Leadership Next

In a nod to Election Day, Leadership Next is engaging in a hallmark of American democracy: debate. Part of the thesis on this podcast is that business is changing. The best leaders recognize that to motivate their employees, customers - and sometimes their investors - they need a purpose beyond profit. And they need to be willing to address some big social problems like climate change and inequality that may be seen as existential threats to society and therefore to their businesses. But of course not everyone agrees. Harvard Law's Lucian Bebchuk calls the promise of stakeholder capitalism "illusory."He joins Alan Murray and Ellen McGirt, along with Rebecca Henderson who is author of "Reimaging Capitalism in a World on Fire," and a professor at the Harvard Business School.Up for debate: Are the CEOs who profess to focusing on purpose actually following through? What types of incentives are needed to encourage companies to focus on stakeholders? Can companies proclaim a commitment to stakeholders while also spending heavily on lobbying in Washington DC?

Paul Hudson became CEO of pharmaceutical company Sanofi in September 2019, just months before the COVID-19 pandemic. His company has moved quickly to develop vaccines for the illness. In this episode of Leadership Next, he shares the progress they’ve made. He also shares his enthusiasm for the new technology and tools the company is using to fight disease – COVID-19 of course, but also Parkinson’s, breast cancer and more. Alan Murry asks if Hudson believes his industry will continue to collaborate once the pandemic is under control. Ellen McGirt wonders how he’ll handle the growing number of people who say they won’t accept the COVID-19 vaccine. And of course, because this is Leadership Next, there’s plenty of talk about purpose – Hudson believes refocusing on the company’s purpose has brought energy and innovation to its search for a vaccine.  

Here’s a first for Leadership Next: an episode that begins with a story about being mauled by an elephant. The victim of that event: Tom Siebel, CEO of C3.ai, and a long-time Silicon Valley entrepreneur. Almost equally as unusual, in this episode Siebel lays out the case for government regulation of artificial intelligence – not something you expect to hear from the leader of an A.I. company. “If we don't regulate this, we're going to have to live in a very scary place,” Siebel tells Alan Murray and Ellen McGirt. C3.ai is a provider of enterprise AI software, and Siebel feels strongly that companies who fail to adopt A.I. in a big way will ultimately be left behind. But he freely admits the dangers inherent in running human systems with the technology. He talks about the line his company draws in the sand when choosing where to apply A.I.  Also in the episode, Siebel talks about the “data lake” the company has created to help fight COVID-19, and his funding of a group called “Siebel Scholars.” If you enjoy Leadership Next, check out the new Fortune podcast "Reinvent" about companies fighting to thrive in a world turned upside down. To listen and subscribe, click here from your mobile device.

HP – the company perhaps best known for outfitting homes and businesses across the world with computers and printers – is widely considered the original Silicon Valley tech company. It was founded in a small garage in 1939; at the time it was called Hewlett-Packard. Today, HP is run by Enrique Lores, who started at the company as an intern and moved into the corner office about a year ago. Leadership Next listeners will not be surprised to learn that he believes HP can benefit both shareholders and stakeholders. Specifically, he talks about how the company has been caring for employees during the pandemic, the need to continue pursuing diversity goals, how HP is working to protect trees and provide kids with computers.  Also, Lores explains how the pandemic accelerated 3D-printing technology at HP. Check out the episode to discover why co-host Ellen McGirt is particularly excited about this! 

In its first year of life, Whole Foods Market had a “near-death” experience. Founder and long-time CEO John Mackey tells Leadership Next that a flood nearly destroyed the store – none of the damages were covered by insurance. But employees and customers banded together to clean things up, and a local banker personally guaranteed a loan to get Whole Foods back on its feet. This was Mackey’s first real understanding of how important all stakeholders are to a company. And from that day forward he’s become a proponent of what he calls “conscious capitalism.” He explains the details to Alan Murry and Ellen McGirt. How do these values mesh with Whole Foods’ owner, Amazon? Mackey describes the company pairing as a “marriage” where each partner changes and influences the other. Also in the episode: how Whole Foods has worked to protect employees from COVID-19, how the pandemic had impacted business, and why Mackey believes in pay caps and pay transparency.  

Ursula Burns is not afraid to speak her mind. And she has lots to say in this episode of Leadership Next. As the CEO of Xerox, Burns was the first and only Black woman to run a Fortune 500 company.  She stepped down from that position in 2016 and has refocused her energy on a new goal: diversifying corporate boards. She’s doing so through a new group, The Board Diversity Action Alliance.   But calling this “a make or break moment for companies,” Burns says the challenges facing business extend beyond racial justice.  She tells Alan Murray and Ellen McGirt "we're poisoning the world.” She mourns the treatment of essential workers during the pandemic – putting people in harm’s way yet paying them minimum wage. And she has a strong message for fellow CEOs who may choose to vote with an eye on their bottom lines, not their communities. “We have a responsibility to leave behind a world that's better than it is when we inhabited it,” Burns said. At the moment, she believes business is failing to live up to that responsibility. Also in this episode: Fortune's Kristen Bellstrom sheds some light on the dismal diversity numbers driving Burns' new project.

Ab InBev may be the world’s largest brewer, but in many ways it’s a local company. CEO Carlos Brito tells Leadership Next 95% of the company’s products are brewed locally from local ingredients, and then sold locally. That means the company’s policies have a direct impact on communities around the world. And it makes caring for those communities a clear business imperative.  Brito shares some specific ways AB InBev is helping farmers thrive, and how it’s offered support to retailers during the coronavirus pandemic.  These efforts have also landed the company on Fortune’s 2020 Change the World list. Fortune’s editor-in-chief, Clifton Leaf, joins Alan Murray to offer more details on how the list is put together, and why it’s important. 

Marvin Ellison is one of just four Black CEOs to lead a Fortune 500 company. And the company he runs - home retailer Lowe's - has been booming since the pandemic struck. Sales rose 35 percent in the most recent quarter, and online sales were up 135 percent. Leadership Next's Alan Murray asks if that demand will continue. The heart of the episode however comes when Ellison talks about his efforts to boost diversity at Lowe's - from the executive ranks, all the way through his newest initiative centered around diversifying suppliers. Also in the episode: Ellison's take on problems plaguing JCPenney - a company he ran before coming to Lowe's, Fortune's retail reporter Phil Wahba with some additional insight into Ellison's leadership style, and Ellen McGirt on ... wait for it ... potato cannons.

It’s no surprise that the coronavirus pandemic has pushed more people than ever before towards digital payments. What is surprising is just how dramatic that shift has been. PayPal CEO Dan Schulman lays out those details in this episode of Leadership Next. But what he truly wants to talk about is what this means for all of those who have been left behind by America’s economic system. He’s convinced “capitalism needs an updgrade,” and he’s doing what he can to make that happen. He tells Alan Murry and Ellen McGirt about his company’s decision to pay entry level employees more. He talks about a recent massive $530 million commitment to businesses and communities of color. And he answers the question that’s often asked on this podcast: why, as a corporate CEO, is it your job to care about this? Over the years Schulman has taken stands on a variety of controversial issues – from gun control to voting. He’s been practicing stakeholder capitalism since well before the term became popular.  

Chip Bergh doesn’t know what the future holds, but he's certain it includes people wearing jeans. The CEO of Levi Strauss & Co says even when much of the world was on lockdown in April, 50 percent of us were still wearing jeans. That’s not to say this has been an easy time for the company. It’s lost a lot of money, and been forced to lay off hundreds of employees. But online sales are growing fast and Bergh tells Leadership Next that by closely tracking what consumers want, Levi’s will emerge intact from the coronavirus pandemic.   For Bergh, responding to consumers means more than just selling them denim. It also means using Levi’s corporate muscle to support issues consumers - and employees - care about. Gun control is a key example.  He explains how the company entered the debate around guns, and why it has continued to push for more restrictions on who can own them. In this episode Bergh also tells Alan Murray and Ellen McGirt about the ‘Time to Vote’ initiative, urging companies to give employees paid time off to vote.  Additionally, the Levi Strauss Foundation is giving over a million dollars to organizations to promote get-out-the-vote efforts. Ellen catches up with the founder of one of these groups – Aimee Allison from She the People.