By Verghese V Joseph –
In a globally significant move that can have far reaching and positive impact on economies and businesses across regions, the Council for Inclusive Capitalism and the Vatican last week forged an historic new partnership between some of the world’s largest investment and business leaders and the Vatican.
In this new partnership, the Council answers the challenge by His Holiness Pope Francis to apply principles of morality to business and investment practices; and thereby urging organizations to commit to concrete action to create a more equitable, sustainable and trusted economic system.
The aim of the mission is to harness the potential of the private sector to create a more inclusive, sustainable, and trusted form of capitalism. The Council, led by a core group of global CEOs and public leaders, known as the Guardians for Inclusive Capitalism, convenes annually with Pope Francis and His Eminence Cardinal Peter Turkson. These leaders represent more than $10.5 trillion in assets under management, companies with over $2.1 trillion of market capitalization, and 200 million workers in over 163 countries.
This move signifies the urgency of joining moral and market imperatives to reform capitalism into a powerful force for the good of humanity. Under the moral guidance of Pope Francis and Cardinal Turkson, who leads the Dicastery for Promoting Integral Human Development at the Vatican, and inspired by the moral imperative of all faiths, the Council invites companies of all sizes to harness the potential of the private sector to build a fairer, more inclusive, and sustainable economic foundation for the world.
The organization challenges business and investment leaders of all sizes to embrace the Council’s guiding principles and make public commitments to act on them. These collective actions are intended to lead to systemic change by making capitalism a greater force for inclusivity and sustainability.
Speaking to the Guardians, Pope Francis said, “An economic system that is fair, trustworthy, and capable of addressing the most profound challenges facing humanity and our planet is urgently needed. You have taken up the challenge by seeking ways to make capitalism become a more inclusive instrument for integral human wellbeing.”
The Guardians have already committed to hundreds of measurable actions, and Council members will make ongoing commitments to continue to advance inclusive capitalism. They will be accountable for their public commitments and invite businesses around the world to join.
“Capitalism has created enormous global prosperity, but it has also left too many people behind, led to degradation of our planet, and is not widely trusted in society,” said Lynn Forester de Rothschild, Founder of the Council and Managing Partner of Inclusive Capital Partners. “This Council will follow the warning from Pope Francis to listen to ‘the cry of the earth and the cry of the poor’ and answer society’s demands for a more equitable and sustainable model of growth.”
Here’s what some of the Guardians of the Council for Inclusive Capitalism with the Vatican had to say:
Ajay Banga, President and Chief Executive Officer, Mastercard
“We’re all part of an interconnected system and once we see that, our responsibility becomes very clear. We have to help those in need today, and ensure the world emerges a stronger, more resilient place—because doing the right things for society will lead to the right outcomes for business. This Council, under the direction of His Holiness Pope Francis, has been created to help define that path. Together, we will help provide capitalism the guide rails that it needs to make our world more equal and sustainable.”
Oliver Bäte, Chairman of the Board of Management (CEO), Allianz SE
“It is a huge challenge to create prosperity for a growing population, while at the same time trying to address climate change. This requires the engagement of all stakeholders: science, politics and the economy.”
Edward D. Breen, Executive Chairman, DuPont
“To me, a thriving world is one that fosters human potential in a way that is sustainable and enriches the lives of people everywhere and for generations to come. One company can’t do this alone. As a Guardian of the Council for Inclusive Capitalism, I’m excited by the insight and impact we can create together.”
Sharan Burrow, General Secretary, International Trade Union Confederation
“The aspirations of workers for a just world with an economic model where rights and shared prosperity are realised are winnable. Covid-19 has shown working people in the greatest act of global solidarity the world has seen. Regenerating an inclusive economy through recovery and resilience plans with jobs and climate friendly jobs in 2021 is an imperative as we rewrite the social contract for working people.
Other Guardians who form the Council are:
- Mark Carney, COP26 Financial Advisor to the Prime Minister, and United Nations Special Envoy for Climate Action and Finance
- Carmine Di Sibio, Global Chairman and Chief Executive Officer, EY
- Brunello Cucinelli, Executive Chairman and Creative Director, Brunello Cucinelli S.p.A.
- Roger Ferguson, President and Chief Executive Officer, TIAA
- Lady Lynn Forester de Rothschild, Founder and Managing Partner, Inclusive Capital Partners
- Kenneth Frazier, Chairman of the Board and Chief Executive Officer, Merck & Co., Inc.
- Fabrizio Freda, President and Chief Executive Officer, The Estée Lauder Companies
- Marcie Frost, Chief Executive Officer, CalPERS
- Alex Gorsky, Chairman of the Board and Chief Executive Officer, Johnson & Johnson
- Angel Gurria, Secretary General, Organisation for Economic Co-operation and Development (OECD)
- Alfred Kelly, Chairman and Chief Executive Officer, Visa Inc.
- William Lauder, Executive Chairman, The Estée Lauder Companies
- Bernard Looney, Chief Executive Officer, BP
- Fiona Ma, Treasurer, State of California
- Hiro Mizuno, Member of the Board, Principles for Responsible Investment
- Brian Moynihan, Chairman of the Board and Chief Executive Officer, Bank of America
- Deanna Mulligan, President and Chief Executive Officer, Guardian Life Insurance Company of America
- Ronald P. O’Hanley, President and Chief Executive Officer, State Street Corporation
- Rajiv Shah, President, The Rockefeller Foundation
- Tidjane Thiam, Board Member, Kering Group
- Darren Walker, President, Ford Foundation
- Mark Weinberger, Former Chair and CEO of EY, and Board member of J&J, MetLife and Saudi Aramco
‘Council for Inclusive Capitalism’, with a moral string of ‘sustainability of ecology and economy’ is a ‘ rare combination’ of equilibrium’ aiming at ‘distributive justice, embracing the poor and marginalized ‘ which Socialism, Capitalism and Liberalization with its ‘human face’ failed the humanity. So far ‘privatization’ created only ‘Corporates’ who plundered Natural resources, human resources and ‘world Markets’ with ‘aggressive competition’ with ‘ strategic’ affiliations between two super powers- China and America. The end result- poverty, subjugation, exploitations and finally, Corona. The ‘Corporates’ economy’ was a ‘plundering and trickling down economy’ and never, a ‘ distributive economy’. As the ‘Pope’s economy’ is a ‘moral oriented one with annual evaluation of goal-achievement’, with the ‘council of guardians,’ it is sure to bring about some movement in the society. Let’s pray for Pope Francis and all collaborating CEOs’ for their sincere effort to realize the values of the kingdom of God, here on earth. Hearty Congrats to Verghese V Joseph for his comprehensive write up.