Inclusivity is important — but what does it look like as it relates to capitalism? On this episode of the Talent Magnet Institute Podcast we have Ed Rigaud, the President and CEO of EnovaPremier, and today we’re talking about the concept of inclusive capitalism. How can we realize freedom in a way that’s possible for everyone?
The gap
Around the world, and particularly in the US, there is a tremendous disparity between the wealthy and the poor. Capitalism isn’t working — but not because capitalism is inherently flawed. It’s because we haven’t implemented capitalism in a way that can help us all to achieve freedom and the pursuit of happiness and prosperity.
HOFF
HOFF stands for Honest, Open, Fairness, and Fun. This is a concept that Ed came up with at Procter and Gamble when he took over a division from someone who was a very autocratic manager.
There was a lot of fear in the organization, so he interviewed each and every person in the 260-strong division, finding out what their aspirations and feelings were, and preaching HOFF. With that, he was able to build trust, and the culture of the division became more P&G-like.
Empathize to innovate
It’s the –isms that are keeping us apart: tribalism, classism, racism, sexism. So it’s all about establishing empathy and respect for one another. When you’re able to listen to a different point of view from someone who comes from a different background, that’s the stuff that leads to innovation. If you don’t rub elbows with people who come from a totally different perspective, you’re not going to come up with anything different.
The larger the difference, the more difficult the work. But the fruits that come out of it are incredible — like the story Ed shares about the Vernon Manor investment, which was a minority investment group that was intentional about being inclusive.
The new capitalism and looking to the future
There are young people out there who have the wherewithal and intellectual capabilities to be successful, they just need to be given an opportunity to take advantage of the new kind of inclusive capitalism that we can have. Inclusivity is not a matter of Robin Hood stealing from the rich and giving to the poor, it’s about participation among groups that are normally not invited to the party.
Book recommendations
Winners Take All: The Elite Charade of Changing the World by Anand Giridharadas
This book challenges us to look at ourselves more critically along the spectrum of greed versus love. We’re only going to move that gap if we’re working together and bringing more and more people into the investment world.
The New Jim Crow: Mass Incarceration in the Age of Colorblindness by Michelle Alexander
This book shows how minorities, and African Americans in particular, are still in a Jim Crow world as a result of mass incarceration keeping a large percentage of the population in tow.
The End of Loyalty: The Rise and Fall of Good Jobs in America by Rick Wartzman
Including the whole spectrum
Studies say that if you let poverty go on its own, it doesn’t break for eight generations. Not only are they not climbing the ladder, they don’t even have a ladder to climb. They can’t get on the first rung. We need to shift the whole notion of how capitalism is applied at every socioeconomic level.
There are different remedies that we have to put energy and resources behind, and Ed shares his idea for helping solve transportation challenges with Uber Cars as an example, and talks about the work of Dan Meyer of Nehemiah.
Social Responsibility is the key difference for corporations between exclusive capitalism and inclusive capitalism.
Resources
The Magic of Dialogue: Transforming Conflict into Cooperation (Amazon)
Winners Take All: The Elite Charade of Changing the World (Amazon)
The New Jim Crow: Mass Incarceration in the Age of Colorblindness (Amazon)
The End of Loyalty: The Rise and Fall of Good Jobs in America (Amazon)