UConn Storrs presentation. The vast majority of corporate value is in intangible assets thus providing a business case for sustainability. Also linking capitalism - economic model - with freedom.

1. Balancing economic, social and
environmental sustainability

2.  I help organizations turn their values into
successful business models
 20 years+ career including corporate
communications/organizational development,
public/community relations, sustainability and
CSR
 Corporate executive
 Co-founding board member of the Sustainable
Business Network of Washington (SBNOW)
 Sustainable Business blogger for Huffington Post
www.sbnow.org
twitter: @JohnFriedman

5. How wrong can one be?
Capitalism doesn't need Capitalism at the expense of
defending, and nobody worth someone else's freedom is
listening to claims profit is a not right no matter how
dirty word happy it makes you.
You are living in an alternate universe,
nothing at all like one we live in where
You are correct. Capitalism
capitalism is founded on greed, ruthless thrives when the economy
exploitation of workers, including the thrives.
poorest in 3rd world countries, and
rapacious of the earth's resources.
I suppose it is necessary to use words like 'sustainability' in a post like
this, but it seems a bit fantastical. Capitalism works as long as energy
is cheap and the promise of unlimited growth can be fueled by
commensurate unlimited resources. Capitalism - as a vestige of
civilization- will follow Nature into catabolic collapse.

6.  Capitalism is an economic, not a political
model
 Culture (nationality, faith, etc.) define how
capitalism is implemented
 Individual wealth creation – the ability to earn
and retain capital – is a tremendous force for
change
 Short-term thinking is inconsistent with
long-term best interests

7. On Average 70% of market
value comes from:
Intangible Assets
90% for technology companies
Brand Finance
7

8. S&P 500 Companies
80% of market value comes
from:
Intangible Assets
Monks/Lajoux, Corporate Valuation
8

9. Burlington Northern Santa Fe: Market value: $29.2 billion
Balance sheet assets:
103% of market value ($30.3 billion)
Goodwill: None
Caterpillar: Market value: $49 billion
Balance sheet assets: 95.9%
Goodwill: 44.1%
United Health Group: Market value: $79 billion
Balance sheet assets: 52%
Goodwill: 48%
Apple: Market value: $58 billion
Balance sheet assets: 19.8%
Goodwill: 80.2%
9

10. Microsoft: Market value: $279 billion
Balance sheet assets: 33.7%
Goodwill: 66.3%
Best Buy: Market value: $26.3 billion
Balance sheet assets: 39%
Goodwill: 61%
Starbucks: Market value: $27.8 billion
Balance sheet assets: 12%
Goodwill: 88%
Goldman Sachs: Market value: $61.7 billion
Balance sheet assets: 1.1%
Goodwill: 98.9%
10

12.  Relationship with
◦ Customers
◦ Employees
◦ Owners/Investors
◦ Suppliers
◦ Competitors
◦ Communities
◦ Government agencies/regulators

13.  To improve company valuation,
Improve CSR relationships!
 Good CSR Relationships Lead to a
Sustainable Corporation

14. (self interest considered upon the whole)
Financial
Reputational Capital
Capital $$$
INPUTS
Physical Output Sustainable
Conversion
(Goods/ Customers profits;
Social Capital Process
Services) maximum
Capital value
Human
Capital
RETURN ON CAPITAL
(preserve adequacy of capital inputs)

15.  There is one and only one social responsibility of
business–to use it resources and engage in
activities designed to increase its profits so long
as it stays within the rules of the game, which is
to say, engages in open and free competition
without deception or fraud.
 That responsi-bility is to conduct the business in
accordance with their desires, which generally
will be to make as much money as possible while
con-forming to the basic rules of the society,
both those embodied in law and those embodied
in ethical custom.
 Milton Friedman, 1970, New York Times Magazine

16. (self interest considered upon the whole)
Financial
Reputational Capital
Capital $$$
INPUTS
Physical Output Sustainable
Conversion
(Goods/ Customers profits;
Social Capital Process
Services) maximum
Capital value
Human
Capital
RETURN ON CAPITAL
(preserve adequacy of capital inputs)

19. Individual
Wealth
Self
Freedom Determination
Changing Community
Societal Norms Benefits

20.  The culture that follows upon successful
economic growth is a global one, rooted in
American consumerism ... that subverts
traditional elites and values.
 Global business is the carrier of this culture,
responding to consumer demands. It is
legitimate for business to deliver what people
want, but at the same time business should take
care that local cultures are not permanently
asphyxiated.”
 Business has a responsibility to moderate its
impact on those communities, which can hardly
protect themselves against the intrusions.
Moral Capitalism
Steven B. Young

21. Business has an obligation Business must be respectful
to promote progress and protective of local cultures

22. Business has an obligation Business must be respectful
to promote progress and protective of local cultures

23.  Increasing access to information is creating
an ‘empowered’ consumer for a more
conscious capitalism
 Capitalism is the best way to advance
conditions for the individual, communities
and societies
 Empowering individuals, communities and
societies from within is vastly preferable to
imposing from outside