How business innovation can create US jobs

Kanter believes the best economic security for the US is to be innovative and avoid protectionism. RK writes of a new capitalism, one based on clear, transcendent values. She cites a cement company headquartered in Mexico. The company has become a giant in its field by helping people with financing and home reconstruction. RK says the company has even contributed innovate material such as cement that has antiseptic in it and is better for homes. It’s good for the consumer and is an innovation they created because they were thinking about the poor. So they have a market for this now in hospitals and the around the world. A different example: the alcohol company that owns Johnny Walker and other brands, Guinness, bought a beer company in Kenya and applied their ideas about innovation. Because of high taxes on beer by the government, a lot of people made illicit beer which resulted in criminal activity as well as bad health and infections and poor productivity. The people on the ground in Kenya made a partnership with the government and used their innovation and told the government they’d make more by lowering the taxes because they’d sell more and they have now won awards because this is the beer said to be responsible for reducing rates of blindness and improving productivity in the country. (Do you believe that yourself?) I believe it wasn’t the only thing but it’s just logical. That beer seized market share and more people are drinking something that doesn’t have bad water. This is innovating, using your best and latest thinking for the people that are least advantaged. (So the impetus initially was the service aspect and then the commercial aspect followed?) I think it’s the social aspect first, the purpose to serve the world. This is a new kind of company arising around the world which is challenging the US model of capitalism, which is you do things that are good for the commercial marketplace first and then with things left over you do something for society. In emerging countries, the big companies have a strong sense of values, partly because they see the problems of their own country. (It’s hard to imagine companies from developing nations that would be more driven by social values in innovation than by the bottom line). They care about that too, but this example of a bank in Brazil is quite stunning. This bank chose to focus their strategy on social and environmental responsibility. They would not lend to projects in the rainforest that would destroy it. (So the key is what?) The key is start with social values, assuming you have them. This day in age when the public is suspicious about globalization and capitalism, these companies have good will. It’s also sustainable business. (What are the potentials?) Our best security is not protectionism, it’s innovation that grows the economy and also restores the reputation of America around the world. Many companies need their licenses to operate around the world. America is suddenly seen as a place where greedy capitals want to dominate rather than values. So the business community can also grow in the sense that they can expand internationally and hire internationally.