What We Owe Each Other

Last week, I had the honor of attending the HOW Institute for Society’s Summit on Moral Leadership in New York City. It was an invite-only gathering of some of the most senior leaders across a myriad of industries and institutions including KKR, Mastercard, Ogivly, J&J, Harvard Business School, USTA, The Rockefeller Foundation, and even the U.S. Air Force. We joined together to discuss an issue that has far reaching implications for our country, its democracy, and the world at large: HOW to lead in these increasingly complex times.

The conversations were riveting, the answers seemingly as complex as the question itself, but one festering conundrum that snaked its way into the heart of the day was the horrific murder of Brian Thompson, CEO of UnitedHealthcare. As one shaken CEO said to me during one of the breaks, “How could a young man with seemingly every privilege so lack a moral compass?!"

The initial response by media and business executives alike has been to blame the actions of the alleged murderer, Luigi Mangione, on mental health. And, yes, mental illness may be at play, but the uproar by the American people cannot be dismissed. 

Luigi has been called, “A modern day Robinhood.” Men have gathered in “Deny, Defend, Depose” hoodies to emulate him and women are offering him marriage proposals. Meanwhile, over a hundred thousand dollars has been raised via an online fundraising campaign to help pay for his legal defense. Meanwhile, many have tied the murder to the failures of the healthcare industry. “My deductible doesn’t cover my sympathy,” tweeted one frustrated citizen.

Leaders, shocking as the response has been, let’s be clear: This is not just a mental health issue. This is not just a healthcare industry issue. This is a HOW we do business issue.

For over a decade, we have seen rising anti-capitalist sentiment. A 2016 study by Harvard University revealed that 51% of young adults don’t believe capitalism works and a recent Fast Company study of generational attitudes towards capitalism revealed that nearly 50% of people under 40 had a negative response versus 30% of people over 40. 

Today, #CapitalismSucks is trending on TikTok. As one TikTok user said, “Luigi has a point. I just hate the way capitalism makes me feel.” 

And for good reason: the stock market is at an all time high, company profits continue to soar, and the typical CEO makes 200 times the average worker. CEO pay has increased 1085% since 1978, but worker pay has only increased 24%. In case you didn’t know…the average pay of an S&P 500 CEO is $17.7 million, which puts them squarely in not just the 1%, but the top .01% (The top 0.01 percent, 16,000 families, had annual income of $7 million). 

Meanwhile, as I learned at the HOW Summit, Feeding America is the LARGEST non-profit in America providing 5.3 billion meals to people in need. Nearly 40 million Americans live below the poverty line, 16% of American children, and poverty rates for older Americans have been rising.

Capitalism, as we know it, has driven vast inequality in this country. It’s no wonder Americans are in an uproar.

In his famous book, What We Owe to Each Other, Harvard professor and moral philosopher, T.M. Scanlon, wrote:

1.  Inequality can be objectionable because it creates humiliating differences in status.

2. Inequality can be objectionable because it gives the rich unacceptable forms of power over those who have less.

3. Inequality can be objectionable because it undermines equality of economic opportunity. 

4. Inequality can be objectionable because it undermines the fairness of political institutions. 

5. Inequality can be objectionable because it results from violation of a requirement of equal concern for the interests of those to whom the government is obligated to provide some benefit. 

6. Inequality of income and wealth can be objectionable because it arises from economic institutions that are unfair.

So, how does capitalism make Americans feel? Like companies and their leaders care more about profits than they do about the people they serve.

As I and my co-authors, JeanAnn Nichols and Corey Jones argue in our best-selling book, Intentional Power, shareholder capitalism, the modern form of capitalism that began over 50 years ago, has harmed our country, our communities, and the climate. It started when economist Milton Friedman decried that the purpose of a corporation was not to serve its stakeholders, but rather to serve shareholders first and foremost. That thinking has trickled down via Reaganomics into all aspects of our country including our politics. It is no longer about “We”, it is all about “Me.”

This is the real lesson to be learned from Luigi Mangione’s horrific act and must serve as a clarion call for leaders everywhere.

It is time to ask ourselves, what do we owe each other? The answers are right in front of us.

The HOW Summit was held at the Ford Foundation, whose leader, Darren Walker, said, “Inclusive capitalism strengthens our communities by mitigating inequality.”

He believes, as do I, “Corporations should operate for the benefit of all stakeholders, including customers, employees, suppliers, communities, and shareholders.”

As we head into a new year, with a new president, and a new administration, it is past time to rethink HOW we do business. The consequences for doing business as we have harm us all. 

Lead On!

Lisen

For more insight into HOW, read Intentional Power (order here), join my class on building your leadership skills for this complex world (register here), and consider sending a cohort of your employees to the HOW Institute’s NXT-Gen Fellowship for Moral Leadership (learn more here).

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Today’s leaders are facing unprecedented challenges as they try to navigate the complex business climate. From managing a multigenerational workforce or diverse employees with different expectations about the workplace to fielding the demands of stakeholders who want companies to step up to solve critical societal issues, more is being asked of leaders than ever before. To succeed in this new world of work, modern leaders need new skills and insights so they can use their power with intention. They must foster democratic, people-focused, people-driven cultures that empower teams across a myriad of locations.

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