In June 2020, I traveled back to Minneapolis for my final board meeting as chairman of Best Buy. As I drove down Hennepin Avenue, storefronts were boarded up on each side of the street. The city was still scarred from the riots and protests that followed the killing of George Floyd that May. Around the same time, forest fires were raging across Australia and, once again, in California. A few months earlier, a new virus had been identified, unleashing a pandemic that was spreading across the world.
How to Lead in the Stakeholder Era
The world is clearly facing multifaceted crises: a health crisis, an economic crisis, a societal crisis, a racial crisis, an environmental crisis, and rising geopolitical tensions. In the face of these challenges, there is a growing realization that business and society cannot thrive if employees, customers, and communities are not healthy; if our planet is on fire; and if our society is fractured. More and more leaders believe that creating a better and sustainable future requires corporations to serve all their stakeholders — not just their investors — in a harmonious fashion.
To make this transition, leaders need to evolve how they think about their mission and how they lead. According to Hubert Joly, the former chairman and CEO of Best Buy, we need leaders who, in both good times and bad, are keen to pursue a noble purpose, are ready to put people at the center of it, and are dedicated to creating an environment where every employee can blossom. In short, we need leaders who will embrace a declaration of interdependence. This is how we can create a more sustainable future. This is how business can be a force for good and do well by doing good.