Companies Aren't Greedy, They Are Designed to Maximize Profits

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Companies are established to create maximum returns for shareholders through optimization and managing reputation risk. The perceived value of a company is closely tied to its stock value. Ultimately, the focus is on providing enough value to shareholders. Capitalism is designed around this principle. While there are efforts to introduce altruism and ESG factors in the market economy, it remains to be seen how sustainable these changes are. Various initiatives like ESG ETFs, animal welfare reporting requirements, and mutual funds directed towards ESG are emerging. However, the long-term impact of these changes is uncertain. The market is evolving with new financial mechanisms like climate-friendly bonds, indicating a growing focus on ESG factors. Organizations like ARE are making significant efforts to drive these conversations in boardrooms, but the lasting effects of these changes remain to be seen.

Jaya is a seasoned operational executive with a rich history of promoting animal welfare in the food retail sector. As the Co-founder and Chief Program Officer of Global Food Partners, a Singapore-based multinational consulting firm, he helps food and hospitality businesses implement their cage-free egg policies across Asia and reduce the cost of cage-free sourcing.

A fascinating episode as we unpick the many advantages of working collaboratively with the industry to advance animal welfare. We chat about the key challenges to this type of work right now, animal welfare challenges in Asia generally and try to understand some of the key barriers for companies implementing improved animal welfare standards for the animals in their care.

Jaya has an absolute wealth of knowledge and experience in this area so it was a real pleasure to hear about his important work and strategic approach. A great listen.

Relevant links to things mentioned throughout the show:

Chapter Headers:

0:02:38 Why GFP works collaboratively with companies

0:06:10 Market forces and why they matter

0:12:01 Making progress for cage free

0:18:21 Key insights from cage free work in India and Asia

0:20:11 Reputational risk and its limitations in Asia

0:25:59 Forecasting the Asian animal movement

0:31:18 The impact of global welfare commitments on Asian companies

0:36:45 The importance of social proof

0:39:39 Consumers or companies responsibility

0:50:00 Offset credits for cage-free procurement

0:54:51 Cost implications of going cage free

1:08:46 Pushback from other animal advocacy groups

1:12:30 GFP plan for expanding in more countries

1:19:00 Cage free vs broiler commitments in Asia

1:20:22 The need for ecosystems and GFP's work

1:23:02 Career advice for advocates in Asia

1:26:20 Cultivating personal motivation

1:29:24 Closing questions

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