental action. "By 2033, I hope we can work together to address climate change, freshwater shortages, and biodiversity loss, treating these issues as interconnected parts of a larger problem."

Patagonia's journey towards regeneration offers valuable lessons for business leaders aiming to create more sustainable and impactful companies. By rethinking ownership structures, embracing regenerative agriculture, and fostering circular economies, Patagonia demonstrates that businesses can play a pivotal role in addressing global environmental challenges.

As I discuss in The Profiteers: How Business Privatizes Profit and Socializes Cost, these strategies not only reduce harm but actively contribute to a healthier planet. Business leaders can learn from Patagonia’s example, integrating these practices into their own operations to drive meaningful change and create a sustainable future for all.