How Business Can Improve the World, Not Just the Bottom Line | Esha Chhabra | TED

Summary

The script critiques the traditional business focus on scale, growth, and profit maximization, highlighting its environmental and social drawbacks. It introduces the rise of sustainable and mission-driven brands as a step towards addressing these issues but argues that true change requires going beyond sustainability to regenerative business practices. Regenerative businesses aim to restore and revitalize communities, industries, and the environment by embedding social and environmental impact into every aspect of their operations. Examples include Veja's sustainable shoe production and other companies pioneering in employee ownership, waste reduction, and regenerative agriculture, emphasizing the need for replication rather than scale and redefining business to prioritize regeneration over profit.

Takeaways

• 💡 Business traditionally focuses on scale, growth, productivity, and maximizing profit, often at the expense of the planet and people's well-being.
• 💰 The rise of sustainable and mission-driven brands represented a first step towards rectifying the harmful impacts of traditional business practices, but often fell short of significant action.
• ⚓️ 'Regenerative' is emerging as a crucial next step, aiming to restore and revitalize communities, industries, and the environment, moving beyond mere sustainability.
• 🔥 Regenerative businesses tackle social and environmental issues at their core, asking what problems they can solve rather than how much profit they can make.
• 👨‍🎓 Entrepreneurs are shifting focus from sustaining a broken system to regenerating and improving it, embedding impact into every aspect of their business model.
• 🌍 Examples like Veja shoes illustrate regenerative practices by preserving the Amazon, employing the 'unemployable', and focusing on environmental and social impact at every stage of production.
• 💵 Regenerative business models include employee ownership, profit-sharing, and viewing waste as an opportunity, fostering a more inclusive and sustainable economy.
• 💻 Regenerative agriculture, a prominent aspect of the regenerative movement, emphasizes soil health and organic farming, supporting ecosystems and local communities.
• 🤝 The call for replication and diversity in regenerative businesses underlines the importance of spreading these practices across industries and regions for broader impact.
• 💪 The narrative challenges the traditional metrics of success, urging businesses and individuals to consider the sufficiency of growth, scale, and consumption, and to prioritize human and environmental well-being.

Q & A

What traditional business priorities have led to negative impacts on the planet and people?

Traditional business priorities like scale, growth, productivity, and maximizing profit, often associated with hustle culture, have negatively impacted the planet and left people seeking more balance in their lives.

How have sustainable and mission-driven brands attempted to address the issues of traditional business models?

Sustainable and mission-driven brands have tried to rectify issues by adopting models like donating a pair of shoes for every pair sold, being conscious companies, recycling waste, and using carbon offsets, although these efforts often seem more like marketing than actionable change.

What does the term 'regenerative' signify in the context of business?

Regenerative businesses aim to restore, revive, and rejuvenate communities, industries, and people that are struggling, focusing on creating positive impacts that go beyond sustainability.

How do regenerative businesses differ in their foundational approach compared to traditional businesses?

Regenerative businesses start with the intent to solve social and environmental problems, embedding impact into their products and operations, unlike traditional businesses that primarily focus on profit.

What are some key practices of regenerative businesses?

Regenerative businesses may involve practices like considering the environment and people in their supply chain as partners, fostering better human connections, employee ownership, profit-sharing, and ensuring their entire business model focuses on impact.

Why do some entrepreneurs shy away from the term 'sustainability'?

Entrepreneurs may avoid the term 'sustainability' because it implies maintaining the status quo or a broken system, whereas regenerative approaches aim to transform and improve the system.

Can you give an example of a company that embodies regenerative business practices?

Veja, a shoe brand, exemplifies regenerative practices by preserving the Amazon, hiring people considered unemployable, regenerating soils, and challenging the fashion industry, focusing on environmental and social impact throughout their supply chain.

What challenges do large global companies face in transitioning to regenerative business models?

The transition to regenerative business models is harder and slower for large global companies due to the scale and complexity of their operations, among other factors.

What unique approach does Veja take towards marketing their products?

Veja minimizes spending on traditional marketing, such as endorsements by athletes and influencers, instead reinvesting funds into their supply chain, ensuring fair wages and environmental care.

How do regenerative businesses view the concept of scale and growth?

Regenerative businesses challenge the traditional notion of endless growth and scale, suggesting that it should be acceptable to maintain a level of scale that is sustainable and enough, focusing on impact over size.