LEADERS Magazine April, May, June 2021 Volume 44, Number 2 by LEADERS Magazine

April, May, June 2021

Volume 44, Number 2

PURPOSE

RAISING HEALTH 14 STARR’S GREENBERG 22 INCLUSIVE GROWTH 60

MOYNIHAN

MULLIGAN

JAFAR

LATIN AMERICA AND THE CARIBBEAN 159 SOFTBANK’S CLAURE 166 DUTY, HONOR AND PATRIOTISM 170 NOURISHING A BETTER WORLD 174

SCHLIFSKE

MCDERMOTT

CHINCHILLA

MALCORRA

ROSENBAUM

QUBEIN

JON PAUL AND JORGE PEREZ 28

“What counts in life is not the mere fact that we have lived. It is what difference we have made to the lives of others that will determine the significance of the life we lead.” - Nelson Mandela LEADERS Magazine is published quarterly and circulated to distinguished leaders of the world. Circulation is strictly limited. To receive LEADERS Magazine, one must be a leader of a nation, an international company, a world religion, an international institute of learning, or an international labor organization; or a chief financial officer, a major investor on behalf of labor or corporate pension funds, a chief information officer or a Nobel laureate. LEADERS Magazine was founded by Henry O. Dormann (1932-2018).

LEADERS Magazine Publisher and Executive Editor: David W. Schner Editor: Darrell J. Brown Advertising Executive: Laurie McClure Ferber

On the Cover

Printing: Calev Print Media – Freeport Press

Brian Moynihan, Bank of America - 6 Deanna M. Mulligan, The Guardian Life Insurance Company of America - 8 Badr Jafar, Crescent Enterprises - 10 John E. Schlifske,

Northwestern Mutual - 18

Photo Credits: Cover - ©; 11 top - World Economic Forum/Sikarin Fon Thanachaiary; 12 - © Pyramedia 2016; 14 author, 15 - © Lee S. Weissman/Northwell Health; 28 Jorge Perez, cover; 30 - © Nick Garcia; 44 - © Jeff Yardis 2018; 64 plane - © Junebug Clark; 70 author Alex Subers; 80 - © David Beyda; 84 author - © 2016 Ben Hiders; 100 building - © 2020 Max Touhey; 104 - © Craig Gordon Photography; 109 - © Paul Broadrick Photography; 112-113 building photos - © RECENT SPACES; 116-117 - © Dave Cross Photography Inc.; 118 - © Brett Nadal; 120 - © Wyatt Counts; 122 - © University of Rochester/Richard Baker; 126 - © 2018 Roxxe Ireland; 128 - Claire Holt; 130 - © 2016-2019 Michael B. Lloyd, Lloyd Studios; 142 author - © Zachariah Sky; 150 - © Veanne Cao; 156 group - © Christopher’s Studio; 168 author - © Versham Photography; 168 plane - © Boeing; 178 - © Tierra Acustica; 181 - © Andres Kerese

Bill McDermott, ServiceNow - 24 Laura Chinchilla Miranda, Costa Rica - 164 Susana Malcorra, Argentina - 190 Richard A. Rosenbaum, Greenberg Traurig - 32 Dr. Nido R. Qubein, High Point University - 84 Jon Paul & Jorge Pérez,

Related Group - 28

2 LEADERS

LEADERS (ISSN 0163-3635 ) is published quarterly by Leaders Magazine, LLC, a Sandow brand; www.leadersmag.com. Leaders Magazine, LLC, Sandow Media, LLC and their respective affiliates, directors, officers, employees, contributors, writers and editors (collectively, “Publisher”) accept no responsibility for inaccuracies, errors or omissions with information and/or advertisements contained herein. The Publisher has neither investigated nor endorsed the individuals, companies and/or products that advertise within the publication or that are mentioned editorially. Publisher assumes no responsibility for the claims made by the Advertisers or the merits of their respective products or services advertised or promoted in the publication. Publisher neither expressly nor implicitly endorses such Advertiser products, services or claims. Publisher expressly assumes no liability for any damages whatsoever that may be suffered by any purchaser or user for any products or services advertised or mentioned editorially herein and strongly recommends that any purchaser or user investigate such products, services, methods and/or claims made thereto. Opinions expressed in the magazine and/or its advertisements do not necessarily reflect the opinions of the Publisher. Neither the Publisher nor its staff, associates or affiliates are responsible for any errors, omissions or information whatsoever that have been misrepresented to Publisher. The information on products and services as advertised in the publication are shown by Publisher on an “as is” and “as available” basis. Publisher makes no representations or warranties of any kind, expressed or implied, as to the information, services, contents, trademarks, patents, materials or products included in this magazine. All pictures reproduced in the publication have been accepted by Publisher on the condition that such pictures are reproduced with the knowledge and prior consent of the photographer. As such, Publisher is not responsible for any infringement of any third party’s intellectual property or other rights arising out of any publication. LEADERS® is a registered trademark of Leaders Magazine, LLC. © Leaders Magazine, LLC 2021. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without the written permission of the Publisher. ADDRESS SUBSCRIPTION REQUESTS AND CORRESPONDENCE TO: Leaders, 3651 NW 8th Avenue, Boca Raton, FL 33431.

VOLUME 44, NUMBER 2

Defining purpose. Driving transformation. For more than 175 years, our purpose has been marked by helping clients solve their most complex challenges while fostering our people’s careers. Now, we draw from our history of driving inclusive behavior in our organization and commit to champion racial equity and social justice in our workplaces and communities. Learn more about what Deloitte is doing at www.deloitte.com/us/dei-transparency-report Change isn’t just coming, it’s here.

PURPOSE

Contents Responsible Growth Brian Moynihan, Chairman of the Board and Chief Executive Officer, Bank of America

People Count Deanna M. Mulligan, Board Chair, The Guardian Life Insurance Company of America

Building a Resilient Society Badr Jafar, Chief Executive Officer, Crescent Enterprises

Raising Health Michael J. Dowling, President and Chief Executive Officer, Northwell Health

Holistic Financial Planning John E. Schlifske, Chairman, President, and Chief Executive Officer, Northwestern Mutual

Investing in People Maurice R. Greenberg, Starr Insurance Companies

Making Work, Work Better Bill McDermott, President and Chief Executive Officer, ServiceNow

Building Better Cities Jorge Pérez, Chairman and Chief Executive Officer, Related Group

Moving Forward at Full Speed Jon Paul Pérez, President, Related Group

4 LEADERS

Stronger Together Richard A. Rosenbaum, Executive Chairman, Greenberg Traurig, LLP

Meeting Needs in Times of Crisis Howard P. Milstein, Howard & Abby Milstein Foundation

Family-Owned Values Maggie Hardy Knox, President, 84 Lumber and Nemacolin Woodlands Resort

Making an Impact that Matters Alicia Rose, Deputy Chief Executive Officer – Strategic Initiatives, Deloitte U.S.

Driving Impact Kwasi Mitchell, Chief Purpose Officer, Deloitte U.S.

The Travelers Promise Alan D. Schnitzer, Chairman and Chief Executive Officer, The Travelers Companies, Inc.

Constant Reinvention Farooq Kathwari, Chairman, President and Chief Executive Officer, Ethan Allen Interiors Inc.

Creating Place Principals of Kohn Pedersen Fox Associates

Building Trust Richard Edelman, President and Chief Executive Officer, Edelman

Serving the Military Wayne Peacock, President and Chief Executive Officer, USAA

Bridging the World’s Two Largest Economies Xiaojun (Dennis) Huang, Executive Vice President, Bank of China U.S.A.

Inclusive Growth Michael Froman, Vice Chairman and President, Strategic Growth, Mastercard

ESG Initiatives Brad S. Karp, Chairman, and Dave Curran, Chief Sustainability and Environmental, Social and Governance (ESG) Officer, Paul, Weiss, Rifkind, Wharton & Garrison

Meals Up Kenny Dichter, Founder and Chief Executive Officer, Wheels Up

Entrepreneurialism, Service and Strength Thomas W. Corbett, Chairman and Chief Executive Officer, Alliant Insurance Services, Inc.

Delivering the Ultimate Fan Experience Scott O’Neil, Chief Executive Officer, Harris Blitzer Sports & Entertainment

Offshore Wind Development Robert B. Catell, Chairman, National Offshore Wind Research and Development Consortium

Career Pathways Joseph Baratta, Global Head of Private Equity and Marcus Felder, Vice President, Portfolio Operations, Blackstone

Making a Difference Robert T. Hale, Jr., Co-Founder and President, Granite Telecommunications, LLC

VOLUME 44, NUMBER 2

Business-Minded Advice Jay A. Neveloff, Chair, Real Estate, Kramer Levin Naftalis & Frankel LLP

A Legacy of Care and Action Nancy Mahon, Senior Vice President, Global Corporate Citizenship and Sustainability, The Estée Lauder Companies

A Home and a Business Rachel Emma Manners, Duchess of Rutland, Chief Executive Officer, Belvoir Castle

Passion and Purpose Joe Plumeri, Executive Chairman, Selecta Group

The Future of Open Finance Simon Paris, Chief Executive Officer, Finastra

Mission Over Margin Stephen Shaya, M.D., Managing Director, Akkad Holdings and Executive Servant Leader, J&B Medical

Life Skills Dr. Nido R. Qubein, President, High Point University

Embracing Difference Deborah Harmon, Co-Founder and Chief Executive Officer, Artemis Real Estate Partners

Delivering Financial Security Keith M. O’Reilly, President and Chief Executive Officer, Gerber Life Insurance Company

A Business Imperative Richard K. Bynum, Chief Corporate Responsibility Officer, The PNC Financial Services Group

Promoting Ethical Behavior Leo S. Mackay, Jr., Senior Vice President, Ethics and Enterprise Assurance, Lockheed Martin

Changing Lives Jon S. Chorley, Chief Sustainability Officer and Group Vice President, Supply Chain & Manufacturing, Oracle

Innovation, Connection, Content Corey Anthony, Senior Vice President, and Chief Diversity and Development Officer, AT&T Services, Inc.

Supporting Communities Laura Vulaj, Senior Vice President and Director of Sustainability, SL Green Realty Corp.

100

Health Equity Carol R. Horowitz, MD, MPH, Professor of Population Health Science and Policy, and Professor of Medicine, and Director, Institute for Health Equity Research, Icahn School of Medicine at Mount Sinai

102

Creating Positive, Enduring Change Ramesh Srinivasan, Senior Partner, New York, McKinsey & Company

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Committed to New York Meg Brod, Senior Vice President & Regional Development Officer, Rockefeller Group

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Public-Private Partnership Stuart Bennett, M.D., Group Chief Executive Officer, Al Sharq Healthcare

114

Skadden’s Culture Stephen C. Robinson, Of Counsel, Litigation, Government Enforcement and White Collar Crime; Brenna K. DeVaney, Director of Pro Bono Programs/Pro Bono Counsel; and Lauren E. Aguiar, Partner, Complex Litigation and Trials: Skadden, Arps, Slate, Meagher & Flom LLP

116

Transforming Healthcare Michael J. Alkire, President and Incoming CEO, Premier Inc.

118

Aiming High Oscar Sanchez, Chief Executive Officer and President, Kyocera Document Solutions America

120

The Four Ps Ed Hajim, Chairman, HighVista Strategies, LLC

122

Life Lessons L. Dennis Kozlowski

124

Taking a Long-Term View Brian Tomlinson, Director of Research, CEO Investor Forum, CECP

126

Risk Management Richard Apostolik, President and Chief Executive Officer, Global Association of Risk Professionals (GARP)

128

Delighting Doctors Jeffrey Queen, Chief Executive Officer, and Andrew Queen, Executive Chairman, Integrated Dermatology

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Farm to Factory Gerry Morton, Chief Executive Officer, NutriScience Corporation

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Rebuilding Travel Valerie Ann Wilson, Founder, CEO, Chairman, & Owner; Jennifer Wilson-Buttigieg and Kimberly Wilson Wetty, Co-Presidents & Owners; and Brian J. Buttigieg, Chief Financial Officer & Owner; Valerie Wilson Travel

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Science First Percival Barretto-Ko, Chief Business Officer, Astellas

140

Business and Sports Bode Miller, Champion Alpine Skier

142

The Future of Work Richard Mines, Principal, WB Wood

144

An Educational Content Platform Alison Marckstadt and Sisi Provost, Co-Founders, Succession Advisors

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A Single Therapeutic Focus Marc Meachem, Head of U.S. External Affairs, ViiV Healthcare

148

Creating a More Secure and Inclusive World Carey O’Connor Kolaja, Chief Executive Officer, AU10TIX

150

A Commitment to Quality Shyda Gilmer, Chief Operating Officer and Co-Owner, Sherry-Lehmann Wine & Spirits

152

Sharing Wine and Giving Hope Mari Wells Coyle, Winemaker, ONEHOPE

154

Veteran-Owned Sean Magee, Founder and Chief Executive Officer, Anchor Trading

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LEADERS 5

PURPOSE

Responsible Growth An Interview with Brian Moynihan, Chairman of the Board and Chief Executive Officer, Bank of America EDITORS’ NOTE Brian Moynihan Bank of America is recognized as a top leads Bank of America’s team of employer by Working Mother magazine more than 200,000 employees dedand Military Times. The company is also icated to making financial lives betlisted on Fortune magazine’s list of the ter for people, companies of every size, Best Workplaces for Diversity and the and institutional investors across the Best Workplaces for Parents. It was also United States and around the world. named one of the Best Places to Work for He also leads the company’s Global Disability Inclusion by the U.S. Business Diversity and Inclusion Council. He Leadership Network and the American participates in several organizations Association of People with Disabilities. that focus on economic and market In 2018, Euromoney recognized Bank trends, including the World Economic of America as the World’s Best Bank and Brian Moynihan Forum Inter national Business the World’s Best Bank for Diversity and Council, the Financial Services Inclusion as part of their annual Global Forum and the Bank Policy Institute (chair of Awards for Excellence. both), the Business Roundtable, and the American Heart Association CEO Roundtable (co-chair). He How do you define Bank of America’s culture is a member of the Federal Advisory Council of the and how critical is culture to the strength Federal Reserve Bank, a member of the museum and leadership of the company? council for the Smithsonian’s National Museum We have a set of principles that center around of African American History and Culture, and “responsible growth” and it is important when you a member of the Brown University Corporation’s have a company as big as we are, in as many Board of Fellows. Moynihan earned an under- locations as we are, serving as many clients as we graduate degree from Brown University and a JD do, that our people understand who we are and from University of Notre Dame Law School. what we do and, most importantly, why we do it. Responsible growth is a simple way to incapsulate C O M PA N Y B R I E F B a n k o f A m e r i c a our values and principles and purpose. We have (bankofamerica.com) is one of the world’s leading built a company that is able to deliver on its purfinancial institutions, serving individual con- pose and live to its values by defining its operating sumers, small and middle-market businesses and principles and being the best place for people to large corporations with a full range of banking, work, support its communities and deliver results. investing, asset management and other finan- It is about customers, teammates, shareholders cial and risk management products and services. and society. The company serves approximately 66 million consumers and small business clients in the U.S. through approximately 4,300 retail financial centers, including approximately 2,900 lending centers, 2,500 financial centers with a Consumer Investment Financial Solutions Advisor and approximately 2,300 business centers; approximately 17,000 ATMs; and award-winning digital banking with approximately 39 million active users, including approximately 31 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries.

“We make decisions for the business by asking if it is consistent

with our principle of

responsible growth.”

6 LEADERS

How do you communicate this message and the importance of responsible growth throughout the company? It has to be genuine, real, and straight forward, and you have to communicate it regularly and show that you are living the principles. This is my 12th year as CEO which is a long time in this role and people now ask me to reflect on my time which is different from when I started and was asked who I was and what my plans were for the company. When I started and we were in a challenging situation coming out of the financial crisis, it was critical to give people a reason to come to work and to define our purpose as a company. It was my responsibility to communicate this clearly and often to our team. This quarter will be my 46th earnings call as CEO and we consistently open with our focus on responsible growth and this repetition resonates with the team and helps bring everyone on board as we bring it to life. We make decisions for the business by asking if it is consistent with our principle of responsible growth. It is about being clear about our purpose, communicating that purpose regularly, and then living the purpose every day. Bank of America’s focus on responsible growth has a long-term focus and vision. How do you balance that focus with the pressures for short-term, quarterly results? We believe that we can deliver for all of our stakeholders – customers, teammates, shareholders and society – which is about profits and purpose. If you believe that you can do this, it gets you away from the short term. We have made decisions that gave up revenue in the short term because we were following our long-term strategy, and this has worked out well for us. This company has been around for a very long time and we are making decisions to ensure that the legacy continues for many more years to come. We know that it is essential to think about the business across time and for multiple years. How has Bank of America adapted its business to address the challenges caused by the pandemic? People talk about the pandemic with clarity today, but in early March 2020 there was no clarity at all and no one knew what was happening. When you are making VOLUME 44, NUMBER 2

“We have a set of principles that center around ‘responsible growth’ and it is important when you have a company as big as we are, in as many locations as we are, serving as many clients as we do, that our people understand who we are and what we do and, most importantly, why we do it.” decisions in uncertain times, you have to make decisions that are consistent with your principles which for Bank of America is being customer, teammate and community focused. We knew the market volatility and economic disruption was coming and we had to support our team because they were critical to supporting our customers which is essential to supporting our communities. We made a number of decisions early on – the first thing we did was to take all of our high-risk people, which was over 20,000 people, out of our offices as fast as we could. This was before we even knew that this was something that needed to be done, but once it was clear that the virus had an adverse impact on certain people, we acted immediately. This caused a lot of disruption since many of these people could not work right away from home since we needed to get them the technology and make sure they had the training to perform their duties. We made a commitment to no layoffs and continued to adapt with roughly 90 percent of our people eventually working from home. We realized that our teammates who had kids at home needed to be a technology expert, a tutor, a hall monitor and all of the other things that use to take place in the school and was now happening at home. We knew we needed to get them childcare and that there was no childcare open at that time, so we offered our teammates $100 a day to hire someone to come to their homes to support their needs. We wanted to take any possible distractions and additional pressures off of our teammates and provide an opportunity where they could work and be effective. This fulfilled our principle of focusing on our teammates. We had to deal with major issues for our customers in regard to borrowing money and the government distribution programs, and then PPP. We had 10,000 people working on PPP in April 2020 which didn’t even exist in February 2020. This related to our customercentric focus. We also committed to our principle of community focus, especially in the wake of the George Floyd killing and the issue of social justice. We had already focused on healthcare disparities with masks and supplies for underserved communities, and then committed to programs to address racial injustice. VOLUME 44, NUMBER 2

How will the continued move to online banking impact brick and mortar and will the physical bank remain relevant in the future? We will have 300,000 to 400,000 people come to our branches today so it is still relevant. We believe in high touch, high tech. The deployment of technology already had a major impact on our business with approximately 40 million digital customers and 9 billion digital transactions a year, so it was a big part of our business. It is about providing the customer with options and making it as efficient and convenient as possible, which means some may do all their banking digitally, some may do a mix of digital and in-person, and some may do it all physically – our responsibility is to be there for them no matter what they decide to do. Will you discuss Bank of America’s commitment to building a diverse and inclusive workforce? Bank of America has a long history of driving diversity and inclusion. We have a diverse board and a diverse management team, and we measure diversity at all levels of the company since we are trying to match society at all levels of representation. We do business all over society and our workforce should match the diversity in society and we need to continue to attract the best talent possible. It is critical to measure this work and to make progress each year. It is also important to have special programs to enhance our outreach and capabilities, including Pathways where we said we would hire 10,000 teammates from low-income households and neighborhoods for career path jobs to build income diversity at the company. This was a truly diverse population of people across all different ethnicities. We believe that diversity is important because it is the right thing to do, and it is also important for the business since we need to mirror the diversity of our customers and society. You mentioned Bank of America’s commitment to its communities and to addressing societal need. Do you feel it is a responsibility for leading companies to be a force for good in society and to focus on more than just the bottom line? We have one of the best research teams in the world, and when they look at companies, if a company doesn’t do well on ESG factors, you will find that these companies constitute 90 percent of the business failures over the last

decade. Investors will do better if they invest in companies that have a strong ESG performance. Another way to think about it is that if you believe that we need to address societal issues and global problems, it will take a tremendous amount of money and it will take capitalism to make this happen. If big companies and capitalism do not try to help with these problems, they are not going to get solved. If you feel that capitalism is the best way to address these challenges, you need to make sure that what comes out of that is fair and equitable and just, which is what we refer to as inclusive capitalism. The only way we are going to win this fight and meet these challenges is by bringing business to the table. How do you describe your management style? I expect people to be prepared and to put their teammates and the company first. Our team is talented, driven and resilient, and we all share a common goal of helping our teammates to be successful, helping our customers to achieve their goals, helping secure strong returns for our shareholders, and helping our communities and society. We enjoy what we do and have fun. There have been many wins for the business during your time leading Bank of America. Do you take time to reflect and celebrate the wins or are you always looking at what is next? In order to be fresh in this job, you have to always be thinking about what is next. This is not to say that I am not proud of what our team has accomplished and this group has done it the right way with the right set of principles. At the end of the day, there is so much opportunity and so much to get done for all of our constituencies, so you can’t be complacent. We have achieved so many satisfying things, but we are in a relentless pursuit of excellence in everything we do. What advice do you offer to young people beginning their careers during this challenging and uncertain time? I tell people to stay curious. When you are in school, you are dealing with courses and assignments and interacting with classmates and professors, and then you come into business and you have a job and scope of responsibilities to do which can limit you, so the way to continue to grow is to stay curious and continuously learn.

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LEADERS 7

PURPOSE

People Count An Interview with Deanna M. Mulligan, Board Chair, The Guardian Life Insurance Company of America EDITORS’ NOTE Deanna Mulligan is Guardian is a purpose-driven Board Chair of The Guardian Life company with a culture that lives by Insurance Company of America its values, which are: (Guardian). She was a Principal • We do the right thing. at McKinsey and Company and • People count. has held senior positions at AXA • We hold ourselves to very high Financial, New York Life Insurance standards. Company, and ChannelPoint. Doing the right thing and holdActive acr oss the industry and ing ourselves to very high ethical in the community, Mulligan is a standards is at the core of our busiBoard member of Vanguard, the ness. When we review a claim, we American Council of Life Insurers ask ourselves, “If I were on the other Deanna M. Mulligan (ACLI), the Partnership for New side of this transaction, how would I York City, t h e E c o n o m i c C l u b like to be treated?” It is an application o f N e w Y o r k , t h e C h i e f Executives for of the Golden Rule, which unites the Guardian Corporate Purpose (CECP), and the Bruce team around service to its policyholders and Museum in Greenwich, CT. She was appointed customers. to, and served on, the President’s Advisory How has Guardian adapted its busiCouncil on Financial Capability for Young ness to address the challenges caused by the Americans from 2014 to 2015, and was Chair pandemic and how proud are you to see the of the Board of the ACLI from 2015 to 2016. strength and resilience of Guardian’s workShe is currently a member of the Stanford force during this unprecedented time? Graduate School of Business Advisory Council, None of us imagined the speed at which and served as a Director on the Board of Arch whole industries, and the jobs they provide, Capital. Fortune named her one of the “50 Most would be massively affected by the spread Powerful Women in Business” and Crain’s New of this virus. Think of the restaurant industry York Business recognized her as one of “The 50 or the entertainment industry. The effort to Most Powerful Women in New York,” five times help people impacted by these changes, and each. She has appeared on CNN, Bloomberg TV the victims of the virus, is obviously a priorand Yahoo! Finance, and has participated in ity for us all. Fortune’s Most Powerful Women Summit, Forbes Women’s Summit, the Peterson Fiscal Summit, the ACCT Leadership Congress, and CECP’s CEO Investor Forum 8.0, among other speaking opportunities. Mulligan graduated from the University of Nebraska with High Distinction and holds an MBA from the Stanford Graduate School of Business.

“Corporations, and

COMPANY BRIEF Guardian (guardianlife.com) has been helping people protect their future and secure their lives for more than 160 years. Every day, it serves 29 million people by helping them and their families pursue financial confidence and well-being in life, health, and wealth. Today, as one of the largest mutual insurance companies, Guardian provides life insurance, disability insurance, dental insurance, and other benefits for individuals, at the workplace, and through government-sponsored programs. What have been the keys to Guardian’s industr y leadership and how do you describe the Guardian culture? 8 LEADERS

business in general, can and must be a force for good in our world.”

At Guardian, our response to the pandemic was rooted in the lessons we learned during Superstorm Sandy eight years ago. The financial district, including Guardian headquarters, was under water. At Guardian, we did not get back into our headquarters for nine months. While we managed during that time to run our company and serve our policyholders in a manner that met our standards, it was a struggle. Coming out of that crisis, I vowed that we would be location-independent so we would never face that challenge again. It took a lot of planning, investment and quality execution, but when COVID-19 shut down the world, Guardian was ready. Our employees were protected, our businesses were prepared, and our remote technology worked nearly seamlessly. Our people did everything humanly possible to make sure our customers and our policyholders received the service they needed during this difficult time. Guardian also donated to humanitarian efforts to help those affected. I continue to be very proud of the people of Guardian. You transitioned from the CEO role at Guardian to Board Chair in October 2020. What made you feel it was the right timing for this transition and how will you focus your efforts post-Guardian? I had said from the outset that I believed ten years was the maximum amount of time anyone should stay in that role, and I was coming up on ten years. Fortunately, my successor, Andrew McMahon, joined us three years ago and the timing for him to take over Guardian was perfect. Andrew is a mature and experienced leader who believes strongly in Guardian values and has the experience and the forwardlooking mindset to take Guardian to the next level. I am very excited about the future of Guardian under Andrew’s leadership. I want to focus my time now on continuing to spread the word about the importance of corporate reskilling and to continue the purpose-driven message that we tried to live by at Guardian. Corporations, and business in general, can and must be a force for good in our world. What do you see as the keys to effective leadership? My book begins and ends with “Purpose,” and is deeply rooted in a belief that to successfully change complex institutions as thoroughly and rapidly as these times demand, leaders VOLUME 44, NUMBER 2

“At Guardian, we saw major advantages in breaking down the boundaries between the classroom and the workplace in educating people for the jobs of the future.”

must follow the North Star of Purpose, or risk losing their way. “Purpose” defines both “what matters” and “who matters.” Effective leadership requires more than just charting a path forward; true leadership requires charting a path toward something – toward a more equitable, more sustainable, more compassionate future as well as a profitable one. What was your vision for writing the book, Hire Purpose, and what are the key messages that you wanted to convey through the book? The ideas in this book came into focus for me after the 2008 financial crisis. Companies in certain sectors were forced to retrench, and in many cases, forced to lay off quality people whose functions were no longer needed. Many of these people had a hard time finding new employment. Guided by one of our company values – people count – I believed there had to be a better way. We see accelerating change with the rapid adoption of technological advances like artificial intelligence and machine learning. The forces of globalization and the emergence of the millennial in the workforce – and soon Gen Z – are forcing every organization, including Guardian, to rethink how they hire and reskill our existing workforces. My message to every business leader is to consider people as your most valuable asset. What do you see as the responsibility that leading companies have to supporting the communities they serve and to addressing societal need? No matter how advanced technology becomes, human beings are the beating heart of any enterprise. Businesses cannot succeed in the long term unless their people do. This notion is the reason business leaders have a responsibility to help existing employees achieve their full potential. I would not have written a book – and certainly not a book for CEOs – if I did not believe that investing in your workforce is VOLUME 44, NUMBER 2

both an essential business imperative and a corporate social responsibility. History has repeatedly proven that a strong workforce is the foundation of a stable, prosperous nation. At the end of the day, workers are not only workers; they are also parents, spouses, community members, and citizens. When their shifts end, their impact on the economy continues.

As a leading woman executive, do you feel that opportunities are present for women to grow and lead in business and on corporate boards? People ask me this question all the time. Right now, we certainly see some fantastic women leading corporations and both sitting on, and leading, corporate boards. When I graduated from business school, this was not the case. Women in top positions were an extreme rarity. So, we have made progress, but not enough. The question now is not whether women can do it, it is rather, are we doing everything we can to prepare and encourage women to take on those roles? There is more to do, certainly, but what I find exciting and hopeful is the frequency with which these questions are being asked and the determination of many of today’s leaders to make gender parity happen. What advice do you offer to young people beginning their careers during this challenging and uncertain time? My advice is to embrace the notion of continuous learning. Jobs are changing quickly, and the skills necessary to secure those opportunities are shifting, too. It is unlikely a high school or college degree will provide one with all the knowledge necessary for a long and fruitful career. As a matter of fact, I often say to young people, “the trip across the stage to collect a diploma is the start of your educational journey – not the end.” At Guardian, we saw major advantages in breaking down the boundaries between the classroom and the workplace in educating people for the jobs of the future. We offered extensive on-the-job training, reimbursement for education, and even launched a pilot program to teach employees in our increasingly automated call centers a new skill – computer coding. These kinds of experiences are at least as valuable to employers as pieces of information on a resume.

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LEADERS 9

PURPOSE

Building a Resilient Society An Interview with Badr Jafar, Chief Executive Officer, Crescent Enterprises EDITORS’ NOTE Badr Jafar is also The four platforms under Crescent President of Crescent Petroleum. He Enterprises represent the coris the Managing Director of Crescent nerstone of its diversif ication Group, which has been operating strategy. What are the latest developfrom the UAE as a family business ments across these platforms? group for 47 years, and is the parent Crescent Enterprises operates under company of Crescent Enterprises and four platforms, namely CE-Operates, our Crescent Petroleum. Jafar serves as operating business platform; CE-Invests, Chairman of Gas Cities, a joint venour strategic investments platform; ture between Crescent Petroleum and CE-Ventures, our corporate venture Dana Gas PJSC, and as Chairman capital platform; and CE-Creates, our of Pearl Petr oleum, a partnerinternal business incubation platform. Badr Jafar ship between Crescent Petroleum, These platforms work together in synDana Gas, OMV of Austria, MOL of ergy to develop innovative, sustainable Hungary and RWEST of Germany. In 2010, Jafar and profitable businesses spanning diverse sectors founded the Pearl Initiative, a nonprofit venture including ports and logistics, power and engineerin cooperation with the United Nations Office for ing, food and beverage, business aviation, and Partnerships to promote a corporate culture of across verticals such as private equity, venture transparency and accountability across the Gulf capital and business incubation. Region of the Middle East. He has been appointed In 2021, our four platforms are continuing to as a member of the United Nations Secretary deliver on their respective strategies. Gulftainer, our General’s High-Level Panel on Humanitarian ports subsidiary under CE-Operates, and the world’s Financing to address and examine the growing largest privately-owned independent port operator, humanitarian financing crisis. Jafar is an active is accelerating innovation through the adoption of member of the Young Presidents’ Organization, digital technologies to ensure that it is at the forefront serving as Ex-Officio Chair of the YPO Emirates of what is a highly-competitive industry. Chapter. Jafar was honored as a Young Global Through CE-Invests, we are seeking to mainLeader by the World Economic Forum in 2011 and tain the growth of our holdings by capitalizing on is co-chair of their Family Business Community, efficiencies and expanding into new geographies a Global Agenda Trustee for Economic Growth while remaining focused on environmental, social, and Social Inclusion, and a member of the Global and governance (ESG) parameters. Future Council on the Humanitarian System. COMPANY BRIEF Cr escent Enterprises (crescententerprises.com) is a diversified conglomerate headquartered in the UAE that operates a range of regional and global businesses across four verticals: CE-Operates, with operating businesses in ports and logistics, power and engineering, and business aviation sectors; CE-Invests, a strategic investments vertical with a balanced portfolio of diversified asset class investments; CE-Creates, a business incubation division; and CE-Ventures, a corporate venture capital arm that makes strategic direct investments in early- to late-stage start-ups across the world. Crescent Enterprises employs over 4,500 people in 20 countries across five continents. With a long-term investment and operating philosophy that embraces corporate governance, inclusive growth and responsible business practices, Crescent Enterprises is a leader in growing diversified regional and global businesses that are sustainable, scalable and profitable. 10 LEADERS

“The key to building a resilient society is not just to ensure that people have access to jobs, but also to ensure that people have purpose and meaning in their lives.”

CE-Ventures is continuing its strategy of investing in high-growth companies and venture capital (VC) funds across the MENA region, the U.S., and Southeast Asia. We have so far deployed $180 million across start-ups and VC funds in various tech subsectors including Supply Chain Tech, MedTech, EdTech and FoodTech, and in AI/ML powered horizontal Enterprise/SaaS companies with applications across sectors, offering synergies with Crescent Enterprises’ own operations. Finally, our purpose-driven incubator, CE-Creates, is pushing ahead with the development of a growing range of early-stage concepts into socially relevant, economically viable and scalable ventures aimed at spawning the next generation of operating businesses for Crescent Enterprises. The platform is a manifestation of our focus on fostering entrepreneurship, innovation, and generating positive sustainable impact. Since inception, the platform has launched four ventures in the areas of food and beverages, sustainable mobility, industrial workwear and food technology. What is your business outlook for 2021 in light of COVID-19 and how has the pandemic impacted your global operations? The pandemic has had a mixed impact on our diversified operations and investments. On one hand, lockdown restrictions have disrupted global supply chains, leading to slower growth in some of our subsidiaries. However, our ports and logistics operating companies have been relatively resilient considering the unprecedented scale of disruption. They have also been able to support local and international responses to the pandemic, enabling the timely delivery of life-saving supplies. On the other hand, private equity and venture capital markets have been challenged with tightening credit and investment flow, declining asset values and longer holding periods. Since the start of the pandemic, many investors have been adjusting their investment approach, triaging their existing portfolio as a priority before venturing into new opportunities. That said, we believe 2021 will present a range of new opportunities, especially for companies that have shown resilience and emerged from the pandemic with more sustainable business models. Similarly, we have been working closely with companies across our platforms to help them identify opportunities that reduce costs and ensure their own business continuity, and we remain committed to deploying new capital in high-growth companies with robust business models and clear ESG standards. VOLUME 44, NUMBER 2

Badr Jafar at the World Economic Forum Annual Meeting 2020 in Davos

In 2010, you founded the Pearl Initiative in partnership with the UN Office for Partnerships. How have attitudes to corporate governance and accountability in the Gulf region changed since then, and what are your current priorities in this area? I founded the Pearl Initiative with the UN Partnerships Office and other business leaders ten years ago as a private sector led nonprofit with a focus on promoting corporate governance best practices to expand access to capital and boost value creation in the Gulf Region. The Pearl Initiative works closely with its stakeholders to understand their current challenges and opportunities and build interventions that will provide necessary support to businesses. These interventions include equipping businesses with the appropriate tools and knowledge to build vigorous systems of corporate governance, allowing them to build greater investor appetite and trust, promote long-term financial viability, and respond to operational disruptions. Along these lines, the Pearl Initiative, in cooperation with the Bill and Melinda Gates Foundation, has recently launched The Gulf Philanthropy Circle to convene heads of family firms along with leading actors in the philanthropic ecosystem. The key purpose of the Circle is to establish and promote best practices on enhancing the effectiveness of giving within and from the Gulf Region. The reality is that today, in light of the extensive socio-economic impacts of the continuing COVID-19 pandemic, the adoption of corporate governance measures to help facilitate more sustainable and inclusive growth in the economies of the Gulf Region has never been more important. A decade into our journey, we have just agreed on an expanded new vision for the next 10 years that doubles down on our efforts to align corporate goals with the economic and social resilience of our region’s economies. VOLUME 44, NUMBER 2

To what extent have local and regional efforts to create a more thriving ecosystem for start-ups and SMEs been successful? Will the MENA region ever have its own Silicon Valley? Local and regional initiatives to stimulate the development of a vibrant start-up culture have been broadly successful in encouraging and supporting a new generation of local entrepreneurs, especially tech entrepreneurs, to pursue their own business ideas. This is to be applauded and it is something that definitely needs to continue. However, doesn’t it feel sometimes like Silicon Valley is the only place left on earth not trying to

become Silicon Valley? The real question is, even if we were able to copy-paste Silicon Valley here, would that really guarantee the resilience that we need to withstand future shocks? I think not. That’s why I believe that in the MENA region, instead of blindly chasing the next big tech hub, what we really need is a new breed of human-centric innovation hubs, or what I like to call “Purpose Hubs,” that can harness the power of technology and business innovation to inclusively serve humanity and our habitat, and actively address the needs of our societies through their operations. Instead of just looking for the next billion-dollar business, we can vigorously pursue businesses that can positively impact a billion lives. We also need to avoid falling into the trap of thinking about entrepreneurship solely in terms of the stereotype young graduate building a tech company in his basement. That’s one type of entrepreneur, but it is not the only type, especially here in the Middle East. We already have a thriving community of small and medium-sized enterprises, and the owners of these businesses have proven that they know how to build successful companies. These are people with actual businesses, not just business plans, and a big part of our effort to support entrepreneurship needs to be focused on them. We also need to ensure that our institutional programs for supporting and incubating entrepreneurship are as inclusive as possible and are accessible to people of all ages and genders, including people of determination. Even before COVID-19, the MENA region was facing a multitude of challenges, including high levels of unemployment, political instability, and a humanitarian crisis. In the face of all these challenges, how do you ensure that young people in the region are given greater access to hope and opportunity?

Badr Jafar visiting Kutupolang Camp with the Big Heart Foundation, Bangladesh in 2017 LEADERS 11

“In recent years, the top 30 fastest growing economies in the world have all been in emerging markets. It is estimated that more than $5 trillion in wealth will be passed from one generation to the next within these economies over the next ten years, and this suggests that there will be a significant increase in philanthropic activity in these societies in the coming decades, including in the Middle East.” First and foremost, we need to be honest with our youth, and that means finding creative ways to prepare them for a world in which many of the jobs of today will no longer exist, and the jobs of tomorrow will not be built to last anywhere near as long as the jobs of yesterday. We also need to think about education as a way to equip youth to identify and pursue their own meaningful purpose in life, rather than merely as a way to prepare someone for the labor market. The key to building a resilient society is not just to ensure that people have access to jobs, but also to ensure that people have purpose and meaning in their lives. Again, we need to accept that it is looking less and less likely that we’ll be able to create the number of jobs that we are going to need in the future, anyway, so we have to be thinking broader than just jobs to create societal resilience. One of the most immediate things that we can do, and this applies to all of us, is to help to create more connected communities, and that begins at the neighborhood level. It may seem obvious, but when people feel like they are part of something that is bigger than themselves, then it is much easier for them to feel like they have purpose in their lives. Education has an important

role to play in this process, but so do business, government, the media and other institutions in our society. You are the Founding Patron of a new Centre for Strategic Philanthropy at Cambridge University which opened earlier this year. What was the thinking behind the creation of the Centre and how would you describe the current state of philanthropy in the MENA region? I was fortunate to partner with the University of Cambridge on the establishment of a new Centre for Strategic Philanthropy within the University’s Judge Business School. What is unique about the Centre is that it is focused exclusively on strategic philanthropy both within and from the world’s emerging markets, including in Africa, Developing Asia and of course the Middle East. The work of the Centre for Strategic Philanthropy can be divided into three main areas: First, undertaking rigorous research related to strategic philanthropy within and from the world’s fastest growing economies. Second, providing education and training to the next generation of philanthropic leaders to emerge from these regions of the world. And finally, convening

Badr Jafar presents HRH The Prince of Wales with the “Pearl Initiative Champion of Sustainability Award” in 2016 12 LEADERS

diverse voices to improve understanding of philanthropy in these markets with a view to enhancing its impact and effectiveness. There is a seismic shift underway in the global economy right now. In recent years, the top 30 fastest growing economies in the world have all been in emerging markets. It is estimated that more than $5 trillion in wealth will be passed from one generation to the next within these economies over the next ten years, and this suggests that there will be a significant increase in philanthropic activity in these societies in the coming decades, including in the Middle East. The Middle East has a very long and a very rich history of charitable giving. However, we have a much shorter history of institutional philanthropy. This is a distinction that is actually quite common in many emerging markets. The good news is that I think local attitudes to philanthropy are changing, especially among young people, and one of the biggest drivers of that is the amount of new wealth that is being generated in the region and the associated rise that is taking place in younger people’s awareness and interest in strategic philanthropy. You are also a member of the UNESCO International Commission on the Futures of Education. What lasting changes do you expect COVID-19 and the rise of new technologies to have on both education and work? The International Commission has been mandated to reimagine how knowledge and learning can be used to shape the futures of humanity in a more positive way in a world of increasing complexity and uncertainty. My own view in relation to the MENA region specifically, mostly based on my experience in business, is that many of the old models of education are no longer fit for purpose in the world that we live and work in today. At least here in the Middle East, and probably more broadly, we need to be developing new models of education that are more human-centric and focused less exclusively on developing technical skills, but more on developing people. That probably means a greater emphasis on mental health, self-confidence, cultivating empathy, critical thinking, and equipping people with the “soft skills” that will serve them well no matter what happens to one particular industry or another. As long as there are humans walking the earth, these skills will be in demand and increasingly so, I believe. We plan to release our main report and findings at the UN General Assembly later this year, so watch this space.

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VOLUME 44, NUMBER 2

PURPOSE

Raising Health An Interview with Michael J. Dowling, President and Chief Executive Officer, Northwell Health EDITORS’ NOTE Prior to assumBusiness at University College, Dublin, Medicine at Hofstra/Northwell and Hofstra ing his current post in 2002, Michael Ireland. He also serves as a board mem- Northwell School of Graduate Nursing and Dowling was the health system’s ber of the Long Island Association. He is Physician Assistant Studies. Northwell Health is Executive Vice President and Chief past chair and a current board mem- the largest integrated health system in New York Operating Officer. Before joining ber of the National Center for Healthcare State with a total workforce of more than 75,000 Northwell Health in 1995, he was Leadership (NCHL), the Greater New employees – the state’s largest private employer. a Senior Vice President at Empire York Hospital Association (GNYHA), the With 23 hospitals, more than 830 outpatient Blue Cross/Blue Shield. Dowling also Healthcare Association of New York State facilities, including 220 primary care practices, served in New York State government (HANYS) and the League of Voluntary 52 urgent care centers, home care, rehabilitation for 12 years, including seven years as Hospitals of New York. Dowling was an and end-of-life care services, Northwell is one of State Director of Health, Education, instructor at the Center for Continuing the nation’s largest health systems with $14 biland Human Services and Deputy Professional Education at the Harvard lion in annual revenue. Michael J. Dowling Secretary to the governor and the School of Public Health. He earned his final two years as Commissioner of undergraduate degree from University How do you define Northwell Health’s the New York State Department of Social Services. College Cork (UCC), Ireland, and his master’s purpose? Earlier, Dowling was a Professor of Social Policy degree from Fordham University. He also has honOur role is multi-dimensional and, too often, and Assistant Dean at the Fordham University orary doctorates from Queen’s University Belfast, not fully understood. At our core, of course, we Graduate School of Social Services and Director University College Dublin, Hofstra University, are a comprehensive and integrated organizaof the Fordham campus in Westchester County. Dowling College and Fordham University. tion dedicated to the promotion of individual, He has been honored with many awards and recfamily and community health. We strive, as outognitions over the years, including being selected INSTITUTION BRIEF Northwell Health (northwell.edu) lined in our new marketing campaign, to “RAISE as the 2017 Grand Marshal of the New York City delivers world-class clinical care through- HEALTH.” St. Patrick’s Day Parade, the 2012 B’nai B’rith out the New York metropolitan area, pioneering We are also a major economic engine – the National Healthcare Award, the Ellis Island Medal research at the Feinstein Institutes for Medical largest private employer in New York State with of Honor, the 2011 Gail L. Warden Leadership Research, and a visionary approach to medical 75,000 employees. Just think of the implications Excellence Award from the National Center for education, highlighted by the Zucker School of of such for families, for local businesses, for Healthcare Leadership, the 2011 CEO Information Technology Award from Modern Healthcare magazine and the Healthcare Information and Management Systems Society, the National Human Relations Award from the American Jewish Committee, the Distinguished Public Service Award from the State University of New York’s Nelson A. Rockefeller College of Public Affairs and Policy, an Outstanding Public Service Award from the Mental Health Association of New York State, an Outstanding Public Service Award from the Mental Health Association of Nassau County, the Alfred E. Smith Award from the American Society for Public Administration, the Deming Cup from the Columbia School of Business and the Gold Medal from the American Irish Historical Society. For 13 consecutive years, Modern Healthcare has ranked Dowling on its annual list of the “100 Most Powerful People in Healthcare,” including the #2 ranking in 2020. He was also ranked #44 among large company CEOs in the U.S. and was the nation’s top-ranking healthcare/hospital CEO on Glassdoor’s “Top CEOs in 2019” list. Dowling is past Chair of the Healthcare Institute and the current chair of the Institute for Healthcare Improvement (IHI). He is a member of the Institute of Medicine of the National Academies of Sciences and the During the COVID-19 pandemic, Michael Dowling visited the intensive care units at all Northwell Health hospitals, North American Board of the Smurfit School of including here at Long Island Jewish Valley Stream in April 2020. 14 LEADERS

VOLUME 44, NUMBER 2

“We are a business with an extraordinary positive impact and as a not-for-profit, that impact stays local. We hire about 150 new employees each week and the career possibilities are unlimited.”

contractors, for vendors and for government. We are a business with an extraordinary positive impact and as a not-for-profit, that impact stays local. We hire about 150 new employees each week and the career possibilities are unlimited. You can become a doctor, a nurse, or a respiratory therapist. If you want a career in finance, in technology, in real estate, in supply chain or in the food business, we can provide the opportunity. Few industries have such diversity. We are also much more than hospitals and do much more than just treat illness. Through our outpatient facilities, our home care and our community health initiatives, we focus on wellness and prevention. We all know that if we do a better job at helping people stay healthy and out of the hospital, it results in better outcomes overall. We also, of course, have to understand the importance of individual behavior and responsibility. We also play a major role in education as one of the largest academic teaching entities in the U.S. We not only have a very creative medical school and nursing school, but we also do a tremendous amount of work with schools to provide career options for kids. These “career days” introduce the health professions to high school students nearing their collegiate studies. We also sponsor what we call a “Spark Challenge” for students with a specific focus on STEM and over 1000 kids participate. And, of course, through our Feinstein Institute for Medical Research, we invest in promoting new discovery and finding cures and the next generation of treatments and medications to fight disease. Finally, I would say that as a major “business” we have an obligation and responsibility to be a leader in the broader community by tackling larger societal issues – all of which, in one way or another, impact overall health. What we say and how we act as leaders matters. This is why we have taken an advocacy role in issues such as gun violence which is a public health issue, veterans, immigration, etc., and I expect to become more involved in the area of climate change and environmental health. I see my role as twofold. I have an inside role to successfully manage and lead Northwell and I have an outside role to address these larger issues, but also to promote a sense of positivity and optimism in the community at large which is more critical now than ever. We all need to unify and not be at war with one another. VOLUME 44, NUMBER 2

Prior to the pandemic, Michael Dowling welcomed hundreds of new employees during the Beginnings orientation each Monday. The event has transitioned into a virtual orientation during COVID.

There is a current debate now on the future of New York City. I believe that what business leaders say and more importantly how they and their organizations act is going to have a big influence on New York City’s recovery and future. We need to be community influencers in a positive way by resisting division and partisanship. We need to give oxygen to hope and unity. Are the societal issues that Northwell Health is committed to addressing all health related? Everything, in one way or another, relates to health. We are influenced, health wise, by everything that goes on around us – be it political, social, demographic or economic. Current divisive and negative political partisanship, I believe, has an impact on people’s sense of health and well-being. People are happier when they see a common purpose, believe in a better future, work as part of a team and share a common mission. What is health? It is not just physical; it is mental and emotional as well. Just think of economic distress like unemployment. We know that one of the best ways to positively address a person’s health is to have a job, to be able to

contribute and support their families. This is why the overall health impact of COVID is so problematic. We may not see the totality of the impact today, but we will see it in the future. I tell our employees – nurses, doctors, etc. that no matter how stressful and difficult it has been, and still is, we are the lucky ones. We are working, supporting our families, have a mission and a sense of purpose. We all have neighbors who have lost their jobs, can’t pay rent or put adequate food on the table and the business they relied on may be disrupted forever. That affects health. Perspective matters. How critical is emotional and mental health to a person’s physical health? It is critical since so much physical health results from emotional and mental health issues. You must look at the totality of a person’s wellness. We spend a tremendous amount of time and effort around employee engagement since we know that in order for our employees to be physically healthy, they need to be emotionally and mentally healthy, which relates to how they feel at work, how they are part of a team, and how we take care of them. Our employee engagement scores over the past nine LEADERS 15

“Everything, in one way or another, relates to health. We are influenced, health wise, by everything that goes on around us – be it political, social, demographic or economic.”

months as we dealt with COVID have greatly improved. These scores are prepared by an independent agency the industry uses and show that we are at the 91st percentile. It shows that even during a crisis, if you focus on the health and well-being of your employees, they will be more engaged and healthier, which means they will be able to perform at their best which, of course, leads to improved customer service. It’s also important for leaders to be on the front lines with our people, walking around and talking to them about how they feel and what they need. This is motivating and inspiring, and I believe it is critical for any leader to touch the flesh – you can’t Zoom it or Microsoft Teams it. I do this on a regular basis which is good for my overall health. Do business leaders need to place more of an emphasis around their employees’ health and well-being and to understand that this is not only the right thing to do, but also a business imperative? This certainly needs to be a continuing focus for business leaders. Many CEOs delegate this to others in the organization which is a big mistake. I know employees and even middlelevel managers at hospitals around the country who have been working at their jobs for years and have never met the CEO. That is not helpful. Some become CEO and they get a nice title, big office, new furniture, and start to think about how successful they are. Success doesn’t happen by sitting in your office, it happens by being out in the field and being with your people. The successful CEOs walk the factory floor

Each spring, Michael Dowling leads the combined annual meeting of Northwell’s Board of Trustees and Board of Overseers, where he addresses previous successes and provides the goals for the upcoming year.

and spend time with their teams since this is the only way to really know what is happening in the company. One of the worst things that can happen to a CEO is that they begin to believe what they read about themselves and they lose touch with what really matters – being with the employees, listening to their concerns, taking

“We spend a tremendous amount of time and effort around employee engagement since we know that in order for our employees to be physically healthy, they need to be emotionally and mentally healthy, which relates to how they feel at work, how they are part of a team, and how we take care of them.” 16 LEADERS

care of them, and constantly communicating the mission. Motivated employees want to belong to a purpose, a cause – not just work for the organization. How do you feel the future of work will be impacted by the pandemic? We are moving to a world where technology is allowing us to work remotely. Much of this is productive, but if it becomes only that, then we are making a huge mistake. People need other people to be around them. As we move forward, we need to use technology when appropriate, but we also need to intensify the human connection. We need to have people come together to share thoughts, exchange ideas and build connections. I believe that one of the big challenges going forward is finding the right balance between the human element and technology. The organizations who find that optimum balance will thrive. Hospitals are thought of as being in the business of treating illness and taking care of patients, but you refer to hospitals as being in the customer service business. Will you discuss Northwell Health’s focus on customer service? VOLUME 44, NUMBER 2

“Patients today are more knowledgeable, have more access to information and wish to be a partner in their care. Rather than asking the question, what’s the matter with you, we now ask, or should ask, what matters to you?”

Some traditionalists don’t agree with me, but I firmly believe that we are in the customer service business. How we connect, how we relate, how we listen to customers (patients) and their families is at the core of what we do. The world has changed. The old thinking was that the patient was subservient, and the provider (doctor) was all knowing. Patient input and partnership was essentially non-existent. Patients today are more knowledgeable, have more access to information and wish to be a partner in their care. Rather than asking the question, what’s the matter with you, we now ask, or should ask, what matters to you? Some years ago, I recruited an executive from the Ritz-Carlton, Sven Gierlinger, to lead our customer service efforts and to help modify the traditional mindset. He has done a terrific job. He truly understands how important service and convenience are and what staff education is needed. I remember what Sven explained in one of our first meetings. The subject was initial impressions and he explained that how you are greeted and treated in the first few minutes of an interaction makes all the difference. That’s what people remember. Yes, we are in the service business and we need to get so much better at it. Excellent service is a distinguishing characteristic of great organizations. What do you see as the role of the hospital in the future in order to meet the challenges facing healthcare? Some people argue that hospitals and hospital beds will be less needed and less important in the future. I disagree. There will be an increasing need for high acuity, specialized hospital beds in the decades to come. Just think of the demographic changes such as aging. In many ways, we have a crisis of success. Our ability to keep people alive longer, resulting in increasing end-of-life healthcare treatments, will necessitate the need for inpatient care, especially intensive care. The overall role of hospitals in the continuum of care, however, is changing and will continue to change. Hospitals which were once the core of care delivery are now becoming just one component. This may be confusing to non-healthcare viewers so let me explain. Ten years ago at Northwell, hospital care was over 80% of everything we did – it’s now just 50 percent. We now have hundreds of non-hospital facilities doing work that was once only done in the hospitals. This shift will continue, especially with the advance of new technologies. Hospitals are evolving to places that deliver VOLUME 44, NUMBER 2

babies and provide intensive care to the growing population of individuals, especially the elderly, with chronic illness. They will continue to be an essential part of our healthcare system. Also, let’s remember that during COVID, hospital bed capacity was key. We had to dramatically increase the supply of beds to meet demand.

Are medical schools doing an effective job at being innovative with the curriculum in order to prepare the next generation of leaders in the industry for the future of medicine? You are never effective enough. It’s always a race against what’s desired. There are pockets of excellence, but I think that schools, not just medical schools, need to constantly reconfigure and transform to adapt to and create the world of the future. Education is a catalyst for change. We at Northwell have been in the forefront, I believe. We have a unique curriculum in our medical and nursing school that revamps how students are trained. This has been written about many times. Our goal is to create competent, caring, transformative leaders and practitioners. Is the industry doing an effective job at attracting the numbers of people necessary to address the challenges facing healthcare?

There is no shortage in the number of individuals who desire to enter the healthcare arena. We need to identify the future needs of the industry so that we can adequately direct and prepare them. Let me identify just a few areas. We need more geriatricians and people who understand the emotional, mental and physical issues associated with aging. We need experts in chronic care management, in technology and data analytics, in behavioral health and, of course, in primary care overall. The promotion of health requires the commitment of everybody, not just those who work in clinics and hospitals. Individuals themselves must take responsibility. So must the food industry, schools, etc. All business leaders, irrespective of the nature of their particular business, have a responsibility. This must be a community effort. You wrote a book, Living Through A Pandemic, as you were dealing with COVID in real time. How important is it for the industry to remain focused on the lessons learned in order to be best prepared for future crises? In writing the book, we started each chapter with “lessons learned.” I have a fear that when COVID recedes, we will tend to forget and revert to the old ways of thinking. That would be disastrous. Other crises will occur again in the future and we need to be much better prepared. For example, we should never again be struggling to acquire the necessary PPE and be so dependent on other countries for its production. We need to increase our investment in science, in the creation of a coherent emergency management infrastructure at the federal, state and individual business level. The list is large, but with proper leadership it can be done. As has been well-documented, COVID highlighted the disproportionate effect on certain populations of color. This is a challenge that now must be forcibly addressed. There is much debate about the future of New York. As someone who is so deeply committed and invested in New York, what is your outlook for New York’s future? I am optimistic about New York’s future. New York is a resilient place and a special place. It will be very important to have the right political leadership to lead it into the new future. Business leaders need to commit to the city, not try to find other pastures elsewhere. If you believe in New York, stick with it and rebuild it – don’t leave it and then complain about it. That is not leadership. New York City is the “City of Dreams.” It will always be so.

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PURPOSE

Holistic Financial Planning An Interview with John E. Schlifske, Chairman, President, and Chief Executive Officer, Northwestern Mutual EDITORS’ NOTE In addition to and technologically and that gave us his current role, John Schlifske is confidence to move swiftly and boldly also a member of the company’s as the world changed in early 2020. Board of Trustees. After joining Over the past year, we have been on Northwestern Mutual in 1987 as offense taking bold steps to support an investment specialist, Schlifske our clients while investing for the future moved from portfolio manager to to drive significant long-term value. We senior executive overseeing a variknow that our clients are counting on ety of the company’s investment us most in times like these – and we operations. He later headed differstepped up for them by being prepared ent parts of the company’s business and taking quick action. operations. Schlifske is a director on Specifically, we started the panJohn E. Schlifske the board of Kohl’s Corporation. He demic with a record level of finanis also a member of the Executive cial surplus and the highest available Committee of the American Council of Life financial strength ratings with a stable outlook Insurers. In the greater Milwaukee commu- from every major rating agency. Through our nity, Schlifske serves on the boards of Froedtert 164 years, we know this deeply matters and and Community Health, the Greater Milwaukee have proven it through wars, natural disasters, Committee, and the Metropolitan Milwaukee the Great Depression, the Great Recession, past Association of Commerce. A Milwaukee-area pandemics and more. native, Schlifske received a bachelor’s degree in Because of that financial strength and economics from Carleton College and a mas- preparedness, we had the ability to be highly ter’s degree in finance and accounting from proactive from the beginning of the pandemic. the Kellogg Graduate School of Management at We immediately stepped in and offered options Northwestern University. for our clients who were struggling with the impacts of COVID-19, and we also offered a COMPANY BRIEF Northwester n Mutual package of items to ensure our field force of (northwesternmutual.com) has been help- financial representatives remained focused on ing families and businesses achieve finan- helping our clients during this time. In addition, cial security for more than 160 years. Through when markets were very volatile in early 2020 a distinctive, personalized planning approach, and many investors were selling, we used our Northwestern Mutual combines the expertise of financial strength to swiftly go on offense and its financial advisors with a digital experience to make significant investments at very attractive help its clients navigate their financial lives every asset prices. As markets rebounded in the secday. With more than $300 billion in assets, over ond half of the year, we saw that drive signifi$31 billion in revenues, and more than $2 tril- cant value for our policyowners both now and lion worth of life insurance protection in force, in the future. Northwestern Mutual delivers financial security Technologically, we had already made to more than 4.75 million people with life, dis- significant investments in digital tools before ability income and long-term care insurance, the pandemic and that enabled our teams to annuities, and brokerage and advisory services. remain productive and stay connected in a The company manages more than $200 billion virtual environment. We prioritized open and of investments owned by its clients and held or transparent communication and added even managed through its wealth management and more digital options to enable strong colinvestment services businesses. Northwestern laboration. For our clients, we significantly Mutual is recognized by Fortune® as one of increased our market commentary and our the “World’s Most Admired” life insurance com- financial representatives often worked around panies in 2021. the clock to help address client needs during this time. How has Northwestern Mutual adapted its In 2020, our business results were among business to address the challenges caused the best we have ever seen including a record by the pandemic? number of new clients. But most importantly, While no one predicted this pandemic or we know we were here for people when they its impact, we were ready for it both financially needed us most. 18 LEADERS

How proud are you to see the way Northwestern Mutual’s workforce has shown strength and resilience during this challenging and uncertain time? I am so proud of the work of our teams. We moved to a virtual environment overnight in March of 2020 and, at the same time, experienced significant increases in work volumes as a record number of people sought financial planning and products from our financial representatives. Across the company, our teams have done an exceptional job managing this demand, especially in a new work environment that was surrounded by uncertainty and volatility. Throughout the pandemic, our 6,700+ employees and 10,500+ financial professionals have been on the front lines giving our clients real-time advice, personalized guidance, and reassurance. We experienced record business growth and on top of it all, our employee engagement scores soared which demonstrates the resiliency of our people. Beyond this, I’m proud of the way our people have also taken steps to give back – volunteering at food banks, donating lunches and dinners to healthcare workers and first responders, teaching financial literacy courses to local students – the list goes on. Our people have always given back, supporting causes important to both themselves and their communities, but the compassion and support demonstrated while they were dealing with their own COVID19 challenges was extremely impressive. Will you discuss how Northwestern Mutual supported its employees, clients and communities during this unprecedented time and how it is continuing this commitment? At the onset of the pandemic, thousands of Northwestern Mutual financial advisors quickly responded to help to stabilize thousands of small business owners and support individual investors who had real and meaningful concerns. We have countless examples of advisors who jumped in from their makeshift home offices in living rooms and kitchens, responding to clients with empathy, a listening ear, and insights that offered a voice of calm and longterm perspective. Our corporate office employees stepped up as well to ensure that our capabilities could support the important work our advisors do each day. For example, understanding that clients would be relying on our digital offerings VOLUME 44, NUMBER 2

“While many other firms within the financial services industry prioritize product sales, our recipe for success is putting our clients first with holistic financial planning, implementing the plan through a unique approach that integrates insurance and investments, and a focus on outcomes, not products or features.” more heavily, we doubled down on our plans to enhance our digital tools including options to virtually connect with a Northwestern Mutual financial professional. We also prioritized communication with our people during this time – creating open, transparent, and authentic ways to share information with our employees and financial professionals and answer their questions. As part of this, we listened to understand what our people needed during this time, ensuring our culture offered support and flexibility. We adjusted our training programs, ensuring people were prepared to work with and support clients in a virtual world, as well as virtual training for new financial representative candidates who were awaiting the reopening of licensing centers. In addition, we shared numerous wellness resources, such as virtual doctor and physical therapy visits, and other online resources that promote fitness and self-care. When it’s time to shift back to more in-person work, we recognize that listening to our people will continue to be key to ensure they feel connected and empowered, and that we continue to maintain the strong culture that defines our company and how we work together. How do you define the Northwestern Mutual mission and what have been the keys to the company’s success? Our mission has always been to help Americans and their families achieve financial security. While many other firms within the financial services industry prioritize product sales, our recipe for success is putting our clients first with holistic financial planning, implementing the plan through a unique approach that integrates insurance and investments, and a focus on outcomes, not products or features. As a mutual company, we are owned by our policyowners and the only reason we exist is to serve them. Our capital is for their financial security and our economic gains are 100 percent for their benefit. We have been doublingdown on our value proposition throughout the pandemic and I firmly believe this is why we had record business performance in 2020. Our field force of financial professionals is at the core of our approach, crafting personalized financial plans for our clients and helping people take steps to build financial security. In a world that has increasingly focused on robo-advice, we deeply believe in the critical role of a personal financial advisor. I firmly believe that people VOLUME 44, NUMBER 2

need a trusted financial partner who understands them and can guide them along the way. Our advisors follow a unique approach to financial planning that often includes both insurance and investments in a financial plan, helping clients both protect what they have and grow wealth to achieve financial security, especially through uncertain times. That approach works in all economic conditions and we believe it especially resonates with Americans right now. Our business has been growing significantly and we recently crossed two milestones – $2 trillion of life insurance protection in place and $200 billion of client assets in our retail investments business. We also continue to innovate and build for the future even during challenging times because we have the financial strength to take a very long-term view. Since the start of the pandemic, we have continued to make significant progress on major strategic priorities including continuing to build our client experience and we have also been investing on behalf of our policyowners. People put their trust in us and we run the company with a long-term view so that we can thrive and benefit our policyowners for generations to come. How critical is it for Northwestern Mutual to build a diverse and inclusive workforce and how important is it to have diverse perspectives and experiences both at the corporate decision-making level and at the individual advisor level? At Northwestern Mutual, we want people to join us and stay with us because they feel valued, they can bring their whole self every day, and they believe that, together, we can make an impact on people’s lives. Plus, research shows that more diverse and inclusive workforces are more productive, and people are more satisfied and more able to innovate for better solutions and higher rates of return. Our commitment is not new – we initiated a 15-year plan way back in 2012. However, we have doubled down on it significantly over the past year. We recognize that diversity, inclusion, and equity are the responsibility of all of us and this needs to be woven throughout every department at the corporate office and every field office nationwide. We focus on metrics and results, not programs or seminars. The senior leadership team is accountable to our board to deliver on and improve upon our metrics every year.

Our employees and financial professionals share in this commitment. From our employee resource groups, to our affinity-based study groups for our advisors, to our first-of-its-kind association for our women advisors, and many other examples, we are committed to serve as a magnet for attracting and developing diverse talent. I’m personally chairing our Sustained Action for Racial Equity task force which is focused on fighting racism, discrimination and prejudice in all forms. We also have a focused women’s initiative that ensures Northwestern Mutual is a place where women want to join, stay, and grow. Certainly, all of this is the right thing to do for our people and our communities, but it is also essential to ensure that our company can thrive and serve all Americans in the years ahead. What do you see as the responsibility of leading companies to be engaged in the communities they serve and be good corporate citizens? We’ve been part of the ESG (environmental, social, governance) movement before it was even a term. From a business perspective, we know that people prefer to do business with firms that align with their values. Our governance structure is a model for others in terms of accountability, transparency, and focus. We have continually taken steps to be environmentally friendly in our operations. Our social commitments span our investment portfolio, our business operations, our philanthropic efforts and, most importantly, our employee volunteerism. A great example of our holistic approach is the way we manage our campuses. At our suburban campus in Franklin, Wisconsin, we made a significant investment in transforming the landscape to reintroduce native grasses and flowers, walking paths, and even vegetable gardens. A few years ago when we built our new tower in downtown Milwaukee, not only did we design the building to be highly energy efficient, we also set a new standard in our community for how to include local, minority and female-owned contractors in the construction process. We know it is essential that we advance the next generation of leaders, help produce higher standards of living, and improve the quality of life for people. As a company, helping families and children in need is in the fabric of who we are. LEADERS 19

“To me, effective leadership always starts with your purpose – the reason why you’re in business. Most people don’t want a job, they want an opportunity to make an impact and contribute to a greater good.”

For decades, we have also been investing in the communities we serve through financial support, significant volunteerism, and collaboration with local partners to build stronger communities. We’ve focused advancing childhood cancer research as our national cause, supporting education for Milwaukee’s youth, revitalizing local and disadvantaged neighborhoods, and supporting nonprofit organizations that provide cultural opportunities in Milwaukee to help our city flourish as a great destination to live and work. Above all, we take great pride in our local giving and recognize it’s a reflection of our policyowners and what they expect of their company. I am personally involved in a number of ways and our employees and financial professionals give back in countless number of hours and dollars to communities across the country. It’s simply who we are. The world is facing a series of crises from public health to racism to the economic uncertainty that so many face. What do you see as the role that the private sector and business community can play in bringing its talent and expertise to help address these issues? It’s crucial for businesses to invest in tackling significant challenges, not only when crises strike, but on an ongoing basis to create long-term sustainable change. To do this, leaders must be willing to go beyond giving money and to actually help facilitate change. In my view, the greatest impact can be made by offering our time, expertise, networks and insights. Yet, most any business leader would tell you that these are the scarcest things we have to offer. We have done this in a number of ways – both on broad national issues and locally in our hometown of Milwaukee. For example, as a mutual company, it is our responsibility to stand against that which divides us. As I mentioned, last year, we created the Sustained Action for Racial Equity Task Force. A diverse team of more than 60 employees and financial professionals across the country have been engaged in this work, driving lasting change and making a difference building equity for the Black and African American community. Various initiatives and goals have been achieved since the inception, including a $20 million allocation from Northwestern Mutual Future Ventures to invest in Black founders, a Black founders startup accelerator program and a revised professional conduct policy, just to name a few. As a second example, in our hometown, we’ve helped form the MKE Tech Hub Coalition, 20 LEADERS

a not-for-profit coalition across industries in Milwaukee focused on bolstering and growing the technology ecosystem. We also formed a partnership called Outsource to Milwaukee, which we developed with IT services company GalaxE. Solutions. It is designed to create hundreds of new tech and IT jobs in our backyard for those in underserved communities by providing job training and non-traditional pathways into a tech career. Beyond being personally meaningful to our people, tackling broader challenges is a business imperative. From our 164 years in business, we know that the effort we put in now pays off for future generations and creates communities where we can thrive for years to come.

“Our mission has always been to help Americans and their families achieve financial security.”

What are the keys to effective leadership and how you do you describe your management style? To me, effective leadership always starts with your purpose – the reason why you’re in business. Most people don’t want a job, they want an opportunity to make an impact and contribute to a greater good. For me personally, I feel a deep connection to the purpose of Northwestern Mutual and the work we do to help people and families become financially secure. We take a very long-term view, which we call our intergenerational compact, reflecting our commitment to equitably serve all of our policyowners, from people who became clients many decades ago to people who will become clients years in the future. We’re not just selling products, we’re helping people build financial security and independence over time and that is deeply meaningful.

When I talk with our employees and financial professionals, I know that they relate to this purpose too. Early in my career, I learned that one of the most important roles of a leader is to bring people along with you, and being completely united in our “why” keeps us aligned as an organization about where we are headed. Effective leadership means grounding our plans, strategies, decisions, and actions in this purpose and then following through. In terms of my management style, I want to bring strong talent into the organization at all levels. I don’t claim to have all of the answers, but try to surround myself with the people who do. We focus on open and transparent discussions and share both ideas and feedback and we earnestly ground all of our thinking in terms of what will be the right long-term action for us to take in support of a thriving business for years to come. I always push to empower our people to drive results, while remaining personally involved and connected to major strategic initiatives when needed. I want people to feel supported, yet I want to continuously drive for us to find ways to move faster, drive even stronger results, and find new paths for success. Our clients deserve nothing less. What advice do you offer to young people interested in building a career in the financial services industry? I often share two pieces of advice. First, when you’re starting your career, it’s critical that you dig in and try to do more than anyone around you. Take on challenges, put in the hours, hone your skills, and learn everything you can. I encourage people to see those early years as setting a foundation for the future and laying that foundation will be, frankly, hard work. But if you put in the time and effort, especially in the first 10-15 years of your career, you will position yourself for continued growth in the years ahead. Second, be willing to find opportunities in places where you may not have thought to look. When I was studying at Northwestern University, Warren Buffet came to campus and spoke to the students. At the time, I was considering a career in investment banking or Wall Street finance, and he mentioned that a career in insurance can help you hone analytical skills and gain exposure to a diversity of securities that you might not otherwise get if you were a post-grad analyst focused narrowly on a specific product or industry. That ultimately led me to Northwestern Mutual, beginning a lifelong career at a company with a deep purpose and clear impact.

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VOLUME 44, NUMBER 2

Paul, Weiss Helps Clients Tie ESG Aspirations to Action Our dedicated and cross-functional team of ESG experts helps boards and C-suite executives implement strategic ESG initiatives while mitigating legal and reputational risks.

PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP

paulweiss.com/practices/sustainability-esg

PURPOSE

Investing in People An Interview with Maurice R. Greenberg, Starr Insurance Companies EDITORS’ NOTE Maurice Greenberg COMPANY BRIEF Starr Insurance is Chairman of Starr Insurance Companies (starrcompanies.com) is a Companies, a global insurance global, privately-held insurance and and investment organization. Starr investments organization. Through its was founded by Cornelius Vander operating insurance companies, Starr Starr in 1919 in Shanghai, China. Insurance Companies provides commerGreenberg for med American cial property and casualty, as well as International Group, Inc. (AIG) as accident and health insurance products a Starr subsidiary, and served as worldwide, with significant access to the that company’s Chair man and U.S. excess and surplus marketplace for CEO until March 2005. Under his certain lines of business. Starr Insurance nearly 40 years of leadership, AIG Companies underwrites a wide variety of Maurice R. Greenberg grew from an initial market value specialty and international lines includof $300 million to $180 billion, ing aviation, marine, energy, environbecoming the largest insurance company in mental, crisis management, excess casualty the world. Greenberg is also the Chairman of insurance, accident and health, and political risk The Starr Foundation, a philanthropic orga- insurance. Starr Insurance Companies also pronization initially funded by Cornelius Vander vides a broad spectrum of insurance-related serStarr’s estate. The Foundation has made more vices including claims handling and settlement, than $3.8 billion in grants to many academic, reinsurance, risk assessment, loss control and medical, cultural and public policy organizations worldwide travel assistance service. around the world. A decorated United States Army veteran, Greenberg served in both World W h a t h ave b e e n t h e ke y s t o S t a r r ’s War II and the Korean Conflict, rising to the strength and leadership during this chalrank of Captain and serving as a company com- lenging time? mander. Greenberg received his pre-law certifIt comes down to people. We are servicate from the University of Miami and an LLB ing Corporate America, not only in the United from New York Law School. States, but globally. Our company’s history

goes back to an insurance agency started in 1919 by C.V. Starr in Shanghai, China. We have a long history serving clients around the world through our global operations. We had a good year in 2020 and performed well due to the talent and expertise of our people and the deep relationships we have built over many years. We communicate regularly with our employees in all parts of the world. We work very hard at what we do, and our leaders need to work harder than everyone else. I am very proud of how we performed during this unprecedented time and look forward to continued growth and success for the future. You mentioned Starr operates globally. Will you highlight Starr’s business around the world and your management approach? Starr has a strong global footprint and we are focused on growing in all parts of the world. We have the right people in these markets who are working hard, and we are there to support them in order to be successful. Managing these businesses is about finding a balance – we bring in people who have been with us for many years and combine them with local talent. You need great leaders in order to grow in these markets. Our people are what differentiates Starr.

“We work very hard at what we do, and our leaders need to work harder than everyone else. I am very proud of how we performed during this unprecedented time and look forward to continued growth and success for the future.”

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“You need to differentiate in every way possible. You need to be flexible and you need to understand the business and know how to price the business properly. You need to be innovative and to have the latest technology.”

How important are relationships to your business? We have worked with many of the same people across the insurance industry for many years and we know each other intimately. When I ran my last company, we were the largest insurance company in the world, not just at that time, but in history. We worked closely with clients and brokers then, and we have maintained those long-standing connections. Relationships are the key to building client loyalty. How do you define the Starr difference? You need to differentiate in every way possible. You need to be flexible and you need to understand the business and know how to price the business properly. You need to be innovative and to have the latest technology. Having said that, it still comes down to people and you have to have the best talent which we believe is the Starr difference. Has the way we work changed permanently with the use of technology that has occurred due to the pandemic or do you feel that companies will get back to being in the office and working in person? I think we will get back to being in the office, but the amount of space companies need

will change. Many companies will find that they do not need as much space as they had in the past and there will be redundant space in places like New York. Starr has committed a tremendous amount of money, time and resources to the communities it serves through the work of The Starr Foundation. Will you highlight these efforts? It is part of our culture. We do it because it is the right thing to do. The Foundation has provided support to many education, healthcare and cultural causes around the world. We’re proud of the impact we’ve had on these organizations and their communities over many years. We have made a real difference in the lives of many people. You have been a leading voice in promoting U.S.-China relations. Where do you see this relationship and how critical is it for the two countries to work together effectively? Our company has been doing business in China for over 100 years. We were one of the earliest foreign companies doing business there. I have been traveling to China for more than 40 years, and we have built very good relationships. We employ many people in China today

and expect our business to continue to grow for many years. When I first visited, there was no insurance industry. We trained their people and helped the first insurance company in China to get on its feet. Today that company is very big, and the country has a thriving insurance industry. Many companies in the United States and in other parts of the world are doing business in China, which benefits both the country and those foreign companies. I do not feel it will be easy to dislodge them. China is a big country and it has a lot to learn, but it has a leader who has done a great job for China. I am pleased that President Biden had an engaging two hour phone call very recently with President Xi. That’s a good start to improving the United States’ relationship with China, and their relationship with us. What are your priorities for Starr as you look to the future? We a r e f o c u s e d o n c o n t i n u i n g t o grow year after year and to supporting our people in order to make this happen. We have substantial business around the world, but we still have a lot of r oom to grow.

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“Our company has been doing business in China for over 100 years. We were one of the earliest foreign companies doing business there. I have been traveling to China for more than 40 years, and we have built very good relationships.”

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Making Work, Work Better An Interview with Bill McDermott, President and Chief Executive Officer, ServiceNow EDITORS’ NOTE Bill McDermott that lets employees route work seamhas been in his current role and has lessly throughout the enterprise. served as a Member of the Board of ServiceNow’s purpose of making ServiceNow since 2019. Previously, work, work better, fueled by our comhe was Chief Executive Officer and pany culture and values, continues to a member of the Executive Board of unite and guide us as a company. SAP. Before joining SAP, he served Today, ServiceNow is the platform in senior executive r oles with company for digital business. We’re Siebel Systems and Gartner, Inc. dedicated to our customers and pasHe launched his business career at sionate about delivering the best digital Xerox Corporation, where he rose workflow experiences possible for our to become the company’s youngest customers and employees. The Now Bill McDermott corporate officer and division presPlatform, what I like to call the “platident. McDermott got his start as a form of platforms,” offers the speed, young entrepreneur running a small delicates- flexibility, and innovation that companies need to sen business on Long Island, New York, at age 17. deliver exceptional employee and customer expeHe received his bachelor’s degree from Dowling riences. It unifies systems, silos and processes into College and his MBA from the Kellogg School of holistic enterprise workflows that solve any busiManagement at Northwestern University. ness challenge. The Now Platform enables easier and faster implementation, delivering unbeatable COMPANY BRIEF ServiceNow (servicenow.com) time-to-value and fast ROI. The beauty of the Now is making the world of work, work better for Platform is one platform, one data model, and one people. The company’s cloud based platform architecture. It’s why approximately 80 percent of and solutions deliver digital workflows that the Fortune 500 rely on ServiceNow for their digicreate great experiences and unlock produc- tal transformation efforts. tivity for employees and the enterprise. What excited you about the opportunity to lead ServiceNow and made you feel Will you highlight the history and heritage it was the right fit? of ServiceNow and how you describe the I was a fan of ServiceNow long before I ServiceNow difference? joined the company last year. I knew of its reputaI’ve always believed great companies are tion for being one of the most innovative growth built on the shoulders of giants. They are also companies in the world with tremendously loyal unified by a strong mission – in our case, it was customers. As I got to know the company even our Founder, Fred Luddy, and his simple but better, I was drawn to its hungry and humble powerful vision: to make work, work better for spirit, purpose, energy, passion and shared people. He made this possible by creating a commitment to driving outstanding customer cloud-based platform called the Now Platform value. ServiceNow’s ability to help organizations

digitally transform, coupled with the opportunity to extend the company’s world-class leadership across new industries and geographies, made the prospect of leading ServiceNow a once-in-alifetime opportunity for me. Digital transformation is the opportunity of our generation. Digital investments are at an all-time high and are expected to continue growing. According to IDC, worldwide digital transformation investments will total more than $7.4 trillion by 2024. The workflow revolution is here and ServiceNow is primed to lead it. Enterprise digital transformation is how every organization, in every sector, in every geo, is adapting, growing, creating new business models and empowering their people to be productive in any environment, under any conditions. Every day, I am compelled to dream big about how ServiceNow can take digital transformation to the next level – from helping companies redefine their business models to getting the world’s population vaccinated. I’m humbled by the enormous role that ServiceNow is playing. How do you define the ServiceNow culture and how critical is culture to the success of the company? ServiceNow’s culture is incredibly strong, utterly unique and essential to our success. We are a purpose-driven company and our hungry and humble culture is reflective of that. Every day we come to work to fulfill our purpose of making work – and the world – work better for people. We’re also deeply committed to being a leader in building a diverse, inclusive workforce in which everyone feels that they belong because diverse teams with an indomitable will to win create great, enduring companies.

“Digital transformation is the opportunity of our generation. Digital investments are at an all-time high and are expected to continue growing.”

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“We are a purpose-driven company and our hungry and humble culture is reflective of that. Every day we come to work to fulfill our purpose of making work – and the world – work better for people.”

At the same time, we strive to understand and solve industry-specific challenges our customers are experiencing so we can deliver unbeatable time-to-value and fast ROI in every scenario. It is that customer focus that gives ServiceNow the ultimate competitive advantage. Our team is committed to our purpose and nothing will keep us from delivering incredible value to our customers. I’m inspired by the team’s resilience which is a testament to our great culture. How has ServiceNow adapted its business to address the challenges caused by the pandemic? When the pandemic first hit, my leadership team and I were scheduled to have a blue-sky thinking session, but I quickly realized there would be no blue sky if we didn’t address COVID and the pandemic. ServiceNow’s global workforce seamlessly transitioned to a fully remote, work-from-home environment in just 24 hours. We had a unique advantage: as a bornin-the-cloud, digitally transformed organization, we were able to quickly and smoothly pivot to 100 percent virtual work. Our immediate focus became helping our customers best serve their employees and customers during this time. We strive to always see challenges through our customers’ eyes and turned our attention to making sure our customers and employees could stay productive in a new environment where work and personal lives merge, giving them the necessary tools to connect and collaborate. We spearheaded an effort to leverage predictive intelligence and virtual agent chatbots that enabled employees to easily self-manage their work requirements.

As a result, we were able to ensure an engaged, highly-productive workforce during the transition. At the same time, we didn’t miss a beat supporting our customers. How proud are you to see the way ServiceNow’s workforce has shown strength and resilience during this challenging and uncertain time? I could not be prouder of the ServiceNow team’s strength, unity and unrelenting execution in the face of an unprecedented global environment. I like to tell the team: tough times don’t last, tough people do. That idea couldn’t be truer than with our ServiceNow team. Despite the uncertainty of COVID, we delivered a market-leading 2020, significantly beating expectations across the board and bringing great momentum into 2021. I believe it’s a testament to our ServiceNow strong culture. In 2020, we grew our employee base by 26 percent, hiring 3,000 people in 25 countries, most of whom were hired and onboarded entirely digitally. Despite working remotely, our engineering organization delivered a 70 percent increase in innovations year-over-year. We invested and scaled in 2020 because companies are relying on us more than ever. The pandemic is creating the greatest workflow challenges of our lifetime, and ServiceNow is responding with continuous innovation. Every business needs speed, agility and resilience, and every C-suite leader wants to deliver great experiences for their employees and customers. ServiceNow is on the front lines, helping businesses digitally transform and leading this once-in-a-generation opportunity to make work, work better for people.

Will you discuss ServiceNow’s commitment to supporting its employees, clients and communities during this unprecedented time? One of the things I admire most about ServiceNow is our unrelenting focus on our employees and customers. With our innovation, speed of a startup, expertise and industry leadership in digital transformation, we’re able to help solve the unique challenges posed during COVID. We began last March with our COVID-19 Emergency Response apps which helped the State of Washington, the City of San Francisco, and many others respond to the challenges presented by COVID. We followed that up with our Safe Workplace suite of applications to help organizations such as Uber, Coca-Cola European Partners, Bremer Bank, and American University gauge workforce and workplace readiness as they prepare for employees to return to the workplace. This year, we launched our Vaccine Administration Management solution to address vaccine management challenges at scale by removing logistical barriers to speed up the immunization process. The State of North Carolina Department of Health and Human Services, along with the NHS National Services Scotland, are two examples of organizations that are working with ServiceNow to help vaccinate their citizens and keep them healthy and safe. We are working with customers and organizations to leverage the innovation and digital workflows that transformed pandemic response to create new ways of working, build agility and resilience, and accelerate digital transformation to move the world toward a healthier future.

“I like to tell the team: tough times don’t last, tough people do. That idea couldn’t be truer than with our ServiceNow team. Despite the uncertainty of COVID, we delivered a market-leading 2020, significantly beating expectations across the board and bringing great momentum into 2021. I believe it’s a testament to our ServiceNow strong culture.” VOLUME 44, NUMBER 2

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“Diversity, inclusion, and belonging has always been a cornerstone of ServiceNow’s cultural values, but the events of the past year have accelerated the need to increase and expand our efforts which is why we are so focused on elevating our global impact.” How is ServiceNow’s business positioned for growth as you look to 2021 and the new normal companies are facing? ServiceNow is incredibly well-positioned to become the defining enterprise software company of the 21st century. The secular tailwinds of digital transformation, cloud computing, and business model innovation have intersected at a perfect moment in time, creating a paradigm shift globally. In 2020, for the first time in history, we saw digital transformation spending accelerate despite GDP declining globally. Digital investments are at an all-time high and are expected to continue growing. Digital transformation was a business imperative preCOVID; post-COVID, digital transformation will accelerate, and as the workflow standard for digital transformation, ServiceNow is poised to seize this opportunity. How critical is it for ServiceNow to build a diverse and inclusive workforce in order to bring diverse perspectives and experiences to the table when making business decisions? Diversity, inclusion, and belonging are essential to who we are, how we’ll grow, and how we’ll innovate. We’re deeply committed to being a leader in building a diverse, inclusive workforce in which everyone feels that they belong. It’s embedded in who we are as a company – it’s a cultural value and inherent in who we are. I am personally committed to our DIB efforts and have called upon the whole company to participate in our work together. It’s a collective effort that starts at the top with me and the executive leadership team. I truly believe that, together, everyone can achieve more. Unity, not division, offers opportunities for progress and success. The idea of “team” is a huge source of inspiration for me. Each one of us makes our team stronger; none of us is as smart as all of us. That’s why diversity, inclusion, and belonging is such an important priority for ServiceNow. It’s core to who we are, it helps us get through periods of adversity, and it’s critical to our success. What do you see as the responsibility of leading companies to be engaged in the communities they serve and be good corporate citizens? Our goal as a company is to workflow a better world. We know we have the ability to 26 LEADERS

change the world, one workflow at a time. By applying the expertise and civic-minded nature of ServiceNow’s 13,000+ employees around the world, leveraging the power of our digital workflow solutions, and using the strength of our financial resources and strategic partnerships, we have a tremendous opportunity to do incredible things. That’s why I’m incredibly proud of our recently announced ServiceNow Racial Equity Fund, a $100 million fund aimed at reducing the wealth gap and expanding opportunities for individuals, families, entrepreneurs, and business owners in Black communities. The fund will begin with investments in Chicago, Washington DC, Boston, Houston and Dallas, cities in which ServiceNow also has significant operations and sizable employee presences. We’re deeply committed to being a leader in delivering real, lasting change within our communities. Our fund is seeing incredible traction, truly proving that when we work together, amazing things can happen. The world is facing a series of crises from public health to social injustice to climate change to income inequality. What do you see as the role that the private sector and business community can play in bringing its talent and expertise to help address these issues? ServiceNow’s purpose is to make the world of work, work better for people, but we also have a tremendous opportunity to make the world work better, too. We know that doing well as a business is about more than growing profits. We have a responsibility to our planet, each other, and the communities we serve. Our focus is on sustaining our planet, creating equity for all, and acting with integrity. These pillars ground us as we ensure our products can address the needs of the world and responsible business. Against the backdrop of the past year’s events – the human impact of the global pandemic, economic disruption, ongoing racial injustice, and civil unrest – it has never been more urgent for companies to take steps to make a positive, global impact. Diversity, inclusion, and belonging has always been a cornerstone of ServiceNow’s cultural values, but the events of the past year have accelerated the need to increase and expand our efforts which is why we are so focused on elevating our

global impact. The ServiceNow Racial Equity Fund strengthens underserved communities, overcomes systemic barriers that lead to inequitable access to capital, and ultimately drives sustainable wealth creation through homeownership, entrepreneurship, and neighborhood revitalization. What are the keys to ef fective leadership? Theodore Roosevelt once said, “No one cares how much you know, until they know how much you care.” Effective leadership must start with immense empathy. Understanding what matters to people and doing something about it is just as important for motivating employees as is it is for engaging with customers. It all comes down to bringing out the best in your employees – motivating people to find the best in themselves. This is especially important now in the COVID era as leaders must be in service of their employees and inspire them to reach their full potential. 2020 brought unimaginable change to the world, and businesses are fundamentally changing the way they operate. ServiceNow is on the front lines of that transformation, so as CEO, it’s my job to keep our employees inspired about the important work we’re doing and the opportunities that lie ahead. Whether that’s reaching a sales goal, building game-changing technology, or helping make the world a better place, I am humbled by the opportunity to motivate people to reach heights they didn’t know they could achieve. What advice do you offer to young people starting their careers during this challenging and uncertain time? I recommend everyone starts by dreaming big. Find something you’re truly passionate about and then make a plan for how you are going to pursue it. Stay optimistic that you’ll get to where you want to be and don’t give up. When I applied for my first job at Xerox, I wanted that job badly. I was passionate about it. I created a plan for how I could grow in the role and help grow the company. I envisioned myself at Xerox years out – ultimately as CEO. This motivated me throughout the interview process and long after I landed my first sales job at the company. The rest, as they say, is history.

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VOLUME 44, NUMBER 2

WE’RE DARK WE’RE LIGHT WE’RE HIPSTERS WE’RE BOOMERS WE’RE THINKERS WE’RE DOERS

Arlene A.V.

W E ’ R E T R AV E L E R S Our uniqueness is our greatness. Only by attracting and retaining world-class talent from every type of background can we have the very best team in the industry. We’re 30,000 strong – all working hard to deliver on our promise to take care of our customers, our communities and each other.

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PURPOSE

Building Better Cities An Interview with Jorge Pérez, Chairman and Chief Executive Officer, Related Group E D I TO R S ’ N OT E J o r g e P é r e z among the many famous collaborators has been at the forefront of South and inspirations behind Related Florida’s complex urban evolution properties. A longtime art collector for over 40 years. He started out in and philanthropist, Pérez is committhe 1970’s, making a name for himted to showcasing museum-quality self in the public housing market of art in Related’s developments, educatneighborhoods like Miami’s Little ing and inspiring residents across the Havana and Homestead. Pérez has demographic spectrum. Original works received numerous awards for his by artists from around the world, from professional and philanthropic iconic contemporary sculpture to oneachievements, including Er nst of-a-kind commissioned installations, & Young’s Entrepreneur Of The infuse Related’s properties with energy Jorge Pérez Year®, the Hispanic Achievement & and sophistication. Related’s comBusiness Entrepreneurship Award mitment to architecture and design from Hispanic magazine, The Developers and excellence has resulted in a host of accolades, Builders Alliance’s Community Advancement including the prestigious Honor Award from the Award, and The Beacon Council’s 2015 Jay National Building Museum. Malina Award. He is also committed to The Giving Pledge, a campaign founded by Warren Will you discuss the history and heritage of Buffett and Bill Gates, which states that he will Related Group and how the company has donate 50 percent of his wealth to philanthropic evolved? purposes. In 2005, Time magazine named Pérez From day one, I envisioned Related Group one of the top 25 most influential Hispanics in as more than just another developer; we set the United States, and he has appeared on the out to change the city for the better and set an cover of Forbes twice. He graduated summa example for others to follow. We began in the cum laude from C.W. Post College in Long late ’70s and early ’80s with affordable housing Island and earned his master’s in urban plan- projects in urban areas of Miami, including Little ning from the University of Michigan. Havana. Large numbers of Cuban exiles were coming to the city which fueled demand for COMPANY BRIEF For more than 40 years, this type of product and gave me an opening to Related Group (relatedgroup.com) has been make my mark. I partnered with Related Cos. improving city skylines with developments char- founder Stephen Ross – a former competitor of acterized by innovative design, enduring qual- mine during my days as an urban planner for ity, and environments that celebrate culture the City of Miami – and founded the Related and active lifestyles. Related’s distinctive resi- Group of Florida. Our ﬁrst project was remoddential projects range from luxury high-rise eling a 21-unit apartment complex in Little condominiums to public and affordable hous- Havana, a project we still own. ing developments. Since its inception in 1979, After about a decade of honing our craft, Related Group has built and managed more we expanded and began taking on larger and than 100,000 condominium and apartment more upscale projects, first into market-rate residences which are meticulously designed with rentals followed by luxury condominiums finishes and amenities that transform build- shortly thereafter. We’ve continued to diversify ings into vibrant residential environments. and have gone to great lengths to remain at the Answering the demands and desires of a new forefront of each of our various sectors, whether generation, Related has helped to define South it is affordable, market-rate or luxury developFlorida’s urban evolution through its dynamic ment. It is not easy to continuously reinvent living communities. Many of Related’s properties ourselves, but it keeps us sharp and hungry for are distinguished by groundbreaking partner- more. ships with world-renowned architects, designToday, I’m proud to say we remain comers, and artists who help to create residential mitted to that original promise of “building betdevelopments recognized as urban landmarks. ter cities” and continue to look at each of our Philippe Starck, David Rockwell, Karim Rashid, jobs through a community lens, always working Rem Koolhaas, Piero Lissoni, Cesar Pelli, Carlos to offer value to the entire community, not just Ott, Yabu Pushelberg, and Arquitectonica are our residents.While it is certainly gratifying to be 28 LEADERS

credited with building some of the city’s most iconic towers like Murano at Portoﬁno, Icon Brickell and others, it is the thought of leaving Miami better than I found it that truly motivates me. What have been the keys to Related Group’s success and industry leadership? Bottom line, we care about making each of our markets better and prioritize long-term community beneﬁts over short-term economic gains. Whether it’s architecture and design, public art or even landscaping, we make it a point to look at things holistically and always consider how we’ll impact not only our residents, but the neighborhood as a whole. I also like to think we are setting the tone for others to follow. We’ve been very fortunate

Related Group’s Residences by Armani/Casa on the beach in Sunny Isles, Florida (above and opposite page) VOLUME 44, NUMBER 2

to have pioneered many of today’s industry standards and are focused on continuing that tradition. This mindset pushes us to bring our A-game to each new project, no matter the price point, and keeps us on our toes. We continue to lead the way in terms of design, amenities and, of course, art, but we are also expanding into new health and wellness offerings across our projects. In fact, we were one of the early adopters of the WELL Building Institute’s “WELL Health-Safety Rating,” consisting of criteria for facility operations and management during COVID-19 and beyond. What is your outlook for the real estate market in South Florida and what have been the keys to the growth in this market? Miami is a young, vibrant city with incredible weather, a growing arts and culture ecosystem and, most importantly, unmatched forward momentum. Hundreds of people are moving here every day, and many companies are following suit. We knew this was bound to happen and we’re finally at an inflection point where individuals and corporations are leaving established markets like New York City, New Jersey, Chicago and even California in search of a more favorable tax environment and sunny skies. Things are going to continue to pick up from here, especially as our pool of talent deepens and more and more large employers make their way to our city. The future is bright. Your son, Jon Paul, was recently named president of Related Group. How proud are you to see Jon Paul’s success in the business and leadership in the industry? It was always my dream to have my children take over the family business, but it was never something I forced them to do – they came into it on their own. Of course, they grew up around real estate, often touring jobs in between soccer practices and birthday parties, but I left the decision in their hands. I believe that to be truly successful, you must follow your passions and dedicate yourself wholly to the mission. VOLUME 44, NUMBER 2

Luckily for me, they fell in love with development and followed me into the company. Seeing them grow and evolve, overcome new challenges and find their own voices has been incredible. Jon Paul is, in many ways, forging the path for his brother, Nicky. While Jon Paul took the reins at a particularly tough time, he’s shown me, the company and the industry that he has what it takes. I truly cannot put into words how proud I am to have my sons onboard. You have committed your time, energy and resources to many philanthropic causes. What has made philanthropy so important to you and how do you decide which areas to support? Supporting a cause greater than my own personal business has always been hugely rewarding for me. From the start, I knew I

wanted to be remembered as someone who contributed in a meaningful way to the fabric of great cities and, most importantly, someone who helped make society a better place. My standing duty as a philanthropist is to continuously contribute to the betterment of underserved communities, particularly in the cultural and educational sectors. I established the Related Philanthropic Foundation and The Jorge M. Pérez Family Foundation to further deepen the impact of our various communityfocused programs and to ensure they continue long after I am gone. With so much need in the world, homing in our focus areas can be a challenge, but I’m fortunate to have a great team that keeps me centered on the causes where we can drive the most meaningful impact. Currently, we’re focused on arts, education, racial equity and economic development. Do the skills that made you successful in business translate to being successful in philanthropy? Absolutely. The same passion that drives my business fuels my philanthropy. No matter how talented you are or what resources you have, it is your desire to succeed that will truly make the difference. Are you able to take moments to appreciate and celebrate all that you have accomplished? This has definitely been a challenge throughout my career. I’ve always been a perfectionist and would often find myself looking for ways to improve upon past projects rather than celebrating the accomplishment. Thanks, in large part, to Jon Paul and our executive team, I’ve been able to take a step back from the day-to-day which has helped me tremendously. I can finally soak it all in. That said, not a day goes by without me giving thanks to the incredible people around me, both in my business and personal life. It is their support and dedication that has allowed me to reach such heights.

•

Nicholas, Jorge and Jon Paul Pérez LEADERS 29

PURPOSE

Moving Forward at Full Speed An Interview with Jon Paul Pérez, President, Related Group EDITORS’ NOTE Jon Paul “JP” Pérez is for new ways to optimize and improve. responsible for overseeing development This included a rapid move to virtual operations across Related Group’s varleasing, remote events and more. ious divisions, managing land acquisiNow we’re operating “business as tion efforts and leading the procurement unusual,” with new projects beginning of major construction financing. Pérez construction, sales moving forward and aims to continue supporting the firm’s new partnerships being forged. We learned reputation as a “market maker” and from the pandemic and are using these lesits proven ability to capitalize on opporsons to improve all aspects of our operatunities well before competitors. A martion, from sales and marketing to property ket maker himself, Pérez has personally management. spearheaded Related’s entrance into Despite the challenges, we are a Jon Paul Pérez Miami’s popular Wynwood neighbormore resilient and robust organization hood, where he’s working to deliver sevthan ever before. eral major mixed-use projects set to transform the area How proud are you to see the strength into a true live-work-play neighborhood. Current proj- and resilience of Related Group’s workforce ects include Wynwood 25, a 289-unit luxury rental during this challenging and uncertain time? property across from the iconic Wynwood Walls; The I could not have asked for a better team to Annex, an eight-story, 50,000-square-foot, class A have at my side during these uncertain times. It office building; and The Bradley, a 175-unit rental was not easy, especially during the early days, but tower with interior design by Kravitz Design. Since our entire staff rose to the occasion and did their joining Related in 2012, Pérez has overseen the devel- part. Their commitment and perseverance conopment of several thousand market-rate rental, afford- tinue to be a great source of motivation for me, able and luxury condominium units, including the and I rest easy knowing they want what is best, 200-unit The Manor, the 365-unit Town City Center, not only for the Related organization, but also the and the 690-unit Brickell Heights condo property. He communities in which we are active. has also played a key role in several marquee sales and Will you discuss Related Group’s current acquisitions. Prior to joining Related, Pérez worked for projects and areas of focus? The Related Companies of New York where he overWe are in one of the most active periods in saw all aspects of the development process for more the company’s 40+ year history. All divisions are than 900 units with direct responsibility for finan- moving forward at full speed, with thousands of cial modeling, design programming and construction projects underway. Our condo team is seeing a management. He also participated in securing capital particularly significant lift, with demand driven for the firm’s $900 million distressed opportunity fund, by the large number of people moving to Florida and in 2009 successfully led efforts to sell 425 unsold every day. We’ve been preparing for this upswing condominium units in Fort Myers, Florida, over the for several years which allowed us to move forspan of 18 months. Nurturing Miami’s growing ward on two new condo jobs very quickly. arts and culture community, Pérez remains closely These are Baccarat Residences Brickell in Miami aligned with the Pérez Art Museum Miami as well as and Ritz Residences in Tampa Bay. Both projects with the National YoungArts Foundation (YoungArts), will bring a new level of luxury and exclusivity participating in its annual Miami YoungArts Week. He to their respective neighborhoods and kick-off a sits on the board of Big Brothers Big Sisters of renewed wave of development. We are already Miami and is an active United Way Young Leader. seeing great interest from buyers across the state as well as in secondary markets like New York, How has Related Group adapted its business California and others. to address the challenges brought on by the We also recently launched sales on Solemar pandemic? Pompano Beach, a new boutique condo project in Like countless other businesses, the shift from the emerging Pompano market. The project offers a our longtime in-office model to a virtual work envi- unique on-the-sand lifestyle and is quickly establishronment took place almost overnight. While there ing the neighborhood as South Florida’s newest luxury were certainly challenges, everyone – from our hotspot. Sales have been very strong, with the property project managers to our interns – adapted quickly, 40 percent sold-out just weeks after sales launch. embracing video conference platforms, diligently We are also very close to selling out our following safety protocols and constantly looking remaining units at projects like the Residences by 30 LEADERS

Armani/Casa in Sunny Isles and Park Grove in Coconut Grove. All in all, each of Related’s four divisions is set for a highly successful 2021. Will you highlight Related Group’s commitment to affordable housing projects? Providing individuals and their families, regardless of their socioeconomic status or background, with housing they can be proud of is one of our top priorities. My father founded the company with this mission in mind nearly 40 years ago, and it remains our “North Star” to this day, especially as so many cities struggle with questions of housing affordability and economic inequality. Like with each of our other sectors, our affordable housing arm has a team of experts totally dedicated to this product type. Their proven expertise allows us to navigate the sector’s unique challenges, including securing funding, forging strong community ties and more. Luckily, our affordable developers are second to none and have helped us cement our position as Florida’s preeminent affordable housing developer. The division is working on more than a dozen transformational mixed-income communities across the state, including Liberty Square in Miami and West River in Tampa. Both projects are reimagining historically underserved neighborhoods into thriving, economically diverse communities. We are working hand in hand with the Department of Housing and Urban Development (HUD) and local elected officials to bring these projects to fruition and believe the results speak for themselves. Where do you see the greatest opportunities for growth for Related Group as you look to the future? We’re planting Related flags across the U.S. and constantly eyeing new opportunities to deliver quality housing to homeowners and renters across every income level. Beyond expanding our footprint, we’re looking at new ways to innovate, from taking the sales/leasing experience fully online, to rolling out a Related Living app, and further integrating state-of-the-art wellness features directly into the next generation of Related jobs. What has made the relationship with your father work so well and how special has it been to be able to work so closely with him? My father has remained a mentor, a confidant and a source of great motivation. I am eternally grateful he started taking me to job sites all those years ago and that he’s been by my side ever since.

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VOLUME 44, NUMBER 2

I NS P I R E D SPACE S WORLD-CLASS COMPLIMENTARY INTERIOR DESIGN SERVICE

PURPOSE

Stronger Together An Interview with Richard A. Rosenbaum, Executive Chairman, Greenberg Traurig, LLP EDITORS’ NOTE Richard Rosenbaum 14 attorneys elevated to of counsel or is the Executive Chair man of counsel come from nine different Greenberg Traurig. He joined the offices and practice in six areas of law. firm in 1985 as its 90th lawyer Culture is what makes this posand has been a key leader of the sible. We often say that we are family firm’s strong growth across the and this was never clearer than in 2020. Americas, Asia, Europe, and the Our culture of collaboration and goal Middle East. He is widely known for of being best in class again allowed us his experience in a diverse range to move proactively despite the uncerof industries, including real estate, tainties all around us. entertainment, media, technology, When we say that our firm is investment, and finance, repre“Built for Change” we mean it. We are Richard A. Rosenbaum senting companies of all sizes, and also built on responsive, excellent climany wealthy individuals and sucent service. We recognize hard work cessful entrepreneurs over the years while build- and commitment and believe in the power of ing the firm. He is responsible for opening more the individual, irrespective of our differences, than a dozen of the firm’s U.S. offices and all of because no matter what else may change going its non-U.S. operations. forward, we will do so as one firm, united. How has Greenberg Traurig adapted FIRM BRIEF Greenberg Traurig, LLP (gtlaw.com) the way it works to address the challenges is a unified international law firm of more than created by the pandemic and how proud 2,200 attorneys spanning 40 offices around the are you to see the way Greenberg Traurig’s globe. The firm has 30 offices across America, people have shown strength and resilience and is the only firm that has its largest office in during this unprecedented time? New York City while still being the largest in its Greenberg Traurig has always had a focus original market of South Florida; has five offices on innovation, so we were in some ways in California while being one of the top firms in Austin, Dallas, and Houston, Texas for over 10 years; has over 150 lawyers in each of New York, Chicago, Atlanta, California, Miami and Europe; has over 350 lawyers in each of the New York Tri-State Region, South Florida, and Europe; and is located in 14 out of 17 of the broadly acknowledged innovation centers of the future, including such diverse locations as Tel Aviv, Berlin, Seoul, Miami, Warsaw, Tokyo, Silicon Valley, Austin, Atlanta, New York, London, Chicago, Los Angeles, Shanghai and Amsterdam. The firm has been recognized for its philanthropic giving, diversity, and innovation, and is consistently among the largest firms in the U.S. on the Law360 400 and among the Top 20 on the Am Law Global 100.

“prepared” – if you could honestly say anyone can anticipate the impact of this kind of global crisis. We were transparent, kept attorneys and business staff informed, and worked hard to be there for our approximately 4,000 employees – each having to deal with the pandemic in highly personal ways. Right away we put into place an online resource center and a multi-disciplinary, global task force to help clients address the quickly developing situation. Because of our robust technology and professional development platforms, we moved quickly to expand our tech and training capabilities to make remote working a success for thousands of people across 40 offices in some 10 countries. We did not institute the same policies and restrictions everywhere at the same time. True to our core values, we focused on flexibility and local empowerment, not bureaucracy. All local shareholders and management were empowered to design a plan that best fit the needs and requirements of their local market and office, allowing for sensible and healthy decisions while competing hard.

“We often say that we are family and this

was never clearer than in 2020. Our culture of collaboration and goal of being best in

class again allowed us to move proactively

How do you describe Greenberg Traurig’s culture and how critical is culture to the success of the firm? We just recorded revenues of $1.73 billion for FY 2020, the seventh consecutive year of record revenue, and a 5.48 percent increase over the previous year. We also announced the elevation of 44 attorneys to shareholder and of counsel. Greenberg Traurig’s 30 new shareholders span 17 offices and 12 practice areas. The 32 LEADERS

despite the uncertainties all around us.”

VOLUME 44, NUMBER 2

“We are one firm, united. Our bold vision is to be best in class in premier practices and dominate each sector or market in which we operate because this ultimately benefits clients.”

Regarding clients, we created a task force with a corresponding online presence to help navigate the avalanche of new regulations, conditions, etc., that seemed to change hourly. The situation was, and in many ways continues to be, extremely fluid. Our Health Emergency Preparedness Task Force: COVID-19, involves a multidisciplinary, collaborative legal team drawn from our offices around the world. We strategically structured resources to advise clients on the legal aspects of business strategies to address the impact of COVID-19. As the crisis developed, we developed groups looking at specific changes relating to Economic Stimulus, for example, regarding accessing loans and financing; Distressed Assets & Restructuring, with an eye to business solution focused strategies; and Business Continuity Amid COVID-19, addressing the maximizing of opportunities. We also published hundreds of Alerts and Advisories, and continue to do so today, giving our clients a wide range of information related to doing business during the COVID-19 pandemic. Will the changes that you have implemented during COVID remain in place long term? This crisis has emphasized that we are stronger together. There is so much that has changed, however there are rays of good amid the horrors we have experienced. People are traveling less, if at all, which means more time with family or for volunteering. We are making even better use of technology to work with clients and stay in touch with colleagues – the result being increased efficiencies. There will be changes regarding space needs and space configurations. We have 40 offices in 10 countries, therefore space needs can easily change, in either direction, although we always make decisions based on client needs and are continuously analyzing what works best for all involved. For example, the pandemic did not change our firm’s hiring processes in the context of the type of quality and responsive individuals we hire. However, based on local COVID19 travel restrictions and related guidelines, some new hires were onboarded virtually. This may continue in the future if it serves our clients and the firm well. VOLUME 44, NUMBER 2

What do you see as the long-term impacts that the pandemic will have for the legal profession? Location, location, location will remain important, but not in the traditional sense. Despite our digitally connected world, the pandemic surely has influenced where people live; many needed to move due to family issues. If people move, businesses often follow or expand into areas experiencing population growth. Obviously, this depends on the type of business. For many businesses, the global climate is more important. Therefore, the pandemic has accelerated the movement of people and businesses to Florida and Texas and other low regulation and noincome-tax jurisdictions. This will continue, but there is no place like New York as a global business, legal, innovation, and cultural center, even now and, of course, as we come out of this health emergency. The two can and will co-exist. Our unique platform allows people to live in a wide range of places while remaining with the firm. Additionally, mental health and wellness will continue to be a priority for our profession post-pandemic. This is true not just for law firms, but also for our clients’ legal teams. Using technology, we can connect with clients and colleagues more often. The workday can be longer and dates blurred. As part of our response, GT’s Wellness team put in place an expanded program to help employees with medical, emotional, and mental health needs. In addition, given the challenges with social distancing and working remotely, this team created the GT Buddy Support Network. The program is voluntary and it allows employees to connect and buddy up with a colleague. Greenberg Traurig is a firm that was built on personal relationships and the human touch. Are you concerned that this is being lost with remote work and the inability to meet with clients during this challenging time? Maintaining the health and safety of our workforce has been a top priority in everything we have done during these challenging times. As local ordinances and market conditions have allowed, the number of attorneys and business staff in our physical offices has evolved, all with an eye to meeting client needs. We were also able to quickly put in place internally developed apps for attorneys and business staff alike to address remote working and any locally required COVID-19 protocols.

The need for in-person human interaction, the desire to help people, the creativity, and the urgency for responsive, excellent client service, are just a few of the things that will always be there. Being back together, as soon as reasonably possible, is one of my personal priorities. We are a people business and being close together is, ultimately, our strength. How do you def ine Greenberg Traurig’s advantage and what differentiates the firm from its peers in the industry? We are one firm, united. Our bold vision is to be best in class in premier practices and dominate each sector or market in which we operate because this ultimately benefits clients. Of course, this means having top people join us in those areas. Excellence in client service is not just what we do. It is who we are. We collaborate across borders, time zones, languages – and even pandemics. We empower individuals no matter where they were born, what they look like, who they love, how they communicate, or how they worship. We are nimble and can pivot on behalf of clients or in the running of our well-managed firm. Most importantly, we give freely of our time, our experience, and our hearts to the underserved communities in which we work and live. We live our vision and our clients can see the difference. How critical is it for Greenberg Traurig to build a diverse and inclusive workforce in order to bring diverse perspectives and experiences to the table when addressing client needs? Greenberg Traurig’s diversity, equity, and inclusion strategy flows from the top, and it always has. Our leaders are personally involved and we invest in strategies that drive long-term change. This makes us shine to the benefit of our clients, our attorneys, and our staff, and drives change within the legal profession. From the day we opened in 1967 with just three attorneys – today we are at about 2,200 in 40 offices in 10 countries – we pushed to create a workplace where everyone can bring their true self to work. We really focus on “acting on” and not just “talking about” issues. We believe in basic fairness, equity, equal opportunity for all, and a deep appreciation that diverse people are at the core of who we are – and are our strength.

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LEADERS 33

PURPOSE

Meeting Needs in Times of Crisis An Interview with Howard P. Milstein, Howard & Abby Milstein Foundation EDITORS’ NOTE Howard Milstein you must be prepared to respond to is the third generation to lead the immediate human needs, particularly Milstein family business and philanin the wake of a disaster or crisis. thropic activities. An entrepreneurWith that in mind, the Milstein ial builder of innovative, large-scale family and its businesses have companies, Milstein’s ability to marbeen on the front lines in offershal business, government, philaning support in a range of crises, thropic, and family resources drives with COVID-19 being the latest. a breadth of initiatives. Milstein is How have you addressed the chalChairman and CEO of New York lenges and needs caused by the Private Bank & Trust, chairs and pandemic? operates the Milstein family’s real Our philanthropic and chariHoward P. Milstein estate companies, and is also owner table work has always been aimed and publisher of GOLF Magazine, at providing practical results that among other sports-related ventures. In the phil- meet immediate needs. As you might imaganthropic arena, Milstein is a Trustee at Cornell ine, this approach is particularly effective durUniversity, an Overseer of Weill Cornell Medical ing times of crisis. Thus, in the early stages College, and serves on the Dean’s Advisory Board of the COVID-19 crisis, we donated a supply of Harvard Law School. He is Chairman of the of more than 1 million N95 masks to Weill American Skin Association, the Howard and Cornell, Columbia Presbyterian and New York Georgeanna Jones Foundation for Reproductive Medicine, and the Milstein Medical Asian American Partnership Foundation. Milstein also serves on the boards of the National September 11th Memorial, National Committee for U.S. – China Relations, the Nicklaus Childr en’s Healthcar e Foundation and PGA REACH. Milstein was named the 2008 Entrepreneur of the Year by Cornell University, and also served from 2011-2014 as Chairman of the New York State Thruway Authority, where he successfully led the design and procurement process for a new Tappan Zee Bridge – the largest infrastructure project in the nation.

“Effective philanthropy requires planning

and focus, but as in

ORGANIZATION BRIEF The Howard and Abby Milstein Foundation (howardandabby milsteinfoundation.org) participates actively in the organizations it supports, with hands-on leadership and long-term financial support. How do you focus your philanthropic efforts and decide what areas to support? We focus our philanthropy on a handful of core areas including history, religious and communal organizations, arts and culture, medical research and healthcare, higher education and youth, law enforcement and homeland security, and civic engagement. Our involvement, leadership, and giving align with the essence of “venture philanthropy,” which brings the principles of venture capitalism and entrepreneurship to philanthropy. Effective philanthropy requires planning and focus, but as in business, 34 LEADERS

business, you must be prepared to respond to immediate human needs, particularly in the wake of a disaster or crisis.”

City first responders to ensure that those who were risking their lives to serve others had the equipment they needed to safeguard their own health. As importantly, the Abby and Howard Milstein Program in Chemical Biology and Translational Medicine at Weill Cornell Medical College, under the Direction of Dr. Carl Nathan, repurposed its research on infectious diseases to focus on COVID-19. We also sponsored the Milstein Toolkit for Ambulatory Care Practices, which helps ensure proper antibiotic use for acute respiratory infections. These efforts will likely have widespread application in the fight against COVID-19 and other coronaviruses in the months and years to come. Has stepping up to meet immediate needs been a hallmark of your charitable work? Yes , very much so. In the wake of Hurricane Katrina in 2005, for example, we made a donation of more than $1 million in funds directly into Emigrant customers’ savings accounts in impacted areas. Similarly, after Superstorm Sandy, we donated $2.3 million to first responders who worked tirelessly to rescue other New Yorkers even as their own lives were being severely impacted. Following the 9/11 attacks, we opened Milstein Properties’ buildings in Battery Park City to emergency personnel, and worked with the city to create the COPE campaign, which offered post-traumatic stress counseling to first responders and their families. For the past several years, we’ve been lead funder for the International Liaison Program (ILP), which stations NYPD officers in locations around the world to gather intelligence on terrorist incidents, and instituted the Milstein Challenge, which has been successful in attracting additional funders for the program. We’ve also provided office space and key support to the Multifaith Alliance for Syrian Refugees to help alleviate one of the greatest humanitarian crises of our time. Will you discuss some of the other ways you have applied your resources to meet the challenges caused by the pandemic? Through our business, civic and philanthropic activities, we have worked at all levels during the pandemic to improve the lives of local communities. Emigrant Bank, for example, funded more than $200 million in PPP loans during the COVID-19 crisis which preserved approximately 17,000 jobs. At the same time, our mortgage operations provided nearly half a VOLUME 44, NUMBER 2

Howard Milstein and Professor Henry Louis Gates Jr. at the launch event for the PBS series Black America Since MLK: And Still I Rise

billion dollars in forbearances to provide relief to homeowners in need. On a smaller scale, we recently provided street-level retail space at 30 Lincoln Plaza, across the street from Lincoln Center in Manhattan, for Kaufman Music Center’s “Musical Storefront” series, which brought live music back to New York for the ﬁrst time since the pandemic forced the shutdown of venues throughout the city. This has been a difficult and challenging time for the nation, socially and politically. How are you working to further democratic ideals and advance the American Dream for future generations? Advancing ideals at the heart of this great American experiment is one of the goals of our philanthropy. We need to understand each other and come together for the good of our communities and for our nation as a whole. For many years, I was a Trustee of the Thomas Jefferson Foundation at Monticello. Jefferson believed that each of us owes a debt of service to our country as we strive to achieve “a more perfect union” – a sentiment I share deeply. With that in mind, I have proposed universal national service for all young Americans – in the military, Peace Corps, teaching corps, or VOLUME 44, NUMBER 2

another essential setting. A program of national service would teach young people what it means to be a part of something bigger than themselves, part of a community with common goals and purpose. More than this, I believe that friendships would emerge that could help reverse the stratification of our society and bridge the gap that often exists between people from different backgrounds. In this divisive time, with internal and external threats to both our national security and national identity, I believe a program of national service would unify us and revitalize our American meritocracy. We need to remember that all Americans are on the same team. How critical is it for your work to address the need to bring the country together? It is extremely critical. We must understand each other, our history, and the ways in which our nation has sometimes fallen short of our ideals. A good example of this is our sponsorship of public television programs and launch events for Dr. Henry Louis Gates’ landmark PBS programs – including 2019’s Reconstruction: America After the Civil War; 2016’s Black America Since MLK: And Still I Rise; and 2013’s The African-Americans: Many Rivers to Cross.

Dr. Gates’ work provides comprehensive and dramatic insight into some of the most complicated chapters in American history, helping us all understand that history’s impact on community and civic life today. We also created “The Milstein Symposium,” a series of programs at the Miller Center at the University of Virginia aimed at developing practical ideas to tackle some of the critical challenges facing America in the 21st century, including restoring our manufacturing base and fostering entrepreneurship. Additionally, in 2017, we established Cornell Tech’s Milstein Program in Technology & Humanity to address another pressing national need – pairing rigorous training in technology with the ethical context and framework of humanities and social sciences. Will you discuss your focus around diversity and inclusion at your companies? This is certainly a part of our mission as well: to help advance a society that is diverse and inclusive, where the American Dream can become a reality for anyone striving to create a better life for themselves, their families and for future generations. At Emigrant Bank and our other companies, we strive to ensure a workforce that reﬂects the communities in which we operate. Emigrant’s board, for example, is diverse in both gender and race, and senior management brings a range of experiences and backgrounds to our working environment. Emigrant Bank was founded by Irish immigrants on the promise of bringing economic opportunity to underserved communities, and we look to continue that legacy today as new generations of immigrants – from diverse racial, ethnic and socioeconomic backgrounds – seek the promise of a better tomorrow. Emigrant was also proud to partner with The New York Times and the Tenement Museum in sponsoring 2004’s Guide for Immigrants in New York City. We also sponsor multifaith programs, including the Tanenbaum Center for Interreligious Understanding, and the Milstein Center for Interreligious Dialogue at the Jewish Theological Seminary. More broadly, we have funded scholarships and programs in underserved areas of New York City, as well as groups like the Harlem Educational Activities Fund and the Catholic Youth Organization. In Washington D.C., we provided major support to the City Council’s Support Schools Leadership Program and DC-CAP college scholarships, as well as the Darrell Green Youth Life Foundation, Community Impact and Martha’s Table. At Cornell’s College of Arts & Sciences, we established the Milstein Scholars Program, which has provided hundreds of exceptional students a Cornell education that might otherwise not be possible. More recently, we’ve created a new set of scholarships at Cornell under the Promise program. We’ve also helped educate displaced persons by supporting programs like “Forging Opportunities for Refugees in America,” which advocates for increased refugee admissions, and sponsoring research undertaken by Harvard Law School with similar goals. All of these efforts are designed to open opportunity to talented individuals who are most likely to be productive members of society, regardless of where their journey begins.

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PURPOSE

Family-Owned Values An Interview with Maggie Hardy Knox, President, 84 Lumber and Nemacolin Woodlands Resort EDITORS’ NOTE As president of the pandemic, we worked together to 84 Lumber, Maggie Hardy Knox figure out the most efficient ways to oversees day-to-day operations of continue serving our customers safely. 84 Lumber and its approximately How proud are you to see 250 stores, component manufacthe way 84 Lumber’s workforce turing plants, custom door shops, has shown strength and resilcustom millwork shops and engiience during this challenging and neer ed wood pr oduct centers uncertain time? nationwide. After taking over Our associates are always willthe company in 1992, she r efoing to do whatever it takes to concused concentration on the tinue getting things done for our professional market. Hardy Knox customers. I’m extremely proud of Maggie Hardy Knox strikes a delicate balance between our team for how much strength and maintaining the company’s tradiresilience they showed during these tional approach to doing business and adapt- times of uncertainty. Not only did they work ing to meet ever-changing customer needs. hard and keep safety at the forefront, but they Hardy Knox assumed leadership of 84 Lumber also helped us achieve a record-breaking year when she was just 26 years old. Even then, she at 84 Lumber. was showing her business smarts and proving How do you define the 84 Lumber her toughness. She maintains those qualities difference and what have been the keys today and continues to find new ways to make to the company’s success? the company an industry stand-out. At 84 Lumber, we have the opportunity to bring our family-owned values into our dayCOMPANY BRIEF Founded in 1956 and to-day business operations. We not only proheadquartered in Eighty Four, Pennsylvania, vide the best available products and services, 84 Lumber Company (84lumber.com) is the but we also maintain a team of highly-trained, nation’s largest privately-held supplier of hardworking associates. We also commit to building materials, manufactured compo- the local communities where we live and nents and industry-leading services for single- work. Whether it’s exceptional customer serand multi-family residences and commercial vice, collaboration with various charities, or buildings. The company operates over 250 investment in our associates, our priorities stores, component manufacturing plants, cus- have kept us successful and strong for nearly tom door shops, custom millwork shops and 65 years and will continue to guide us in the engineered wood product centers in more decades ahead. than 30 states. 84 Lumber also offers turnkey How critical is it for 84 Lumber to installation services for a variety of products, build a diverse and inclusive workforce including framing, insulation, siding, win- in order to bring diverse perspectives and dows, roofing, decking and drywall. A certi- experiences to the table when making fied national women’s business enterprise, business decisions? 84 Lumber was named by Forbes as one of 84’s goal has always been to create America’s Largest Private Companies in 2018 opportunity for our associates. Whether and 2020, and one of America’s Best Large someone has been with our company for 60 Employers in 2019. years or 60 days, we strive to show them that they are valued. We make sure each of our How has 84 Lumber adapted its business manager trainees comes to team headquarters to address the challenges caused by the in the beginning of their training where they pandemic? meet with leadership and are shown that their First and foremost, the health and safety voices are heard. of my 84 Lumber associates and their famiWill you discuss 84 Lumber’s comlies is always my absolute number one prior- mitment to supporting its employees, ity, whether there is a pandemic or not. At 84 customers and communities during this Lumber, we have always been about people. unprecedented time? We treat our associates, customers and partWe have over 250 locations and over ners like family. From the very beginning of 5,900 associates and we reach thousands of 36 LEADERS

people each day. The pandemic has been very real for each and every one of our associates and customers. Throughout 2020, we donated millions of dollars to various charities and families in need, including $500,000 to the Pittsburgh Community Food Bank, bringing over 5 million meals to the community we’re based in. All of us at 84 Lumber are continuing to stay positive and look for ways to support the people in our communities. What do you see as the responsibility of leading companies to be engaged in the communities they serve and to be good corporate citizens? We take our responsibility to give back very seriously. In the last year, we donated 84 mammograms to local women during Breast Cancer Awareness Month, a tiny house to a military veteran in need, $84,084 to 24 different charities during the holidays, and a home makeover to assist a 13-year-old with disabilities. Most recently, we donated $10,000 to the American Heart Association for Wear Red and Give Day. We are dedicated to our communities, and we are not stopping anytime soon. What are the keys to effective leadership and how you do you describe your management style? I have found that over the years the key to leadership is being hands on, and hands on means listening and hearing from associates and customers. As a leading woman executive, do you feel that there are strong opportunities for women to grow and lead in the industry? If the individual has passion for what they want to do, the opportunities will fall into place. At 84 Lumber, there’s room for every associate to succeed. Our culture creates an environment where if you work hard, care, and check your ego at the door, you can do anything you want in this company. Here, the sky’s the limit. What advice do you offer to young people beginning their careers during this challenging and uncertain time? My advice to anyone is whether you choose this industry or another one, your hard work and your dedication will separate you from anyone else and make you stand out.

•

VOLUME 44, NUMBER 2

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PURPOSE

Making an Impact that Matters An Interview with Alicia Rose, Deputy Chief Executive Officer – Strategic Initiatives, Deloitte U.S. EDITORS’ NOTE Alicia Rose oversees Deloitte’s Purpose Office and naming and drives priority initiatives and speour firm’s first Chief Purpose Officer, cial projects for the U.S. firm, includKwasi Mitchell. As purpose has consising leadership of Deloitte’s strategy as tently ranked as a top priority among a purpose-driven enterprise to amplify Fortune 500 CEOs, as well as for our the collective impact we are makpeople, we recognized the opporing for our people, clients, and more tunity to define in clear and certain broadly within our communities. terms what purpose means to us as an She is a member of the U.S. Executive organization and amplify the collecCommittee. Rose also serves as a global tive impact we are making for society. lead client service partner where she Deloitte is the largest profesoversees the delivery of all services to sional services firm in the world. Alicia Rose a prominent, global financial services How does the company maintain company. In her more than 25 years its leadership position? with Deloitte, she has served in several leadership Throughout our 175-year journey, we have roles, including client leadership leader, Deloitte & looked to our shared values as our North Star Touche LLP board member, and member of the Risk to guide every decision we make and action and Financial Advisory Executive Committee. She is we take. Two of those values that I see as funknown for empowering and developing client lead- damental to our position in the market are ers and account teams and supporting our clients’ “serve with integrity” and “take care of each missions and voices throughout Deloitte. Rose is a other.” As a professional services business, we graduate of Smith College and is a member of the provide services to the market based on our American Institute of Certified Public Accountants. FIRM BRIEF Deloitte (deloitte.com) provides industry-leading audit, consulting, tax and advisory services to many of the world’s most admired brands, including nearly 90 percent of the Fortune 500® and more than 7,000 private companies. Deloitte’s people come together for the greater good and work across the industry sectors that drive and shape today’s marketplace – delivering measurable and lasting results that help reinforce public trust in the capital markets, inspire clients to see challenges as opportunities to transform and thrive, and help lead the way toward a stronger economy and a healthier society. Deloitte is a part of the largest global professional services network serving clients in the markets that are most important to them. Now celebrating 175 years of service, Deloitte’s network of member firms spans more than 150 countries and territories. Will you provide an overview of your role and key areas of focus? As Deputy CEO, I oversee and drive priority strategic initiatives for the U.S., working closely with our U.S. Executive and U.S. Board to drive greater impact for our people, clients, and more broadly within our communities. These strategic initiatives include areas such as future of work and workforce, capitalizing on technology, and most recently, establishing 38 LEADERS

people’s skills, capabilities, knowledge and experiences. Acting ethically and with integrity requires that what we say and what we do with our clients and within the marketplace should always be aligned. We know the trust placed in Deloitte by our clients and by the capital markets should not be taken for granted. Today, Deloitte U.S. has more than 110,000 professionals. We are a people business, so we have always focused on fostering an inclusive culture and workplace that offers meaningful experiences for our professionals. More than ever, employees want to work with purposeled organizations where they can bring their talents and do work that reflects their passions and personal values. We’re on a journey to connect our people with the missions and causes they care about, where we’re able to make a greater collective impact in society. We believe that as long as we position client impact, purpose, and our people at the heart of our strategy, we will continue to thrive in the marketplace.

“We’re on a journey to connect our people with the missions and causes they care about, where we’re able to make a greater collective impact in society. We believe that as long as we position client impact, purpose, and our people at the heart of our strategy, we will continue to thrive in the marketplace.”

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“Throughout our 175-year journey, we have looked to our shared values as our North Star to guide every decision we make and action we take. Two of those values that I see as fundamental to our position in the market are ‘serve with integrity’ and ‘take care of each other.’ ” You have spent over 25 years at Deloitte. Will you highlight your career journey and how you landed your current role as Deputy CEO? I joined Deloitte right out of college because I saw the opportunity to combine my passion for continuous learning and helping companies solve their problems in different industries around the globe. The great thing about Deloitte is that there are such a range of diverse opportunities to push yourself out of your comfort zone and grow your skills. I’ve developed service lines, designed early audit technology tools, lived in the Czech Republic and London for global assignments, and served as the Quality Risk Management leader, all while having the privilege of serving clients across multiple industries and sectors. As I’ve grown throughout my career here, I always really enjoy coaching and mentoring our people, especially when I served as our Women’s Initiative Leader. Regarding how I landed my current role, in a partnership like Deloitte, there are dozens, if not hundreds of leaders who are qualified to serve in management positions. Ultimately, it comes down to having the right experiences and capabilities and combining those strengths with those of other leaders to form the right fit for our organization at any specific moment in time. I am fortunate to have been given the opportunities in the past that uniquely position me to help lead the organization forward in this area. How do you describe Deloitte’s purpose and how has this evolved over Deloitte’s 175 years of history? Purpose is not new to Deloitte. We were founded more than 175 years ago with the mission of ensuring trust in the capital markets during the birth of professional accounting. Over the years, we’ve expanded our business beyond audit to include consulting, tax, and advisory services, but what’s remained consistent is that we’re helping solve some of society’s greatest challenges. We describe our purpose as “making an impact that matters” – meaning we always aim to deliver tangible, measurable, attributable impact with our clients, in the communities we serve, and within broader society through the strength of the relationships we build and the innovative thinking of our people. What is different today is that clarity VOLUME 44, NUMBER 2

of purpose is what our clients expect, what our people want and what our communities need. We already have a robust corporate citizenship program that has been supporting our communities, in addition to the Deloitte Foundation, a nonprofit organization that supports education initiatives. We are now creating our U.S. Purpose Office that will amplify, scale and broaden those efforts. Purpose is embedded in our business and will continue to be a crucial component of how we’re going to succeed in the future. How has Deloitte adapted its business, culture and how it supports its people to address the challenges caused by the pandemic? The safety and well-being of our people and clients is always our number one priority. This continues to drive our decision-making under current challenging circumstances as we balance considerations like what will help the economy, our business and our people thrive. Last year, the ways in which we successfully pivoted and virtualized our organization overnight was nothing short of inspiring. As a business, we were strongly positioned to pivot virtually because of the very nature of our business and the technology infrastructure that we invested in for years prior. Now, we’re using the learnings to reimagine how we engage with clients, deliver our services, and the experiences we create for our people in a post-pandemic world. Regarding our culture, again, we already had a great foundation and have had to navigate better defining what that culture is without four walls – and purpose is at the center. The work we do to help improve the lives of others, to help solve complex business and societal challenges, is core to who we are as an organization and is a mission that drives our people each day. Still, we know our people have faced a lot of personal challenges throughout the pandemic – health and well-being related, child-care or other dependent care needs, and more. We recognize our responsibility to support our people’s unique needs and foster inclusive collaboration through flexible working arrangements and enhanced benefits. To name a few examples, we provided financial support for dependent care needs, reimbursement programs for virtual work, and extra hours of paid absence for individuals unable to work virtually due to personal

or health reasons. As a leader, the pandemic has really reinforced the importance of agility and empathy with our people. We don’t know when we will be “post-pandemic,” but we know that we can’t go back to the way things were. While the past year has been incredibly challenging, there are a lot of positive lessons learned about putting humanity at the center of leadership that makes the future look incredibly bright. How is Deloitte collaborating in the marketplace with other companies and nonprofit organizations to influence change in society and address the many complex challenges the world is facing? In 2019, the Business Roundtable updated its purpose of a corporation statement to align with the premise behind stakeholder capitalism – that organizations serve not only shareholders but also customers, suppliers, workers and communities. There were and continue to be skeptics of whether organizations would actually follow through or if its empty rhetoric. But what we’ve seen this past year shows how impactful it can be when companies come together to help solve major societal issues. Take, for example, the healthcare and pharmaceutical industry – companies, competitors, the government and nonprofits all collaborating to address the world’s largest health crisis. The virus was the competition, not each other, and the speed at which vaccines and therapeutics were developed was nothing short of miraculous. There are many ways that Deloitte is also modeling this notion of supporting multiple stakeholders by collaborating with clients and organizations that share our values. One example is we teamed with an alliance to create a business solution for COVID-19 incident response to help organizations monitor staff exposure, build a risk profile, and create an internal information forum as a component of their COVID-19 response plan – which we offered at no cost to clients. Another example is we donated unused credits for previously canceled flights to help airlines assist frontline workers traveling to COVID-19 hotspots, as well as to facilitate the transportation of personal protective equipment and medical supplies to areas of greatest need. As a purpose-driven organization, we want to create greater impact by delivering our purpose and our people’s passions to help address society’s greatest needs.

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PURPOSE

Driving Impact An Interview with Kwasi Mitchell, Chief Purpose Officer, Deloitte U.S. EDITORS’ NOTE Kwasi Mitchell that’s meaningful to them. That goes serves as the Chief Purpose Officer of beyond volunteering – it’s harnessing Deloitte. He is responsible for driving our people’s skills to help solve some a firm-wide strategy around Deloitte’s of the world’s most complex chalcommitments to include diversity, lenges for the benefit of society. equity and inclusion, sustainability Second, my key focus is impact. and climate change, and educaThe marketplace increasingly sees tion and workforce development. corporate social responsibility as table He is also responsible for engaging stakes – we’re going far beyond that. our people to live their purpose daily, How do we make sure we have supporting our clients on their purthe size, scale, and breadth of our pose journey, forming alliances with brand to drive progress against sociKwasi Mitchell key partners to co-create solutions to etal issues taking place more broadly address systemic societal issues, and within the world? How do we direct driving internal policy and process changes to our resources so they have maximum impact to achieve our purpose aspirations. Mitchell formerly our communities? Through the Purpose Office, served as the Diversity, Equity and Inclusion leader we can better funnel our resources and investand the Pro Bono and Social Impact lead for ments to really change the lives of hundreds of Deloitte Consulting. He currently advises clients thousands of people around the globe. A large within the government and commercial sectors. part of that will be working with our clients, alliMitchell has a PhD in inorganic chemistry, sits on ances and even competitors to collectively bring the board of several global nonprofits. our capabilities together to help solve institutional challenges beyond the capabilities of a FIRM BRIEF Deloitte (deloitte.com) provides singular organization. For example, we have a industry-leading audit, consulting, tax and workforce development initiative with one advisory services to many of the world’s most of our major alliances that trains individuals, admired brands, including nearly 90 percent regardless of background, demographics and of the Fortune 500® and more than 7,000 pri- socioeconomic status, with technical training vate companies. Deloitte’s people come together for the greater good and work across the industry sectors that drive and shape today’s marketplace – delivering measurable and lasting results that help reinforce public trust in the capital markets, inspire clients to see challenges as opportunities to transform and thrive, and help lead the way toward a stronger economy and a healthier society. Deloitte is a part of the largest global professional services network serving clients in the markets that are most important to them. Now celebrating 175 years of service, Deloitte’s network of member firms spans more than 150 countries and territories.

and mentorship to help prepare them for new careers. Workforce and education development are key priorities for Deloitte and our Purpose Office, and this initiative is one way we can address the growing skills gap in technology fields by collaborating with other marketplace players. Deloitte is a purpose-driven organization. As the U.S. Chief Purpose Officer, how do you define Deloitte’s purpose and why is purpose a business imperative for Deloitte? When I think about what purpose means, I think of it from both a personal and organizational perspective. Personally, it’s the alignment of my passions, what I do on a daily basis for my profession, and the mission and the outcomes that we’re trying to drive. For purpose at Deloitte, it’s driving impact at scale for the societal issues that are truly aligned to our values. As a large, complex organization, Deloitte has had different aspects of purpose embedded in its business since day one 175 years ago. What we have an opportunity to do now with the Purpose Office is to truly align those activities and elevate them to drive a broader impact for our people, within our communities, and with our clients.

“Deloitte has had different aspects of purpose embedded in its business since day one 175 years ago. What we have an opportunity to do now with the Purpose Office is to truly

Will you provide an overview of your role and key areas of focus? I was just named Deloitte’s first U.S. Chief Purpose Officer – a newly created position to guide, inspire and drive progress and accountability in our continued journey to empower our people to lead with their passions and help position Deloitte as a purpose-driven enterprise. My key focus areas are twofold. First and foremost, I want to enable our 110,000+ professionals to engage in purpose-driven work 40 LEADERS

align those activities and elevate them to drive a broader impact for our people, within our communities, and with our clients.”

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“I want to enable our 110,000+ professionals to engage in purpose-driven work that’s meaningful to them. That goes beyond volunteering – it’s harnessing our people’s skills to help solve some of the world’s most complex challenges for the benefit of society.” When I think about why we are doing this now, purpose has been front and center, not only from a talent perspective with our people wanting to find meaning and fulfillment in the work they do, but truly it’s a business imperative that’s top of mind for most CEOs and organizations who have the resources and scale to positively impact our communities and broader society. To address some of the world’s most complex societal issues, it’s crucial for purpose-driven companies to vocally proclaim core values and demonstrate them on a daily basis in order to cultivate a culture of purpose. How will purpose be embedded throughout Deloitte? We have a great foundation already, so we’ll be elevating many of the activities that already take place across Deloitte, including corporate citizenship impact areas, what we do with our clients within Monitor Institute, and how we support education through the Deloitte Foundation. For example, “Impact Every Day” is our year-round commitment for our people to engage in meaningful pro bono or skills-based volunteer activities. It was once focused on a single day of the year, and we have evolved how we show up in our communities in order to make a bigger impact year-round. Another example is Deloitte’s WorldClass ambition which aims to impact 50 million futures by developing job skills and improving educational outcomes. There is a lot of opportunity to expand on these existing efforts. In addition to that, the Purpose Office will be the single point of contact for alignment of these efforts across our different businesses, how we go to market and serve our clients as they go on their own purpose journeys, and simplifying how our people can engage in purpose work so that they can really live, talk and think about purpose and the impact that it has in the broader world. As we examine our internal processes so that we are truly delivering on our aspirations to our stakeholders, as well as further embed purpose in our offerings and how we work with our clients, our people will directly benefit through more meaningful work. For example, we continually evaluate and implement ways we can enhance our support to Black-owned businesses, and we are also pursuing the Management Leadership for Tomorrow’s (MLT) Black Equity at Work certification. These are just a few of the many VOLUME 44, NUMBER 2

efforts where we are investing to ultimately foster a stronger sense of purpose for our people and make an impact that matters for our communities. Will you discuss your career journey and what interested you to take on the role of Chief Purpose Officer? Most people are surprised to learn that I am a PhD Chemist by training – I definitely took a nontraditional career path but am able to apply my scientific training and background to the way I approach complex problems daily. I joined Deloitte approximately 14 years ago and have held a variety of roles that are aligned with leading our Purpose Office, including leading diversity, equity and inclusion for our consulting practice in addition to acting as our pro bono champion. I’ve held roles as the champion of our education and workforce development efforts and spent several years within the energy industry. From a personal perspective, which is the most important, I have been the recipient of support similar to what our firm provides to our communities in so many ways – from mentorship as a youth through programs like Deloitte Academy and through grants such as those provided by the Deloitte Foundation. I find purpose by providing pathways for youth who grew up in poverty like me to becoming a leader in the largest professional services firm. I’m really looking forward to harnessing all elements of my background and experience to prioritize purpose for Deloitte and communicate the value it brings to our clients, people and communities. The ability and responsibility for business to impact communities and society has come into the spotlight over the past year. Where do you see Deloitte having the greatest impact? What excites me the most about the establishment of a Purpose Office is that we can take bold actions and drive impact at scale. We’re focusing our efforts around several key core commitments, such as diversity, equity and inclusion, climate change and sustainability, and education and workforce, to name a few. One investment we just made that I’m particularly excited about is OneTen, a coalition of companies committed to upskill, hire and promote one million Black Americans over the next 10 years into family-sustaining jobs with opportunities for

advancement. This is the largest ever private sector-led mobilization of this type, and a great example of how purpose is bigger than philanthropy – it is companies stepping up and leading the change to create a more equitable society. I’m also incredibly excited about bringing forward bold new solutions around climate change, which we all know is such a key challenge that is going to require focused and collective action to change the path that we are on. Deloitte has placed a major emphasis on building a diverse and inclusive workforce. How important is it to bring diverse perspectives and experiences to the table when addressing client needs and how will Deloitte’s diversity, equity and inclusion efforts be incorporated into the Purpose Office? The events of last year have highlighted how critical it is for organizations to address the inequities that have become systemic in society. The impact of COVID-19 on communities of color in the U.S. has been staggering, with inequitable access to healthcare and a higher likelihood that people of color have frontline jobs that cannot be completed virtually. These factors are contributing to rising cases and a disproportionate number of deaths among minorities. Without focused attention, the wealth gap for these communities has the potential to increase even further. That’s why it’s important for organizations to look at diversity, equity and inclusion (DEI) not only to improve our respective workplaces, but also to influence positive change more broadly. Building a diverse workforce provides an opportunity to drive prosperity inclusively across multiple segments of society. It is proven that diverse and inclusive teams perform better and, ultimately, positively impact the bottom line. When everyone thinks the same, we get group think. By unlocking creativity through a diversity of perspectives, better results are produced. Our clients also expect us to show up as a diverse and inclusive organization, which is another reason why supporting DEI will be a critical component of what we’ll be doing in the Purpose Office. When we really embrace DEI as an organization, it fuels passion and purpose, enables innovation, and helps deliver well-rounded client solutions. By advancing our purpose, we can show that we are a force for good in society.

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F I N D L AY G A L L E R I E S

32 E A S T 57 T H S T R E E T , 2 N D F L O O R , N E W Y O R K , N Y 10022 • (212) 421 5390 165 W O RT H AV E N U E , PA L M B E A C H , F L O R I D A 33480 • (561) 655 2090 V I E W O U R G A L L E RY O N L I N E | W W W. F I N D L AY G A L L E R I E S . C O M Copyright © 2021, Findlay Galleries, All rights reserved.

Chuang Che

Chuang Che | No.1 | 1989 | oil and acrylic on canvas | 49 1/2 x 99 1/2 in.

莊喆

Chuang Che was born in Beijing in 1934. He fuses East and West, marrying influence from his Chinese and Taiwanese heritage with European and American Abstract Expressionism. He remarks: “No art can mature by itself; it has to absorb nutrition from the rest of the world’s art. I’ve always had this ideal; to see a fusion of Chinese and Western painting.” His bold, decisive brushstrokes and explosive yet orchestrated compositions harmonize perfectly. His balance of expressive form and rich, vibrant palette combined with various textural depths engage viewers’ attention, providing an endless visual journey into his spiritual paintings. The global demand for Chuang Che’s paintings has grown exponentially in the last decade, limiting the availability of his work. Findlay Galleries has represented Chuang Che since the early 2000s and invites you to view this limited collection at our New York Gallery.

PURPOSE

The Travelers Promise An Interview with Alan D. Schnitzer, Chairman and Chief Executive Officer, The Travelers Companies, Inc. EDITORS’ NOTE Alan Schnitzer COMPANY BRIEF Travelers (travelers.com) became CEO and a memb e r has been around for more than 165 years of the company’s Board of and has earned a reputation as one of Directors in 2015 and was the best property casualty insurers in the elected Chairman of the Board industry. It is a leader in personal, busiin 2017. He joined Travelers in ness and specialty insurance and the only April 2007 as Vice Chair man property casualty company in the Dow and Chief Legal Officer. He then Jones Industrial Average. Its approximately went on to lead the company’s 30,000 employees and 13,500 indepenFinancial, Professional and dent agents and brokers in the United International Insurance segment States, Canada, the United Kingdom and and subsequently the compaIreland help provide its customers with Alan D. Schnitzer ny’s Business and International both peace of mind and the confidence to Insurance segment. He also overreach higher and do more. saw Travelers’ Field Management, Corporate Communications and Public Policy organi- How do you define the Travelers culture, zations. Before joining Travelers, Schnitzer and how critical is that culture to the sucserved as the company’s lead outside coun- cess of the company? sel as a partner in the law firm of Simpson It is impossible to overstate the importance Thacher & Bartlett LLP, where he advised of culture, especially in a business where success corporate clients on a variety of trans- depends on thousands of people balancing risk a ctions and general corporate law mat- and reward every day in the process of making ters. Schnitzer is a member of the Board of underwriting decisions. Culture is a tough thing Trustees of the University of Pennsylvania to define. I often use the phrase “pixie dust” and serves on the Board of Directors of the to describe the intangible qualities that define New York City Ballet and Memorial Sloan our culture. I’m not sure exactly what’s in the Kettering Cancer Center. He ear ned his pixie dust but, over the years, I’ve called out a u n d e r g r a d u a t e d e g r e e i n f i n a n c e a n d few ingredients: collaboration, long-term thinking, accounting from The Wharton School of the putting The Place first, and a commitment to University of Pennsylvania and his JD from everyone else’s success. Embedded in each of Columbia Law School. those is a commitment to doing the right thing.

We talk a lot about our “Travelers Family,” and it’s more than a metaphor. We’re fortunate to work with people who genuinely care about each other, and it’s not just that they care – they find meaningful ways to show it. This year, I received dozens of stories from members of the Travelers Family describing how colleagues went out of their way to help them during moments of need, from hand-delivering food and basic supplies to dropping off medicine. The strength of our culture was on full display last year. We transitioned to a remote work environment, shifted to virtual processes for nearly every aspect of our business and effectively managed the company through a global health crisis. We not only made our way through a difficult year – we came through it stronger by nearly every measure. That’s in large part a credit to our culture. The dedication, ingenuity and compassion of our workforce are second to none. Our employees continually step up to meet the moment, doing so because they care deeply about our company, their colleagues, our customers and our agent and broker partners. Travelers has said that maintaining a diverse and inclusive workforce is a business priority. What impact does it have on your business? You might notice a theme here. If you look at all of our competitive advantages, there’s one thing they have in common: our people.

“The strength of our culture was on full display last year. We transitioned to a remote work environment, shifted to virtual processes for nearly every aspect of our business and effectively managed the company through a global health crisis. We not only made our way through a difficult year – we came through it stronger by nearly every measure.”

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“Diversity and inclusion is, and has been, a business imperative for us. Diverse experiences and viewpoints yield greater insights and better outcomes, raising the bar on individual and team performance, sparking further innovation and sharpening our customer focus.” They are our greatest asset. That’s why we focus on attracting, retaining and promoting the very best from the broadest possible pool of talent. We know that having a diverse workforce enables us to make the best decisions for our business and our stakeholders, and inclusion goes hand in hand with that. Supporting a culture that embraces differences and empowers people to share their unique perspectives creates an environment where everyone feels comfortable bringing their whole self to work, sharing new ideas and contributing to the flow of innovation. Diversity and inclusion is, and has been, a business imperative for us. Diverse experiences and viewpoints yield greater insights and better outcomes, raising the bar on individual and team performance, sparking further innovation and sharpening our customer focus. Travelers places a major focus on sustainability. What does sustainability mean for the company? We take a comprehensive approach to sustainability. Our long-term value creation depends not only on our financial strategy, but also on the way we manage various economic, environmental and social factors. When we think about our continued success, we have to do three things really well: perform, transform and keep the Travelers Promise.

Performing means successfully executing our long-term financial strategy to generate industry-leading returns on equity over time. In each of the past 10 years, we’ve outperformed the industry in terms of average return on equity. Those results reflect the value of our competitive advantages and are a testament to the discipline with which we run our business. That said, we also understand that some of the competitive advantages and capabilities that have fueled our achievements over the past decade won’t necessarily be the same advantages and capabilities we’ll need to lead for the next decade. That’s why we’re focused on transformation – to ensure that we maintain our leadership position for the next decade and beyond. The final piece I mentioned is the Travelers Promise – our commitment to taking care of our customers, our communities and each other. It’s about providing our customers with the security they need to invest in their families and businesses and being there to help them recover after a disaster; caring for the communities in which we live and work, through good times and bad; and making Travelers the employer of choice for the best talent in the industry and a great partner for our agents and brokers. For us, sustainability comes down to this: Only by successfully delivering on our Perform and Transform agenda will we earn

the resources we need to keep the Travelers Promise, and only by faithfully keeping the Travelers Promise will we earn the support of key stakeholders essential to our Perform and Transform success. What do you see as Travelers’ responsibility to be engaged in the communities it serves and to be good corporate citizens? In addition to focusing on the sustainability and profitability of our business, we’re investing more broadly in the sustainability and well-being of the communities we call home. Over the last decade, we have contributed more than $225 million toward important causes generally aligned with academic and career success, thriving neighborhoods and culturally enriched communities. We’re investing more than money; we’re investing our time. Over the last five years, our employees logged more than 500,000 volunteer hours, in many cases as part of initiatives that advance inclusive prosperity. This all connects back to the Travelers Promise and to our performance. Our long-term success is dependent on the long-term strength and prosperity of the communities in which we live and work. We see good corporate citizenship as both the right thing to do and a smart financial move. To do well, we have to do good. At Travelers, as I touched on in my last answer, we believe those obligations are intertwined.

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“Our long-term value creation depends not only on our financial strategy, but also on the way we manage various economic, environmental and social factors. When we think about our continued success, we have to do three things really well: perform, transform and keep the Travelers Promise.”

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PURPOSE

Constant Reinvention An Interview with Farooq Kathwari, Chairman, President and Chief Executive Officer, Ethan Allen Interiors Inc. EDITORS’ NOTE Farooq Kathwari free interior design service to its clients has been Chair man and CEO through the efforts of approximately since 1988. He serves in numer1,500 in-house interior designers and ous capacities at several nonprofit sells a full range of furniture products organizations including as a memand decorative accessories through its ber of the Board of Overseers of the website and a network of approximately International Rescue Committee; 300 Design Centers in the United States a member of the advisory board and abroad. Ethan Allen owns and of the Center for Strategic and operates nine manufacturing facilities International Studies; a member of including six manufacturing plants in the Council on Foreign Relations; the United States, two manufacturing Chairman Emeritus of Refugees plants in Mexico and one manufacturFarooq Kathwari International; an advisory member ing plant in Honduras. Approximately of the New York Stock Exchange; for75 percent of its products are made in mer Chairman of the National Retail Federation; its North American plants. for mer Chair man and President of the American Home Furnishings Alliance; a direc- Ethan Allen’s culture is built on a clear set tor of the Institute for the Study of Diplomacy at of leadership principles. Will you provide an Georgetown University; Co-Chairman of the overview of these principles and how critiMuslim-Jewish Advisory Council; and a mem- cal they are to the strength and success of ber of the International Advisory Council of the Ethan Allen? United States Institute of Peace. He served as a The Leadership Principles have been our member of the President’s Advisory Commission way of setting the tone of our culture, for both on Asian Americans and Pacific Islanders from our leadership team and our associates. I believe 2010 to 2014. Kathwari was tapped to join the it’s important to have a set of core values that congressionally mandated United States Institute define who you want to be and how you comof Peace bipartisan Task Force on Extremism in mit to treating others. One of the most important Fragile States co-chaired by Governor Tom Kean things to be in 21st-century business is agile, so and Congressman Lee Hamilton, who formerly we devote three of our principles to that concept. led the 9/11 Commission. The principle of Excellence + Innovation – strive Among his recognitions, Kathwari is a recipient of the 2018 Ellis Island Medal of Honor and has been inducted into the American Furniture Hall of Fame. He has been recognized as an Outstanding American by Choice by the U.S. government. He has received the Yale School of Management’s Chief Executive Leadership Institute Lifetime of Leadership Award; the National Human Relations Award from the American Jewish Committee; the National Retail Federation Gold Medal; and Ernst & Young’s Entrepreneur Of The Year™ Award. He has also been recognized by Worth magazine as one of the 50 Best CEOs in the United States. Kathwari holds BAs in English literature and political science from Kashmir University, Srinagar, and an MBA in international marketing from New York University. He is also the recipient of three honorary doctorate degrees.

“Being agile,

knowing who we

are, and treating

others fairly helps us to live in a state of

constant reinvention.”

COMPANY BRIEF Ethan Allen Interiors Inc. (ethanallen.com) is a leading interior design company and manufacturer and retailer of quality home furnishings. The company offers 46 LEADERS

for the highest quality and embrace the entrepreneurial spirit – is supported by the principles of Change and Speed: Embrace change, and do not be afraid of it; also react quickly at pivotal moments. Then, although it may seem counterintuitive, the key to responding well in a rapidly changing business environment is to stay true to that which is enduring. The principles of Leadership, Hard Work, Priorities, and Justice call us to set an example for others, to be known for our work ethic, to discern between what’s important and what isn’t, and to make fair and thoughtful decisions. Finally, when we are grounded in what is right, we can turn our attention to how we treat others. This is where the principles of Accessibility, Confidence, and Client Focus come into play. Be supportive of others, recognize their contributions, and make client satisfaction the highest priority. As Ethan Allen has grown in size and scale, how important has it been to maintain these leadership principles at the forefront of the company? Being agile, knowing who we are, and treating others fairly helps us to live in a state of constant reinvention. When I became President, Chairman and CEO of Ethan Allen in the 1980s, we committed to repositioning and building our retail network, expanding around the globe, and establishing a strong digital presence. Those challenges are still in front of us in 2021, although we’ve made a lot of progress and look quite different from where we were all those years ago. At the same time, the core values of Ethan Allen remain the same, including our focus on North American manufacturing - 75 percent of our products are made in our North American workshops. One of the things we hear from our associates most often is, “I work for Ethan Allen because the company’s values are the same as my values.” Our values naturally attract people who are in sync with our Leadership Principles, and when you have the right people in place, no matter what short-term challenges you face, you will find yourself in good position for the long term. What do you see as a company’s responsibility to the communities it serves and will you highlight Ethan Allen’s commitment to corporate responsibility and community engagement? VOLUME 44, NUMBER 2

The foundation of corporate social responsibility is to put people first. It starts within our own walls. When our leaders treat our associates well, and we treat each other well, we are primed to make good decisions and to take measured risk in keeping with an entrepreneurial mindset. The entrepreneurial spirit that we bring to business flows naturally into our communities. You see how, although the pandemic has temporarily limited what we can do, our Design Centers take the initiative to do so much for local charitable organizations. Many of our sustainability initiatives are spearheaded in our own workshops, brought to the notice of company leaders, and then shared with others. It’s been my experience that changes made from the ground up, rather than from the top down, are more effective and long lasting. Of course, there are some areas in which we lead from the top, particularly when it comes to managing our worldwide supplier network. We created a Manufacturing Code of Conduct that make our values clear to any vendor that we work with: that we expect them to treat their workers fairly and to ensure good working conditions. Even though we set those expectations from the top, we depend on our merchants and product development team to provide hands-on assistance to our vendors. We don’t just dictate our expectations; we help to educate our supplier network and give them the tools they need to improve their businesses. In that way, even though we make 75 percent of our products in our own North American workshops, we are using our influence to champion exceptional product quality and good working conditions all over the world. How has Ethan Allen adapted its business to address the challenges caused by the pandemic and how is the company supporting its people during this challenging and uncertain time? Something I talk about all the time is the importance of combining technology with personal service, but even I couldn’t have anticipated how that focus would prove indispensable in this unprecedented moment. All the work we’ve done to develop new design technology, from our EA inHome® app to our 3D Room Planner, made it easier for our designers to work with clients remotely, even when Design Centers were in lockdown or when traffic levels dropped because people were being cautious about going out. As we’ve improved our digital experiences, we’ve stayed focused on connecting the online and the Design Center experiences. We expanded our Live Chat function last year so that clients doing research online could chat with one of our in-store designers when they needed ideas or had questions. We have deployed a lighter version of our designers’ 3D Room Planner, and is now available online so our clients can use it. We’ve also maintained most of our manufacturing in North America at a time when many companies have moved manufacturing to East Asia. This has helped us to keep better control over our supply chain, ensuring that we continue delivering the quality and service that our clients expect. VOLUME 44, NUMBER 2

All of that to say, we did our best to support our people by ensuring they could continue to work during these challenging times. It’s important to remember, however, that this time will not last forever; we will get through it and we look forward to once again, as I described before, being a visible contributor to our communities. The world is facing major challenges, from a health crisis to issues of racial injustice to climate change. What do you see as the role that business can play in addressing these global challenges? All over the world, democracy has been tested like never before as governments try to tackle the challenges of our time. In many cases, governments have been paralyzed by division, creating a vacuum that requires businesses and individuals to step in. The problem is that one person, or one business, can’t create change at the scale that a government can. All we can do is establish the right climate within our walls, tell our clients what matters to us, try to influence other businesses positively, and win in the marketplace of ideas. The fight against climate change is not new to us; it’s something we’ve been working on for decades, and overall, we’ve cut our carbon footprint by one-third. Gender equality isn’t new to us, either. Nearly half of our leaders throughout our manufacturing, our retail, and our headquarters are women. That’s more than a lot of businesses, but we still have work to do, particularly when it comes to recruiting minority leaders and associates. We know that we have to lead by example. People have a choice when they shop for furniture, and part of how we lead is to make their choice of Ethan Allen, a company that’s committed to sustainability and to social responsibility, a choice that pays dividends to them. They can purchase “fast furniture” – it arrives quickly, but it’s often of poor quality – or they can purchase furniture that’s made sustainably but more importantly, made well, that will stay with them and their families for a long time to come. How critical is it for Ethan Allen to build a diverse and inclusive workforce in order to bring diverse perspectives and experiences to the table when making business decisions? I always say that America is a microcosm of the world. No other country brings together the perspectives of so many people from so many places. Like many, I am an American by choice, and when I took on the challenge of helping to transform a quintessential American company into a player on the global stage, the perspective that I brought with me from the mountains of Kashmir gave me unique insights that could only come from the time I spent in that part of the world. Being from that area helped me to forge partnerships that may have been more elusive otherwise. The benefit of diversity is the wisdom you achieve because you see issues from many perspectives. I think also, whether you’re assimilating into American culture from the outside, or you’re part of a group that is underrepresented in leadership, you have to work even harder to be successful.

The harder you work, the more you achieve, and the more you inspire others to achieve along with you. As I mentioned earlier, we have benefited from having the perspectives of women in our leadership, and we are always working to add even more diverse voices to our Ethan Allen family. When attracting talent for Ethan Allen, how important is the person’s personality, attitude and cultural fit in the hiring process? As I noted before, I hear over and over again that Ethan Allen associates are proud to work for a company that shares their values. When we recruit people in alignment with our Leadership Principles, we attract people who already, naturally, strive to live by our company values. Such an effort correlates with a certain temperament and attitude – qualities like flexibility and perseverance, for example – that make people the right cultural fit for our company. At the same time, to your earlier point about diversity, we don’t want things to be too homogeneous. New perspectives improve us. They keep us relevant, so we don’t set out to bring in only a specific type of person. I always expect our leadership team and our associates to speak out and to ask questions, and their perspectives aren’t always in agreement, but hearing multiple viewpoints around an issue leads to better understanding and keeps us relevant. What do you see as the keys to effective leadership? I am guided and inspired by the example of my late son, Irfan, whose last message to me was, “Unless we do what we can to help others, our lives are meaningless.” Effective leadership requires investing in and bringing out the best in others. Those who are given the privilege of leadership must also accept the burden of making difficult decisions, especially when staying true to your values isn’t the most popular choice. I mentioned earlier the importance of leading by example. I also believe that being a good leader means listening to different perspectives. At the same time, it’s important to stay focused on shared objectives. Every week, when I talk to our leaders, we focus on five priorities – talent, service, marketing, technology, and social responsibility – which means that we are always working toward the same goals, even if we’re using different methods because certain methods work best in a particular community. What are your priorities for Ethan Allen as you navigate this unprecedented time? I have always been a believer in long-term thinking and fiscal responsibility. We have to be focused on where we will be five, ten, twenty years from now, not just on short-term issues. Our focus will continue to be on cultivating strong leaders, being relevant with our offerings, maintaining a strong presence in North American manufacturing, investing in technology, and maintaining a strong focus on social responsibility. My team and I are already thinking of what the world will look like after the pandemic and looking forward at how the world will evolve throughout this decade. By then, Ethan Allen will be a century old, but our best days will still be ahead of us.

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PURPOSE

Creating Place An Interview with the Principals of Kohn Pedersen Fox Associates FIRM BRIEF Kohn Pedersen Fox Associates (KPF) is one of the world’s preeminent architecture firms, providing architecture, interior, programming and master planning services for clients that include some of the most forward-thinking developers, corporations, entrepreneurs, and institutions in the United States and around the world. The firm’s extensive portfolio spans more than 40 countries and includes a wide range of projects from office and residential buildings to civic and cultural spaces to educational facilities. Driven by individual design solutions, rather than a predetermined style, KPF’s mission is to create buildings and places of the utmost quality and contextual sensitivity, providing a valuable impact on the cities they inhabit. KPF’s culture is built on a clear set of values. Will you highlight the firm’s values and how critical the firm’s culture is to the strength and success of KPF? We strongly believe that architecture can be an agent for improving the quality of life and changing our society for the better. Our core values include promoting universal access to a high-quality public realm, advocating for a more sustainable environment, and encouraging the freedom of expression in all who work with us. To support these goals, we have kept a comparatively flat hierarchy within the firm and have supported colleagues in pursuing new social initiatives. What do you see as a company’s responsibility to the communities it serves and will you highlight KPF’s commitment to corporate responsibility and community engagement? Buildings – both new and renovated – have a lasting impact on their communities, often standing for many decades. So, the design itself must work not only for the intended purpose of the current user, but must also contribute to the surrounding context. KPF is committed to creating places loved by users and neighbors alike. We take that responsibility seriously, engaging local community members from the earliest stages of the design process, sharing our ideas and spending

KPF’s resiliency plan for the NYCHA Red Hook Houses creates pedestrian spaces, courtyards, and playgrounds, and aids in wayfinding. 48 LEADERS

The central “living room” at the Ross School of Business at the University of Michigan has become students’ preferred place to meet, study, and eat.

time to build trust and to better understand their needs. At NYCHA Red Hook Houses in Brooklyn, we held numerous workshops with residents, elected leaders, parents, and even children, in order to craft a design for the public spaces that was both resilient and usable. Our plan improves building entries and site lighting, creates pedestrian spaces, courtyards, and playgrounds, and aids in wayfinding across this large expanse of repetitive, circa 1930s structures. How do you describe the impact that architecture can make on the productivity and emotional well-being for the users of a building? Physical spaces have an enormous impact on one’s day to day productivity and emotional health. In designing our academic buildings, for example, we create spaces that are comfortable, functional, and even inspirational. At the Ross School of Business, we designed a central hub for the campus that is, in effect, the living room of the school. Students prefer to spend time there – to meet, gather, study, work, eat – it has been truly transformational. The space’s connection to nature, careful use of materials, noise reduction, quality lighting, comfortable furniture, and substantial artwork all combine to enhance productivity and promote collaboration. These principles translate across KPF’s work at all scales, enhancing wellness and productivity while reducing stress – from the workplace to the hospital waiting room. How does KPF support its people in their desire to give their time and expertise to addressing societal issues and causes? KPF has in place a number of initiatives that allow staff to advance and advocate for a variety of important causes and to ensure these issues are considered in our firm’s designs. For example, KPF Public is a platform to address issues of racial and social inequality and combat the inequities that exist within the profession and the built environment; KPF Pride works to raise awareness of LGBTQ+ issues within the VOLUME 44, NUMBER 2

“KPF is committed to creating places loved by users and neighbors alike. We take that responsibility seriously, engaging local community members from the earliest stages of the design process, sharing our ideas and spending time to build trust and to better understand their needs.” firm in ways that will inform design thinking; and KPF+ is dedicated to enabling women to achieve their full potential at work and to advancing gender equity in leadership. We believe these activities and others provide a well-balanced experience for our staff that is germane to their work, and that an informed and engaged team is critical to KPF’s success as a global practice. These matters are integral to who our staff are and the firm’s support is a recognition of the individual. Ultimately the collective action of the staff will inform our mission as a global architecture firm. How critical is it for KPF to build a diverse and inclusive workforce in order to bring diverse perspectives and experiences to the table when addressing client needs? KPF is a global firm and our reach is broad. To be competitive and effective, we must stay current, relevant and sensitive to all places and people we work with. We understand that in order to provide the best architectural solutions, our designers must be reflective of the populations they serve and so we recruit and retain staff to that effect. We are also seeing our clients and collaborators double down on ambitious diversity, equity, and inclusion goals of their own, so it is exciting and encouraging to see this shift across the broader industry. Will you discuss the involvement of KPF staff to advise high school students with aspirations to pursue careers in design and construction through the ACE Mentor Program of America? For more than 20 years, KPF has been an active leader and sponsor of the ACE Mentor Program of America in New York City. We do this to ensure we expand awareness of, and access to, opportunities within the profession to the next generation of architects. Each year, a committed team of KPF staff leads a series of after school sessions for a diverse group of local high school students interested in exploring careers in architecture, engineering, and construction. We work through hypothetical projects together, along with our colleagues on the developer side as well as our ACE partners, to simulate the roles we each play in the industry.

KPF, with support from KPF Public, joined the Bedford-Stuyvesant Restoration Corporation and design partners to create public space as part of the Neighborhoods Now program to channel pro bono resources from New York-based design firms into community-driven COVID-19 recovery strategies. VOLUME 44, NUMBER 2

KPF+ curated a month-long installation in the New York office to celebrate Women’s History Month 2020.

Our shared mission is to educate, inform, and inspire these students about opportunities available in these industries and to support their continued advancement throughout their academic career. We remain connected with the students as they move on to college, offering summer internships in our New York office and, ultimately, considering them for full-time positions upon graduation. What was the vision for creating the KPF Traveling Fellowship? The traveling fellowships give us a chance to make a huge difference in the career of young architects through supporting their travel and independent study. We want them to be bold, take chances, and broaden their view of the world. This is a formative stage of their intellectual lives, and we want to give them the freedom to explore. Will you highlight the creation of the KPF Paul Katz Fellowship, an international award established in honor of the life and work of former KPF Principal Paul Katz? The Paul Katz Fellowship is an internationally competitive award established and administered by the KPF Foundation in honor of the life and work of former KPF President Paul Katz. It is given each year to assist international students in their pursuit of studying issues of global urbanism upon graduation from a masters of architecture program from the five East Coast schools at which Paul studied or participated as a teacher: Princeton, Yale, Harvard, Columbia, and the University of Pennsylvania. Paul Katz’s career focused on the realization of large, complex, mixeduse projects in high-density, center-city locations. Projects he helped bring to life include: Roppongi Hills, a large mixed-use complex in Tokyo; many of the buildings at Canary Wharf in London; Hudson Yards in New York; the expansion of Covent Garden in London; and the renovation and repositioning of The Landmark complex in Central, Hong Kong. He was instrumental in building the current global structure and reach of KPF. The breadth of the Fellowship is intended to celebrate Paul’s interest in the advancement of the global city. The Fellowship is permanently endowed through the generosity of people who worked closely with him, including friends, clients, colleagues, and KPF. LEADERS 49

“We acknowledge that our buildings on their own will not be able to achieve our ambitious climate action goals, but by implementing design solutions at all scales that integrate with and enhance mobility systems, energy and water infrastructure, and microclimates around them, we take advantage of scale to positively impact the environment beyond a project’s site and brief.” KPF’s design for 18 Robinson supports Singapore’s Landscape Replacement Policy, replacing all greenery lost due to development with equal area of publicly accessible green space.

Will you highlight KPF’s commitment to sustainability and how the large scale and impact of KPF’s work shapes the firm’s approach to sustainability? For KPF, it is the large scale and impact of our work that shapes our approach to sustainability. Often urban and dense mixed-use developments, our projects are located in some of the fastest growing cities in the world, where architecture can be exponentially more impactful. We acknowledge that our buildings on their own will not be able to achieve our ambitious climate action goals, but by implementing design solutions at all scales that integrate with and enhance mobility systems, energy and water infrastructure, and microclimates around them, we take advantage of scale to positively impact the environment beyond a project’s site and brief. The firm has joined AIA, RIBA, and many of its peers in a joint effort to develop the capabilities to design and deliver carbon-neutral buildings by 2030. Our sustainability mission includes our campus and community as we endeavor to achieve operational carbon neutrality by minimizing our energy, water, and waste impact and investing in the World Wildlife Fund’s Climate Crowd and Alliances for Climate Action programs. Members of KPF’s Green Design, Resilience, and Wellness (GRoW) group monitor air quality sensors in the firm’s New York office.

Through the ACE Mentor Program of America, KPF staff advise high school students with aspirations to pursue careers in design and construction. 50 LEADERS

What are your priorities for KPF as you navigate this challenging and unprecedented time? The pandemic period has given us all a chance to see our work in perspective. The events following the killing of George Floyd have made it more important for us to call for societal change. Architecture can play a role in this. We’ve taken on significant pro bono work focused on helping disadvantaged neighborhoods to reopen their doors. We’ve also been intensifying our practice in the area of labs and life sciences, spurred on by the need to combat viral attacks. More and more, our architectural community seeks to fulfill the higher goals of our profession - servicing not only our clients and building users, but also the general public and the planet. As we begin sketching the solution for any new project, we ask ourselves about the “externalities” of a given design solution. The challenges of dealing with climate change, health threats, social inequality and lack of accessibility to public benefits are monumental in scale, but by beginning with concrete and tangible measures, our work can make incremental differences.

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Kramer Levin Naftalis & Frankel LLP 1177 Avenue of the Americas, New York, NY 10036 212.715.9100

PURPOSE

Building Trust An Interview with Richard Edelman, President and Chief Executive Officer, Edelman EDITORS’ NOTE Richard Edelman FIRM BRIEF Edelman (edelman.com) is the CEO of Edelman, a global is a global communications fir m communications fir m. He has that partners with businesses and extensive experience in marketor ganizations to evolve, pr omote ing and reputation management, and protect their brands and rephaving led assignments with major utations. Its 6,000 p e o p l e i n m o r e corporations, NGOs and family t h a n 6 0 o f f i c e s deliver commubusinesses. He has advised senior nications strategies that give its cliexecutives through significant disents the confidence to lead and act ruptions within their organizations, with certainty, ear ning the trust including Samsung and United o f t h e i r s t a k e h o l d e r s . Its honors Airlines. He has counseled couninclude the Cannes Lions Grand Richard Edelman tries in every region of the world on Prix for PR; Advertising Age’s 2019 economic development programs. A-List; the Holmes Report’s 2018 As the creator of the annual Edelman Trust Global Digital Agency of the Year; and, five Barometer, Edelman has become one of the t i m e s , G l a s s d o o r ’ s B e s t P l a c e s t o Wo r k . foremost authorities on trust in business, gov- Since its founding in 1952, Edelman has ernment, media and NGOs. In 2020, Richard remained an independent, family-run busiwas inducted into the American Advertising ness. Edelman owns specialty companies Federation’s Advertising Hall of Fame. In 2019, Edelman Intelligence (research) and United he was named the PR Agency Professional of the Entertainment Group (entertainment, sports, Past 20 Years by PRWeek and was inducted into lifestyle). the publication’s Hall of Fame; in 2014, he was inducted in the Arthur W. Page Society’s Hall How do you define Edelman’s culture and of Fame. Edelman is regarded as an industry how critical is culture to the success of thought leader and has posted weekly to his blog the company? since 2004. He serves on the Board of Directors Our culture is driven by Dan Edelman’s of the Ad Council, the Atlantic Council, Project founding principles: entrepreneurship, indeHOOD, P33, the Gettysburg Foundation, the pendence and the mandate that everyone 9/11 Museum and the National Committee on is an account executive. These principles U.S.-China Relations. He is a member of the Civic directly impact our approach to the work Committee of the Commercial Club of Chicago, we do for clients. We continually pursue a World Economic Forum and PR Seminar. respectful and culturally curious workplace Edelman earned a BA from Harvard College that drives innovative thinking, cultivates in 1976 and an MBA from Harvard Business diverse ideas, and fosters collaboration School in 1978. among our people and partners.

How has Edelman adapted its business to address the challenges caused by the pandemic and how proud are you to see the way Edelman’s workforce has shown resilience during this challenging time? We have learned to collaborate in an effective and efficient manner while not being in the same room. The situation has brought out the best in our people and that is reflected in the innovative purpose-driven work we are doing for clients. Based on the 12 Edelman Trust Barometer special reports we conducted over the past year, we learned that the public was demanding more than words from brands, businesses and government – they wanted action. We are advising our clients that it is no longer about what you say, it’s what you do that matters. I am not only proud, but grateful, for our employees. As I said to them at the close of 2020, I’ve never been more in awe of our people. Will you discuss Edelman’s commitment to supporting its employees, clients and communities during this uncertain time? Keeping our staff and their families safe is our top priority and we do that by providing them with the information they need to make informed choices. Most of our employees have been working remotely since last March and will continue to do so until restrictions are lifted and they feel it is safe to return. We are not mandating our employees to get vaccinated but will continue to provide them timely information on the virus and vaccines. We are committed to our employees’ well-being and are adding new programs and resources to continue to support them through this time.

“We have also made a commitment to fight injustice and institutional racism and act as an agent of change – within our walls and beyond. To date, our firm has had more than 400 client engagements across all industries and sectors to address the current global call for racial equity.”

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“We continually pursue a respectful and culturally curious workplace that drives innovative thinking, cultivates diverse ideas, and fosters collaboration among our people and partners.”

We have also made a commitment to fight injustice and institutional racism and act as an agent of change – within our walls and beyond. To date, our firm has had more than 400 client engagements across all industries and sectors to address the current global call for racial equity. We are advancing clients’ diversity, equity and inclusion strategies and the actions they should take to impact their employees, consumers and communities. We are working inside and out for a more just world. How critical is it for Edelman to build a diverse and inclusive workforce to bring diverse perspectives and experiences to the table when addressing client needs? It’s essential. As an industry leader and advisor to businesses and organizations, we believe that we have a fundamental responsibility to join the discussion and lead in driving solutions when it comes to advancing diversity, equity and inclusion. That includes taking a critical look at ourselves. We have accelerated our efforts in diverse hiring and retention, diversifying our board, working with diverse NGOs and non-profits in communities and will continue to encourage our clients to be more directly involved in action and change. In June 2020, we stood up a Racial Justice Task Force that has been merged with our U.S. Multicultural practice to help authentically and strategically address our clients’ DEI and racial justice communications needs. This work is a catalyst for integrating multicultural perspectives into all the work we do for our clients at all times – not just in crisis moments. What do you see as the responsibility of leading companies to be engaged in the communities they serve and to being good corporate citizens?

The private sector should strive to create real, meaningful, and positive societal change. According to our recent Edelman Trust Barometer data, 86 percent of people want CEOs to lead on societal issues. Companies that have Purpose as their guiding principle are best positioned to deliver on this mandate. Companies have the right and responsibility to lead on issues like sustainability, racial justice, public health and economic inclusion, particularly as these priorities impact their employees and communities. They should not do this alone, but work with others to take collective actions to solve societal problems. Will you highlight Edelman’s commitment to corporate social responsibility and ESG and how the company is focusing its efforts in this area? Corporate social responsibility has been embedded in Edelman’s culture since Dan Edelman opened the firm in 1952. We demonstrate our commitment to citizenship, which is Edelman’s corporate social responsibility mandate, by focusing on four core pillars – our clients, our people, our communities, and our world – and living our fourth company value: the commitment to positively impact society. To us, “citizenship” describes the larger responsibility our firm has to positively influence society. It is about performing our work ethically and with an environmental conscience alongside a sense of tolerance, fairness, and equality. The Edelman Trust Barometer is the gold standard around the issue of trust. Will you discuss the vision for creating the Edelman Trust Barometer and highlight the recent data from its research?

We started the Edelman Trust Barometer after the 1999 protests of the World Trade Organization’s conference in Seattle which would become known as the “Battle in Seattle.” There was a surge in activism around the world forcing government and business to examine the social and environmental challenges our world faces and the role they needed to play in addressing them. The key findings from this year’s study include: This is an era of information bankruptcy and most respondents (57 percent) believe societal leaders are purposely spreading false information. Business (61 percent) is now the most trusted institution and its biggest opportunity to increase trust is by safeguarding information (53 percent). New expectations of business have given rise to new demands of CEOs: they must focus on societal engagement with the same rigor, thoughtfulness and energy used to deliver on profits. More than two-thirds expect them to step in when the government does not fix societal problems. Trust dropped precipitously in the world’s two largest economies: Trust in the U.S. government is at a mere 40 percent and is even lower in China (30 percent) among foreign respondents; Trust among Chinese citizens in the country’s institutions fell 18 points moving China to second place on the Trust Index and the U.S., in the bottom quartile of countries as of November, dropped a further 5 points post-election (43 percent). What advice do you offer to young people starting their careers? Don’t settle. Make sure you go to work for a company that shares your values and principles and takes seriously the importance of being a good corporate citizen.

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“The private sector should strive to create real, meaningful, and positive societal change. According to our recent Edelman Trust Barometer data, 86 percent of people want CEOs to lead on societal issues. Companies that have Purpose as their guiding principle are best positioned to deliver on this mandate.”

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Serving the Military An Interview with Wayne Peacock, President and Chief Executive Officer, USAA EDITORS’ NOTE Wayne Peacock and their families. Headquartered in has more than 30 years of experiSan Antonio, Texas, USAA has offices ence at USAA. A proud USAA memin seven U.S. cities and three overseas ber since 1990, Peacock joined the locations and employs approximately company in 1988 in its real estate 36,000 people worldwide. Each year, investment subsidiary and has the company contributes to national served on the Executive Council and local nonprofits in support of milsince 2006. During his thr ee itary families and communities where decades at USAA, he has led teams employees live and work. across the organization, including contact centers, information Will you highlight the history and technology, shared services, stratheritage of USAA and how the Wayne Peacock egy, marketing and communicacompany has evolved? tions, security, and corporate real United Services Automobile estate. Before becoming CEO in February 2020, Association (USAA) was founded as a business Peacock was president of USAA’s Property & cooperative by 25 U.S. armed forces officers on Casualty Insurance Group, the fifth-largest auto June 20, 1922, in San Antonio, Texas. At the insurance carrier and third-largest homeown- time, many Army officers – including our ers insurance carrier. Peacock is a member of founders – had difficulty getting adequate insurUSAA’s Board of Directors and USAA’s Federal ance for their cars. They formed USAA to supSavings Bank Board of Directors. He is a mem- port each other with a self-insurance solution. ber of the Business Roundtable, an association Through the years, we expanded USAA’s prodof CEOs of America’s leading companies, and uct and service offerings to meet the changing an inaugural member of the Federal Reserve needs of the military community, adding insurBoard’s Insurance Policy Advisory Committee. ance protection for homes, possessions and life; He also serves on the Board of Trustees of The banking; and investing. Membership was also Institutes, a leading risk management and insur- extended from Army officers to other military ance knowledge provider, and on the Board branches (1923), to enlisted (1996) and eventuof Directors for the Insurance Information ally to include all who have honorably served Institute. He is past chairman of the San Antonio in the military (2009) and their families. Today Economic Development Foundation. Peacock USAA ranks 94th (2020) on the Fortune 500, and is active in various industry and trade groups we have more than 13 million members. We and co-led the Mayor’s Task Force on Corporate employ approximately 36,000 people across Recruitment and Retention in San Antonio. A the U.S. and in select European locations. proud Eagle Scout, he served on the execuOur founders knew what it meant to serve, tive board of the Alamo Area Council of the and that approach remains a tagline for USAA Boy Scouts of America. An industry leader, P&C today. Our association aims to know the miliSpecialist ranked him fifth on its Top 25 Leaders tary better than anyone so we can serve military of Personal Lines list of influencers and Fast families better than any other financial services Company named him among the 100 most cre- company. More than 20 percent of our workative people in business. Peacock graduated force has a direct connection to the military, from Tulane University with a BA in economics. either through their own service or as a military He has completed executive education programs spouse. Respect for the core values associated at Harvard, Duke and Stanford universities with military life is interwoven into USAA’s misand the American Institute of CPCU Executive sion and celebrated by employees through such Education Program at the Wharton School of events as companywide branch birthday celethe University of Pennsylvania. brations, guest speakers, and charitable giving and volunteering that support military causes. COMPANY BRIEF Founded in 1922 by a group All these efforts are designed to increase miliof military officers, USAA (usaa.com) is among tary acumen and appreciation among all our the leading providers of insurance, banking teammates. and investment and r etir ement solutions What have been the keys to the to more than 13 million members of the U.S. strength and leadership of USAA and how military, veterans who have honorably served do you describe the USAA culture? 54 LEADERS

USAA’s core values – service, loyalty, honesty, integrity – are modeled after those of the military and keep us focused on our mission to serve the financial needs of the military community. Military life is an integral part of USAA’s culture, and our core values reflect how we put our mission into action – how we behave, make decisions, treat each other and serve our members. These values also are key to how we treat our USAA teammates and represent our brand outside our walls. Building a culture takes time and effort from everyone across the organization. At USAA, that starts with remaining grounded in our mission and focused on the members we serve. This is emphasized from the first day on the job for every employee. New Employee Orientation combines an introduction to USAA with a celebration of the military. We sustain military awareness and appreciation by starting each USAA event, meeting or presentation with reflection on our mission. This serves as a repeated reminder of the need to maintain an enduring connection to the mission in all we do. Our core values also are modeled by leaders in how they interact with and lead their teams, creating inclusive environments that foster a feeling of belonging and encouragement to be authentic. Will you provide an overview of USAA’s products and services? Our focus is on providing advice coupled with insurance and banking solutions that will help our members achieve financial security. Our products range from auto, home, renters and life insurance to credit card, checking, savings, and home and auto loans. Additionally, in the last few years, we teamed up with Victory Capital and Charles Schwab to offer our members a vast array of affordable investment options. At USAA, you have members – not customers or clients. Why is that a meaningful distinction for you? Being a member implies a deeper relationship than simply being a customer. USAA members are part of a family that shares common values. We have their backs. They recommend us, defend us and act as our constant inspiration through the example of their selfless service. Our strategic direction is guided by what will benefit our membership. We are hyper-focused on keeping members’ needs at the forefront. Operations are built to make members’ lives easier. VOLUME 44, NUMBER 2

“USAA’s core values – service, loyalty, honesty, integrity – are modeled after those of the military and keep us focused on our mission to serve the financial needs of the military community.”

How has USAA adapted its business to address the challenges caused by the pandemic and how proud are you to see the resilience of the USAA workforce during this challenging and uncertain time? The pandemic required us to think quicker and be more innovative in how we manage and empower our workforce. When we are working at a faster pace, as we have since March 2020, we use the best information we have to make the best decisions we can and we commit to change and adapt as needed. Agility matters. Before the pandemic, members already could conduct most USAA banking and insurance transactions digitally or by phone. We had hoped to facilitate nearly 100 percent contactless insurance claims by 2022. Last year’s events pushed us to make significant, accelerated strides in that direction, and in some cases, we reduced the time it takes to complete an insurance claim from hours to seconds. For years before the pandemic, we had wrestled with the puzzle of accommodating more employees to work from home. In March 2020, we successfully transitioned approximately 30,000 employees to work from home – in just nine days. Combined with the thousands already permanently working from home, that added up to approximately 98 percent of our workforce working remotely. We provided equipment and during the early days of the pandemic, we provided groceries and prepared food from drive-thru sites at many of our campus locations. Also, we offered employees free coronavirus testing and treatment, three weeks of paid emergency leave, and a $1,000 bonus to help ease some of the financial stress caused by the pandemic. We are actively reimagining the workplace and workforce of the future with innovations in recruiting and hiring talent. The success of working from home over the last year has allowed us to draw the best talent from anywhere, increasing our competitiveness and boosting the diversity USAA needs to remain relevant and attuned to member needs. In addition, we are committed to upskilling our current employees by creating robust lear ning experiences and career development opportunities that include holistic, personalized and remote learning programs. VOLUME 44, NUMBER 2

How critical is it for USAA to build a diverse and inclusive workforce in order to bring diverse perspectives and experiences to the table when making business decisions? The military community is incredibly diverse. Our membership reflects that, and so should our workforce. We want to be able to engage members in ways that reflect their unique experiences and needs. Those are just a few reasons why diversity and inclusion is one of our six strategic priorities at USAA. We’ve spent a lot of time over the past year encouraging and participating in candid conversations about diversity. It is important to ask questions and listen to ideas so that we can achieve our goal of a more diverse, inclusive environment. It will benefit our members and enable all employees to feel like they belong and that they have the opportunity to reach their full potential at work. We recognize that employees scrutinize how a company enables D&I to help determine if they want to work there, so it is important for building a strong workforce in the future. Also, we believe healthy D&I enables USAA to be a more effective corporate citizen in the communities where we live and work. For several years we have supported a variety of D&I business working groups. Last year we created a CEO D&I Council to help us develop action steps that will make our D&I goals a reality. Also last year, we announced a t h r e e - y e a r, $ 5 0 m i l l i o n c o m m i t m e n t to advance racial equity in the cities where USAA has a presence as an employer. We believe that when more voices and perspectives are heard, we make better decisions for members and employees. Will you discuss USAA’s corporate responsibility efforts and focus on community engagement? USAA has a noble mission to facilitate the financial security of military families who make great sacrifices to preserve and protect our enduring freedoms. Beyond providing highly competitive products and services, we are committed to serving the communities where we live and work. Since the onset of the pandemic, USAA and The USAA Foundation, Inc., have committed nearly $41 million to support militaryfocused and local nonprofits helping those in need in our communities. This includes $20

million for U.S. military aid societies and organizations serving active duty military, veterans and their families. Attention to corporate responsibility and community engagement is a way of life for USAA. Last year, employees continued their longstanding tradition of giving by donating $10.1 million to nonprofit organizations. Because USAA matched employee donations, dollar for dollar, up to $1,000 per employee last year, the giving was multiplied. Even amid the pandemic, employees still volunteered more than 185,000 hours to help support their communities in 2020. What do you see as the keys to effective leadership and how do you define your management style? On my first day as CEO, I made five commitments to employees and members: • To serve with excellence • To serve with integrity • To protect the membership and our Association • To cr eate an envir onment wher e employees can be and do their best every day • To prepare USAA for its second century, which starts next year Leadership is a challenge, no matter what career you choose and regardless of the obstacles before you. I think it’s critical for leaders to choose their own personal mindset, lead from the front, advocate for change and inspire no matter the challenge. Rather than focusing on what’s hard, great leaders look at these challenges as periods of opportunity when they can match their skills and passions to solve problems and map a positive course forward. What advice do you offer to young people beginning their careers during this difficult and unprecedented time? Be a great teammate. Build skills now in being competent, trustworthy, respectful and reliable. Do what you say you’re going to do, every single time. Develop strong analytical skills. Corporate America will live and die on the ability to gather, understand and use data to problem solve. Use both sides of your brain. People who can equally use the creative and analytical sides of their brains will be the most successful in leading companies in the future. Be aspirational. Set goals to leave whatever you work on better than you find it.

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Bridging the World’s Two Largest Economies An Interview with Xiaojun (Dennis) Huang, Executive Vice President, Bank of China U.S.A. EDITORS’ NOTE Dennis Huang is following China’s economic reforms a senior financial economist and and the normalization of diplomatic EVP of Bank of China U.S.A. Three relations between the two countries. years ago, his team was delegated By its 40th anniversary in the U.S. to lead the Bank’s strategic managemarket in 2021, Bank of China U.S.A. ment process, including risk-based has established a strong presence in strategic planning and strategy corporate finance, financial institution implementation monitoring, on services, trade finance, commodity top of his previous responsibilities finance and global markets, along with focusing on macro-business devela growing presence in retail banking. opment research and training. He The Bank operates through four fedalso leads the newly established N.Y. eral chartered branches in Manhattan, Research Center for the Research Xiaojun (Dennis) Huang Queens, Chicago and Los Angeles, Institute of BOC Group and N.Y. providing comprehensive financial Global Finance Academy of BOC University. solutions to support our clients, the local econBefore working for the Bank, Huang had exten- omy and community development. Since our sive securities industry experience in both China first day in the U.S. market, BOC U.S.A. has and the U.S. He was involved in the prepara- committed to bridging the world’s two largest tion of the Shenzhen Stock Exchange in 1989. economies, supporting bilateral trade and He has served as an elected board member of direct investment activities, and helping busithe China International Finance Society, as a nesses from both countries achieve financial member of the New York Economic Club, BOC’s success. Global Research Expert Network, and as a memHow do you define the BOC U.S.A. culber of the advisory board of Cornell Johnson’s ture and how important is innovation and Emerging Market Institute. He holds an MBA from analytics to its culture? Cornell University. As a part of the BOC global network, BOC U.S.A.’s culture is built on the strong foundaCOMPANY BRIEF As China’s most globalized tions of BOC Group’s mission, vision, and valand integrated bank, Bank of China (boc.cn/en) ues. Bank of China’s mission is “integrating the has a well-established global service network with world for the benefit of society.” BOC U.S.A. institutions set up across the Chinese mainland actively promotes a mutually beneficial and as well as in 61 countries and regions. It has two-way interaction between China and the U.S. established an integrated service platform based and serves as an important bridge between both on the pillars of its corporate banking, personal economies. banking, financial markets and other commerBank of China’s vision is “building a worldcial banking business, which covers investment class and modernized banking conglomerate.” banking, direct investment, securities, insur- BOC U.S.A. strives to continue introducing the ance, funds, aircraft leasing and other areas, market’s best practices for compliance managethus providing its customers with a comprehen- ment, data analytics and community involvesive range of financial services. Bank of China ment and support. U.S.A. (bocusa.com) has branches in New York Bank of China’s values are “excellent City, Queens, Chicago and Los Angeles. service, sound creativity, open and inclusive, collaboration and mutually-beneficial.” BOC Will you highlight BOC U.S.A.’s history and U.S.A. strives to achieve excellence and deliver commitment to the U.S. market? results in a professional, responsible and agile As China’s most globalized and integrated fashion. Operating in a vibrant market here in bank and the world’s fourth largest bank by total New York City also makes it possible to build a assets and Tier 1 Capital, Bank of China has a diverse workforce pool and an open and incluwell-established global service network operat- sive corporate culture. Employees with differing in 61 countries and regions and the longest ent backgrounds and corporate experience history of engagement in international mar- bring varied perspectives and values to the kets. In 1981, the Bank established its first U.S. Bank. Our culture of diversity, mutual respect branch in midtown Manhattan and became the and inclusion supports strong employee first Chinese bank to operate in the U.S. market engagement and fosters teamwork. 56 LEADERS

Operating as a large bank under our regul a t o r O C C ’ s H e i g h t e n e d S t a n d a r d s framework, BOC U.S.A.’s risk-based strategic plan defines regulatory compliance as its priority, together with sound management, balanced and sustainable growth and efficient operation. Guided by our strategy, the Bank has also cultivated a culture of compliance across our branches, our entire staff and all components of our business activities, and maintains the sustainability of higher compliance standards. In recent years, innovation and data-driven analytics also gradually merged into the Bank’s culture. These new corporate culture components emerged from increasing fintech competition and disruption in the Bank’s operating environment in the U.S. The banking industry is undergoing a significant sea change and BOC U.S.A. strives to be at the forefront of building an innovative and data-driven/analytical culture that can drive sustainable business growth and prepare for what tomorrow’s customers expect from us. In past years, the Bank has emphasized new hires with quantitative backgrounds. To better implement compliance requirements, the Bank explored various data analytics tools and techniques to empower our compliance and risk management processes. For instance, the use of deep learning and other artificial intelligence technologies to automate complex compliance information analyses. What have been the keys to the success of Bank of China U.S.A.’s risk-based strategic plan? Bank of China U.S.A. has been closely following the OCC’s Heightened Standards’ requirements to enhance the Bank’s risk-based strategic plan and drive business growth with its prescribed risk appetite. Our strategic plan, which is updated at least once a year, has been an essential component of our risk governance framework, featured with strong top-down alignment, robust bottom-up implementation, effective collaboration, and realistic strategic targets. Three key factors or processes underlie the success of the strategic plan. First, it is a risk-based plan covering a full set of balanced financial and non-financial objectives over a three-year horizon, rather than a conventional business plan only focusing on short-term financial targets without considering various risk factors. The risk-based strategic VOLUME 44, NUMBER 2

“China and the United States, as the world’s largest developing and developed countries, respectively, are the two economies accounting for more than onethird of the world’s total economic output, with billions of dollars’ worth of bilateral trade and tremendous socioeconomic and cultural exchange.” plan contains a comprehensive assessment of eight categories of risk currently impacting the Bank and a review of the risks emerging from the new strategies that could affect the Bank during the next three-year planning period. Our plan also articulates the relevant risk mitigation measures to ensure safe and sound execution. Secondly, the strategic plan results from a collaboration process across all three lines of

defense within the Bank. Driven by the vision and strategic guidance from BOC Group and senior management for BOC U.S.A. and reviewed by the board, the strategic plan collects input from business lines, technology, supporting functions, risk management, legal and compliance. This top-down and bottom-up collaborative approach helps us understand different views from both business and risk perspectives. These risk-based

The headquarters building of BOC U.S.A. in Manhattan VOLUME 44, NUMBER 2

and business opportunity views are crucial for laying out a comprehensive strategy with realistic, measurable goals and detailed roadmaps within our risk appetite. Finally, our strategic planning is always a dynamic and ongoing process. The operating environment for the financial services industry has been changing rapidly, and change has accelerated during the pandemic. A static strategic plan updated every few years will not adapt to the external landscape. Our team is continuously monitoring and evaluating the changes in the operating environment and updates the plan twice a year, or as needed when there are significant external changes. In addition to the planning process, we have established a data-driven framework monitoring the progress of execution to ensure the strategy stays on track, which fits into our strategic management process. What is your outlook for U.S.-China trade negotiations and how critical is it that this relationship is strong and successful in addressing global challenges? The world today is undergoing significant changes, and the COVID-19 pandemic has become a catalyst. The international landscape has become increasingly volatile, uncertain and complex, and the global economy has fallen into recession with rising supply chain risks and decoupling risks. The pandemic has driven the most severe wave of unilateralism and protectionism since the end of World War II. Meanwhile, it has never been more apparent that international cooperation will be the key to emerging from this kind of global crisis. At this juncture, no country can stay isolated. To overcome current difficulties, the international community must unite and cooperate. China and the United States, as the world’s largest developing and developed countries, respectively, are the two economies accounting for more than one-third of the world’s total economic output, with billions of dollars’ worth of bilateral trade and tremendous socioeconomic and cultural exchange. Dun & Bradstreet estimates that among the Fortune 1000 companies, 163 have meaningful direct business relationships in China, and 938 have Tier 2 suppliers in China. Therefore, almost all the world’s top companies have supply chain upstream and/or downstream relationships with China. Economic and trade frictions between China and the U.S. are bound to impact economic globalization profoundly. LEADERS 57

“Relations between the U.S. and China once again stand at a crossroads. Although both countries differ in many ways and on many issues, they can still find a way to cooperate and confront the challenges facing the world that they are uniquely equipped to address.”

Before the trade war, most policymakers viewed the economic and trade ties between the two nations as the “cornerstone” of ChinaU.S. relations. In 2020, such “cornerstone” seemed to have turned into a “stumbling block” in China-U.S. relations. However, economic and trade relations will still play a critical role to prevent further deterioration of the broader bilateral ties. I am optimistic about the progress of future trade negotiations and as there is a growing amount of evidence that the past trade war has not benefited either country, it is becoming clearer than before that a well-established and robust trade relationship is mutually beneficial and critical for both China and the U.S. Where do you see the greatest opportunities for cooperation as you look to the future of U.S.-China relations? Relations between the U.S. and China once again stand at a crossroads. Although both countries differ in many ways and on many issues, they can still find a way to cooperate and confront the challenges facing the world that they are uniquely equipped to address. First, they could deepen economic and trade relations for post-pandemic recovery. After the two countries successfully signed the Phase One trade deal last year, there is an urgent need to break new ground for cooperation. The two sides could initiate economic policy coordination that connects China’s new development paradigm with the U.S. post-pandemic economic recovery. Both sides could strengthen cooperation in commodity products, information and communication, online education, and telemedicine, jointly stabilize the markets, secure growth, and safeguard people’s well-being. They should also ensure the smooth operation of global industrial and supply chains, thus leading to the world economy’s recovery and development. 58 LEADERS

Secondly, they could jointly strengthen bilateral financial investment activities. Facing the economic impact and risk challenges of the pandemic, China and the United States, as the two major powers in the world, must shoulder the responsibilities and jointly strive to promote economic recovery and prevent more people from falling into poverty and unemployment. Specifically, China and the United States can strengthen bilateral financial investment activities, given financial services are a traditional strength of the U.S. China’s 3Q 2020 data shows that China has seen growth rates of over 20 percent for its import and export financial services and insurance services. The momentum for growth is strong, and there is a lot of room for further development. China has become a safe haven for global capital and assets, and China’s financial markets can bring better investment opportunities for American companies in an ever-opening environment. China and the United States can also consider launching cooperation around fintech-related regulation, as the COVID-19 pandemic has accelerated the development of fintech solutions and inclusive finance, as well as AML and other compliance initiatives. Thirdly, they could jointly combat global challenges such as COVID-19 and climate change, as the U.S and China may be perfect bilateral partners to combat these issues. For COVID-19, the two countries can collaborate to discuss and share the best practices they have established, assist the poorest nations in combating the disease and cooperate to manage debt defaults in the developing world. In a different sense, climate change is another catastrophic global crisis in the making. Unlike COVID-19, however, the U.S. and China already have a history of working

together to combat global climate change. In 2014, China and the U.S. worked on a bilateral emissions agreement that ultimately resulted in both countries joining the Paris Agreement in 2016. Finally, both nations could jointly resume people-to-people exchanges. People play critical roles in cultural exchanges between countries, especially in the world’s two largest economies. Later in 2021, the two sides should resume some appropriate and safe level of people-to-people exchanges and make new plans involving thinktanks, students or scholars exchange programs, and skilled labor exchanges for global companies to consolidate the foundation of strong cultural and bilateral relations. Bank of China U.S.A. is heavily invested in the communities it serves. Will you discuss this community engagement and the importance for Bank of China U.S.A. to be a strong partner in its communities? Supporting community development and putting value in social responsibility has always been an essential part of our mission here at BOC U.S.A. We are committed to supporting community development, especially in lowto-moderate income neighborhoods. With our financing, many of our clients have brought significant investments to our local communities, providing jobs and revitalizing industries such as manufacturing, agriculture, and energy. In New York City, we have also been active in providing loan facilities to affordable housing projects and public transportation projects to create employment opportunities and improve community living conditions. In recent years, the Bank has further expanded our community partnerships with many local organizations. For example, since 2019, we have partnered with Big Brothers Big Sisters of New York City and created a workplace mentorship program where our employees volunteer to provide mentorship to high school students from underserved communities. Also, last year at the onset of the COVID-19 crisis, BOC U.S.A. provided immediate support to our first responders, essential workers, communities, and non-profit organizations. We sourced and donated more than 120,000 masks, 12,000 pairs of surgical gloves to hospitals, senior homes, post offices, sanitation departments and police stations, and 4,150 free meals to local hospitals. We also worked closely with our small-to-medium-sized enterprise clients during this challenging time, providing solutions to meet their financing and liquidity needs through PPP programs. Since we first entered the U.S. market, BOC has been striving to be a trusted partner with our communities and provide financial solutions that serve the real economy because we believe that our business success will only be possible when our local communities stay strong and prosperous. Despite the changes to our business operations and social distancing measures during the pandemic, we have never felt closer to the communities we serve. We will continue to strengthen the bond and are confident that together, we can come out stronger on the other side.

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VOLUME 44, NUMBER 2

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www.selecta.com

PURPOSE

Inclusive Growth An Interview with Michael Froman, Vice Chairman and President, Strategic Growth, Mastercard EDITORS’ NOTE Mike Fr oman Will you provide an overview of serves as Vice Chair man and your role and key areas of focus ? President, Strategic Growth, for My role is to lead our effort to Master car d. In this r ole he is pull together all the assets of the comresponsible for growing strategic pany – from our products and services partnerships, scaling new busito our technology and expertise to ness opportunities, and advancour philanthropy and thought leading the company’s efforts to ership – to have positive social and partner with gover nments and environmental impact while deliverother institutions to address ing superior financial results. It means major societal and economic creating new kinds of partnerships issues. He and his team drive with companies melding profit and Michael Froman financial inclusion and inclupurpose, engaging with national and sive growth efforts and work to city governments to help them address develop new businesses key to the company’s their agenda and co-creating solutions with strategic growth. Froman is Chairman of the international development and humanitarian Mastercard Center for Inclusive Growth and organizations. is a member of the company’s management Having spent about half my career in govcommittee. Prior to joining Mastercard, he ernment and non-profits and half in financial serwas affiliated with the Council on Foreign vices, this is a fantastic opportunity to demonstrate Relations and continues to serve as a dis- how the public, private and civic sector can work tinguished fellow. Fr om 2013 to 2017, he together to address the challenges we face and served as the U.S. Trade Repr esentative, achieve the objectives to which we aspire. None President Barack Obama’s principal advi- can do it alone. There isn’t enough philanthropy sor and negotiator on inter national trade or official aid alone, although both are important. and investment issues. Fr om 2009-2013, We are only going to achieve our collective goals, he served at the White House as Assistant to such as the Sustainable Development Goals, if we the President and Deputy National Security succeed in mobilizing the resources, ingenuity Advisor for International Economic Affairs. and motivation of the private sector. That is only Before joining the Obama Administration, going to happen if it is done on a commercially Froman held several executive positions at sustainable basis. Our goal is to demonstrate that Citigr oup, including CEO of its inter na- this can be done and then to crowd in other comtional insurance business, COO of its $50 panies through partnerships and coalition. billion alternative investments business and head of its infrastructure investment busin e s s . E a r l i e r i n h i s c a r e e r, d u r i n g t h e Clinton Administration, he worked at the White House and the Treasury Department. In 2018, he joined the Board of Directors of the Walt Disney Company. Froman received a bachelor’s degree in public and international affairs from Princeton University, a doctorate in inter national relations from Oxford University, and a law degree from Harvard Law School, where he was an editor of the Harvard Law Review.

“We are focused on

fostering a winning

culture with decency

COMPANY BRIEF Mastercard (mastercard.com) is a technology company in the global payments industry. It operates the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. 60 LEADERS

at the core.”

How has Mastercard adapted its business to address the challenges caused by the pandemic? First, we prioritized taking care of our own people and their families. We worked to optimize the virtual work experience, expanded our wellbeing services, reimagined the office environment for optional safe return, and provided peace of mind with no COVID-related layoffs last year. Looking beyond our walls, it’s become clear that the well-being of communities, the economy and our planet are all deeply interconnected. COVID-19 put in stark relief social and economic inequalities that existed long before the pandemic took hold and exacerbated them. When you add the collapse of small business and the spotlight on racial reckoning, it became even more obvious that a technology-focused company like Mastercard has both an obligation and opportunity to ensure that our increasingly digital world is one that drives inclusion, not divides. We’ve been in the business of inclusion for many years, which was reflected in the speed and scale of our COVID-19 response and recovery efforts. COVID-19 made it clear that being connected to the digital economy – whether you are a person receiving support from your government or a momand-pop, brick-and-mortar business needing to go online to serve your customers – is absolutely necessary if you are going to survive and thrive. As people moved to a contactless world, we were able to ensure they had the access to secure, smart payment technology. As small businesses struggled to stay open, we committed $250 million to help them go digital, get capital and get paid. As more people found themselves in need of government assistance, we worked with more than 100 governments to help with digital disbursements, provide data insights for recovery efforts, and support cities in delivering services to the most vulnerable communities. At this reset moment, we’re bringing the breadth and unique strengths of our resources to rebuild a more inclusive, sustainable digital economy – one that promotes financial security, one that ensures underserved small businesses can grow, one that assists cities through an inclusive recovery, and one that works tirelessly to help close the racial and gender opportunity gaps that still persist. VOLUME 44, NUMBER 2

“Purpose-driven work is one of the reasons people choose to join and stay with Mastercard. Our inclusion and sustainability efforts are business goals, accountable and measurable in every region we operate.”

How do you define Mastercard’s culture and how critical is culture to the success of the company? We are focused on fostering a winning culture with decency at the core. That’s to say we ensure there is a relentless focus on driving value for our stakeholders, but how we conduct business and how we treat one another, our customers and our partners, is critical for achieving our goals. Having started to prioritize financial inclusion a decade ago, purpose is deep in our DNA. It’s not just an aspiration; it’s a business imperative. We have embedded inclusion into the core of our business, not just in terms of the growth of our people, but also the growth of our business. It might sound like a bumper sticker, but we firmly believe in “doing well by doing good.” We have delivered strong financial performance, in part by delivering on inclusion. Will you discuss Mastercard’s’ commitment to corporate responsibility and community engagement? We’re focused on building an inclusive, sustainable digital economy. Through our innovation, insights, and trusted partnerships, we’re working to ensure people can reach their potential, economic growth is inclusive, and the planet can thrive. Last year we reached our five-year goal of bringing 500 million previously unbanked people into the financial system about 9 months ahead of schedule. We managed it like any other corporate objective. Every region had its target; every country had its programs. Having achieved that milestone, we doubled down and committed to bring 1 billion people and 50 million small businesses into the digital economy by 2025 with support for 25 million women entrepreneurs. Reaching these goals draws from more than a decade of experience as a leader in financial inclusion. We learned how to have social impact at scale and do so on a commercially sustainable basis. In doing so, we helped seed the markets of the future and promote more inclusive growth all over the world. When the company went public, the company set aside 12 percent of its shares to set up an independent Mastercard Foundation which, with currently more than $30 billion in assets, is one of the largest foundations in the world. We’re incredibly proud of the work of the Foundation, particularly in supporting youth across Africa. However, we knew there was more to do. In 2013, we established the Mastercard Center for Inclusive Growth, the philanthropic hub of the company focused on VOLUME 44, NUMBER 2

insights and actions to further the financial security for individuals and entrepreneurs, support the future of workers, drive inclusive economic development, and pioneer data for good. In 2018, the company took a portion of the corporate tax cuts in the U.S. and Europe and committed $500 million to support these inclusive growth efforts. This year we announced our first $600 million Sustainability Bond to further grow the market for sustainable finance and to deliver positive environmental and social impact. We understand it might be one of the only such bonds to finance investment in inclusion and racial equity. Leading from the front, we’ve also made a point of forging public and private partnerships to test new models, combine expertise, and build scalable models for long-term impact. For example, unlocking new models of microcredit for businesses with Unilever, working with USAID under the Women’s Global Development and Prosperity (W-GDP) Initiative to support the growth of women entrepreneurs in Asia and Latin America, and developing a partnership with GAVI, the Global Vaccine Alliance, to introduce digital technology into the distribution of vaccines. Our Priceless Planet Coalition, which brings together more than 40 customers and partners in a collective effort to plant 100 million trees and to mobilize consumers to address the challenge of climate change, is another such example. How does Mastercard engage its employees in its CSR work? Purpose-driven work is one of the reasons people choose to join and stay with Mastercard. Our inclusion and sustainability efforts are business goals, accountable and measurable in every region we operate. We have teams focused on innovation for inclusion, spanning from technologists in our Lab for Financial Inclusion in Kenya through to data scientists leading social sector initiatives with governments and nonprofits around the world. For those not directly involved in social impact work day-to-day, we provide volunteer opportunities, whether that’s taking five days to support causes in their own communities or taking on a stretch assignment to further our engagements with governments or participating in one of our talent philanthropy programs or fundraising efforts with a major grantee or charity partner. For example, since 2012, our collective efforts for the World Food Programme (WFP) have resulted in more than $33 million in contributions, enabling more than 107 million school meals to

be delivered to underserved communities around the globe. We have also had dozens of employees take time away from the office to work with the WFP in the field. What do you see as the responsibility that leading companies have to being engaged in the communities they serve and to being a force for good in society? Being a force for good is now an expectation from customers, consumers, and shareholders. What is important is that companies are held accountable for delivering on their promises and the focus is on action and impact. CSR can’t be something that is done merely for public relations purposes or put by the wayside when times get tough. It is paramount to the future growth of companies and needs to be treated as any business priority. We shouldn’t “do good” for one set of stakeholders and “do well” for another; we do well by doing good. We all thrive in a thriving world, but we risk failing when the system fails too many. How critical is it for Mastercard to build a diverse and inclusive workforce in order to bring diverse perspectives and experiences to the table when making business decisions? Surrounding yourself with people from different backgrounds, experiences and cultures is critical to seeing your blind spots. A diverse workforce is a competitive advantage – it fuels innovation, insights and improves the performance of a team. We are focused on building a culture and workplace where everyone belongs and all employees feel they have a seat at the table. We prioritize inclusion and diversity throughout our hiring and career advancement practices and continue to work to bring down barriers and drive representation of voices at every level of the organization. What advice do you offer to young people beginning their careers during this challenging and uncertain time? Every challenge is at the same time an opportunity. In uncertain times, there are new opportunities for young people to step forward with new and innovative ideas. This is a powerful time to be starting a career because, as we reset and commit ourselves not just to return to growth, but to return to a better, more sustainable, more inclusive form of growth, we are questioning inherited assumptions, developing new business models, finding innovative ways to deploy technology and changing the very nature of work. Advice? Build your network, ask for the virtual coffee, lean in, make your voice heard, and have impact.

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LEADERS 61

PURPOSE

ESG Initiatives An Interview with Brad S. Karp, Chairman, and Dave Curran, Chief Sustainability and Environmental, Social and Governance (ESG) Officer, Paul, Weiss, Rifkind, Wharton & Garrison EDITORS’ NOTE Chairman of the firm since 2008, Brad Karp is one of the country’s leading lawyers and corporate advisers. He has extensive experience successfully defending financial institutions and other companies in “bet the company” litigations and regulatory matters. Dave Curran has more than 30 years of experience in legal, technology, compliance, risk and ethics roles. He was previously Senior Vice President and Chief Business Officer at FiscalNote, a legal AI/technology company, and held senior business and legal leadership roles with Thomson Reuters, IntraLinks, Integrity Interactive, Havas, Vertis and Campbell Soup Company. He serves as cochair of the New York State Bar Association’s ESG Committee. FIRM BRIEF Paul, Weiss, Rifkind, Wharton & Garrison (paulweiss.com) is a firm of more than 1,000 lawyers with diverse backgrounds, personalities, ideas and interests who collaboratively provide innovative solutions to their clients’ most critical and complex legal and business challenges. Paul, Weiss represents the world’s largest public and privately held corporations and investors, as well as clients in need of pro bono assistance. Why did Paul, Weiss create a Sustainability & Environmental, Social and Governance (ESG) Advisory practice, one of the first at a major firm? Brad: This initiative came about as a result of listening to our clients. A few years ago, business leaders began coming to us for advice as they faced ever-greater pressure to tackle social issues of importance to their customers, investors and other stakeholders, from diversity and employee safety to gun safety, reducing their carbon footprint, and other societal goals. Our clients wanted to know how they could navigate the legal, business and political ramifications of developing and implementing sustainability and ESG initiatives. Last March, a week before we shut down our offices, we brought in Dave Curran, a widely-acclaimed leader in the Sustainability and ESG space with more than 30 years of experience in legal, compliance, risk and ethics roles, to help us launch a dedicated practice. We and many others wondered if the pandemic 62 LEADERS

Brad S. Karp

Dave Curran

would put ESG concerns on the back burner. In fact, just the opposite has happened; the series of societal upheavals accelerated the collision between ESG considerations and corporate governance and has driven extraordinary interest in our new practice. Will you provide an overview of the practice? Dave: The Sustainability and ESG group works in tandem with our other marketleading practices to counsel public companies, executives and boards on how to meet the entire breadth of their needs in the ESG ecosystem. At the highest level, we leverage our network of experts, influencers and thought leaders in systems, data, analytics, reporting, AI and other areas to provide upto-date ESG information to our clients. We also assist clients in evaluating ESG liabilities and vulnerabilities in the M&A context and in ESG-related disclosure and reporting. On a practical level, we collaborate with clients to identify, advance and pressure-test

initiatives that improve corporate culture, increase employee morale, strengthen customer loyalty and enhance stakeholder relations. We also help companies coordinate the fragmented ecosystem of ESG ratings, frameworks and regulation with their legal, compliance, public relations, audit and data/ analytics functions. What’s driving client interest in ESG right now? Brad: The past year was a perfect storm for our corporate clients. COVID-19 exacerbated many of the “S” issues, such as growing disparities in wealth, while the Black Lives Matter movement laid bare the continuing reality of racial injustice and inequity. The public demanded greater corporate accountability. Our clients were worrying not only about how to keep their businesses afloat amid pandemic shutdowns, but also about the potential for instantaneous reputational and existential risks related to ESG concerns. With social media, everyone has a megaphone and a platform; a teenager on TikTok or Instagram can influence how the world views a given industry or brand, and during the past year, there were continual reminders of the punitive consequences resulting from ESG missteps. On the positive side, so many of our clients have been moved to take action and to do good, both because it’s the right thing to do and because a growing body of evidence shows that companies with wellmanaged, robust ESG programs are more profitable and more resilient.

“Our clients wanted to know how they could navigate the legal, business and political ramifications of developing and implementing sustainability and ESG initiatives.” - Brad Karp VOLUME 44, NUMBER 2

“Since our launch, we have been given extraordinary freedom to design a truly modern and holistic practice that, in its essence, links the non-legal advisory sides to the legal aspects of ESG.” - Dave Curran Dave, why did you decide to join Paul, Weiss to help establish this practice, and how do you define your role as Chief Sustainability and ESG Officer? Dave: This was the perfect opportunity for me. At Paul, Weiss, I could harness my experience in helping complex organizations address emerging challenges and develop practical, commercial solutions, drawing upon the firm’s renowned talent and expertise for advising the world’s leading public and private companies. Brad, in particular, was persuasive. He recognized earlier than other law firm leaders that ESG advice needed to be linked with the legal ecosystem and that Paul, Weiss was the best firm to house such a practice. He saw that lawyers could provide more comprehensive solutions in the ESG arena than other types of professional services firms. Since our launch, we have been given extraordinary freedom to design a truly modern and holistic practice that, in its essence, links the non-legal advisory sides to the legal aspects of ESG. We recently brought in a data scientist and a program manager. Within the practice, my role is to represent the client’s view in the room, and to bring together great lawyering and legal practice with the multifaceted business practices that ESG touches upon. I also have another, internal-facing role helping Paul, Weiss establish and measure its own ESG initiatives. What is the role of lawyers in developing ESG frameworks, and how is the Paul, Weiss Sustainability and ESG Advisory Practice helping clients to develop integrated ESG strategies? Brad: Lawyers play an important role across a range of ESG matters. With each passing month, ESG frameworks and disclosure regimes are being codified, becoming more like legal and compliance frameworks – what Dave has called “super laws.” Given the Biden Administration’s focus on the wealth gap and on racial and environmental justice, we expect certain ESG frameworks to take on the force of law. Our lawyers focus on compliance and regulatory issues every day and devise practical solutions to complex problems for sophisticated companies. It’s the essence of what we do. In the ESG area, we leverage the full range of our skills to navigate the often murky interplay between legal guardrails and business opportunities. We know how to spot emerging legal and reputational risks and orchestrate various VOLUME 44, NUMBER 2

functions across a business or across geographies, whether executing a deal or handling a complex investigation. There are also reputational and business risks to consider. Inevitably, if handled poorly, ESG initiatives can be disastrous. A few years ago, a company could perhaps get away with a misstep, but that is no longer true. We have decades of experience guiding the world’s leading companies safely through their most significant crises, often to emerge stronger. What is the first thing you do with clients interested in establishing an ESG initiative and what do companies need to consider to develop an ESG strategy? Dave: Our first priority in every engagement is listening. We work to understand what each stakeholder group cares about most so that they develop an ESG initiative that they can get behind, that is measurable, that is achievable, and that is a net positive for their business. We look at a given client’s public statements about societal goals to see if and how an initiative aligns with past disclosures. We help clients identify those goals and then help them with the planning and execution. Companies establishing an ESG strategy should consider what issues make the most sense to engage on – what fits organically with their culture and business strategy. A pharmaceutical company may commit, for example, to providing better access to life-saving medicine at affordable prices; a bank may promise to increase availability of capital to underserved communities; a tech company may pledge to meet a “carbon neutral” timeline. Paul, Weiss places a major emphasis on thought leadership in its ESG work. Will you highlight the firm’s commitment and investment in providing research and knowledge on ESG? Brad: There is a tremendous hunger for timely, practical information about ESG issues across a spectrum of corporate and legal professionals. Our thought leadership is designed to fill the ESG information void and engage in conversation with a broad range of business professionals, across multiple corporate functions. Our thought leadership, which is available on our website, has attracted tens of thousands of new visitors to our site, including not just inhouse lawyers, but heads of compliance, C-suite executives, investment managers and others. Many have become new clients.

Hundreds of these visitors have subsequently joined us in our live ESG-focused events. In the all-virtual world in which we’ve been living, these virtual events have taken off. Before COVID-19, we might have had 50 or 60 people attend an ESG event. Nearly 1,000 people attended our post-election program on the incoming Biden Administration which focused a great deal on potential ESG regulation. We recently ran a program in partnership with the NYU Stern Center for Sustainable Business where roughly 300 professionals and academics participated, including board directors and C-suite executives, and heads of risk, compliance and sustainability. A big draw at these events is Dave, who is renowned in the ESG space. Dave previously worked at companies focused on securing data and proactively mitigating risks, so he has enhanced credibility and has gained the confidence of executive teams globally. Dave’s “off the record” roundtable formats are especially conducive to open conversations and the exploration of real-world solutions to real-world challenges. This is how I first met Dave and, needless to say, I was supremely impressed. How does ESG differ from traditional corporate governance and what additional advice do companies and boards need in the ESG arena? Dave: Traditional corporate governance refers to a narrow set of rules and laws governing how companies are directed and controlled and the board’s duties to shareholders. “ESG” is a fluid, ever-evolving set of environmental, social and governance benchmarks used to evaluate investment and company impacts beyond traditional financial measures. Though it also has the word “governance” in it, the “G” in ESG is holistic and situational; depending on the company, it might include a mandate to diversify the board, to restrict political lobbying, or to address long-term risks to its business, such as climate change. As more companies make public disclosures around ESG-related initiatives, traditional securities and governance advice are no longer sufficient to safeguard boards. They need timely and practical advice on how to navigate the often arcane and subjective ESG ratings landscape and how to avoid liabilities via rigorous quantitative analysis and sophisticated advocacy. In the context of business transactions, corporations need to think about the additional ESG due diligence lens beyond the traditional scope of data rooms. That’s yet another area where we at Paul, Weiss come in.

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LEADERS 63

PURPOSE

Meals Up An Interview with Kenny Dichter, Founder and Chief Executive Officer, Wheels Up EDITORS’ NOTE Kenny Dichter is What was the vision for creating the Founder, CEO and Chairman of Wheels Up Cares and how is Wheels Wheels Up. He has long been recogUp Cares ingrained in the company’s nized as an entrepreneur with expertise culture? in branding, marketing, public relaWheels Up has always had a cultions and advertising. Under Dichter’s ture that cares and wants to give back. It’s leadership, Wheels Up is disrupting and in our DNA and we created the official digitizing the private aviation industry. Wheels Up Cares program with that same Prior to Wheels Up, he founded Marquis vision and mantra – we want to use our Jet and pioneered the first-ever fracplatform to do good in the world and tional jet card program. Dichter sucmake an impact. We identify causes to cessfully led Marquis Jet to be sold to rally around and lend our support in creKenny Dichter Warren Buffett’s Berkshire Hathaway’s ative ways that make sense for our brand NetJets in 2010. Among his other foundto serve the communities we fly in and ing credits, in 2010 he co-founded Tequila Avion, an out of every day. ultra-premium tequila brand which was acquired by Since our founding, we have painted the livPernod Ricard in 2014. He is also a founding inves- ery of five Beechcraft King Air 350i planes which tor in Juice Press, an organic food and juice company became a permanent part of our fleet as flying with 86 locations in the U.S. Earlier in his career, he co- symbols of awareness for each cause we represent. founded Alphabet City, a sports-marketing and music The presence of the Wheels Up Cares fleet serves company. Dichter is very involved in philanthropic as a constant reminder of our pledge and brings initiatives and in 2020 launched Meals Up with tremendous pride for everyone in our company. Wheels Up partners and Ambassadors to fight hun- Our social media channels also change from ger, using the Wheels Up Cares platform to support the our brand blue color to match the color of each efforts of the organization Feeding America. Dichter Wheels Up Cares aircraft throughout the year duris a major supporter of his alma mater, the University ing the months when they are recognized and of Wisconsin-Madison. In 2019, he partnered with a few of the planes have even been featured in the Office of Admissions and Recruitment in television commercials. They also provide special Madison to launch the Fly High Fund which will experiences for our Members and Customers when support digital outreach to students with diverse backgrounds to encourage them to apply. COMPANY BRIEF Wheels Up (wheelsup.com) is the only company in the industry to offer a total private aviation solution that includes world-class safety, service, and flexibility through on-demand flights, membership programs, corporate solutions, aircraft management, whole aircraft sales, and commercial travel benefits through a strategic partnership with Delta Air Lines. Wheels Up offers its Customers and Members access to over 1,500 safety-vetted and verified aircraft. Through the Wheels Up App anyone can search, book, and fly. Wheels Up Connect, Core and Business memberships provide enhancements such as flight sharing, empty-leg Hot Flights, Shuttle Flights, Shared Flights, signature Wheels Down events, and exclusive member benefits from preeminent lifestyle brands. The company’s ongoing Wheels Up Cares program aligns with philanthropic organizations and initiatives that affect and matter to the company and its customers, members, stakeholders, families and friends. The Wheels Up Cares fleet is comprised of five custom painted Beechcraft King Air 350i aircraft – each plane serves as a flying symbol for a specific cause. 64 LEADERS

they are surprised and delighted to learn they will be flying in one of the Wheels Up Cares planes. The Wheels Up Cares fleet represents many different colored Beechcraft King Air 350i aircraft. Will you highlight these different planes and the causes they support? Our most recent launch was the Orange Plane, which we painted with our partners at Textron and unveiled in September 2020 in honor of Feeding America’s Hunger Action Month and in conjunction with our Meals Up initiative, to help support the growing levels of food insecurity during the COVID-19 crisis. As part of this effort, we also illuminated pylons at airports across the country such as LAX and LGA to raise further awareness for Feeding America’s mission. The Wheels Up Cares fleet includes the Camouflage Plane for the Tragedy Assistance Program for Survivors (TAPS), the Red Plane for the American Heart Association and Simon’s Heart, the Teal Plane for Ovarian Cancer Awareness, and the Pink Plane for Breast Cancer Awareness and the Dubin Breast Center of the Tisch Cancer Institute at Mount Sinai. In the future, we will continue to add to the fleet as we identify and align with philanthropic organizations and initiatives that affect and matter to our Wheels Up members, customers, families and friends.

Wheels Up Cares Orange Plane in honor of Feeding America’s Hunger Action Month VOLUME 44, NUMBER 2

Wheels Up Cares Camouflage Plane for the Tragedy Assistance Program for Survivors (TAPS)

How critical has it been to engage the Wheels Up team in these efforts and to provide opportunities for your workforce to support their communities? Our team is the driving force behind Wheels Up Cares, and to be honest it is easy for everyone to get excited about these special aircraft and what they represent. The program inspires passion from everyone in the organization since the charities we select have directly impacted people within our company and those we fly. There is a sense of pride and everyone is eager to help champion these causes and support on the ground activities such as a day of service. Wheels Up and its partners joined forces on a new initiative called Meals Up. How did this initiative develop and how is it addressing the issue of food insecurity during COVID-19? At the onset of the COVID-19 pandemic last March, we knew that we had an opportunity to do good, help others, and make an impact. Personally, I was inspired by my friends and Wheels Up Ambassadors Russell Wilson, Ciara, and J.J. Watt for their work with Feeding America and knew that the organization was one of the most effective at getting food into the hands of people who need it most. Russell and I partnered to appear on CNBC to launch Meals Up and announce our pledge of 10 million meals while encouraging others to donate as well. The program was so well received that, to date, we’ve raised and inspired over 50 million meals. We are grateful to be in a position to give back when people needed it most and appreciate our partners at Feeding America (feedingamerica.org/mealsup) led by CEO Claire Babineaux-Fontenot for their tireless work as the country continues to face hunger as a result of the crisis. We were so moved when Claire shared the statistics of hunger in America during this time, with 50 million food insecure as a result of the pandemic and 60 percent more people turning to food banks for help. We sprang into action as quickly as we could to help. How is Wheels Up working to engage its membership and well-known personalities it works with on this effort in order to make the biggest impact? VOLUME 44, NUMBER 2

Since the launch of Meals Up, our Wheels Up Ambassadors and friends Tom Brady, Serena Williams, J.J. Watt, Joey Logano, Alex Rodriguez and Jennifer Lopez have supported the initiative and have used their platforms to generate awareness and inspire donations throughout the year to continue supporting Meals Up. Their efforts

led to billions of impressions across social and digital media and were instrumental in launching the initiative. To further amplify the Meals Up and Orange Plane missions, we ran 30 second commercials during the much-hyped Turner Sports’ “The Match: Champions for Charity” and “The Match: Champions for Change.” The spots featured Feeding America and Alex Rodriguez and Russell Wilson spoke about the initiative on air throughout the event. My good friends and partners T im Armstrong, Joe Poulin and our lead Wheels Up director, David Adelman, have also been helping us continue supporting with donations. Tim’s company DTX created a custom flow code which ran in our marketing efforts making it simple and quick for anyone to donate. What do you see as the responsibility that leading companies have to addressing societal need and be a force for good in society? It is imperative that we leverage our resources to help those in need. Last year, we put the power of our marketing and brand behind Meals Up, generating millions of meals and getting food in the hands of those facing hunger during the pandemic. That’s powerful. As a business leader, if you have the opportunity to do good and give back through your organization, I believe there is a moral obligation for companies to help make a difference. Do leading companies today have to be good corporate citizens and engaged in the communities they serve in order to attract and retain top talent? Our team is made up of some of the most inspired corporate citizens I’ve ever met. We push each other every day to find new ways to use our platform and relationships to promote causes that will impact change, and that is a very important part of our culture. I believe every organization needs to identify their own philanthropic values and make sure it’s an organic part of the work they do every day.

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Wheels Up Cares Red Plane in honor of the American Heart Association and Simon’s Heart (above); Tim Armstrong’s company DTX created a custom flow code for Meals Up (center) LEADERS 65

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PURPOSE

Entrepreneurialism, Service and Strength An Interview with Thomas W. Corbett, Chairman and Chief Executive Officer, Alliant Insurance Services, Inc. EDITORS’ NOTE Thomas Corbett This year marks Alliant’s 96th year serves as Chair man and Chief in the business, and over this time, Executive Officer of Alliant Alliant has changed and evolved from Insurance Services and sits on the a small, local operation in a San Diego company’s board of directors. He storefront into a national powerhouse joined Alliant in 1977 as a prowith more than 100 offices, more than ducer and launched its Newport 4,000 employees, and $1.9 billion in revBeach-based Public Entity Group. enue. Our heritage has always been one Prior to joining Alliant, he was with of service and stewardship to both our Allendale Insurance in Los Angeles clients and the diverse employees who and spent three years as a loss preall call our company “home.” Even with vention engineer at Factory Mutual our continued growth and expansion, Thomas W. Corbett Engineering Association. Corbett these core attributes have remained is a graduate of California State unchanged and have provided a sound University, Long Beach, and is involved in var- foundation upon which to build. Our long hisious community and charitable organizations. tory in the industry has enabled us to establish a formula for success that has helped us enter new COMPANY BRIEF With a history dating back industries and service categories while maintainto 1925, Alliant Insurance Services (alliant.com) is ing our leadership position in insurance brokerone of the nation’s leading distributors of diversi- age and consulting. Although our organization has fied insurance products and services. Operating changed significantly, our roots remain strong. through a national network of offices, Alliant How do you define Alliant’s culture offers a comprehensive portfolio of services and how critical has it been to maintain a to clients. strong culture over the decades? When I look at Alliant’s legacy, three key Alliant Insurance Services has a history principles immediately spring to the surface – that dates back to 1925. Will you dis- entrepreneurialism, service and strength. These cuss Alliant’s heritage and what have values that laid the groundwork for Alliant’s culbeen the keys to Alliant’s long history of ture continue to play a prominent role in our industry leadership? ongoing growth and success. We have always

been an organization that encourages employees to own their successes and to contribute directly in the success of our organization. As a result, we attract and retain people who are entrepreneurial, forward-thinking and independent. This approach encourages creativity and ingenuity in delivering the best possible results for our clients and partners. Alliant Insurance Services has been engaged in the communities it serves since the company was created. Will you highlight Alliant’s commitment to its communities and do you see this as a responsibility of leading companies? We recognize that all business is local and supported by the communities in which they operate. We are deeply committed to investing in our local communities and in the health and well-being of the people who live and work in each of them. We realize that our success is intertwined with the success of our communities and we are passionate about helping these communities and their residents thrive. We also understand that Alliant is a global citizen and we are dedicated to affecting positive change in both our industry and the world at large. How does Alliant focus its philanthropic efforts and decide which areas to support in order to make the biggest impact and difference possible?

“We realize that our success is intertwined with the success of our communities and we are passionate about helping these communities and their residents thrive.”

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“We have always been an organization that encourages employees to own their successes and to contribute directly in the success of our organization. As a result, we attract and retain people who are entrepreneurial, forward-thinking and independent.” We believe in empowering our employees to find causes that they are passionate about and we provide them with the tools and resources necessary to organize and give back on a grassroots level within each of our offices across the nation. Alliant supports the efforts of our employees through corporate giving and matching gift programs. We also encourage our employees to engage in community volunteer work, whether through time served, mentoring, leadership, or simply lending a helping hand. Alliant supports a broad array of programs nationwide that: • Support women and minority-owned businesses • Encourage healthy lifestyles • Assist organizations that facilitate the development of on-the-job skills • Help people with disabilities • Provide vital services for victims of abuse • Promote the educational development of children • Ensure the welfare of the elderly and those in need of additional care • Promote access to a wide array of crucial resources that promote the general wellbeing of the community Will you highlight the engagement of Alliant’s workforce in the company’s community efforts and philanthropic work?

One of the core objectives of Alliant’s philanthropic efforts is providing essential funding and resources to the most vulnerable communities and individuals at home and abroad. The events of 2020 added an additional urgency to our efforts, and our employees responded in a big way. In addition to our ongoing work in supporting cancer-related charities nationwide and regional philanthropic causes, employees across the nation responded to the need for essential services in communities affected by the COVID-19 pandemic. Our efforts culminated in a recordbreaking $511,435 raised in combined cash, food and essential item donations for those in need. Led by our philanthropy team, we all showed how big of an impact we can make when we join forces to give back. Alliant has adapted its business in order to meet the challenges caused by the pandemic. How is Alliant’s business positioned for the future and what have been the keys to the company’s strong results during this uncertain time? The pandemic presented an array of new challenges, rapid changes, and hardwon successes. In March, we transitioned to a remote work setting virtually overnight through a powerful combination of technology, communication, and teamwork. Our IT

team worked around the clock to provide the tools and resources necessary for us to maintain our excellence from any location. Our service teams proactively communicated with our clients and partners to ensure that they had the information and consultation needed to operate in an uncertain business climate. We earned the trust and confidence of our clients, and despite widespread economic uncertainty, we continued our trajectory of growth and financial strength. What has made the insurance industry so special for you and what do you tell young people about the type of career the industry offers? The insurance industry has many benefits, chief among them being the opportunity to make a significant and measurable impact on the organizations we serve. Throughout my time in the industry, I’ve had the opportunity to deliver services and solutions that not only help clients navigate risk and protect against unforeseen circumstances, but also help them position themselves for long-term success and profitability. Additionally, the diversity of the industry provides room for creativity and specialization. I encourage young professionals to pursue a career in insurance as a means to chart their own paths to success within an industry that is both stable and financially lucrative.

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“Throughout my time in the industry, I’ve had the opportunity to deliver services and solutions that not only help clients navigate risk and protect against unforeseen circumstances, but also help them position themselves for long-term success and profitability.”

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Delivering the Ultimate Fan Experience An Interview with Scott O’Neil, Chief Executive Officer, Harris Blitzer Sports & Entertainment EDITORS’ NOTE Scott O’Neil is tremendous value through the develthe former President of Madison opment of the GRAMMY Museum Squar e Garden Sports and has Experience at the Prudential Center, overseen some of the most iconic the mixed-use 76ers Training brands in all of sports, includComplex in Camden, New Jersey, an ing the New York Knicks (NBA) NBA 2K League Team (76ers Gaming and New York Rangers (NHL). He Club) and New Meta Entertainment, was the key architect in some of a digital sports and entertainthe largest deals in sports history, ment company, which includes resulting in record-setting revethe r enowned esports or ganizanue in sponsorships, tickets and tion, Dignitas. HBSE is also actively suites, while helping in transengaged in new ventures, including Scott O’Neil forming the “World’s Most Famous HBSE Ventures (HBSEV), a venture Arena” forever. Preceding his post capital business focused on sports at MSG Sports, O’Neil spent seven years as the technology, entertainment, performance and Senior Vice President of the NBA’s renowned analytics; Elevate Sports Ventures, a top-tier Team Marketing and Business Operations sports and entertainment consultancy; and group, wher e he advised NBA, WNBA and the Sixers Innovation Lab, which supports NBA Development League teams on all busi- rapidly growing, early-stage companies in ness operations. Earlier in his car eer, he the consumer product space and provides served as the President of HoopsTV.com and industry-leading consulting and investheld positions with the New Jersey Nets (NBA) ment opportunities to startups with potential. and Philadelphia Eagles (NFL). O’Neil’s influ- The HBSE team, from its leadership through ence and experience has earned him a place the entire organization, strives to positively at the podium at some of the largest industry impact the communities in which it operates conferences in the world, delivering keynotes through the powerful platform of sports. at events such as: Leaders in Sport, Beyond S p o r t , S p o r t s B u s i n e s s J o u r n a l ’ s Wo r l d Congress of Sport, the IEG Pivot Conference, the Ivy Sports Symposium, Sport Marketing Association’s Conference and more. He has made numerous appearances on CNN, CNBC, Fox News Channel and Bloomberg TV, and has co-hosted Bloomberg TV. He serves on the boards for the March of Dimes, Zoomi Inc., an AI based corporate lear ning platfor m, and Myota, a cybersecurity company. O’Neil earned his bachelor’s degree in marketing from Villanova University and his MBA from Harvard Business School. COMPANY BRIEF Harris Blitzer Sports & Entertainment (HBSE.com) is a leading sports and entertainment company with a focus on delivering the ultimate fan experience and developing and enhancing the communities in which its teams live, work, play and perform. HBSE’s portfolio includes premier franchises, brands, venues, and investment platforms, centered around three marquee assets, the NBA’s Philadelphia 76ers, the NHL’s New Jersey Devils and the Prudential Center in Newark, New Jersey. In addition to these marquee franchises, HBSE has added 70 LEADERS

How critical is culture to the success of Harris Blitzer Sports & Entertainment and how do you describe the HBSE culture? At HBSE we aspire to create the best place to work in the world. We have a culture that celebrates hard work, an entrepreneurial spirit, diversity of thought, approach and experience and those who believe that our platform can be leveraged to change the communities where we live, work and play for the better. We spend an inordinate amount of time on leadership development and obsess about learning and growing as professionals and people. We fight the status quo and challenge assumptions and each other, because we are interested in operating at a world-class level. We believe that the right data, research and analytics will help us learn from our failures quicker and avoid making the same mistakes twice, but we fully recognize that to accomplish something great, we will have to take risks and they will not all give the outcome we intended. We treat people with respect, always, and celebrate character as much as we celebrate talent.

The Philadelphia 76ers of the National Basketball Association (above and opposite page) VOLUME 44, NUMBER 2

“Doing good is good business – it helps recruit extraordinary talent, strengthens communities and enables learning, development and engagement internally.” How has HBSE adapted its business to address the challenges caused by the pandemic? We run a business that is driven for and by fans attending our games, shows and concerts live, and that is not currently happening. We have also had a very difficult financial year. Our thesis, though, since the COVID-19 shutdown has been relatively simple: focus on total wellness of employees, preserve the culture even as we work remotely, take the necessary steps to preserve the machine we built to drive the business so we will make a near full rebound over the 2021-22 season, manage expenses tightly and be opportunistic in looking for growth opportunities. The organization has continued to thrive as a culture and through our results. HBSE is committed to corporate responsibility and community engagement. Do you feel that this is a responsibility of leading companies and what do you see as the role of business in being a force for good in society? Doing good is good business – it helps recruit extraordinary talent, strengthens communities and enables learning, development and engagement internally. When you work at HBSE, you commit to serving 76 hours in the community. Our players with the Philadelphia 76ers and New Jersey Devils can be found visiting children in the hospital, marching for social justice, engaging in causes on social media, celebrating the military and providing opportunities for those less fortunate. Serving others is in our DNA at HBSE. Will you discuss your new book, Be Where Your Feet Are, and your vision for writing the book? Be Where Your Feet Are is a book for leaders and aspiring leaders and is perfectly tailored for the world today as we begin to define and create the new normal. It is a mind-body-soul meets leading-with-purpose book about understanding your core commitments as a leader and living a life that is present and dedicated to learning from your experiences. The book features insights and life lessons from some of the most influential VOLUME 44, NUMBER 2

business, sports and entertainment people and personalities in the world – from athletes to an NBA Commissioner, and even an award-winning filmmaker. It is not a victory lap tour – instead, the book is a raw and unadulterated look into some missteps, failures and subsequent lessons. The book is intended to introduce themes and exercises on topics like WMI (what’s most important), API (assume positive intent) and Be Where Your Feet Are, which dispels the notion of worklife balance. My vision is that this will push readers to assess their priorities, challenge their notions of success, and plan to take a step toward being more present at work, home and in relationships.

Was it important for you to highlight your own struggles, successes, and actionable lessons as a thread throughout the book? In this filtered, Instagram world we live in, we often have this view that everything is picture perfect. Life on the other hand is, well, messy. Career trajectories are rarely linear and even the most overtly successful ones are littered with unseen issues and failures. Relationships too are often a far cry from the fairy tales we watch on the silver screen. We lose our jobs, we say the wrong thing, do the wrong thing, yet it was important to me to showcase why failure, disappointment and mistakes are often better teachers than smooth, easy wins. W h o we r e yo u f o c u s e d on reaching with the book and what do you hope people will take away from it? The book is targeted for anyone interested in getting better, being better and doing better at work, life, relationships and in their community. Be Where Your Feet Are is written for high-performance leaders and aspiring leaders and will stretch C-suite executives and those who are looking to get there some day. What advice do you offer to young people interested in building a career in the sports and entertainment industry during this challenging and uncertain time? Over the years, I have seen a formula for success in young people in the sports and entertainment business and it is very simple: work unreasonably hard, be intellectually curious and be an extraordinary teammate. If you lean into these three core tenants, good things will happen in your life and career. I also encourage people early on in their careers to go on LinkedIn and find similar situated peers and reach out to connect, share thoughts, ideas and what is working. In the end, the world is small and getting smaller so the ability to have relationships and market data come in very handy along the way.

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Offshore Wind Development An Interview with Robert B. Catell, Chairman, National Offshore Wind Research and Development Consortium EDITORS’ NOTE Robert Catell What was the vision for creating was formerly the Chairman and the National Offshore Wind Research Chief Executive Officer of KeySpan and Development Consortium and Corporation and KeySpan Energy how do you define its mission? Delivery, the former Brooklyn Union National Offshore Wind Research Gas. His car eer with Br ooklyn and Development Consortium has as its Union Gas started in 1958. mission to fulfill a long-term vision for Following National Grid’s acquisioffshore wind in the U.S. by supporttion of KeySpan Corporation, Catell ing and promoting research and develbecame Chair man of National opment (R&D) activities that remove or Grid U.S. and Deputy Chairman reduce technological and supply chain of National Grid plc. He currently barriers and lower development risk to Robert B. Catell serves as Chairman of the Advanced investors. The Consortium is a national Energy Research and Technology not-for-profit organization, collaboratCenter, Cristo Rey Brooklyn High School and ing with industry on prioritized R&D activities to Futures in Education Endowment Fund. Catell reduce the levelized cost of energy (LCOE) of offreceived both his bachelor’s and master’s degrees shore wind in the U.S. while maximizing other in mechanical engineering from the City College economic and social benefits. of New York and is a registered Professional As states move to reduce carbon in their elecEngineer. tric generation mix, renewables in the form of wind and solar will become a greater percentage of the ORGANIZATION BRIEF National Offshore energy mix. Offshore wind accounts for over 30GW Wind Research and Development Consortium of new state mandates for new generation by 2035. (nationaloffshor ewind.or g) is a nation- The number is significant and the road to achieve ally focused, not-for-profit organization that that goal is short – 15 years! The offshore wind seeks to produce innovations that directly industry will grow exponentially in the next decade. respond to the technical and supply chain barIn order to accomplish these aggressive riers faced by offshore wind project developers in goals, there is a need to do research to bring the the U.S., build strong networks connecting tech- cost of offshore wind down and to create a supnology innovators, investors, and industry, and ply chain to support an offshore wind industry increase U.S. content and job opportunities. in the United States.

While a lot can be learned from the experience in Europe and the traditional oil and gas industry, conditions are different in the U.S. and the industry infrastructure does not currently exist to support substantial quantities of offshore wind. What excited you about the opportunity to chair the National Offshore Wind Consortium and will you highlight the strength and expertise of the team that has been assembled to lead the Consortium? I was excited about the opportunity to be part of the effort to develop this source of renewable energy by initiating the research and development necessary to reduce the levelized cost of offshore wind. This will be accomplished through the collaboration with industry and will be a catalyst to provide other income and social benefits of an offshore wind industry. The Consortium is led by its Executive Director, Carrie Cullen Hitt, who has a great deal of experience in the renewable energy industry and working with government. The Consortium is located at, and works closely with, the Advanced Energy Research & Technology Center at Stony Brook University, which I chair. The Consortium is funded by the U.S. Department of Energy, the New York State Energy & Research Development Authority, the Virginia Department of Mines, Minerals &

“The Consortium has a national focus using the research and development efforts to develop the new technologies which can be commercialized and create new business in the areas of offshore wind development.”

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Offshore wind energy farms

Energy, Massachusetts Clean Energy Center, and the Maryland Energy Administration. Research Institutions such as the National Renewable Energy Labs, Virginia Tech, Tufts University, and Cornell have received funding awards. The engagement of these entities, along with the initial funding of $41 million means this group can contribute in a significant and meaningful way to U.S. offshore wind development. The Consortium will have a positive impact on U.S. economic growth in the near term. What do you see as the economic benefits to the U.S. in the research and development of offshore wind? The Consortium has a national focus using the research and development efforts to develop the new technologies which can be commercialized and create new business in the areas of offshore wind development. It will also work with educational institutions providing the associated workforce with the skills necessary to build and maintain the offshore wind installations. The Consortium is focused on innovation in all aspects of offshore wind construction and ongoing operations. For example, port and vessel innovation for infrastructure development and O&M, as well as supply chain and manufacturing improvements for components, all of which will provide significant economic benefits by creating businesses and jobs. How critical is it to build strong partnerships with the private sector and to collaborate with industry in order to be successful in the Consortium’s efforts? The private sector will provide a critical role in the work of the Consortium to ensure the commercial viability of the new technologies being developed through the research efforts of the VOLUME 44, NUMBER 2

Consortium. Consortium work is supported by industry participants, including GE Renewables, Hitachi ABB, National Grid, and the Electric Power Research Institute. A number of offshore wind developers are directly engaged as well including Equinor, RWE, Shell Ørsted, and Vineyard Wind to name a few. The partnership will provide innovations that directly respond to the technical and supply chain barriers faced by offshore wind developers in the U.S. This collaboration will build strong networks cementing technology, innovations, investors, and industry and it will ensure U.S. content and job opportunities. H ow d o yo u d e f i n e s u c c e s s fo r the Consor tium and how cr itical are metrics to measure the impact of the Consortium’s work?

The Consortium’s specific and immediate R&D objectives are outlined in a roadmap – Roadmap 2.0. This roadmap provides guidance for solicitations in the areas of major interest and opportunity. Our various committees, including the Research and Development Advisory Group (RDAG), Manufacturing Supply Chain Services Council (MSSC), and State Action Network (SAN) are in formative states and are set to assist the Consortium in defining its research agenda and metrics. Over the long term, success for our funders is defined as materially contributing to the deployment of offshore wind and lowering its costs via innovation. Shorter term success is measured by bringing value to our members so that they will provide the financial support necessary for the Consortium to continue its important work beyond the five-year period and that we have a very significant offshore wind industry in the U.S. You have spent your career in the energy industry. What has made the industry so special for you and what do you tell young people about the opportunities that the industry offers as a career? The energy industry has provided me the opportunity to have a very successful career by being in the forefront of the advances leading to a cleaner energy future. I have had the opportunity to work with very educated, innovative individuals who have made the industry very rewarding and meaningful to society. I would encourage young people to consider a career in the energy industry if they wish to truly contribute to the improvement of the quality of life for all individuals. We have a very bright energy future and will need the leadership necessary to accomplish our goals for a cleaner, greener future.

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PURPOSE

Career Pathways An Interview with Joseph Baratta, Global Head of Private Equity and Marcus Felder, Vice President, Portfolio Operations, Blackstone EDITORS’ NOTE Joseph Baratta is the Global Head of Private Equity and a member of Blackstone’s Board of Directors. He is also a member of the firm’s Management Committee and serves on many of the firm’s investment committees. Baratta joined Blackstone in 1998 and in 2001 he moved to London to help establish Blackstone’s corporate private equity business in Eur ope. Sinc e 2012, he has served as the fir m’s Global Head of Private Equity and is located in New York. Baratta has served on the boards of many past Blackstone portfolio companies and currently serves as a member or observer on the boards of First Eagle Investment Management, Refinitiv, SESAC and Merlin Entertainments Gr oup. He is also a member of the Board of Trustees of Geor getown University; is a trustee of the Tate Foundation; serves on the board of Year Up, an organization focused on youth employment; and serves on the Board of Trustees of the Trinity School in New York City. Befor e joining Blackstone, he was with Tinicum Incorporated and McCown De Leeuw & Company. He also worked at Morgan Stanley in its mergers and acquisitions department. Baratta graduated magna cum laude from Georgetown University. Marcus Felder is a Vice Pr esident in Portfolio Operations. He leads several strategic hiring initiatives with Blackstone’s portfolio companies. These initiatives include the Career Pathways program which identifies, attracts, and recruits young adults from underserved communities for opportunities across the Blackstone portfolio companies. Prior to joining Blackstone in 2020, Felder worked at the Posse Foundation, initially with the Posse New York office and then with the Posse Veterans Program. Befor e joining Posse, Felder focused on peer mentoring programs as a founding staff member of the City University of New York Stella and Charles Guttman Community College and he also worked in the University Office of K-16 Initiatives, where he was involved with the development and oversight of college access, success, and transition programs for New York City public high school and CUNY community college students. Felder received an SB from the Massachusetts Institute of Technology, an MPA from Syracuse University, and an MSEd from Baruch College. VOLUME 44, NUMBER 2

Joseph Baratta

Marcus Felder

FIRM BRIEF Blackstone (blackstone.com) is one of the world’s leading investment firms. We seek to create positive economic impact and longterm value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our $619 billion in assets under management include investment vehicles focused on private equity, real estate, public debt and equity, life sciences, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds, all on a global basis. Will you provide an overview of your roles and areas of focus at Blackstone? Joseph: I’m the Global Head of Private Equity at Blackstone. Our firm manages capital on behalf of a wide range of institutions and individuals, including 31 million pensioners in the United States alone. We invest that capital in businesses across a wide range of industries and geographies, identifying great companies and serving as a strategic partner to help them meet their full growth potential. I am also proud to serve on the board of Year Up, an organization focused on youth employment and one of the firm’s partners in our new Career Pathways Initiative, which we’re excited to share more about. Marcus: I’m a Vice Pr esident in our Portfolio Operations group, managing the Career Pathways Initiative Joe mentioned. That program is designed to create employment opportunities and career mobility for people from underserved communities at Blackstone’s portfolio companies. I have over 15 years of experience developing peer mentoring and college access, success and transition programs for New York City public

high school and community college students as well as U.S. military veterans. Our portfolio includes over 200 companies employing nearly half a million people. Given that scale, we believe we can have an outsized positive impact on the communities where we operate. Wi l l yo u h i g h l i g h t B l a c k s t o n e ’s approach to Environmental, Social and Governance (ESG) issues? Joseph: E S G i s p a r t o f B l a c k s t o n e ’ s DNA – it is incorporated into everything we do. At Blackstone, where our mission is to drive value for our investors, ESG is directly aligned with our core business objectives. Integrating ESG principles makes us better investors and drives value at the companies and investments we own. Prior to investing, and to the extent appropriate, we evaluate ESG factors in assessing a potential portfolio company. Following investment, we engage with portfolio companies throughout the life of the investment and seek to promote ESG programs. Marcus: As one of the world’s largest alternative asset managers, we are uniquely positioned to have a meaningful impact across our portfolio given our scale. When we set clear ESG priorities and support our portfolio companies, the impact on people, communities and the environment can be substantial. Last year, we launched a series of ESG initiatives designed to make an impact at scale: a new target of at least one-third diverse representation on portfolio company boards for new control investments, starting in the U.S. and Europe; Career Pathways, the program that we previously discussed; as well as a goal to reduce carbon emissions by 15 percent across all new investments where the firm controls energy usage. The Blackstone Charitable Foundation (BXCF) is also an active part of how we approach ESG. Recently BXCF announced a $40 million commitment to increase LaunchPad programming from 30 to 75 campuses over the next five years. LaunchPad helps students innovate and succeed in entrepreneurship and their careers through skill building and other resources. As part of the announcement, LaunchPad will partner with United Negro College Fund (UNCF) and bring its programming exclusively to colleges and universities that have a majority diverse population or serve underserved communities. LEADERS 75

How critical is corporate responsibility and community engagement to Blackstone’s culture? Marcus: Community engagement is a cornerstone of Blackstone’s culture and critical to our long-term success. Everywhere we operate, we invest in companies and properties to make them stronger, while fueling innovation and supporting local communities. We also support our long-term partners like Sponsors for Educational Opportunity (SEO), Toigo Foundation, Year Up, Girls Who Invest, and Ladders for Leaders. These partnerships are so valuable for staying engaged during the recruiting process and identifying diverse talent. Joseph: Our employees are also highly engaged in supporting their communities, both through work and in their personal capacities. In aggregate, our employees volunteer and donate to charitable giving campaigns nearly twice as much as the national corporate average. In 2020 alone, 75 percent of our employees participated in employee engagement activities, logging over 8,500 hours in support of a wide range of organizations in support of our communities. A sampling of organizations BXCF partners with includes SEO Scholars, a program aimed at closing the academic and opportunity gap for motivated young people; Project Sunshine, an organization dedicated to bringing joy to pediatric patients; City Harvest, an organization devoted to providing food security to New Yorkers, and more. How valuable is it to have such strong support and engagement from Blackstone’s management team for its ESG work? Joseph: ESG is a critical priority for our senior leadership. It’s something we are deeply and personally committed to as an organization. My personal involvement in Year Up, for example, has made me especially passionate about our Career Pathways initiative. Over time, I’ve found that certain industries have developed patterns of recruiting that zero in on a subset of the talent pool. At Year Up, they work to help companies create a path to change this recruiting cycle. When you meet recent graduates and current program participants, you realize that these are the very kinds of people we try to hire at Blackstone and at our portfolio companies. What we are seeing is not a lack of talent, but of networking and opportunity, which is why we launched Career Pathways. Marcus: It is also incredibly inspiring to see such high levels of engagement from our employees – it is a testament to our culture. In addition to the programs we run at our portfolio companies, and the thousands of hours of community service and donations to COVID-19 relief efforts and racial equality, we also have four affinity networks – the Women’s Initiative, Diverse Professionals Network, OUT Blackstone and Veterans Network – which support our employees in their day-to-day work. These groups are designed to improve recruitment and retention and advance dialogue of the importance of diversity for our business. In 2019, our affinity network hosted approximately 100 D&I networking and speaking events globally. 76 LEADERS

What does closing the opportunity gap mean to you? Joseph: To me, breaking down these old hiring patterns is a central issue of our time. We have to find a way to give more people the platform they deserve. I’m excited for the future of our Career Pathways program. Marcus: I agree. Initiatives like Career Pathways can help employers expand their thinking. Also, for me, there’s a personal connection. I come from a family that values education and made sure I had access to opportunities and networks to put me on a good trajectory. I’ve seen many others who don’t have that kind of support, so I’ve committed a lot of my life’s work to do whatever I can to provide access to opportunity so people can make the choices that are right for them.

“ESG is part of Blackstone’s DNA – it is incorporated into everything we do.” - Joseph Baratta

Do you feel that there are strong opportunities for women to grow and lead in the industry? Joseph: Without a doubt, yes. This is a huge priority for us. For more than 10 years, we have had a firmwide affinity network for women which develops women and fosters greater connectivity across the firm. In 2013, the Women’s Initiative launched the BX WIN Program, a mentorship program that pairs junior employees with senior mentors in the firm. In 2020, participation tripled with 185 participants. Blackstone also has competitive benefits including generous leave policies, a phase back to work program and support for working parents, which help to ease new parents back to work, resulting in near zero attrition from new parents in 2020. Recently, Blackstone also increased primary caregiver leave to 20 weeks, up from 16 weeks. We also have women in leadership roles across our Private Equity business including Jen Morgan, the former Co-CEO of global software firm SAP, who leads our global portfolio operations group, and senior investment professionals in the U.S. and Europe. Marcus: Across our portfolio, Blackstone assists portfolio companies in identifying diverse candidates for C-suite and board roles and, in 2019, half of independent director seats we filled in private equity were with women. At Blackstone,

over 30 percent of directors and over 40 percent of independent directors on our board are diverse. What impact do you see initiatives like Career Pathways having over time? Joseph: This program will give opportunity to those who haven’t had it. The added benefit is it will make our companies better because they’ll have more diverse opinions informing their business decisions. Additionally, it should help define what it means to be a Blackstone portfolio company. Over the last 20 years, we’ve developed a playbook for how we engage with our portfolio companies that today includes everything from capital allocation and procurement to carbon emissions reduction. Now, recruiting from different pools of talent is going to become a part of the standard for how we engage with our companies and what we expect of them. Marcus: Based on what I’ve seen in my career, providing these types of opportunities can change people’s lives. There’s a shared impact. If people can build meaningful careers, they are empowered to support and reinvest in their own communities. The outcome can be really powerful. Also, within our portfolio, it will be a reset in expectations for companies. For some firms, that might mean strategizing together on things they were already working on. For others, it might mean learning from this program and eventually becoming experts themselves. Over the long term, we’d like portfolio companies to own a lot of these practices and actively think about new ways to attract, retain and further develop diverse talent. That leads to more inclusive and thoughtful decision-making and more opportunities for those who deserve them. What advice do you offer to young people beginning their careers during this challenging and uncertain time? Joseph: Run toward things that make you uncomfortable and work on the things you know aren’t your strengths. Commit to whatever job you have today, even if it’s not your life’s calling. The goodwill and experiences you gain by committing to the work in the moment will set you up to find the role you really want in the future. Be an entrepreneur wherever you are – don’t just execute tasks, think about ways things can be done better or more efficiently, and take the initiative. Be reliable – someone on whom all of your colleagues can depend. Stay positive and upbeat – everybody likes to be around positive and optimistic people, not those always finding fault and problems. Marcus: Be open to not landing exactly where you envisioned you’d be in your first job. Set and keep track of your career goals and know that there are many paths to reach them. Work hard and have fun. Show up, do good work, be a productive member of the team and also remember to find and celebrate moments of joy in your work. Keep learning. Regardless of education level – high school diploma, GED, associate degree, bachelor’s degree – there’s always something to be learned. Ask thoughtful questions, share relevant experiences, and consider different perspectives. Extend grace. These are especially challenging times and it is important to extend grace to those with whom we work, but it is equally important to extend ourselves grace.

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PURPOSE

Making a Difference An Interview with Robert T. Hale, Jr., Co-Founder and President, Granite Telecommunications, LLC EDITORS’ NOTE Rob Hale is Will you discuss your vision for Co-Founder and President of Granite creating Granite and how the Telecommunications, a communicabusiness has evolved? tions company headquartered in In the beginning, the focus was on Quincy, Massachusetts. Granite was survival. When we launched the comrecognized in 2019 as the most philpany in 2002, the telecom world had anthropic company in Massachusetts just blown up along with the dot-com after donating $25 million to comworld and I had experienced this firstmunity organizations. Hale has been hand with my predecessor company. recognized as a leading entrepreWe had concerns with the regulatory neur by several organizations and environment which was not defined publications. He has been repeatand it was unclear how it may impact Robert T. Hale, Jr. edly recognized by Boston Business our business so to be honest my early Journal – Power 50, which salutes the vision was making sure that we were 50 most powerful people in Boston. He has also able to survive. In the Fall of 2003, I will never received the Ernst and Young Entrepreneur Of The forget getting a call at 7:30 PM from our controller Year™ award and has been saluted as one of the at the time mentioning we had a profit of about 25 most influential people in American telecom $700,000 and I remember having a euphoric feelmultiple times. He also owns FoxRock Properties, ing that the business was going to work and we a Boston-based real estate firm with over 4 mil- would in fact survive. It was around this time lion square feet of commercial space. He founded that we changed our business model from being Copley Equity Partners, a private equity firm that a regional player to being a national provider invests in small and middle market businesses with which really changed who we were. significant growth prospects. Hale is a co-owner We were very fortunate early on at Granite of the Boston Celtics of the National Basketball to sign up Walmart and Walgreens as customAssociation and the owner of the Boston Cannons ers and they were interested in wholesaling the of Major League Lacrosse. He was awarded the phone lines they had so we did a beta test in Boston Red Sox Jimmy Fund Award in 2014 for Boston first and then we expanded it to New his long-time commitment to the lifesaving mis- England and then to the entire Northeast. They sion of Dana-Farber Cancer Institute and the liked the consolidated billing and discounting Jimmy Fund. In 2017, Hale and his wife Karen and decided that wholesaling was good for were honored by the Breast Cancer Research their business and that they would do it for the Foundation with the Inaugural Carolyn Lynch rest of the country. They decided to wholesale Humanitarian Award. In 2018, the pair were their phone lines in their stores which caused honored by Brigham and Women’s Hospital with us to have to make a decision about what we the Heritage Key Award. Additionally, Partners would be, a regional player in the Northeast Healthcare saluted the Hale’s with the Jack or a national wholesaler to provide a oneConnors Philanthropic Leadership Award. For stop shop for organizations like Walmart and 2019, The Chronicle of Philanthropy listed Walgreens. We decided to redefine who we the Hale’s as one of the top 15 most generous were going to be which was a company with Philanthropists in America. Hale has held or holds great service that provided consolidated billing leadership roles at Boston Children’s Hospital, The and support as a one-stop shop for national Massachusetts Soldier’s Legacy Fund, Dana-Farber retailers. Cancer Institute, Deerfield Academy, Connecticut It is somewhat ironic that we have won College and Brigham & Women’s Hospital. awards and been credited for this business model, but to be honest it wasn’t really our idea, COMPANY BRIEF Granite (granitenet.com) but rather the idea of our customers. Our model provides voice, data and other related commu- has not changed for the most part over the past nications products and services to multi-location eighteen years. businesses and governmental agencies throughout How critical has it been to maintain the United States and Canada. Granite furnishes culture as the company has grown in size services to more than two-thirds of the Fortune 100 and scale? companies in the United States and has annual It has been very important and it is chalrevenues of $1.6 billion. lenging. This is the responsibility of leadership 78 LEADERS

as we have experienced rapid growth from the early days of $800,000 in annual revenues to over $1.6 billion in annual revenues today and we have done this without ever doing an acquisition, ever having debt, or ever taking outside investment. We have created over 2,500 American jobs. When we were all in one building, it was easier to maintain culture because as the leader I was living right in the middle of it and could communicate it constantly. We are fortunate that as we have scaled up to where we are now with about 25 offices nationwide, the first six or seven offices were led by our teammates who had been with us for years and had lived our culture. They knew the expectations and were able to replicate our model. We have extremely low turnover and I have worked with most of the people on our management team for over 20 years which comes from having mutual trust and an understanding that we are in this for the long haul. Granite is a lifetime job and our teammates believe that and I believe that. When you have this mentality, you focus on promoting from within so as our people grow and assume other roles, they have already experienced and been living the culture. Where it can be difficult is when we bring in specific expertise since as you grow to a $1.6 billion company, the skill sets and expertise you need is different. In these cases, we look for talented leaders who we mesh with our existing Granite leaders to make sure that we are communicating the culture and maintaining it. While Granite is an industry leader, it is not a household name. Is brand awareness important for Granite? This may not be common for you to hear from CEOs, but broad brand awareness is not a big focus for me. We do very modest marketing and no advertising. We don’t seek publication – you were gracious enough to call and we have known each other for many years so I was happy to do this for you. My priority is that our customers feel that we are treating them really well and that we have brand awareness within the 17,000 customers we are so fortunate to serve each day. This matters immensely to me. What is the key to building customer loyalty and how do you make it more than just about price? I would be kidding myself if I did not recognize that price is a driving factor for customers, especially in these pandemic times which has VOLUME 44, NUMBER 2

“Our customers are an accurate reflection of the diversity in America and for us to be like our customers, we also need to be diverse. Diverse ideas, diverse understanding, and diverse experiences make brands stronger.” impacted every business. Price is table stakes and if you are not competitive with pricing, you will not be considered. Having said that, if you have a competitive price, there are other ingredients that matter just as much, one being the customer experience. We have built customer loyalty by building personal relationships, providing great service, and keeping customers happy. How critical has it been that the diversity of Granite’s workforce mirrors the diversity of its customer base? This is extremely important since diversity makes us a better company. Our customers are an accurate reflection of the diversity in America and for us to be like our customers, we also need to be diverse. Diverse ideas, diverse understanding, and diverse experiences make brands stronger. We are good at it but we want to get a lot better at it. We have devoted resources and time and energy to this focus since like every American seeing the murder of George Floyd, my views were reshaped about who we are and some of the weaknesses we have. We are trying our hardest to get better and even though we may be doing this well by corporate America’s standards, we have a long way to go to get where we want and need to be. How has Granite adapted its business to meet the challenges caused by the pandemic and how important was it for you to have clear and constant communication with your team during this uncertain time? These are tough times and I feel that overcommunication has been necessary during this time of uncertainty going back to the beginning of the pandemic last March. We had spent years working on a campus with three buildings where it was easy for me to communicate and see our people each day. When the pandemic hit last March, we quickly sent everyone home and that visual communication that we were accustomed to was gone. In addition, we are all constantly hearing negative news on TV and in the media with all of the crises occurring today and all of this uncertainty made it critical to overcommunicate and reinforce the positive nature of what we were doing. I started sending an e-mail to the team every morning listing our accomplishments and deals that were happening to make sure our team was aware and connected. VOLUME 44, NUMBER 2

We wanted to support the community and knew how hard hit the hospitality industry was by the pandemic. We sought out local restaurants in our communities that we wanted to support and help to survive and we told them that we were going to buy meals from them for the next few months and have them delivered to the homes of our team members so we could have team dinners each night virtually. We arranged for our team members to have dinner brought to them and asked that they take one hour and participate in a team dinner. The only rule was that they could not talk about work. This was about being together and supporting each other during this difficult time. We rotated these dinners among teams throughout the country so that our people were able to get a little bit of a feeling like being at the office again. We did this with nonprofits in our communities as well by bringing them lunch or dinner which helped restaurants and provided some level of food security which is such a major concern today. We are trying to provide some warmth and positivity during this time when there is not much of it. Do you feel that leading companies have a responsibility to support the communities they serve and to be a force for good in society? We do feel this is a responsibility. We believe in Maya Angelou’s words, “To those who are given much, much is expected.” I know that I am fortunate and try to do everything I can to share my good tidings. In the last five years, we have put about $165 million into the community and my teammates last year gave 12,500 hours of community service. We take this very seriously and have been recognized for our philanthropic work. It is the right thing to do, and it is also a business imperative because the best talent wants to work for a company where they can make an impact and also wants a company that is making an impact in the community. Do the skills needed to be successful in business translate to being successful in philanthropy? Many of the areas that make you successful in business most certainly translate to being successful in philanthropy. Whether it is working with a small nonprofit or leading a large

campaign, you need to stay focused on the task at hand in order to meet your goals. A focus on execution, whether in business or philanthropy, is crucial for success. What advice do you offer to young people beginning their careers during this challenging and unprecedented time? I know from personal experience about failure and uncertainty and how difficult times can be. The first company I ran went bankrupt. I lost $1 billion, had death threats, lawsuits, had to let go of 400 people on a conference call, and was mocked regularly in the media publicly. There are not many bad things that can happen to a person in business that did not happen to me. People may see the success that I have today but not realize that I have been to the bottom which teaches you humility and resilience. I think this is also one of the reasons that we are not out there at Granite flashing our name and making noise since my sole focus is on my 2,500 team members and their families and on our 17,000 customers. When I started that first company called Network Plus in 1990, I saw an opportunity and my father put up his nest egg of $400,000 and backed me. We experienced strong growth from 1991 to 1998 and had a very nice business. I received a cold call one day in 1998 from Goldman Sachs asking me if I wanted to do a bond offering. I told them that I was a sales guy, not a finance guy, and did not know what a bond offering was. They told me we would be able to do an IPO and that I would be a billionaire which sounded pretty good to me. We did exactly what they said and went public and were one of those high-flying stocks that went way up. Then, in 2000, the bubble burst and the stock which to that time had only gone up started to only go down. Our banks called and told us they were not going to continue to service our type of business and that our credit line was not being renewed which forced us into bankruptcy. I never sold a single share throughout this time and lost all of my money. I had to let go of all of my people in one day on a telephone call. To this day, except for the day of my father’s passing, that was the second worst day of my life. As devastating as that experience was, I learned the most valuable lessons of my life during this time. We were a great company when we were private and didn’t have any debt or any outside investors. We controlled our destiny. I learned the hard way that if you let others into your financial future, they can control your future. That company was taken away from me. This is why Granite is private, has no debt and has no investors. We have built this brick by brick and I want to be able to look my 2,500 teammates in the eyes and let them know that I am accountable to them and that they are accountable to me and that we are accountable to our customers and that those are the only ingredients that we need to worry about for our future.

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PURPOSE

Business-Minded Advice An Interview with Jay A. Neveloff, Chair, Real Estate, Kramer Levin Naftalis & Frankel LLP EDITORS’ NOTE Jay Nevelof f How do you descr ibe Kramer advises a broad range of clients Levin’s culture and how critical involved with the development, is culture to the success of the ownership and financing of real firm? estate projects, including high-proKramer Levin’s culture is highly file mixed-use, commercial, retail, collaborative, and we pride ourand residential projects in New selves on being proactive, creYork City and throughout the counative and pragmatic. These traits try. A nationally recognized transare absolutely critical to our sucactional lawyer, Neveloff represents cess because our clients rely on us institutional and private equity to help them solve highly complex, funds, as well as other investors, high-stakes and often novel situaJay A. Neveloff in joint ventures, in the acquisitions. The best way to ensure the tion and sale of property, includdesired outcome is to communicate ing portfolios of properties, and in connection openly, share ideas and concerns, and think with a broad variety of developments. He also through solutions and approaches together. represents major international funds and Will you provide an over view of financial institutions in commercial lending Kramer Levin’s real estate practice and transactions, loan restructurings and workouts. what have been the keys to the industry Neveloff serves on the Board of Governors of the leadership for the practice? Real Estate Board of New York. He earned a BA Kramer Levin has advised on many of from Brooklyn College and a JD from New York the most significant real estate developments University School of Law. and other projects in New York City and throughout the United States. We are among FIRM BRIEF Kramer Levin (kramerlevin.com) a handful of New York-based Am Law 100 provides proactive, creative and pragmatic solu- firms with a destination real estate practice, tions that address today’s most challenging legal one that attracts clients interested primarily in issues. The firm is headquartered in New York, our real estate talents. One key to our induswith offices in Silicon Valley and Paris, and try leadership is that we are actively involved fosters a strong culture of involvement in pub- in every aspect of real estate law and regulic and community service. In addition to its larly advise on all aspects of a wide variety well-known litigation and bankruptcy capa- of transactions. This experience enables us bilities, the firm has top-tier practices in many to understand market terms and conditions other areas, including private equity/M&A, and advise our clients accordingly. We pride intellectual property, real estate and land use, ourselves on providing practical businesstax, employment law and business immigration. minded advice.

How has Kramer Levin’s real estate practice adapted the way it works to address the challenges caused by the global pandemic? Working from home has temporarily changed the way we work. Before the pandemic, I could walk into somebody’s office or meet someone in the hallway or in the elevator or at the coffee machine, and all those interactions served as catalysts for creative collaboration. Since going remote, we have had to find ways to overcome the distance and keep in constant contact with our colleagues and keep transactions moving forward. One way we have done that is by encouraging real-time conversations by phone or video, as opposed to e-mail correspondence. We have also been a leader in conducting remote closings. Our condominium team, for example, has pivoted to virtual closings and closed roughly $1 billion in sales since the onset of the pandemic. What are the keys to recovery for the real estate industry and how is Kramer Levin advising clients on the challenges the industry is facing during this unprecedented time? We need certainty in mass transportation. People need to feel comfortable coming back to work. We’re not going to go from zero to 60 overnight – it’s going to be a phased-in approach. The City has to balance the needs of raising money against expanding the economy. The legislature has a tendency to take, take, take – but taxing is not enough. We need to encourage inbound investment and growth from within.

“Kramer Levin has a rich history of involvement in public and community service which are integral to our firm’s practice and culture.”

80 LEADERS

VOLUME 44, NUMBER 2

“One key to our industry leadership is that we are actively involved in every aspect of real estate law and regularly advise on all aspects of a wide variety of transactions. This experience enables us to understand market terms and conditions and advise our clients accordingly.” At Kramer Levin, we’ve been working with our clients and institutions such as the Real Estate Board of New York (REBNY) to help ensure that we all get it right. How critical is it for Kramer Levin to build a diverse and inclusive workforce in order to bring diverse perspectives and experiences to the table when advising clients? Kramer Levin is committed to embracing diversity and inclusion at every level. The firm has adopted a multipronged approach that includes recruiting, training, business development and leadership development programs for Kramer Levin lawyers and staff in order to reinforce and expand the diversity of our talent. The firm has a long history of cultivating pipeline diversity strategies for minority students including internships and mentoring to students the summer before they enter law school. In the coming year, we are expanding the pipeline further by developing an internship program to broaden the opportunities for minority students interested in real estate. Will you discuss Kramer Levin’s commitment to pro bono work and the long history of the firm in being engaged in the communities it serves? Kramer Levin has a rich history of involvement in public and community service which are integral to our firm’s practice and culture. We routinely rank high in the annual Am Law 200 pro bono survey. Our pro bono achievements have been recognized with major awards from the American Bar Association, the New York State Bar

Association, Her Justice, Legal Services NYC, The National Law Journal, New York’s Legal Aid Society and others. We encourage our lawyers to pursue the pro bono work most meaningful to them, and their passions have fostered broad involvement in areas such as political asylum, LGBTQ rights, domestic violence, housing and homelessness, criminal trials and appeals, service to nonprofit groups and micro-entrepreneurs, and more. Noteworthy recent pro bono representations include our work for the Universal Hip Hop Museum (UHHM), which culminated in UHHM signing a long-term lease of 50,000 square feet at the to-be-constructed Bronx Point affordable housing project on the Harlem River and 145th Street in the South Bronx, and ongoing involvement with Phipps Houses, the oldest not-for-profit developer, owner and manager of affordable housing in New York City. Kramer Levin is headquartered in New York City. How concerned are you about New York City’s future and what needs to be done to make sure New York City recovers and remains a leading global city? Yes, Kramer Levin is headquartered in New York City, and we are fully committed to helping ensure its future as a leading global center for business, art, entertainment and so much more that we New Yorkers love about our city. In our own offices, we have installed Plexiglas barriers, signage and directional floor markings, among other measures, which enabled us to have 8-13 percent of our personnel work in the office on any given

weekday, even at the height of the pandemic. We are also working with NYC’s government and business leaders to help aid the city’s recovery process, and we are confident that those efforts will be successful. Honestly, I’m not concerned about the city’s future. New York is the economic center of the world. It’s stable. I have every confidence that entertainment, including Broadway and major arenas, as well as hospitality, will come back. All the signs are there. We’ve been so deferential to the virus – appropriately so – but we’ve got to safely come out of the shell, and we will. What advice do you offer to young people coming out of law school who are entering the profession during this challenging and uncertain time? Always be available. Ask questions, but only after thinking them through. Seek out the most interesting deals even if at the beginning you are sitting in meetings or on calls just listening. Being an excellent lawyer means having not only excellent lawyering skills but also sound business judgment and understanding what issues are most important to the client. Also, you are only as good as your word. Having a reputation for keeping your word is invaluable. A reputation takes years to build and only a moment to lose, so don’t be a jerk. Too often, young transactional lawyers say “no” without thoughtfully articulating the reasons why. It’s amazing how many issues can be solved by listening carefully and explaining yourself. Finally, care about what you are doing and the people you are doing it with and for. Own it!

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“Being an excellent lawyer means having not only excellent lawyering skills, but also sound business judgment and understanding what issues are most important to the client.”

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Passion and Purpose An Interview with Joe Plumeri, Executive Chairman, Selecta Group EDITORS’ NOTE Joe Plumeri was appointed Executive Chairman of Selecta Group in May 2020, having joined the Group’s Board in March 2020. Plumeri is a Senior Advisor to KKR and prior senior management roles include Vice Chairman of the First Data Board of Directors as well as Chairman and CEO of Willis Group Holdings. Before joining Willis, Plumeri had a 32-year career at Citigroup and its predecessor companies.

to understand what business they were truly in. Whenever I came in to help these troubled businesses, the first question I would ask was about what business they were in, and they would all look at me as if I didn’t know what I was talking about. They would tell me about what business they felt they were in and I would always ask if they were sure. For example, when I came to Selecta and asked the team what business they were in, they said the vending machine Joe Plumeri business. I asked them if they were sure and after a back and forth, they asked me COMPANY BRIEF Selecta Group (selecta.com) is what business I thought they were in. I told them Europe’s leading route-based unattended self-ser- that I look at it differently and define a business by vice provider, offering coffee and convenience food its purpose which makes you look at it and run it solutions in the workplace and in public spaces. much differently than other companies. I told them Every day it serves beverages and snacks to more that I thought Selecta was in the business of bringthan 10 million people at its 475,000 points of sale ing joy and happiness to millions of people every across Europe. Selecta also provides vending services day. That is a little different than being in the vendand solutions for all types of companies in all busi- ing machine business, because everything we now ness segments. do is about the coffee being great, the machines being filled, and the food being fresh – everything What do you say to the essential workers and has to work or the joy and happiness will not hapthose on the front lines of the battle against pen. I do not look at the business from a product the pandemic who have showed such strength point of view, but from a purpose point of view. and resilience during this unprecedented time? This is the case with the minor league baseball This is a perfect example of something I talk team that I own. I told them that we were not in the about often which is that the great ones combine baseball business, but that we were in the entertainpassion and purpose. Obviously, these frontline ment business. I told them that I cannot control wins workers, whether they be doctors or nurses or first and losses, but I can control making sure that our fans responders or others, have a clear passion for their have a good time. Our purpose is ensuring that anyjob. For anybody to be good at something they one who comes to our ballpark to attend our games have to have a passion for it. When you couple that enjoys themselves. Over the 28 years I have owned passion with a purpose, then you really have some- the team, no one who has come to a game has ever thing special because passion without purpose is told me what the final score was, but they do tell me meaningless. These frontline workers have a pas- that they had a great time and enjoyed themselves. sion for their work, and their purpose is to help I believe that passion and purpose are critipeople and to save lives and to give of themselves cal for businesses to be successful, but many times for other people. These essential workers are a per- this is missed. Companies are in business to make fect example of the power that comes from passion money, but if that is the only reason they have to and purpose being linked. exist, they will not survive. Kodak is a great examDo you feel that this marriage of passion ple of this. They went out of business because and purpose is also critical in business and for they did not go into the digital business which is companies to be successful? what their customers wanted. If they understood I believe it is crucial and I have always and were concerned about the needs and desires believed that. When I have become involved in a of their customers and their end user, they would company that was having difficulties, the problem have gotten into the digital business a long time was that they never knew what business they were ago and stayed relevant. actually in. They looked at it only from a financial Is purpose set from the top and does it point of view or from a classic industry point of need to start with the CEO? view. Whether it be a bank or insurance company The CEO role needs to be about more than or financial institution, they never stepped back just financial results and P&Ls. You really need to 82 LEADERS

be the pastor of the church and they don’t teach pastoring at business school. Whenever I go to one of the business schools, I ask who teaches vision at the school and they just stare back at me. I have always felt CEOs need to totally be in the game, not only because they want to make sure everything goes well, but also because they need to constantly be preaching the bible of what the company is doing at all times. That is what I feel is lacking with CEOs many times. CEOs need to consistently be expressing what their purpose is and why they come to work every day. Companies have mission statements that are developed by branding companies or HR departments, but the people never look at them and don’t truly believe in them. However, if the CEO is constantly talking to his team about purpose and why the company is in business, this message has meaning. I always give the example of how you define delegation. People always ask for you to let them do their job and to stay out of their way, but I tell people that as a CEO, I delegate the authority to do their job, but I don’t delegate the responsibility. The responsibility is ultimately the CEOs and if something goes wrong, it is the CEO who is responsible. This means that the CEO has to stay in the game with their people to make sure that the authority they have been given is being handled well and aligning with the company’s purpose. What advice do you offer to young people beginning their careers during this challenging and uncertain time? It is so interesting that when I call or meet with young people, they never ask me about business or technology, but rather about what motivates me and gets me up in the morning and keeps me going. They want to know what is going to separate them from the rest. These are questions that they have been asking me for 20 years, and my answer is always the same. I tell them that there are two kinds of people – there are competent people and there are compelling people. Most people are competent – they graduate from school, get a job, work hard. I call this average and average is my enemy. I call this normal and normal is my enemy. I call this OK and OK is my enemy. What you need is to be compelling so that in a full room of people, you stand out. You have to figure out what you need to do to be compelling so that you are the one that is picked and gets the job over all of the other competent people. If someone asks you what makes you compelling and you have no idea what the answer is, you need to go back and reinvent yourself.

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VOLUME 44, NUMBER 2

THANK YOU,

global corporations, for your commitment to solving societal challenges, particularly during the Covid-19 crisis that has tested our resolve in unimaginable ways. As society transitions through response, recovery, and reinvention, we are collectively striving to prevent a return to a broken “normal”, instead emerging renewed to embrace a more just society. Chief Executives for Corporate Purpose is grateful for the work of its global coalition of 220 companies and their cross-sector partners, fueling through their resources and skills a transformation and reimagination of systems that yesterday brought inequity but tomorrow can bring prosperity.

“I helped to start CECP with the belief that corporations could be a force for good in society.” PAUL NEWMAN (1925–2008), FOUNDING CO-CHAIR, CECP; FOUNDER, NEWMAN’S OWN

Counterclockwise from top right: Employess in action at Blackbaud, NRG, Catalent, Ecolab, New York Life, Tata Consultancy Services Chief Executives for Corporate Purpose® (CECP) is a CEO-led coalition that believes that a company’s social strategy—how it engages with key stakeholders including employees, communities, investors, and customers—determines company success. Founded in 1999 by actor and philanthropist Paul Newman and other business leaders to create a better world through business, CECP has grown to a movement of more than 200 of the world’s largest companies that represent $11.2 trillion in revenues, $23 billion in total community investment, 14 million employees, 30 million hours of employee engagement, and $21 trillion in assets under management. CECP helps companies transform their social strategy by providing customized connections and networking, counsel and support, benchmarking and trends, and awareness building and recognition.

cecp.co

Sponsored by the CECP Board of Directors

PURPOSE

Life Skills An Interview with Dr. Nido R. Qubein, President, High Point University EDITORS’ NOTE Dr. Nido Qubein What have been the keys to High culture that celebrates those values. It’s in the became the seventh president of High Point’s success and how do you air at High Point University, and it is the most Point University in January 2005. define the High Point difference? consistent praise we hear from students and He has served as past president of the High Point University is the parents – that we’ve dared to build an enviBig South Conference and teaches a Premier Life Skills University. We don’t ronment and foster a culture where students class to all freshmen titled, “The focus on the “product” – the diploma. choose to be extraordinary. President’s Seminar on Life Skills.” In We focus on the product of the What excited you about the opportuthis course, Dr. Qubein shares with product – a life filled with meaningful nity to lead High Point University and how students the habits, skills, values, success and framed with purposeful valuable has your experience and expertise and practical intelligence that one significance. At High Point University, in the private sector and in business been must apply to succeed in an everwe are focused on rendering value for to your impact and accomplishments leadchanging world. The author of 11 our graduates. When students coming the University? Nido R. Qubein books, Dr. Qubein received an assoplete their education here, we want I saw an opportunity to plant seeds of greatciate degree in business from Mount them to possess not only the technical ness in the minds and hearts of young people Olive College, a bachelor’s degree in human rela- skills needed to launch their career, but the life who would go on to become leaders in our world. tions from High Point University, and a master skills needed to navigate and continuously grow When I first arrived, HPU was what one journalof science in business education degree from the their career. ist called a “dusty old college.” I saw its potential University of North Carolina at Greensboro High Point University is a values-based to be a differentiator in the world of higher eduBryan School of Business & Economics. In 2009, institution, grounded in hard work, personal cation. I wanted to take HPU from an ocean of he was awarded an Honorary Doctor of Letters initiative, generosity, gratitude, faith and sameness to a much smaller lake of differentiation, in Humanity degree from the University of North more. Parents spend their lives modeling as I had helped major corporations do that in my Carolina at Greensboro. values for their children. When they send business career. With a phenomenal group of factheir students to a university, they want it to ulty and staff, we rolled up our sleeves and got to UNIVERSITY BRIEF Founded in 1924, High Point uphold and further those values. When stu- work. We didn’t just think outside the box – we University (highpoint.edu) is a 97-year-old lib- dents choose a university, they want an threw the box outside the window. This is someeral arts institution located in the Piedmont Triad institution that will serve as an extension of times hard to do, especially in higher education region of North Carolina. At High Point University, their home. Of course, values can’t be taught. where so many small colleges have traditionally every student receives an extraordinary education They can only be modeled. We have built a operated by the same formula. in an inspiring environment with caring people. “America’s Best Colleges” 2019 Edition, published in the U.S. News & World Report, ranks HPU #1 among all regional colleges in the South (the seventh consecutive year at #1). It also ranked HPU for the fourth consecutive year as the #1 Most Innovative Regional College in the South for innovative improvements in terms of curriculum, faculty, students, campus life, technology or facilities. HPU was named, for the tenth consecutive year, to the national “Colleges of Distinction” list. HPU also earned Fields of Study distinctions for the Phillips School of Business and the Stout School of Education. High Point University has been named one of the nation’s top institutions for undergraduate education by The Princeton Review. HPU is recognized in “The Best 386 Colleges: 2021 Edition” for its academic programming, as well as positive survey responses and feedback from students, parents, and higher education leaders across the country. In addition to including HPU in “The Best 386 Colleges,” the new Princeton Review rankings also names HPU as one of the top 20 universities in the nation for Best Dorms (#1), Most Beautiful Campus (#9), Best Career Services (#19) and Most Students on the HPU campus Active Student Government Association (#19). 84 LEADERS

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R.G. Wanek Center at High Point University exterior (above) and Wanek School of Natural Sciences lobby (below)

Now, look at where HPU is today. U.S. News & World Report has named HPU #1 Best Regional College in the South for 9 consecutive years, #1 Most Innovative for 6 consecutive years and is among the nation’s Leading Top 50 First Year Experiences. HPU has also been included in The Princeton Review’s “America’s Best Colleges” for four consecutive years, where HPU is also ranked #1 for Best Dorms, #9 for Most Beautiful Campus, #19 for Best Career Services and #19 for Most Active Student Government Association. How has High Point adapted its work to address the challenges caused by the pandemic and how critical has it been for you to be in regular communication with faculty, students and families during this uncertain time? Innovation is in High Point University’s DNA, as you will see from the continual transformation taking place on our campus. While the global pandemic in general was entirely unprecedented and unpredictable, HPU faculty and staff are always willing to change and adapt in order to best serve our students. I immediately commissioned a Health and Safety Task Force in the spring of 2020. They went to work meeting numerous times a week and prepping our campus. We communicated with parents at least weekly, but often several times a week. We committed several million dollars over the summer to address public health safety on campus which reassured students and their parents. We have remained in touch with students and parents since the onset of the pandemic in mid-March of last year. After every college and school across the country switched to remote learning in March 2020, HPU received an overwhelming request from parents and students to resume in-person learning. We prepared our campus and resumed in-person learning successfully in July 2020 with Summer Advantage and Summer Session II classes, again in the fall 2020 semester, and now in the spring 2021 semester. Our safety protocols are working and our VOLUME 44, NUMBER 2

students and parents send us letters of gratitude for the impactful in-person and experiential learning experience HPU provides. What do you see as High Point University’s responsibility to the community it serves and how is the University engaged in the community? Our city is a big part of our spirit and our heart. We will always be High Point’s university, and High Point will always be our home. For this reason, we volunteer 110,000 hours every year with at least 40 local agencies and students participate in dozens of service learning courses that disperse them throughout the city to lend a helping hand. In

addition to service, I have raised $63 million from private donors to build projects to bring visitors downtown year-round, including the new downtown ballpark known as Truist Point, an events center, a children’s museum and a park. How critical is it for High Point University to build a diverse and inclusive environment within its faculty and student population and will you discuss these efforts? We at High Point University are committed to being an institution focused on diversity and inclusivity and a place framed with love and unity. In 2019, as part of the University’s next 10-year growth plan, I announced HPU is investing $700 million in scholarships focused on first generation students, diversity, academic excellence and veterans. In recent years, HPU has also created positions for a Director of Multicultural Affairs and Assistant Vice President for Diversity and Inclusion. In the Office of Student Life, we work to provide cultural programming in partnership with our student clubs and other departments. There is a long list of diversity initiatives and programming on our campus. HPU is a values-based institution, grounded in hard work, personal initiative, generosity, gratitude, inclusivity, faith and more. We are not a perfect school - there is no such thing. We must always do more, and we are committed to continually building an environment that fosters a culture where all students can choose to be extraordinary. What do you see as the keys to effective leadership and how do you describe your management style? Leaders strive to create capacity in others. For students, I teach a class to all freshmen titled, “The President’s Seminar on Life Skills,” sharing the principles, skills and values that one must apply to succeed in an ever-changing world. I remind faculty and staff on campus, “We live, students watch, and students learn,” because students are paying attention to our actions. They need heroes, models and mentors to positively influence their lives and actions. You have to live the example for them to follow. What advice do you offer to graduates beginning their careers during this difficult and unprecedented time? We live in a world where you must be able to adapt and embrace change. While the marketplace has changed and experienced turmoil due to the global pandemic, there are always opportunities available for those who are willing to work hard. HPU is intensely focused on equipping students with life skills because these are the skills that will outlast technical changes and marketplace disruptions. A C-suite survey conducted by High Point University with executives from 500 organizations with more than 5,000 employees clearly said that new hires need motivation, emotional intelligence and coachability more than they need technical competence to be successful. My advice is to actively grow and show employers that you possess these life skills and are ready to render value to their team. That’s what HPU graduates do, and that’s why 97 percent of our Class of 2020, who graduated as the pandemic was causing hiring freezes and uncertainty, were employed or in graduate school within six months of earning their HPU degree.

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Embracing Difference An Interview with Deborah Harmon, Co-Founder and Chief Executive Officer, Artemis Real Estate Partners EDITORS’ NOTE Deborah Harmon Artemis has raised approximately is an industry leader and entre$5.6 billion of committed equity preneur with more than 30 years capital across four primary busiof experience in real estate. Harmon, ness lines: value-add discretionary along with Penny Pritzker, co-founded commingled funds, vehicles focused A r t e m i s R e a l E s t a t e Partners on core/core-plus investments with in 2009. She has oversight responemer ging managers, healthcar esibility for the firm, establishing specific core-plus funds, and debt and managing the firm’s strateseparate accounts. Artemis invests gic direction. Prior to co-founding in r eal estate acr oss all pr oduct Artemis, Harmon spent 17 years types in the United States. establishing and leading the princiDeborah Harmon pal investing business at JE Robert Will you highlight the history and Companies, a global real estate heritage of Artemis and how the investment firm where she was President and firm has evolved? Chief Investment Officer from 1997 until 2007. In 2009, in the depths of the Great She serves as Chairperson of the Pension Real Recession, our founding team started from a Estate Association Foundation, as a key leader blank sheet of paper with a vision to be a and former trustee of the Urban Land Institute, force multiplier of both performance and purand as a member of the Advisory Board of Jasper pose for our investors, the real estate industry, Ridge Charitable Fund and the Advisory Board and beyond. Our goal was to build a diverse of the BlackIvy Group. Harmon also serves on organization that delivered attractive riskthe Board and Executive Committee for Women adjusted returns across economic and real for Women International, on the Advisory estate cycles. We set out to raise $300 milCouncil for the NYU Stern Center for Business lion for Artemis Fund I in 2010. We comand Human Rights and is a member of the mitted $50 million of GP capital and were Council on Foreign Relations. Harmon was pre- prepared to be the largest investor in our own viously appointed by President Obama to serve fund. It took two years and 225 meetings to as a Commissioner for the White House Fellows secure 11 limited partners, who went on to program and was a member of the Board of be stakeholders in our success. Raising our Directors for Forest City Enterprises and Avis Group Holdings. She previously served on the Advisory Board for the Johns Hopkins School of Advanced International Studies, and the Boards of Trustees for The Sidwell Friends School, The National Cathedral Elementary School, and The National Children’s Research Center in Washington, D.C. Harmon was recognized in 2020 by Barron’s on its inaugural list of the 100 Most Influential Women in U.S. Finance, and was recognized by EY as an Entrepreneur Of The Year® 2019 Mid-Atlantic Award winner and National Finalist. She was included in Real Estate Forum’s Women of Influence Hall of Fame in 2018. She earned a BA from Johns Hopkins University and an MBA from the Wharton School of the University of Pennsylvania.

$436 million Fund I was undoubtedly the most challenging experience of my career. Today, we have a team of nearly 60 people across four offices. Artemis has raised $5.6 billion of equity capital across four primary business lines: value-add discretionary commingled funds, vehicles focused on core/core plus investments with emerging managers, healthcare-specific core plus funds, and debt separate accounts. Artemis has acquired over $8.7 billion in gross purchase price in over 240 investments across ten vehicles. To date, we have realized aggregate outperformance relative to underwriting on more than half of these investments. How critical is culture to the success of Artemis and how do you describe the Artemis culture? I believe you must be intentional about culture, and that culture starts at the top. Culture is about shared values. Artemis has consistently been described by its employees as performance-driven, entrepreneurial, collaborative, and diverse. Our diversity is our strength. This is an important differentiator in a trillion-dollar industry where diverse firms manage less than 2 percent of the assets. At Artemis, 50 percent of our team is women and minorities, because we were intentional about building a diverse organization from inception.

“At Artemis, 50 percent of our team is women and minorities, because we were intentional about

building a diverse organization from inception.”

FIRM BRIEF Artemis Real Estate Partners’ (artemisr ep.com) mission is cr ea t i n g a s u c c e s s f u l a n d s u s t a i n a b l e r e a l estate investment management fir m built on a foundation of per formance, alignment of inter est and transpar ency. Since 2011, 86 LEADERS

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“Embracing difference is an organizational strength. Diverse teams can be more challenging to create and lead but have the potential to outperform by identifying different business risks and opportunities and inoculating against groupthink.”

Building a culture focused on performance and purpose has been critical to our success. We have consistently invested our financial and human resources in widening the circle of opportunity for those typically underrepresented in the real estate industry. In turn, we have attracted and retained a diverse team that shares our mission. We believe our performance over the last decade suggests there are real benefits to having varied perspectives around the table. The pandemic has taught us that organizations must heavily lean on culture to navigate through uncharted waters. When our team made the determination to turn the Artemis Summer Enrichment Program, which trains diverse talent for full-time job placement in the industry, virtual instead of cancelling – and to expand the program by 50 percent – I was reminded of the shared values and priorities that would keep us united in the face of uncertainty. How has Artemis adapted its business to address the challenges caused by the pandemic and how proud are you to see the resilience of the Artemis team during this uncertain time? The past year has been extraordinary in many ways – there is no contemporary model for a recession induced by a global pandemic. While the senior team has experienced weathering several economic cycles, this is the first we have experienced as the Artemis team. In 2009, we had the tenacity to create a firm knowing that the most rewarding investment opportunities can be found in the darkest times. What was unique to the pandemic, in addition to economic uncertainty and extreme volatility, was managing the health, safety, and culture of a remote and virtual team. That said – at every step of the way, I have been heartened by the Artemis team’s individual and collective will to persevere. There was never a day where Artemis was closed for business. The Artemis team’s capacity to perform at an elevated level, adapt to new technology platforms, management tools, and operating rhythm while maintaining the highest standards of transparency and fiduciary standards defined resiliency. At the same time, the team captured opportunities that inevitably presented themselves in periods of distress and dislocation. The pandemic demanded extraordinary commitment and collaboration and at every corner our team rose to the challenge. VOLUME 44, NUMBER 2

Will you elaborate on Artemis’ commitment to building a diverse and inclusive workforce? Building a diverse and inclusive team is mission critical. When we founded Artemis in 2009, we confronted a dispiriting truth which is still the case today: women and minorities are dramatically underrepresented across the real estate industry. It took building Artemis for me to fully appreciate the barriers to entry and success in the industry. At that time, there was little data demonstrating that a diverse team investing with diverse, emerging and established operating partners could achieve competitive riskadjusted returns. In fact, because this approach was different it was perceived by some as having greater risk. We have worked to debunk this myth that difference carries risk for over a decade and are confident Artemis’ track record demonstrates our ability to generate attractive risk-adjusted performance across cycles. The realized performance of the diverse joint venture operating partners within the Artemis portfolio over the last ten years provides a powerful counternarrative to the belief that investing with diverse partners is riskier than the status quo. More than one-third of Artemis’ operating partners have diverse ownership and we have deployed $1.5 billion of equity with these partners across core/core-plus and value-add/opportunistic strategies. In our core-plus investments to date, diverse firms have outperformed the target return by 900 bps compared to a 12 percent gross target return. In our value-add investments, diverse firms have outperformed the target return by 2,300 bps compared to a 20 percent gross target return. Embracing difference is an organizational strength. Diverse teams can be more challenging to create and lead but have the potential to outperform by identifying different business risks and opportunities and inoculating against groupthink. Whether it be public pension employees whose retirement dollars we manage, foundations whose social justice missions are aligned with our own mission, or endowments committed to educating a diverse population, our own diversity aligns us more closely with our investors and their diverse constituencies. Will you discuss Artemis’ commitment to the communities it serves and do you see it as a responsibility for leading companies to be a force of good in society? I believe that CEOs, CIOs, and senior business leaders have a responsibility to help build

a more just world – to be a force for good in society. We have developed the Artemis Summer Enrichment Program to train diverse talent for full-time job placement in the industry. As of last summer, the program has 153 alumni, 83 percent of whom are women and minorities. Every summer, the Artemis team dedicates significant financial and human resources to different elements of the industry, including exposure to different commercial real estate product types, modeling training, and future career advice and personalized mentorship. At Artemis, we offer to all team members the opportunity to engage with our purpose-driven work, and we believe it is a competitive advantage in recruiting and retaining top talent. In 2020, amid the pandemic and renewed calls for racial justice across the United States and around the world, we gave all employees the opportunity to contribute Artemis dollars to nonprofit causes of their choosing that were related to the pandemic and/or racial justice. This program empowered Artemis team members to tackle local challenges and support their communities, and we encouraged the team to match our contributions with their own funds or efforts. The most impactful leaders demonstrate their commitment to purpose as well as performance, and I have found at Artemis that leaders can emerge at any level of an organization if they are given the opportunity to take responsibility for being a force multiplier of good in their communities. What do you see as the keys to effective leadership and how do you describe your management style? In my view, a leader’s vision comes from passion, not position. True leaders have the confidence to stand alone and the courage to make tough decisions. When you lead with purpose it encourages others to join you in your pursuit, where what you do matters in the context of an evolving world, not only improving on yesterday, but building for tomorrow. Functionally, I have found that to be an effective leader you need to explain how and show why. This lifts your team and supports their individual and collective growth, better preparing them to lead through future challenges. I have always said that the best managers play to the strengths of their team. When you do this well, you develop a team where the whole is greater than the sum of its parts.

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PURPOSE

Delivering Financial Security An Interview with Keith M. O’Reilly, President and Chief Executive Officer, Gerber Life Insurance Company EDITORS’ NOTE In his current role, How do you describe the Gerber Keith O’Reilly is responsible for exeLife culture and how critical is culcuting Gerber Life’s marketing, finanture to the strength of the company? cial and operational objectives. O’Reilly I think our culture is unique. joined Gerber Life in 1987 as financial There’s something special about having reporting manager. He was promoted the iconic Gerber baby on your busiseveral times over his career and, prior ness card, it draws people together creto being named to his current posiating a special bond. This bond enables tion in 2012, he served as Senior Vice a spirit of teamwork and collaboraPresident, Chief Financial Officer and tion leading to the type of innovaTreasurer for 10 years. O’Reilly is curtion needed to drive our business. The rently a board member of the Life strength of our culture was displayed Keith M. O’Reilly Insurance Council and a past board in 2018 during the year long process member of the Life Insurance Council of selling the company. During that of New York (LICONY). He is a fellow of the Life Office period of uncertainty, we did not lose one key Management Association (LOMA) and serves as a member of our organization. member of the Gerber Life board of directors. Prior What are the keys to differentiating to Gerber Life becoming a member of Western & in the industry and how do you define the Southern Financial Group, O’Reilly served on the Gerber Life advantage? Nestlé U.S.A. Pension and Retirement Committee. He First, I’ll state the obvious - our biggest advanheld a similar position for the Novartis U.S.A. pen- tage is the Gerber brand which, based on a recent sion and retirement fund. O’Reilly earned his bach- brand study, is the fifth most recognizable brand in elor’s degree with a concentration in accounting the U.S. Beyond the brand, we focus our marketing from Western Connecticut University. with a customer-centric versus product-centric approach. Our DTC model is driven by using COMPANY BRIEF For more than 50 years, Gerber data to enable many touch-points to engage with Life (gerberlife.com) has been providing budget- our customers. Our success is derived from providfriendly life insurance so that children and adults ing relevant offers, simple products, and an easy can have greater financial protection. Founded in purchase process. 1967 by the Gerber Products Company, it shares a Who is the Gerber Life consumer and common heritage and values in caring for the how broad is the target market? millions of families who place their trust in Gerber Our target market is the underserved Life. Today, Gerber Life is a member of Western & middle income population, which encomSouthern Financial Group Inc. (westernsouthern.com), passes a broad segment of the U.S. populaone of the strongest life insurance groups in the tion. Our juvenile product is typically sold world. With over $59 billion of life insurance to parents and grandparents seeking to give in force as of December 2020, Gerber Life provides their children or grandchildren a financial insurance plans for entire families that offer reli- head start. Recently we have had success sellability, flexibility and peace of mind. ing our guaranteed issue whole life product targeted to the 50+ demographic. Will you highlight the history and heritage of How has Gerber Life adapted its business Gerber Life and discuss how the company has to address the pandemic and how proud are evolved? you to see the strength and resilience of your Founded in 1967 as an affiliate of the Gerber people during this uncertain time? Products Company, Gerber Life Insurance Company Quite honestly, our business and our peowas formed as a direct-to-consumer company with ple never skipped a beat. We had been practhe objective of providing affordable life insurance ticing remote working for more than a decade. protection to middle market families. Today, Gerber Within a few days, over 95 percent of our workLife provides affordable life and health insurance, force were successfully working from home. Our including medical stop-loss insurance, to individu- DTC business platform, in particular the investals, families and businesses. Its insurance products ments we had made in enhancing our digital serve people of all ages, from newborns and their capabilities, proved hugely successful. I’ve been parents and grandparents to retirees, to help them extremely fortunate to be blessed by an aweachieve greater financial security. some group of people. 88 LEADERS

Gerber Life was recently acquired by Western & Southern Financial Group. How will this acquisition impact Gerber Life’s business? One word – “opportunity.” For the first time in our history, we are part of a financial services organization that understands what it takes to build and sustain a successful insurance company. The financial strength and long-term outlook of Western & Southern will enable significant investment in our DTC business platform. Being previously owned by consumer packaged goods companies, these types of investments were not available to us. How important is it for Gerber Life to build a diverse and inclusive workforce in order to mirror the diversity of its consumers? At Gerber Life and throughout the Western & Southern Financial Group family of companies, we create value for our customers, our people and the communities we serve. We hire and develop associates who are driven to excel, use sound judgment to make sensible decisions, and possess an uncompromising work ethic. Equally important is a common commitment to treating each other with dignity and respect, an insistence on keeping our egos in check, and a recognition that to build something bigger than ourselves, we must collaborate effectively. Many of the greatest ideas and discoveries come from a variety of minds, backgrounds and experiences, reflecting the rich diversity of the people we serve. We are committed to maintaining a work environment that provides equal opportunities to all of our associates. We know that talented people who work together will win. We believe that by living our culture, we can sustain our financial strength and deliver the financial security our customers deserve. Will you discuss Gerber Life’s focus on corporate responsibility? With Gerber Life being one of the largest employer’s in the Newaygo County Michigan area, we feel it is our corporate responsibility to give back in a meaningful way to our local community. In the Fremont community, we actively create opportunities to play a positive role through consistent support of local institutions and charitable organizations. Gerber Life leaders are committed to serving on not-for-profit boards and organizations and our associates take part in the volunteer program as well as programs that raise funds for cancer research, heart disease, adult foster homes, United Way campaigns and other critical programs and local services. We take pride in our “Gerber” brand and, together with Gerber Products, sponsor the National Baby Food Festival.

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VOLUME 44, NUMBER 2

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PURPOSE

A Business Imperative An Interview with Richard K. Bynum, Chief Corporate Responsibility Officer, The PNC Financial Services Group EDITORS’ NOTE Richard Bynum disaster response and emergency comleads the PNC Foundation, munications at the Chicago chapter. Community Affairs and Corporate During his career, he was an operaSocial Responsibility; Community tions director for the Kosovo Refugee Development Banking; and Diversity Operation as well as the September and Inclusion. In addition, Bynum 11th effort in New York. Bynum, recis leading the implementation of ognized as one of Washington, D.C.’s PNC’s $1 billion commitment to help most influential business leaders by the end systemic racism and support the Washington Business Journal, serves on economic empowerment of African the boards of numerous nonprofit and Americans and low- to moderatecivic organizations, including the corincome communities. Bynum is porate council for the Smithsonian Richard K. Bynum an accomplished executive with National Museum of African American nearly 20 years of executive leaderHistory & Culture; the Economic Club of ship experience. Prior to being named to his cur- Washington, D.C.; the Wolf Trap National Park for rent role in July 2020, Bynum served as Regional the Performing Arts; the Federal City Council; the President for PNC’s Greater Washington mar- Philip L. Graham Fund Foundation; the United ket from 2017-2020. He previously served as Way of the National Capital Area; and the Greater a member of PNC’s retail executive leader- Washington Community Foundation. Bynum ship team, where he led the Business Banking earned an undergraduate degree in political scidivision. Prior to that, he served as the Greater ence from Florida State University and holds an Washington retail market executive from 2010- MBA from the Kellogg School of Management at 2014, where he led consumer and small business Northwestern University. He is also a graduate sales. In addition, he served as chief operating of the Consumer Bankers Association Graduate officer for Business Banking, where he led the School of Retail Bank Management. sales force operating platform for hundreds of small business bankers across PNC’s footprint. COMPANY BRIEF The PNC Financial Services Bynum began his career with PNC in 2005 in Group, Inc. (pnc.com) is one of the largest diverits Executive Leadership Program, holding key sified financial services institutions in the United roles in the development and execution of reve- States organized around its customers and comnue-driving businesses and initiatives; strength- munities. PNC is known for its strong relationships ening the brand; and enhancing engagement and local delivery of retail and business banking of employees while fostering innovation through- including a full range of lending products includout PNC. Prior to joining PNC, Bynum had ing specialized services for corporations and gova 12-year career as a senior manager for the ernment entities, including corporate banking, American Red Cross. His last role with the orga- real estate finance and asset-based lending; wealth nization was as the managing director for management; and asset management.

Will you discuss your role and key areas of focus at PNC? At PNC, we’ve long embraced diversity, equity and inclusion as a business imperative. As events of last year catapulted racial inequity and social justice into the forefront of our national dialogue, we knew that we had a responsibility to continue to drive meaningful and sustainable change for those who need it most. As Chief Corporate Responsibility Officer, I oversee PNC’s efforts to place a sharper focus on our societal obligation to our employees, our customers, our communities and our shareholders. Comprised of PNC’s Community Development Banking; Community Affairs; Environmental, Social & Governance; and Diversity and Inclusion teams, my Corporate Responsibility Group is a catalyst for collaboration and change with our employees, customers, communities and shareholders. We are focused on creating equitable opportunities for economic and social mobility for all – both today and for future generations. Will you highlight PNC’s $1 billion commitment to help end systemic racism and support the economic empowerment of Black Americans and low- to moderateincome communities? In June 2020, PNC announced a $1 billion commitment to help end systemic racism and support the economic empowerment of Black Americans and low- and moderate-income communities. Most of this commitment will come to life by leveraging community development banking and philanthropy to support economic empowerment, education and entrepreneurship. More specifically:

“Corporate responsibility is fundamental to who we are and our commitment to corporate responsibility is embedded into every layer of our organization, from the very top levels to the front line.”

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“As events of last year catapulted racial inequity and social justice into the forefront of our national dialogue, we knew that we had a responsibility to continue to drive meaningful and sustainable change for those who need it most.”

• Economic empowerment efforts will include financial education, wealth building through home ownership, and new products and services that reach the unbanked. • The educational continuum will include our continued commitment to early childhood education and an increased emphasis on post-secondary with a focus on workforce development and skill building. • Our support for entrepreneurship will include enhancing access to capital and technical assistance for Black-owned businesses. PNC will also support national and local organizations working to help eliminate systemic racism and promote social justice; expand financial education and workforce development initiatives; and enhance low-income neighborhood revitalization and access to affordable housing. While the focus of this commitment is on the Black community in this critical moment in our nation, it does not change PNC’s unwavering commitment to full inclusivity of all people and groups in our workplace and in our communities. PNC has a long and deep commitment to supporting the communities it serves. How important is giving back and making a difference to the PNC culture? This question really goes to the core of who we are as an institution. PNC is a Main Street bank with a purpose – to make a positive difference by helping everyone in our communities move forward financially. We deliver the strength of a big bank with the personal touch

of a Main Street one. Corporate responsibility is fundamental to who we are and our commitment to corporate responsibility is embedded into every layer of our organization, from the very top levels to the frontline. At PNC, all of us work together in a shared dedication to supporting our customers, each other and our communities. We have the capacity as a corporation to not only achieve our goals, but far surpass them. We are stronger together and I am excited by the better future we’re collectively building. What do you see as the responsibility that leading companies have in addressing societal need and being a force for good in society? At PNC, we believe doing what’s right leads to a society where all people and businesses can realize their full potential – financial and otherwise. We design our products and services to make a positive difference to help our customers achieve their aspirations. I believe as corporate citizens, we all have a role to play in being a force for good in society. How critical is it for PNC to build a diverse and inclusive workforce and will you discuss PNC’s efforts in this regard? At PNC, we actively integrate diversity and inclusion into our corporate DNA. We believe strongly in creating an inclusive workplace, where all employees are listened to, supported and empowered to share their ideas and grow professionally. Before the pandemic we established a Corporate Diversity Council (CDC) comprised of senior leaders of PNC. The CDC members would discuss D&I issues and develop learnings that these members would cascade

throughout their organizations. In addition, members of PNC’s Executive Committee began hosting “Listen, Learn, Act” sessions to which all employees were invited to participate, in addition to dozens of interactive sessions led by managers across the organization with a focus on opening up a better dialogue on diversity and inclusion. These sessions were designed to surface candid, transparent insights on the experiences of our colleagues and what we, as a company, can do to drive meaningful change. You joined PNC over 15 years ago and have held a number of senior positions within the company. What has made PNC so special for you and a place where you have wanted to spend so much of your career? I’ve been extremely fortunate to only work for two organizations in my professional life; the American Red Cross and PNC. One could easily assume that these two organizations have very little in common. One is a non-profit organization that is mission driven to help people affected by natural and man-made disasters across the country. The other is a Fortune 100 financial services company dedicated to providing world-class financial products and services in furtherance of the aspirations of our clients. Both, however, are values-driven organizations that use those standards as more than just a soft guide. They both use their values as the foundation upon which decisions and directions are made and measured. That principled stance isn’t always apparent in many organizations, either through internal or external viewpoints. At PNC, however, I’ve found that the connection of our business to our values is clear and that clarity helps me find success.

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“We design our products and services to make a positive difference to help our customers achieve their aspirations. I believe as corporate citizens, we all have a role to play in being a force for good in society.”

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PURPOSE

Promoting Ethical Behavior An Interview with Leo S. Mackay, Jr., Senior Vice President, Ethics and Enterprise Assurance, Lockheed Martin EDITORS’ NOTE Leo Mackay, Jr. Scholar, Graduate Prize Fellow, and is Senior Vice President of Ethics a Research Fellow at the Center for and Enterprise Assurance for Science and International Affairs. Lockheed Martin. As the Chief Audit Executive, he provides indeCOMPANY BRIEF Headquartered in pendent, objective assurance and Bethesda, Maryland, Lockheed Martin advisory activity to improve the cor(lockheedmartin.com) is a global poration’s operations. He is also on security and aerospace company that the Board of Directors of Lockheed employs approximately 110,000 people Martin Ventures, its $200 million worldwide and is principally engaged venture capital fund. Mackay prein the research, design, development, viously served as Vice President manufacture, integration and susLeo S. Mackay, Jr. of Corporate Domestic Business tainment of advanced technology sysDevelopment as well as President of tems, products and services. ICGS, LLC, a joint venture of Lockheed Martin and Northrop Grumman focused on the U.S. Will you provide an overview of your role Coast Guard’s modernization. A graduate of the and key areas of focus? U.S. Naval Academy, Mackay was a secretary of The overarching theme of my work would the Navy Distinguished Midshipman Graduate. be what a consultancy or accounting firm would After pilot training, he spent three years flying refer to as the governance, risk and compliance the F-14 and graduated from the U.S. Navy’s portfolio. Aspects of the role conjoin with our Fighter Weapons School (Topgun). He is a vet- general counsel, our human resources office, eran of Operation Earnest Will. Mackay was and our government relations team. Together, deputy secretary of Veterans Affairs, and the des- we provide a robust risk management frameignated Chief Operating Officer, of the second work for the corporation. Specifically, I handle largest U.S. cabinet agency. Mackay is an inde- four portfolios: Lockheed Martin’s ethics and pendent director of Cognizant, Inc., Ameren, business conduct, enterprise risk and sustainInc., and USAA Federal Savings Bank and also ability, internal audit, and our environmental, serves as a strategic advisor to Pegasus Capital safety and health program. The role has a large Advisors. He earned a master’s degree and doc- amount of coordination with our functional torate in public policy from Harvard University. peers throughout Lockheed Martin as well as He was a Kennedy Fellow, Harvard MacArthur with our board.

Will you elaborate on the focus around ethics at Lockheed Martin? My first role at Lockheed Martin was as vice president of ethics and business conduct which I assumed over a decade ago. Ethics is about business integrity and our commitment to do what’s right, perform with excellence and respect others. The role has two features which I think are rare in American industry. First, the role at Lockheed Martin has always been a direct report to the chairman, president and chief executive officer. When I began the role as a vice president, I was the only vice president that was a direct report to the chief executive. Second, we have full-time ethics professionals across the corporation who do our investigations and whose sole duty is to be ethics officers. These are individuals who come from different parts of the corporation and who understand our values and culture, and then we train them through a rigorous internal program to be ethics officers. We teach them the principles of business ethics and integrity as we live them at Lockheed Martin. They have to pass an assessment each year to qualify to be, and to remain, an ethics officer at Lockheed Martin. We are very transparent with our people about our investigations so that they are apprised of where we are at all times of the investigation, which is critical. We are proud of the high-level of institutional trust that we achieve. The proof point for this is the low percentage of anonymous reporting which results in a more effective and thorough investigation.

“We have to go wherever the talent takes us and talent manifests itself in all types of people, men and women of all ethnicities, orientations, identities and affinities. Our focus is to attract all possible talent and make ourselves an attractive place to work for all.”

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“Sustainability is now a part of our regular business practices. Sustainability has gone from a separate program in its early days and is now part of the broader mission, decision rhythm, and agenda of the corporation.”

How critical is the focus on sustainability at Lockheed Martin? We have had a long maturation regarding sustainability and I would say that it has been mainstreamed into the decision-making at Lockheed Martin. When we started our sustainability program, we had a standalone council which we needed in order to develop the program metrics. Over time, we integrated all of these activities. Now our chief executive and his direct reports are the governing body in our sustainability work. Sustainability is now a part of our regular business practices. Sustainability has gone from a separate program in its early days and is now part of the broader mission, decision rhythm, and agenda of the corporation. Will you discuss Lockheed Martin’s efforts and commitment to building a diverse and inclusive workforce? This is part of the war for talent. No company, especially one as large as ours with a need for technical and engineering talent, can afford not to pursue talent in all places and with all kinds of people. We have to go wherever the talent takes us and talent manifests itself in all types of people, men and women of all ethnicities, orientations, identities and affinities. Our focus is to attract all possible talent and make ourselves an attractive place to work for all. I believe that talent is normally distributed between people so if there is a fair process in your recruitment and hiring practices, you will have a diversified

workforce. I am a real believer in a simple recipe: robust recruiting, equal opportunity, and a level playing field. It is also critical to provide training and development opportunities once people are hired in order to retain the talent. You need to provide advancement opportunities in a fair and unbiased way. If you do the right thing from the beginning, starting with hiring practices, through development, selection, follow-on training and advancement, you strengthen the enterprise. You serve on the board of LM Ventures, Lockheed Martin’s venture capital fund. Will you discuss the mission of LM Ventures? Lockheed Martin Ventures has made a large impact and our aim in venture capital is pretty straightforward. Some of the greatest technological advances in the history of the world have happened in the past few decades and Lockheed Martin Ventures provides us with a way to participate in the stream of innovation based in Silicon Valley and other innovation hubs. The best thing about venture capital is that it really occurs in an ecosphere where you would think that money is the focus, but money comes cheap. The reality is that what is most important is smart people, hard problems, and the talent and resources to address them. Lockheed Martin has these in abundance and this makes us a valuable venture capital partner. We leverage the money we have available to participate in all sorts of innovative companies and are beginning to see results with these investments.

You have a military background and have served in the Navy. How did this experience shape your management style and thoughts on leadership? I tell people that everything I learned about management and leadership I learned in the U.S. Navy. The military provides discipline and order, but people don’t always appreciate the importance of creativity and flexible decision-making to mission accomplishment. While there is a major emphasis on planning in the military, the need to adapt any plan is critical since you have to understand and deal with constant changes and unexpected events. You also build a real trust with earlyto-middle career service men and women and your subordinates since one of the secret weapons the military has is this group of people. If you provide them with the tools and resources they need, you will be amazed at what they are able to accomplish. In my later experience as a business leader, this translates to how you work with people in a business environment. You need to provide the plan to your team and then have the confidence to let them do their work and achieve their task. Give good people clear direction, and dozens, if not hundreds, of sound decisions in accordance with the plan will be made. Many will be innovative, and far beyond what you could have come up with yourself.

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“The reality is that what is most important is smart people, hard problems, and the talent and resources to address them. Lockheed Martin has these in abundance and this makes us a valuable venture capital partner.”

VOLUME 44, NUMBER 2

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PURPOSE

Changing Lives An Interview with Jon S. Chorley, Chief Sustainability Officer and Group Vice President, Supply Chain & Manufacturing, Oracle EDITORS’ NOTE Jon Chorley is Group procurement, manufacturing, and Vice President of Product Strategy for logistics. There is a natural overlap Oracle’s supply chain and manufacbetween these two roles, as sustainturing (SCM) applications and leads ability should be a natural extension the team responsible for driving the of supply chain, manufacturing, and business requirements and prodall business operations. uct roadmaps for these applications. How do you define Oracle’s These solutions include product lifeculture and how critical is culture cycle management, transportation to the success of the company? and logistics, manufacturing, asset Oracle’s corporate culture values life-cycle management, value-chain teamwork, quality, and diverse perplanning, and order fulfillment. spectives. We work together to make Jon S. Chorley Chorley is also the chief sustainabilthings the best they can be. We colity officer for Oracle. In this role, he laborate, share ideas, and give condrives and coordinates all initiatives, both inter- structive feedback. We strive for excellence nally and externally, related to environmental and hold ourselves to the highest possible stansustainability. This responsibility covers all areas, dards, always trying to improve. It’s an innovafrom IT infrastructure and business operation to tive culture in which we welcome new ideas corporate reporting and risk management. Oracle and dare to try new things. We value a diversiis committed to developing practices and products fied workforce. It’s those differences that make that help protect the environment. Chorley has us strong, as we believe that different points of more than 30 years of experience in the software view are essential for innovation. We also care industry in a broad set of roles including sales, about making the world a better place. We’re implementation, and development, mostly focused committed to changing lives by advancing eduon supply-chain applications. He joined Oracle in cation, protecting the planet, and giving back to 1997. Prior to his current role, he was responsible our communities. for the development of Oracle’s supply-chain logistics applications. Chorley graduated with a joint BA in physics and geophysics from the University of Edinburgh, Scotland. COMPANY BRIEF Oracle (oracle.com) offers a complete suite of integrated applications for sales, service, marketing, human resources, finance, supply chain and manufacturing, as well as secure, autonomous infrastructure in the Oracle Cloud. Will you provide an overview of your role and key areas of focus for Oracle? I hold the combined roles of Oracle’s Chief Sustainability Officer (CSO) and Group VP of Supply Chain & Manufacturing (SCM) Product Strategy. In my role as CSO, I lead an integrated cross-functional team comprised of people from many different groups within Oracle that helps to maintain our facilities and run our business in a responsible manner while minimizing environmental impact. We also focus on developing products and solutions that support our customers’ own sustainability initiatives. In my SCM role, I drive the development direction for Oracle’s Supply Chain & Manufacturing products (known as Oracle Cloud SCM). These product areas include supply chain planning, 94 LEADERS

Will you discuss Oracle’s best-in-class SCM applications and how they support value-chain transformation? Supporting end-to-end value-chain transformation is crucial to getting ahead with your business. Oracle Cloud SCM manages and automates planning, sourcing, production and delivery of goods and services around the globe. Oracle’s supply chain solutions enable you to digitally connect these applications in the cloud for cost-effective operation. They provide the visibility, analytics, and execution capabilities to increase the speed and accuracy of decision-making, deliver to agreed customer service levels, and reduce complexity and costs. Enabled by cloud, mobile, analytics, big data, AI/ML, IoT and blockchain, Oracle’s best-in-class supply chain and manufacturing applications support value chain transformation. When market conditions change fast, being prepared matters more than ever, and Oracle Cloud SCM provides the visibility, rapid decision-making and flexible response needed to support dynamic supply chains and accelerate the introduction of new products to market.

“We also care about making the world a better place. We’re committed to changing lives by advancing education, protecting the planet, and giving back to our communities.”

VOLUME 44, NUMBER 2

“Good corporate citizenship means being intentional and thoughtful about the value Oracle generates as a company – not only for our shareholders, but also for our people, our planet and future generations.”

Oracle has placed a major focus on sustainability. Will you highlight Oracle’s initiatives related to environmental sustainability? At Oracle, we know that sustainability is good business. We continually invest in initiatives that help us run our business more sustainably and develop products and services that help our customers do the same. Oracle is in the unique position of providing solutions that cover all aspects of the nexus of IT and sustainable business practices, hardware, technology and applications, from cloud data centers to business intelligence to smart utility grids. Oracle operates an efficient, clean, and circular cloud infrastructure that enables our customers to not only drive business value, but also lower their environmental impact. Many of our customers are using Oracle technology to help them make a positive impact on the environment and address the severe problem of climate change. Oracle uses many of these same technologies and business practices within our own operations. We have set some ambitious goals for 2025 which focus on reducing global CO2 emissions, shifting to renewable energy sources, diverting waste from landfills, reducing the use of potable water, and ensuring our key suppliers have environmental programs in place. One of these goals includes powering Oracle Cloud with 100 percent renewable energy. Sustainability is at the heart of our business operations, from managing our use of natural resources to ensuring responsible supply chain practices and running sustainable events globally. How do you engage Oracle’s workforce in the company’s sustainability efforts? At Oracle, we believe that sustainability is everyone’s business. Every day, Oracle employees make a difference by building forward-looking technologies that help our customers drive sustainability, by finding eco-friendly ways to run the business, and by supporting environmental causes locally and globally. Based on annual surveys, we know that the overwhelming majority of Oracle employees are passionate about protecting the planet. To this end, we regularly engage and support our employees in sustainability initiatives at work and beyond. Each year, Oracle recognizes a group of Sustainability Champions – employees around the world who are setting an example by directly contributing to a more sustainable future. Oracle encourages employees who share VOLUME 44, NUMBER 2

a passion for the environment to get engaged by forming Green Teams. There are more than 40 Green Teams that drive sustainability efforts in offices globally. They host educational sessions, engage with local real estate and facilities teams to promote recycling and eliminate waste, encourage more sustainable modes of transportation, volunteer with environmental organizations, and more. Protecting the environment is also a key focus area of Oracle’s Corporate Citizenship programs. Year-round, Oracle Volunteers contribute tens of thousands of hours to environmental causes globally. What do you see as the responsibility that leading companies have to being engaged in the communities they serve and to being a force for good in society? At Oracle, we feel strongly that we need to lead by example and help make the world a better place. Responsible companies can and should be a powerful force for good and an active member in the community. Good corporate citizenship means being intentional and thoughtful about the value Oracle generates as a company – not only for our shareholders, but also for our people, our planet and future generations. It means applying the same level of commitment, rigor and sincerity to changing lives as we do to building cutting-edge technology for our customers. Some examples of this include our educational, giving, volunteering and healthcare efforts. We help students of all backgrounds develop through our educational initiatives Oracle Academy, Oracle Education Foundation and Design Tech High School. In 2018, Oracle became the first-ever corporation to build a home for a public high school on our campus. Oracle supports thousands of nonprofit organizations globally through cash grants, sponsorships and work. All year long, Oracle Volunteers around the world help people and the planet by undertaking virtual and in-person projects. The Corporate Citizenship Communities program unites employees who share a passion for giving back. We invest in our employees through ongoing career development, continuous learning, diversity and inclusion initiatives, and health and wellness programs. We are proud to leverage our greatest assets – our technology and our people – to change lives around the world. We also value the important role that Oracle Cloud technology is playing in helping many of our customers improve the world around us.

You have spent over 20 years at Oracle. What has made Oracle so special for you? The people are really what makes Oracle a special place to work. Oracle is filled with passionate employees who work hard and value their impact while having fun along the way. As an organization, we incorporate excellence and quality in our work and continuously strive to improve. The culture is built around the pursuit of excellence to satisfy our customers, collaboration, and teamwork. Another reason I’ve been at Oracle for over 20 years is that I sincerely love my job. In my role as Chief Sustainability Officer, I am part of a team that helps Oracle minimize its impact on the environment and fight climate change. In my role as Group VP of SCM Product Strategy, I help to develop products that our customers can use for their own sustainability initiatives. We are also on the cutting-edge for developing new technologies and exciting innovations. We’re using emerging technologies like AI, machine learning and blockchain to solve critical real-world problems. The work we do is not only transforming the world of business – it’s also helping other companies make a difference. While I know we have made significant progress, I also know we have much left to accomplish and that is what continues to motivate me. What advice do you offer to young people interested in building a career in the industry? Supply chain management is key to economic growth and global stability. Within the field of supply chain management, there are many different fields and potential career opportunities. In today’s workforce, there are not enough people to fill the positions within all of these different fields. As more of the baby boomer supply chain workers retire, that gap is widening. If someone is interested in a supply chain career, I’d recommend that they get some industry or functional experience. This could be through internships, training and certificate courses, or joining social and industry trade groups. It might be that one field of supply chain appeals to you more than others and it’s only by experience and action that you find out what direction is most compelling for you. Once you decide on your direction, work on gaining the wisdom and knowledge to support it and make sure to always keep learning and challenging yourself. Do work that you care about and don’t be afraid to take risks.

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LEADERS 95

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Innovation, Connection, Content An Interview with Corey Anthony, Senior Vice President and Chief Diversity and Development Officer, AT&T Services, Inc. EDITORS’ NOTE Corey Anthony entertainment company that creates was appointed to his current posiand distributes premium and popular tion in May 2017. He previously content to global audiences through led the Emer ging Services and its consumer brands, including: HBO, Operations Transformation organiHBO Max, Warner Bros., TNT, TBS, zation, where he oversaw the comtruTV, CNN, DC Entertainment, New pany’s global transformation to Line, Cartoon Network, Adult Swim IP voice, security and cloud serand Turner Classic Movies. AT&T vices. In addition, he led operaCommunications provides more than tions, planning and support for 100 million U.S. consumers with enterTechnology Operations’ field and tainment and communications expecenter functions. Anthony joined riences across TV, mobile and Corey Anthony Southwestern Bell in 1995 as a broadband. Additionally, it serves manager in the Special Services high-speed, highly secure connectivity Center in Wichita, Kansas. Throughout his and smart solutions to nearly 3 million business career, he has held leadership roles across AT&T customers. AT&T Latin America provides pay-TV in its Wireless, Marketing, Finance, Network services across 10 countries and territories in Operations, Human Resources, and Global Latin America and the Caribbean and wireless Customer Service organizations. Anthony gives services to consumers and businesses in Mexico, back to his community by serving on the boards where it is the fastest-growing wireless provider. of directors for Junior Achievement and Dallas Xandr provides marketers with innovative and CASA. He is a passionate advocate for diversity relevant advertising solutions for consumand inclusion and co-founded a chapter of ers around premium video content and digital AT&T’s African American employee resource advertising through its platform. group, The NETwork, and serves on the board for Asian Pacific Islanders for Professional and Will you provide an overview of your role Community Advancement, OASIS and the com- and key areas of focus? pany’s millennial group, oxyGEN. Anthony As AT&T’s Chief Diversity and Development earned his BBA degree with a double major in Officer, I oversee our talent development profinance and accounting from Texas A&M. grams that aim to create a pipeline for future leaders within the company. From corporate to COMPANY BRIEF AT&T (att.com) is a diver- retail and technicians, my team works to foster sified, global leader in telecommunications, development through leadership development media and entertainment, and technology. It programs, talent identification, and all learnexecutes in the market under four operating ing under the AT&T University brand. I also units. WarnerMedia is a leading media and leverage AT&T’s D&I strategies, programs and

partnerships across the enterprise, including our work as it relates to racial and social justice initiatives. Before that, I spent more than two decades in a number of areas and functions, from wireless and network operations to customer service and finance. I bring those experiences along with my passion for diversity and inclusion (D&I) and my passion for developing others to my current position. How do you define the AT&T culture? Central to our culture are a number of corporate core values, and we base all of the work we do – innovation, connection, content – on these eight values. Our culture is meant to inspire our team to do incredible things - we have high standards so we can deliver big results. How we all do our work and what stimulates our thinking and approach – our culture – cannot be disconnected from our success. As the person who owns D&I, I have responsibility for how our values lead up to our company culture. That means providing a space where everyone is respected and valued for who they are and their contributions to the business. I take this seriously and consider it a privilege. How has AT&T adapted its business to address the challenges caused by the pandemic and how proud are you to see the strength and resilience of AT&T’s workforce during this unprecedented time? At the start of the pandemic, AT&T saw a need to address connectivity issues that were driving the homework gap for the 17 million children who are unable to take part in learning due to lack of Internet connection or devices. In 2020, we committed $30 million to support

“As a global company, we have to embrace the diversity of the communities we serve. This includes their perspectives, needs, values and more.”

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“Our culture is meant to inspire our team to do incredible things we have high standards so we can deliver big results. How we all do our work and what stimulates our thinking and approach – our culture – cannot be disconnected from our success.” COVID-19 related issues impacting the communities where we live and work, including a $10 million Distance Learning and Family Connections Fund, and an additional $10 million to support at-risk students by providing Wi-Fi hotspots and free AT&T Internet service, working with nonprofits like Connected Nation, to bridge the homework gap. We also announced the investment of an additional $10 million to create economic opportunities and foster upward mobility for Black and underserved communities who face social inequities and higher unemployment, all of which were exacerbated by the COVID-19 pandemic. In addition, we’re building FirstNet, the nationwide network that enables first responders and public safety officials to stay connected in times of crisis. Lastly, I’m especially proud of the ways our employees have stepped up for each other, our customers and the communities we serve, primarily through AT&T Believes, a local volunteer model we developed in our communities across 38 cities, four European countries and one in Asia, to ensure that our support is tailored to the needs of the communities we serve. Allowing those who live and work in each community to help shape how we show up brings even more depth and dimension to our impact. How critical is it for AT&T to build a diverse and inclusive workforce in order to bring diverse perspectives and experiences to the table when making business decisions? As a global company, we have to embrace the diversity of the communities we serve. This includes their perspectives, needs, values and

more. We must remain progressive and aggressive in building a company that accurately reflects them. “Make a difference” is one of AT&T’s values and we keep it close. Business doesn’t operate in a vacuum, and when we have the right voices in the room where decisions are made, we achieve stronger results. What do you see as the role that diversity and inclusion plays in driving innovation and growth for AT&T? At AT&T, diversity and inclusion are both a business and moral imperative. We know that if we all think and act the same, nothing changes. We have no advancement, no inspiration. By actively bringing together diverse views, backgrounds, cultures and talents, we foster an inclusive environment where employees are valued, respected, and empowered to bring their ideas and help drive innovation every day. New ideas consistently arise, and we can try and fail and pivot as many times as needed because we have no fear that failure equals wrong or termination. Instead, it’s a lesson learned. D&I practices and policies have to stand up to this way of thinking, and luckily, that’s exactly what I and my team at AT&T get to do on a daily basis. How important is it for AT&T to be committed to corporate responsibility and community engagement in order to continue to attract and retain top talent? A well-functioning society is fundamental to our business. At AT&T, our CSR commitments reflect our stakeholders’ social and environmental values. In fact, younger generations, particularly Millennials, are twice as likely to invest in companies targeting social and environmental

goals. This work is critical to our success – it’s good for communities, it’s good for employees, and it’s good for business. Community engagement gives potential employees a peek at what AT&T and our employees consider valuable – where are we giving our time and resources, as a collective. In 2019, AT&T employees volunteered 1.5 million hours globally and gave $31 million to 30,000 nonprofits. You can’t mandate that - that comes from the heart. On the environment side, we’ve set a goal to be carbon neutral across our global operations by 2035. From device recycling to alternative energy solutions, we are developing the tools and knowledge to make changes in small and large ways. What advice do you offer to young people beginning their careers during this challenging and uncertain time? First, congratulations to those who are graduating at such a difficult time. I admire the resiliency of those entering the workforce, who see the landscape and nonetheless come into the workplace ready to make a difference. Don’t lose that verve and excitement. Take time for your physical and mental health and create a sustainable lifestyle that allows for both productivity and rest. Continue to be curious about your industry – read and meet new people through networking and setting up get-to-know you phone calls. Lastly, challenge yourself. Now more than ever, remember to break out of your echo chambers and realize differences are not a barrier, but instead a bridge to common ground.

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“At AT&T, our CSR commitments reflect our stakeholders’ social and environmental values.”

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PURPOSE

Supporting Communities An Interview with Laura Vulaj, Senior Vice President and Director of Sustainability, SL Green Realty Corp. EDITORS’ NOTE Laura Vulaj serves motivates employees to push themas Senior Vice President & Director selves out of their comfort zones. Our of Sustainability at SL Green Realty employees are our most important Corp. She oversees SL Green’s ESG proasset, so their individual commitgram in addition to executing strament and perseverance is critical tegic company initiatives. She is also to our success. SL Green equips its responsible for developing and manemployees with the tools to thrive in aging SL Green’s hospitality program, the workplace, whether it is through a new concept focused on enhancing HR-led development programs, manthe workplace experience for tenants. ager coaching and training, or creatVulaj serves as a Board Member for ing a healthy physical workspace. We Urban Green Council and a member invest in human capital development Laura Vulaj of the Energy Efficiency & Housing and this ethos guides our business. Advisory Panel for the New York State How important is it for SL Climate Action Council. She also assisted in devel- Green to be committed to corporate responoping the Food1st Foundation, a not-for-profit sibility and community engagement in order organization established by SL Green to alleviate to continue to attract and retain top talent? food insecurity in New York City, provide meals SL Green is a conscious contributor to our to emergency service workers, and support the res- local community and we recognize the impact taurant industry. In 2019, Vulaj was an honoree of our engagement efforts. Corporate social at NEW’s (Nontraditional Employment for Women) responsibility ranks high among the demands annual Equity Leadership Awards Luncheon. of prospective employees. People want to She earned her BS degree in economics from know that the company they work for prioriNortheastern University in Boston. tizes similar values. We offer our employees paid volunteer days, and to encourage them to COMPANY BRIEF SL Gr een Realty Corp. take advantage of the benefit, we coordinate (slgreen.com), an S&P 500 company and Manhattan’s largest office landlord, is a fully-integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of September 30, 2020, SL Green held interests in 93 buildings totaling 40.6 million square feet. This included ownership interests in 29.2 million square feet of Manhattan buildings and 10.3 million square feet securing debt and preferred equity investments. Will you provide an overview of your role and key areas of focus at SL Green? I serve as Senior Vice President and Director of Sustainability for SL Green, Manhattan’s largest office landlord. In my role, I oversee the company’s ESG program in addition to executing strategic operational initiatives. I am also responsible for developing and managing SL Green’s hospitality program, a new concept focused on enhancing the workplace experience for tenants. How do you define the SL Green culture and how critical is culture to the success of the company? SL Green is a special place to work – our employees are talented, competitive, and driven. We have a goal-oriented culture, which 100 LEADERS

volunteer events throughout the year. Our goal is to partner with a variety of organizations to ensure we give employees the opportunity to commit their time to an initiative they value. COVID-19 presented challenges to individuals, families, companies and entire industries. We immediately saw an opportunity to give back to our community and began the Food1st Foundation. Our CEO, Marc Holliday, launched this organization in partnership with Chef Daniel Boulud last April to address two problems – ongoing food insecurity for New Yorkers, and the pandemic’s crushing blow to the restaurant industry. Seeing our leadership create this vital community asset practically overnight has been inspirational to the entire team and reinforces that community service is central to our business. You also can’t discuss corporate responsibility without addressing environmental sustainability. SL Green is committed to sustainable development and reducing our carbon footprint. We recognize that climate change is an environmental challenge that needs to be fought head on. We strategically make capital investments in our portfolio and continuously improve operating efficiencies to do our part in reducing the

All building tenants at One Vanderbilt will be afforded access to an amenities package unrivaled in New York City office buildings, including a 30,000-square-foot tenant-only amenity floor with large format meeting spaces, club-style lounge, curated food offerings and an extraordinary outdoor terrace that faces Grand Central. VOLUME 44, NUMBER 2

Standing 1,401 feet tall and totaling 1.7 million square feet, One Vanderbilt offers an unparalleled package of amenities, innovative office design, technology offerings, best-in-class sustainability practices and a prime location at the doorstep of Grand Central Terminal. The iconic tower is the tallest office tower in Midtown Manhattan.

environmental impact from the built environment. New York City set one of the ambitious climate goals in the world through Local Law 97, and we understand our obligation to meet these goals. Three of our largest, most recent projects – One Vanderbilt, One Madison, and 185 Broadway – epitomize our commitment to constructing healthy, vibrant buildings that help, rather than harm, our environment. Innovative touches like One Vanderbilt’s use of rainwater and collection treatment system or One Madison’s dedicated outdoor air system (DOAS) HVAC incorporate state-of-theart technology that people want to work and live in. We are raising the bar for what will become the industry standard. SL Green is also committed to having energy efficient buildings and reducing our portfolio’s carbon footprint. Currently, 91 percent of our Manhattan operating properties hold green building designations. Our goal is to make that 100 percent among eligible properties. We are also committed to reducing our total greenhouse gas emissions intensity by 30 percent and achieve a 50 percent recycling rate by 2025. Additionally, since tenants consume roughly 60 percent of a building’s energy, we recognize the importance of partnering with them to achieve meaningful reductions. SL Green is committed to refining our lease language to maximize our environmental stewardship in partnership with them. Will you discuss SL Green’s focus and commitment to sustainability and its ESG efforts? SL Green is fully committed to maintaining its position as an industry leader in ESG, and you can see that throughout every aspect of our business. This is driven from the top – we integrate ESG across all business lines and advocate for operational transparency. Annual ESG reporting is a priority for SL Green and since 2013, we’ve adhered to the GRI standard because we feel it is VOLUME 44, NUMBER 2

How critical is it for SL Green to build a diverse and inclusive workforce in order to bring diverse perspectives and experiences to the table when making business decisions? The measurable benefit of having a diverse and inclusive workforce is not a new concept – it is essential for any successful business or organization. At SL Green, we’ve assembled a talented and diverse workforce that exemplifies the spirit of our organization, and we are committed to growing that further. We are currently working on developing quantifiable goals to demonstrate our commitment to a diverse workforce. We encourage a variety of perspectives and alternative solutions, and since employees are the backbone of our company, we want to ensure we have a cross-section of thought representative at all levels of decision-making in the organization. What advice do you offer to young people interested in a career in real estate? Never underestimate the importance of hard work and determination at the start of your career. You’re not expected to know everything on Day 1, but if you apply hard work, practical thinking, and a willingness to learn, you will be successful. I’m a big believer in learning through osmosis, so don’t downplay the importance of being exposed to things that may seem like they are out of your realm of responsibility. I joined SL Green in 2012 and worked my way up from Executive Assistant to my current position as Senior Vice President and Director of Sustainability. Going the extra mile will make a big difference in terms of your career growth and development.

a consistent measure of performance change. In more recent years, we’ve expanded our annual reporting to include GRESB and CDP and took the important steps of ensuring we are aligned with SASB, TCFD and the UNSDGs. We’re also driven by data and understand the importance of accurate and consistent environmental performance data. This is what helps us make meaningful improvements in our portfolio that reduce emissions, divert waste, improve energy efficiency and keep us competitive in sustainable initiatives. How valuable is it in your role to have such deep engagement and suppor t from SL Green’s management team in its ESG work? There’s no question that the ESG leadership at SL Green comes from the top. It’s not simply a sideshow – it’s core to everything we do. It takes a dedicated team to develop and execute the vision of our company’s leadership. Programs and initiatives that we implement have to transcend our entire business in order for them to have a meaningful impact on our business operations. This cannot be achieved without having the right people committed to understanding what needs to be done and how. Most importantly, we have a sounding board at the highest levels of our organization and direct feedback from our executive management team and our Board of Directors. This helps us shape our ESG goals while meeting the expec- Kohn Pedersen Fox (KPF) Associates is responsible for One Vanderbilt’s iconic design, which comprises four interlocking and tapering planes that spiral toward the sky. tations of our shareholders.

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PURPOSE

Health Equity An Interview with Carol R. Horowitz, MD, MPH, Professor of Population Health Science and Policy, and Professor of Medicine, and Director, Institute for Health Equity Research, Icahn School of Medicine at Mount Sinai EDITORS’ NOTE Carol Horowitz INSTITUTION BRIEF Mount Sinai is Professor of Population Health Health System (mountsinai.or g) Science and Policy, Professor of encompasses the Icahn School of Medicine, Dean for Gender Equity, Medicine at Mount Sinai and eight Co-founder and Director of Mount hospitals, as well as a large and Sinai’s Institute for Health Equity expanding ambulatory care network. Research and a practicing general The eight hospitals – Mount Sinai internist. Her research focuses on Beth Israel, Mount Sinai Brooklyn, improving health of racially, ethniThe Mount Sinai Hospital, Mount cally and socioeconomically diverse Sinai Queens, Mount Sinai St. Luke’s, individuals with or at risk for chronic Mount Sinai South Nassau, Mount diseases. At the core of this work are Sinai West, and New York Eye and Carol R. Horowitz substantive and equitable community Ear Infirmary of Mount Sinai – have partnerships to ensure that scientific a vast geographic footprint throughquestions posed, problems uncovered and solutions out the New York metropolitan region. generated resonate with those disproportionately and unjustly impacted by illness, and lead to sus- What was the vision for Mount Sinai tainable, scalable policy, system and environmental Health System launching the Institute changes. She is a leader and innovator in diver- for Health Equity Research (IHER) and sity and engagement in genomics research, helping how do you define IHER’s mission? lead the charge to translate genomic discoverWhile built on decades of health equity ies into healthcare and ensure that populations research by IHER directors and members, the traditionally underrepresented in genomic discov- vision for an institute ignited at the height of eries and clinical trials are first, not last, to benefit the COVID-19 pandemic, which put a spotlight from advances in genomics. She has published over on the long-standing, unacceptable existing 150 manuscripts and book chapters, lectures inter- inequities that lead to health disparities affectnationally, and her awards and honors include the ing at-risk communities in New York City. IHER U.S. Department of Health and Human Services develops research initiatives to understand and Excellence Award for Contributions to Diabetes, build sustainable, scalable initiatives and polithe Center for Disease Control and Prevention’s cies that eliminate them. National Leadership Award for the Public’s Health, IHER’s mission is to bring together health the Rubin NYC Prize for Medicine and Health, equity researchers from many disciplines across the Jacobi Medallion, Crain’s Notable in Health, and the Icahn School of Medicine to examine the being Madrina (Godmother) of NYC’s Three Kings systemic causes and magnitude of health and Parade. Dr. Horowitz graduated from Cornell healthcare disparities affecting nonwhite, lowMedical School, received her primary care training income, immigrant, uninsured, LGBTQ+, and at Einstein/Jacobi, and was a research fellow and other vulnerable populations across all ages, received an MPH as a Robert Wood Johnson Scholar abilities, and genders in order to devise, test, at the University of Washington. and implement innovative solutions to eliminate

disparities in health while fostering long-term collaborations with community organizations and policymakers. Will you highlight the services that will be offered by IHER? IHER offers services across the four guiding pillars of: 1. Improving health outcomes for disadvantaged populations and eliminating inequities in healthcare quality and access. 2. Engaging community-research partnerships to improve the physical and mental health of diverse communities. 3. Assessing how combined biological, social, financial, and healthcare factors contribute to disparities, and testing and developing programs to address these. 4. Transforming our research workforce to reflect the diversity of our society and training researchers to conduct their work through an equity lens. In regard to our efforts to engage community-research partnerships, we have held several virtual events for underserved populations in our New York City communities to address COVID19 concerns and vaccine acceptance. We brought together 75 community and academic partners for our “You, Me & COVID-19: Brainstorming Research Ideas Together” summit, to identify areas of interest and concern to their communities. This effort led to successful town hall conversations in which experts and advocates provided community members with valuable information on COVID, the vaccine, and introduced our website where people can share questions, ideas and be linked to resources. We also offer trainings and consultations to community-based organizations, research and clinical, interested in stakeholder-engaged disparities research.

“Health equity is the idea that everyone should have all of the resources needed to be healthy, including nutritious food, stable housing, safe places to play and exercise, good education, fair-paying jobs, clean air and water, quality healthcare, and freedom from exploitation and racism.” 102 LEADERS

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“Our health system services one of the most socioeconomically, demographically, and culturally varied populations in the world and we believe that the disproportionate impact of inequitable policies and practices that lead to excesses in illness, suffering and death in our communities is unjust and needs to be remedied.” Why is health equity research so important to Mount Sinai Health System? The health of our patients and the communities we serve is critically important to us: it is the reason we exist. Our health system services one of the most socioeconomically, demographically, and culturally varied populations in the world and we believe that the disproportionate impact of inequitable policies and practices that lead to excesses in illness, suffering and death in our communities is unjust and needs to be remedied. We also believe that it is only through building strong partnerships with individuals disproportionately and unjustly impacted by health disparities and systems that have led to and perpetuated them, that we can truly eliminate disparities. Health equity is the idea that everyone should have all of the resources needed to be healthy, including nutritious food, stable housing, safe places to play and exercise, good education, fair-paying jobs, clean air and water, quality healthcare, and freedom from exploitation and racism. Progress towards health equity requires that the myriad causes of health and healthcare disparities be understood and addressed. What are the key issues that IHER will address and will you provide an overview of some of the studies IHER is currently doing? IHER’s research agenda will always aim to reflect the needs of NYC communities; therefore, an area of intense focus is addressing the COVID-19 pandemic within communities impacted most. One of our first projects is “Speak Up on COVID-19” – an 11-language survey developed in partnership with over 100 New York City community organizations. “Speak Up”

explores the impact of COVID in New York City and results are used to educate policy makers, community-based organizations and healthcare providers; advocate for needed programs; and support New Yorkers with resources that sustain physical and mental health, such as food and housing. IHER studies currently underway on COVID-19 and other areas include: • The interaction of race, ethnicity, disability, underlying illnesses, and social determinants including poverty, pollution, and household crowding on hospitalization, death and long-term symptoms from COVID-19; • The impact of gender-affirming hormone treatment on the clinical course of COVID-19 in transgender and gender nonbinary patients; • Health outcomes for those living with HIV and COVID-19; • Reasons for low vaccine acceptance in some communities; • Impact of COVID on childbirth; • Whether patient care via remote telehealth had equal access and quality and how we can deliver telehealth equitably and narrow the digital divide. IHER has assembled a high-level task force. How valuable will the expertise and experience of the task force members be to IHER’s efforts? Research institutes can be insular, focused on projects and grants. To impact policies and systems and make transformational change, IHER must have external partners and advisors. Our high-level task force includes leaders of advocacy organizations, business, industry, academia, government and entertainment. This

talented, diverse, powerful group are committed to enhancing equity in their own sectors, to IHER’s mission and vision, helping IHER build a strong, innovative, durable infrastructure and operation, and helping us effectively guide, publicize, and inform IHER’s current and future research initiatives. How critical are metrics to track the impact and results of IHER’s work? We are a research institute, and therefore very focused on metrics to identify the existence, scope and magnitude of problems, develop and monitor initiatives to address them, and rigorously impact and improve the quality of initiatives with more limited success. In this way, we have confidence our initiatives are working and cost effective, and thus worthy of resources to sustain and scale them. What excited you about leading IHER and how will you focus your efforts in the role? The establishment of IHER came at a critical time in New York City and nationally; folks are acknowledging the reality of systemic racism and how it infiltrates policies and practices that disproportionately affect underserved and marginalized populations. As a white professional, it would be arrogant and foolish for me to conduct this work without diverse partners and substantive resources. Our society is becoming increasingly aware that systems are designed to get the results we now have – people living shorter and less healthy lives not by choice, but due to inequities in these systems. IHER is uniquely and powerfully poised to understand the root causes of inequities, train a new generation of scholars and people of action, and use data to drive change that is long overdue.

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“The establishment of IHER came at a critical time in New York City and nationally; folks are acknowledging the reality of systemic racism and how it infiltrates policies and practices that disproportionately affect underserved and marginalized populations.” VOLUME 44, NUMBER 2

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Creating Positive, Enduring Change An Interview with Ramesh Srinivasan, Senior Partner, New York, McKinsey & Company EDITORS’ NOTE Ramesh Srinivasan Will you highlight McKinsey’s co-leads the Phar maceutical & emphasis and commitment to social Medical Products and Organization responsibility? Practices, is the dean of McKinsey’s McKinsey is deeply committed CEO learning program, the Bower to social responsibility. Our purpose Forum, and leads the firm’s partas a firm is to help create positive, ner learning program. In addienduring change in the world. With tion to leading McKinsey Academy our knowledge base and network of in the Americas, Srinivasan has partners, we believe that we have a extensive experience working on unique opportunity and responsibila broad range of organizational ity to use our expertise, network and change-related topics in a variety capabilities to help address the world’s Ramesh Srinivasan of industries, including high-tech, most pressing social and environmenhealthcare, banking and industal challenges. trial companies. He is also an expert in merger Our approach to social responsibility is management, organizational design, talent and centered on three pillars: activating our colleadership development, performance manage- leagues to give back in both highly ambitious ment, and capability building. In addition to and individual ways; managing our firm responserving clients on these topics, he works closely sibly; and weaving social and environmental with McKinsey’s internal leadership and profes- impact into our client service. We recognize sional development programs. Srinivasan joined that this work represents an ongoing journey of McKinsey & Company in 1994, having spent change and reflection, and that we must conthe first 11 years of his tenure with the firm in tinually work to strengthen these three pillars India, and the last 11 years in New York. He is of our social responsibility. actively involved in education: he is a trustee That said, we focus on a few big themes on the Board of Akanksha – a leading non- where we want to enable the creation of an profit institution in India that helps provide inclusive economy in the world. We invest in funding for educational services to underpriv- research that we publish on each of these topileged children – and an advisor to Teach For ics; we ensure we as a firm are acting responIndia. Srinivasan earned a BT in computer sible on each of these dimensions; we apply the science from the Indian Institute of Technology Madras and an MBA at the Indian Institute of Management where he was the recipient of a gold medal for academic excellence. FIRM BRIEF McKinsey & Company (mckinsey.com) is a global management consulting firm committed to helping organizations create change that matters. In more than 130 cities and 65 countries, its teams help clients across the private, public and social sectors shape bold strategies and transform the way they work, embed technology where it unlocks value, and build capabilities to sustain the change - not just any change, but Change that Matters – for their organizations, their people, and in turn society at large. Will you provide an overview of your role and key areas of focus for McKinsey? I lead Social Responsibility in North America for McKinsey, and am a leader in our Healthcare and Organization practices. I also serve in the role of Global Dean of our Bower Forum, our CEO learning program. 104 LEADERS

same principles in our client work; and we give back to the world by serving a set of local and national and global nonprofits on a pro bono basis on each of these themes. To give you one example, we announced a set of 10 actions (https://www.mckinsey.com/about-us/diversity/ overview/10-actions) earlier this year. All these actions contribute towards our diversity and inclusion agenda. How has McKinsey continued to support its CSR work during the pandemic? We realized the pandemic was a critical moment for us to double down on our Social Responsibility agenda. We are helping the food system respond to the crisis, both at the local level and regional level. Often these involve bringing our supply chain expertise to these institutions. We are now working with organizations like Feeding America to build back better post the pandemic. We believe the food system is a foundational element of an inclusive economy. We have also realized the importance of mental health, and more broadly we see “wellbeing as a critical skill” for organizations. We are publishing a lot of research on well-being through our Center for Behavioral Health. We are turning this research into programs around adaptability and resilience which we are using both internally and in our client work. We are also sharing this pro bono with some nonprofit organizations.

“We engage our colleagues extensively in our social responsibility efforts. Each of our local offices have their social responsibility agenda, and colleagues build on our broad themes and often add their own specific areas of focus.”

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“Our purpose as a firm is to help create positive, enduring change in the world. With our knowledge base and network of partners, we believe that we have a unique opportunity and responsibility to use our expertise, network and capabilities to help address the world’s most pressing social and environmental challenges.” How do you engage McKinsey’s workforce in its social responsibility efforts? We engage our colleagues extensively in our social responsibility efforts. Each of our local offices have their social responsibility agenda, and colleagues build on our broad themes and often add their own specific areas of focus. More specifically, we have three main initiatives in place that empower our 30,000+ colleagues to give back: 1. McKinsey Serves, which supports our communities, individually or collectively, enabled by paid volunteer time off 2. McKinsey Grants, where we provide financial support to select nonprofits that we think will make a difference locally 3. McKinsey Gives, which allows colleagues to donate to the causes they care about, which are amplified by a 1:1 match by the firm. How important are metrics to track the impact of McKinsey’s social responsibility programs? Metrics are very important for us. We track input metrics especially when we have allocated specific funds for a theme. For example, we have announced a $200 million contribution to racial equity. We track output metrics in areas where we are hoping to make a substantial contribution – for example, our research from the Black

Economic Institute shows that six levers, for example education, housing, and health, are most important. So, we will track output metrics in these topical areas. Ultimately, we look at outcome measures where impact from these topical areas can collectively make a difference to specific geographies. We have started with Atlanta, where we are working with nonprofits, businesses and government to make a meaningful difference to many lives in the local community. Over time, we hope to construct a playbook that can be tailored to the needs of different geographies with large Black populations like Washington, D.C., and New York City, among others. Will you discuss the commitment and support from McKinsey’s management team and senior leaders for the firm’s social responsibility work? McKinsey senior leaders are deeply committed to our social responsibility work and support us in many different ways. They role model the behaviors we expect of all our colleagues. They give us resources when we ask for them. They challenge us and hold the Social Responsibility team accountable for impact. Additionally, they include social responsibility efforts and impact in all their communications with colleagues. We also have a global Social

“Metrics are very important for us. We track input metrics especially when we have allocated specific funds for a theme. For example, we have announced a $200 million contribution to racial equity.”

Responsibility Council, which I am proud to be a part of, comprised of many senior leaders which enforces the commitment to the work we are doing. What do you see as the responsibility that leading companies have to being engaged in the communities they serve and to being a force for good in society? We signed the BRT commitment to purpose along with many leading institutions in the world. We believe companies have a responsibility to a broad set of stakeholders – both in their local communities and to be a force for good in the world. The pandemic has shown that businesses can step up to the task. The accelerated development of vaccines is one example where companies are making a huge difference to the world. You have spent over 25 years of your career with McKinsey. What has made McKinsey so special for you? I joined McKinsey to help strengthen my skills and my own professional development. That has not changed in 25+ years. Even today, I am learning a lot from all the experiences at McKinsey. I have had a global exposure spending 11 years in India and now 15+ years in the U.S. Beyond my client work, I feel privileged to be one of the leaders of our broader social responsibility efforts, and to be able to use the Bower Forum to unleash the full potential of leaders. I am also deeply passionate about education and serve on the board of several organizations. My wife and I have suffered big losses in our lives over the last 10 years. My own purpose is to be a beacon of hope and optimism, especially for people who are going through a tough time. McKinsey’s purpose of making a positive and enduring change in the world gives me a great opportunity to unleash my own potential. What advice do you offer to young people interested in building a career in the industry? The industry can be a force for good in the world. If you join the right company, you can make a positive difference in the world. Look for companies that invest in you so that you can learn and be your best self. Reflect on what gives you meaning and ask if the company’s purpose and mission matches what gives you fulfillment.

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PURPOSE

A Legacy of Care and Action An Interview with Nancy Mahon, Senior Vice President, Global Corporate Citizenship and Sustainability, The Estée Lauder Companies EDITORS’ NOTE Nancy Mahon drive the innovation of responsible, was pr eviously Senior Vice luxury packaging to helping to advance President, M·A·C Cosmetics and progress on the company’s racial equity Global Executive Director of the commitments by fostering partnerships M·A·C AIDS Fund. In 2011, she was with nonprofit organizations fighting appointed by President Obama as for equity and justice. Chair of the President’s Advisory How critical is it for the head Council on HIV/AIDS, a role she of sustainability role to be engaged served in for five years. Prior to joinin business strategy? ing The Estée Lauder Companies, It’s critical for the long-term sucshe served as Executive Director of cess of the business, its people and God’s Love We Deliver and as Senior the environment. At The Estée Lauder Nancy Mahon Program Executive with George Companies, sustainability has long Soros’ Open Society Foundation. been central to how the company and She also served as Private Delegate to the U.N. its brands have operated and is a key part of Commission on Women and as a Founding our corporate strategy for the future, so much Member of the National Institute of Medicine’s so that the company made sustainability a straForum on Global Private Public Partnerships. tegic pillar and this work is sponsored by our Mahon graduated from Yale University and NYU Executive Chairman, William P. Lauder, and our School of Law, where she was Editor of the Law President and CEO, Fabrizio Freda. In March Review and a Root-Tilden Scholar. 2019, the company decided to take its mission to a higher level and accelerate its efforts by COMPANY BRIEF The Estée Lauder Companies publicly announcing new corporate citizenship Inc. (elcompanies.com) is one of the world’s and sustainability goals for 2020-2025. These leading manufactur ers and marketers of goals are integrated into our corporate strategy prestige beauty skin care, makeup, fragrance and hair care products. More than $14 billion of the company’s products are sold in approximately 150 countries and territories under brand names including: Estée Lauder, Aramis, Clinique, Lab Series, Origins, Tommy Hilfiger, M·A·C, La Mer, Bobbi Brown, Donna Karan New York, DKNY, Aveda, Jo Malone London, Bumble and bumble, Michael Kors, Darphin, TOM FORD BEAUTY, Smashbox, Ermenegildo Zegna, AERIN, RODIN olio lusso, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, KILIAN PARIS, BECCA, Too Faced and Dr. Jart+. Will you provide an overview of your role and key areas of focus at The Estée Lauder Companies (ELC)? As Senior Vice President, Global Corporate Citizenship & Sustainability at The Estée Lauder Companies, I oversee a cross-functional team that drives best practices for the company’s environmental and social impact action strategy, initiatives and goals. Investing in global communities and the future of our planet is at the heart of the company’s values. It’s my job to operationalize these efforts across the company’s brands, regions and functions. This encompasses everything from expanding our renewable energy portfolio to creating policies and processes to 106 LEADERS

and across the business operations. Our citizenship and sustainability goals aim to achieve innovation, efficiency and value creation and are a fundamental part of our business strategy. ELC is celebrating its 75th anniversary this year. Will you discuss ELC’s citizenship and sustainability commitments since the company’s founding? The Estée Lauder Companies has always been a different kind of company since its founding 75 years ago. We’ve long understood the importance of embedding social impact and sustainable practices across our value chain and leveraging the strength of our enterprise and brands to support environmental and social impact causes. These values are in our DNA. Alongside the company’s deep commitment to environmental stewardship, a passion for driving positive social change and supporting the communities in which we live, work and source is a unique part of our DNA. Our flagship citizenship programs remain the bedrock of our social impact work. Since its inception in 1992, the Breast Cancer Campaign has raised more than $99 million to support global

The Estée Lauder Companies has more than 25 prestige beauty brands VOLUME 44, NUMBER 2

ELC reached Net Zero carbon emission and sourced 100% renewable electricity for its direct operations globally thanks in part to its growing renewable energy portfolio at its facilities around the world. Pictured is the company’s new Melville, New York on-site solar array.

research, education and medical services. M·A·C VIVA GLAM’s groundbreaking campaign has todate raised more than $500 million for the global fight against HIV/AIDS and recently expanded its mission to support health and rights for all, with a focus on women and girls and the LGBTQA community. This is the culture of purpose that’s at the heart of everything we do. As we look to the next 75 years, we will continue building on the bold legacy of our founder, Mrs. Estée Lauder, and the Lauder family, with a greater emphasis on our commitment to standing for causes that are central to our identity and long-held values. How has the COVID-19 pandemic impacted the work of ELC’s sustainability team and how proud are you to see the resilience that your team has displayed during this unprecedented time? 2020 was transformative in many ways and the ripple effects will be felt around the world for years to come. Our company and employees have shown resilience, tenacity and compassion throughout these tumultuous times, and it’s thanks to their dedicated efforts that we remain steadfast in delivering progress against our citizenship and sustainability strategy, goals and targets – despite the significant and ongoing challenges ahead. During this unprecedented moment, I’m incredibly proud of the way the company, its brands and its charitable foundation prioritized the well-being of its employees and global communities as well as supported the broader COVID-19 relief efforts through the production of hand sanitizer, in-kind product donations and more than $15 million in grant support for relief and response efforts around the world. VOLUME 44, NUMBER 2

Our actions continue to be guided by our family values and, when COVID-19 hit, we quickly established an employee relief fund dedicated to providing immediate and critical financial relief to eligible employees who have been impacted by the pandemic. And while today, the strengths of our businesses are behind COVID-19 relief efforts and global recovery, we also know that we can’t lose sight of the long term. The pandemic has not only highlighted the need to protect the planet and its resources, but it has raised the collective consciousness of the great intersectionality between the climate crisis and many of the social issues we are facing. Now, the priority for our teams is to build a holistic approach to addressing these critical global problems. As The Estée Lauder Companies and the larger business community invest in the technology and infrastructure needed to effectively tackle environmental issues, we must also continue to build a better society, one that serves the many, not the few. Now more than ever, the importance of this work is clear, for our business, our planet and our communities. Will you discuss ELC’s recent citizenship and sustainability achievements? In 2020, the company achieved Net Zero carbon emissions and sourced 100 percent renewable electricity for its direct operations globally. In addition, the company also met its goal to set science-based targets for its direct operations and value chain. These new targets will enable The Estée Lauder Companies to take even more decisive action on climate change in a critical decade for our planet and global communities. We also surpassed our goal to impact 10 million individuals in 2020 – positively

impacting the lives of more than 20 million individuals worldwide over the past two years with programs and grants focused on health, education and the environment. We are humbled and honored to help play a role in driving social change and remain committed to positively impacting current and future generations. How valuable is it in your role leading sustainability for ELC to have such deep engagement and commitment from ELC’s management team and board of directors? This is incredibly valuable and critical to the success of our strategy. In working to achieve the company’s citizenship and sustainability goals, the executive leadership team drives citizenship and sustainability across our organization and reports progress up to our Board of Directors. Together, our executives and Board of Directors guide our actions with a focus on patient capital, making investments and setting priorities to strengthen the business for the long term. W i l l yo u d i s c u s s yo u r f o c u s o n employee engagement for ELC’s sustainability work? At The Estée Lauder Companies, we see our employees as the ambassadors and agents of change within our organization. They are key to bringing our values to life. We have a “Leadership from Every Chair” philosophy which fosters a sense of ownership and accountability at all levels, and that’s what really drives sustainable practices enterprise-wide. In our efforts to embed sustainability throughout our organization, we committed to providing 100 percent of employees worldwide with access to training on sustainability and corporate social impact programs by the end of 2020. To support the achievement of this goal, we launched a virtual, interactive learning guide to help ensure every employee, no matter what part of the business they touched, or what language they spoke, had access to information on the company’s citizenship and sustainability programs and could find meaningful ways to get involved. A workforce engaged and mobilized on these important issues will help us drive our efforts forward. What are your key priorities for ELC’s sustainability work as you look to the future? This is a decisive moment for action on climate as well as a pivotal moment facing our environment and communities around the world. As a global business in an ever-changing world, we understand the intersectionality between the climate crisis and many of the social issues we are facing. We firmly believe that the benefits of a healthy climate and beautiful world should be shared by everyone, and that the social and environmental sustainability agendas are inextricably connected. The urgency and imperative to act is clear and we’re committed to doing our part, bringing our legacy of care and action into the future. As a family-founded company, we feel a deep sense of responsibility to the next generation and we will continue to work with our partners to help protect the next generation from the worst impacts of climate change, be of service to our communities, and contribute to a healthy, beautiful planet for all.

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PURPOSE

The Future of Open Finance An Interview with Simon Paris, Chief Executive Officer, Finastra EDITORS’ NOTE Simon Paris is Will you highlight the history and r esponsible for Finastra’s straheritage of Finastra and how the tegic direction and growth. His company has evolved? leadership steers the company We often refer to Finastra as as it realizes its open platfor m something of an anomaly when you vision, encouraging industrythink of a fintech startup – with 9,000 wide collaboration to spark employees around the globe and a innovation and transfor m the combined heritage of 200 years, we next generation of financial are not your typical start-up. Finastra services. Paris chairs the World was born in the summer of 2017 when Trade Board and is passionate we merged two established financial about how technology and open services technology giants; Misys and Simon Paris trade can drive financial incluD+H. To absorb one into the other’s sion and improve people’s lives. name would neither have been just, nor He also serves on the Board of Directors for would it have reflected our own digital transforEverbridge, a critical event management mation as well as the launch of our open platform, (CEM) softwar e company, and Thomson FusionFabric.cloud. Given this, we knew it was a Reuters. A Fintech thought leader, he speaks chance to redefine and relaunch the two organizar e g u l a r l y a t l a r g e - s c a l e e v e n t s i n c l u d - tions with a new brand, vision and vitality. And so ing the annual World Trade Symposium, Finastra (“finance” plus astra – a new, bright star) Paris FinTech Forum and the Milken Asia came to be. Finastra equals the star of financial Summit. He is a strong advocate for diver- services. sity and inclusion and has also been named Finastra truly combines the best of both orgain Bank Innovation’s Innovators to Watch nizations’ DNA – the depth and breadth of finanlist for 2018. Paris joined Finastra (for- cial services technology, a customer base of over merly Misys) as Pr esident in 2015, was 8,500 and an incredible ecosystem of employees appointed Deputy Chief Executive Officer in and partners. It also gave us the opportunity to 2017 and became Chief Executive Officer in transform ourselves. We started by applying design June 2018. He brings more than 20 years thinking; what do our customers need today, what of sales, management and global leadership will they need tomorrow, and realistically – what expertise to the company, having previously do they need in the future? held the role of President, Industry Cloud, We understood that soon our solutions alone at SAP. Earlier, he was a senior consultant wouldn’t be sufficient to keep pace with the innowith McKinsey & Company. Paris holds an vation and collaboration that was happening all MBA from the INSEAD Business School in around us. Rather than tie customers into restricFrance and a bachelor’s degree in business tive contracts, we knew that we needed to provide and European languages from the European an open space for them by making our solutions Business School. open to capitalize on the vast world of innovation happening outside of their, and our, doors. This COMPANY BRIEF Finastra (finastra.com) is was the big idea behind Finastra – that the “Future building an open platform that accelerates of Finance is Open.” collaboration and innovation in financial We embraced the open movement and services, creating better experiences for peo- launched our platform, FusionFabric.cloud, ple, businesses and communities. Supported which is the enabler of rapid innovation, by the br oadest and deepest portfolio of reduced development cycles, accelerated colfinancial services software, Finastra delivers laboration and the gateway to the future of open this vitally important technology to finan- finance. We knew that this decision, handing cial institutions of all sizes across the globe, our customers the keys to their own innovation including 90 of the world’s top 100 banks. Its journeys, may lead to an element of cannibalopen architecture approach brings together a ization of our own role within the relationship, number of partners and innovators. With a but ultimately providing our customers with a global footprint Finastra has $1.9 billion in future-ready roadmap was the key to our own revenues, 9,000+ employees and more than transformation as well as protecting our custom8,500 customers. ers’ longevity and relevance. VOLUME 44, NUMBER 2

What have been the keys to the strength and leadership of Finastra and how do you describe the Finastra culture? We believe that the future of finance is open. Open technology, open APIs, open standards, open ecosystems, open banking – any of us would be hard-pressed to think of one of today’s most successful organizations that isn’t “open” in most respects, whether it’s creating a platform that brings any citizen or business to a global marketplace or connects third party analytics and data to better shape the customer experience. The future is open. As such, we ensure that our commitment to open permeates every aspect of our culture. It started with a small, but significant, step – to invite everyone to “bring their whole selves to work.” Dress as you like and be yourself. This lit the fuse that absolutely ignited an open culture revolution within our organization. We’ve redesigned our workplaces to better facilitate collaboration and creativity with more communal spaces. We’ve redesigned our working policy around OpenWorking, so that people are free to work with flexibility, from home or office and across a global network of thousands of “hubs.” We’ve redesigned our approach to holiday time so that we’re focused on employee well-being and have just launched our uncapped vacation policy. We talk openly about mental health and well-being. We’ve invested heavily in tools to facilitate open collaboration. We’ve run many global hackathons, open to developers, universities, fintechs and beyond to spark innovative ideas that will shape our future. And we’ve put ourselves under intense scrutiny at every step, to ensure that what we’re doing is inclusive, empowering and reflective of our commitment to openness, fairness and equality. I’m honored to have a leadership team and workforce of 9,000+ people that reflect these values every day, in every action. We champion working groups, such as mental health in the workplace, LGBTQ+ inclusion, diversity, racial equality and the eradication of bias – in our workplace, in our technology and in our products. How has Finastra adapted its business to address the challenges caused by the pandemic and how proud are you to see the resilience of the Finastra workforce during this challenging and uncertain time? When the pandemic struck, we acted fast under pressure to safeguard our workforce, our LEADERS 109

“We believe that the future of finance is open. Open technology, open APIs, open standards, open ecosystems, open banking – any of us would be hard-pressed to think of one of today’s most successful organizations that isn’t ‘open’ in most respects, whether it’s creating a platform that brings any citizen or business to a global marketplace or connects third party analytics and data to better shape the customer experience. The future is open.” customers’ business continuity and our own business stewardship. It took Finastra less than two weeks to move over 95 percent of our workforce to home working (some staff remained on site for regulatory purposes), while ensuring the absolute, uninterrupted continuity of services. I read in a McKinsey report that overall, organizations transitioned 40 times faster than their pre-pandemic estimates; it certainly felt like that for us. We also transitioned to remote service delivery – from project designs to implementations to upgrades – with exceptional speed and agility; in the first three months of lockdown, we delivered literally hundreds of projects remotely. This is something that Finastra had been working towards anyway, being conscious of the environmental impact of air travel and with the aim of being carbon-neutral by 2030, and the pandemic accelerated this significantly and has created a blueprint for success. When we can employ remote testing, remote implementations and remote go-lives at a lower cost to our customers and to the environment, it’s difficult to imagine going back to the pre-pandemic model. I sincerely hope that this is one pandemic change in behavior that becomes engrained. Regarding your question on pride and resilience, I was frankly overwhelmed by the way our entire organization leaned in to support each other during the hardest and darkest of times. I saw hope and optimism, I saw acts of selflessness and compassion, I saw tenacity and courage across our entire global workforce. I saw technology used in the most extraordinary ways – to fundraise, to engage, to connect, to better physical and emotional health, and it made me feel incredibly privileged and incredibly humbled at the same time. Proud would be an understatement. Finastra is a purpose-driven company. How critical is purpose to Finastra’s mission and do you feel that it is a responsibility for leading companies today to focus on more than just the bottom line? I’ve been in this industry for three decades and can honestly say that I feel the world is on the edge of a new dawn. For those that know me, I am unapologetic about my views on purpose being at the heart of business. Whether it’s around how digitizing trade has the power to prove the provenance of a diamond or of palm oil, whether it’s about the power of technology to provide affordable, accessible and fair financial services to excluded communities, or whether it’s around the notion of privilege and how we all have a part to 110 LEADERS

play in creating better, fairer outcomes, it is our job as leaders to make sure that everything we do is for the betterment of the world. We’re also acutely aware of our responsibility to minimize our impact on the environment and reduce emissions. Committed to being carbon neutral by 2030, our environment mission includes managing our own travel and carbon offsetting programs with employees taking part in activities like planting trees and supporting our customers in reducing their carbon footprint too, through the digitization of processes and paper reduction that our technology enables. Every step we take must be a step towards a better future. Our children will one day look back and be astonished that companies were measured by profit or productivity. Today, we all focus on the triple bottom line; people, planet and profit. The ESG and CSR movements are not fads, they are new permanent expectations of good business. At Finastra, our technology has helped our customers navigate through the dramatic change of the pandemic. Of course, with this fortunate position comes the responsibility of “lifting as we rise” and ensuring that we continue to drive through our own initiatives around social impact, such as reskilling and community empowerment, as well as products and solutions that help our customers to address the challenges of financial inclusion, financial literacy and racial equity. Will you discuss Finastra’s focus on redefining finance for good and its efforts to lift others? Of course – it leads on from my last point. Financial services, and industry at large, is at a pivotal moment to not just “go back” to how life was, but to explore ways to build back better. At Finastra, we call this notion “redefining finance for good.” There is much inequality in the world – in credit decisions, access to financial services, affordable SME loans and more, and the pandemic has unfortunately had a far worse effect on those already suffering. Black-owned businesses were around two and half times more likely to close than white-owned businesses during the early stages of the pandemic, and the average cost of being unbanked is around $3,000 in fees and interest payments per person. Once you realize the scale of the inequality, you understand the vicious circle that is created when you don’t tackle it head on. We understand the conduit that our ecosystem – of customers, partners and fintechs – can have on redefining financial services to create better, fairer outcomes. A quick acid test of the power

of the network came about last September when we realized that just a few of the cumulative efforts by our community could result in nearly 10 million lives being positively impacted. That’s incredible, and testament to all of our network being committed to improving, not just rebuilding. As an organization, we are highly-committed to championing a better world. Our teams are involved in worldwide efforts to remove bias from credit decisions, improving transparency in machine learning models, increasing the opportunities to boost fledgling ideas through funding and incubation, by way of our hackathons and more. What do you see as the keys to effective leadership and how do you define your management style? Leadership styles change over the years, but people increasingly gravitate to leaders who exhibit humanity, those who can relate to workers as individuals with their own needs and priorities. They also prefer leaders who possess a vision for what might be – those who imagine how things could be done, rather than limiting their thinking by framing decisions in the context of what they already know or what has always been done. People respect leaders who can clearly and logically convey why choices are made to enable company progress. The Greeks referred to these essential qualities as “ethos,” “pathos,” and “logos.” • Ethos – translates to empathy, leaders with the insight and motivation to understand the perspectives of those they work for and with. • Pathos – a quality that allows leaders to consider what is possible or what might be achieved if teams of people can move forward together. • Logos – refers to logic, the reasons why enterprises do the things they do. People trust leaders who make it a priority to explain the “why” of their business decisions. What advice do you offer to young people beginning their careers during this difficult and unprecedented time? With the majority forced to work remotely, it can be difficult to feel connected. Choose a career with purpose – one that aligns with your vision for the world. Recent research I saw finds that when comparing people who say they are “living their purpose” at work with those who say they aren’t, the former report levels of well-being that are five times higher than the latter. Moreover, those in the former group are four times more likely to report higher engagement levels.

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VOLUME 44, NUMBER 2

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PURPOSE

Committed to New York An Interview with Meg Brod, Senior Vice President & Regional Development Officer, Rockefeller Group EDITORS’ NOTE Meg Brod is the sitting with an empty building or with Senior Vice President and Regional tenants who were struggling. We did Development Officer, Northeast see challenges with some of our retail Region, for Rockefeller Group. In tenants and have worked with them to this r ole, she is r esponsible for address their needs. overseeing the company’s current Rockefeller Group takes a longoffice, residential, and mixedterm view and is committed to New use developments in the region York and we believe in the future of including the Rose Hill condominNew York. We know that it will take ium project in NoMad, 200 East time and that things may get worse 83rd Street (an Upper East Side before they get better but, ultimately, condominium development projwe are confident that New York will Meg Brod ect), Flushing Commons mixed come back as it has done many times use development as well as entitlein the past. ment work on a large scale mixed use develAt the beginning of the pandemic last March, opment in Hoboken, New Jersey. Brod is a we went to a temporary remote workforce except highly experienced real estate developer and for the essential workers in our buildings such as investor and has held real estate development building security and property management staff, and investment positions at Bedrock Real and we did experience some construction delays Estate Partners, Equity Residential, Tishman on projects that were forced to close due to governSpeyer and Pritzker Residential. She is a mem- ment orders. We continued to push ahead wherber of the REBNY board of directors and an ever possible in order to keep things operating. We active member of WX New York Women didn’t change our corporate goals and focused on Executives in Real Estate. She has received being creative and innovative in order to reach our numerous recognition and awards includ- goals despite the challenges of COVID. ing Bisnow’s “New York Power Women” and Will you discuss the Rose Hill project Crain’s Notable Women in Commercial Real and what do you feel the impact will be Estate. Brod holds a bachelor’s degree from from this development? Duke University and an MBA from Harvard Rose Hill is our first condominium project Business School. located in NoMad and it was designed to address

Entrance of Rose Hill in NoMad

living in the future. The units allow for flexibility of floor plans so people can comfortably live and work in the space as they have been forced to do today because of the pandemic. For example, 50 percent of our units have flex space where you can close the door to a room but still have light and a window so it can be used very flexibly, whether you are having a baby and need a nursery, or working from home, or want a TV/ entertainment space – whatever suits your needs depending on the stage of life you are in. In the luxury market where sales have slowed, we have been able to keep prices stable as they were already smartly priced due to the flexibility provided in the usage of the space. The units at Rose Hill are well-positioned for today and for the future, which is what distinguishes our units from the competition.

C O M PA N Y B R I E F R o c k e f e l l e r G r o u p ( r o c k e f e l lergroup.com) is one of the most trusted names in real estate – a leading developer, owner and operator, known for pioneering large-scale urban mixed-use development. For 90 years the company has been trusted for its financial strength, stability and vision, and today remains committed to the selective development of innovative, high-quality properties that create long-term economic and civic value. Will you discuss your role and key areas of focus at Rockefeller Group? We are organized by region and my focus is on the Northeast. I am the regional development officer for the Northeast and my primary focus is on New York and the Tri-State Area. How has the global pandemic impacted Rockefeller Group’s business? We are fortunate that in the Northeast many of our commercial spaces were fully leased to high credit tenants which has allowed us to weather the storm better than if we had been 112 LEADERS

A Rose Hill flex room VOLUME 44, NUMBER 2

Rose Hill also includes a strong amenity offering. We have wellness driven amenities, including a great bike room that is intentionally located so you can easily take your bike in and out of the building. We have teamed up with a number of New York-based partners for our wellness offerings. We are working with FHITTING ROOM to offer fitness classes and we have a professional-grade squash court in collaboration with SquashRx, as well as an expansive 50-foot pool surrounded by hand-crafted, green oxide-glazed tiled walls. The library off the lobby offers books curated by the Strand Bookstore, which is another example of how we are working with local brands to bring a wellness and lifestyle component to the building. How critical has it been for Rockefeller Group to invest in its older buildings in New York in order to effectively compete with the new development in the market? Our building at 1271 Avenue of the Americas is a great case study of how to address this issue. I believe that what has created such value for Rockefeller Group is the location of our buildings and assets which won’t change, but the buildings can be transformed. 1271 was a massive redevelopment project which looks like a new building in a location that cannot be replicated. We took the strength of the location and transformed the building into what works today, whether it is upgrading the lobby or upgrading all of the systems or transforming the exterior. We have been very competitive in upgrading our existing buildings to compete against the new development in the market. At the end of the day, real estate is about location, location, location which is a differentiator for Rockefeller Group and a key to our success. How concerned are you about the future of retail and what are the keys to creating a successful retail offering? I am concerned about the future of retail. My opinion is that it will need to adapt to something that is seen as an amenity to the building based on the location. Retail needs to be seen as

A lving room at Rose HIll

a partnership among the owners of the property and the retail tenants in order to be successful. If the tenants are successful, the landlords will be successful, and working together is key to making retail work in the future. There may be cases where landlords need to realize that the traditional lease structure should be abandoned in order to create a building amenity to further attract tenants and to add value to the building. At 1271, we were able to sign the restaurant Avra during the pandemic shutdown. We believe that Avra will attract people to the building and it is a good example of an effective partnership between the tenant and the landlord. As a leading woman executive in the real estate industry, do you feel that there are strong opportunities for women to grow and lead in the industry?

Fitness center at Rose Hill curated by FHITTING ROOM VOLUME 44, NUMBER 2

It has been slower than we would like to see, but there has been progress made. I acknowledge that there are not enough women in the industry in general and there are not enough women in leadership roles in the industry, but I do believe it is slowly changing. Leading companies and senior management are implementing initiatives around diversity in the workforce which is making a difference and it is important for women to mentor each other. I know firsthand about the benefits of having women mentors which has been a great value to me during my career in the industry. I hope to be able to do the same for the women coming into the industry. What excited you about the opportunity to join Rockefeller Group and has it been what you expected? It has been what I expected and more. At the time when I was interviewing for this position about four years ago, there was a change in leadership happening at Rockefeller Group and the idea of being a part of writing the next chapter of Rockefeller Group was very exciting for me. I was excited to participate in the transformational growth of the company and it is rewarding to be a part of Rockefeller Group’s evolution. New York faces many challenges and there is debate about the future of New York. What is your outlook for New York and are you optimistic about its recovery? I don’t understand how people question New York’s future. There is an excitement that you get when you are in New York and people who love New York will always love New York. There will always be so much talent in New York and talent attracts talent. People want to be where things are happening, and I have no concerns over the strength and resiliency of New York which has been shown time and time again. I believe that New York will not only return, but will return stronger and better.

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Public-Private Partnership An Interview with Stuart Bennett, M.D., Group Chief Executive Officer, Al Sharq Healthcare EDITORS’ NOTE Dr. Stuart Bennett INSTITUTION BRIEF Al Sharq qualified as a doctor fr om St. Healthcare (fng.ae/alsharq-healthcare) Bartholomew’s Hospital Medical is a division of Fujairah National Group School, London, and spent the first (FNG), which is the largest diversified 10 years of his career as a Royal group on the East Coast of the United Navy Surgeon. He completed mulArab Emirates. FNG controls more than tiple patrols as a nuclear submari40 companies, with more than 4,000 ner and subsequently earned his employees and is managed directly by green beret, prior to deploying in the Royal Family of the Emirate of the field as a special forces operaFujairah. Al Sharq Healthcare was tor. Over the past 20 years, Bennett established in 1994 (previously known has lived and worked in Europe, as Emirates Medical Services) and Stuart Bennett the U.S., South East Asia, South Asia, manages a number of healthcare facilSub Saharan Africa, and the Middle ities in the eastern region of the UAE, East with varied experience including building which includes a JCI Accredited Multi-Specialty businesses from the ground up to managing Secondary Care Hospital, a number of Multimultiple site operations with more than 2,000 Specialty Polyclinics and Retail Pharmacies, and employees. Following three years as a sell-side Equity a Marine Specialty Pharma Business. Al Sharq Research Analyst at Bank of America Merrill Healthcare also wholly owns a cosmetology Lynch, Bennett moved to the buy-side, where he business which is present in multiple locations has transacted on more than $1.5 billion of ven- and expanding as one of the leading centers for ture capital and private equity healthcare deals cosmetology and plastic surgery in the UAE. across multiple sectors including hospitals, diagnostic services, primary care, digital health and What attracted you to a career in medicine? health tech. Dedicated to improving healthcare My father was a priest, so I come from a delivery globally, he has spent the majority of the background of service. He was also a military offipast decade on the ground in emerging markets, cer, commissioned as an army chaplain, meaninvesting in and then scaling healthcare coming that the two threads through my early years panies that are primarily targeting low to mid- were service and discipline. My mother was an dle-income patients with a focus on quality, opera singer and I had thought about pursuing a access, and affordability. In addition to his med- career as a musician, with music scholarships to ical degree, Bennett holds a bachelor’s degree support my education until I was 16 years old. I in medical sciences with a major in psychol- remember having a conversation with my mother ogy and completed his MBA with a concentra- and she told me that while being a musician was tion in finance at London Business School and fantastic, you may well struggle financially so she Columbia GSB, achieving Dean’s List Honors. recommended that I keep music in my life as a

hobby and pursue a career that I was passionate about. When I looked at possible careers – law, engineering and medicine – I knew that I did not have the patience to be a lawyer, and I did not have the math skills to be an engineer, but I did have a passion and ability for science so combining my love of science with my passion for service made medicine a good fit. Will you provide an over view of Al Sharq Healthcare? Al Sharq Healthcare manages a number of healthcare facilities in the eastern region of the UAE and we are owned by the ruling family of Fujairah. We are part of a wholly-owned division of Fujairah National Group (FNG) which is a diversified group of businesses and the healthcare division was created to contribute to the country and to society. We started with medical centers and then the decision was taken to build a hospital to have the complete system of medical services that would provide advance treatments for the people of Fujairah. We also have an interest in the Port of Fujairah which is a very busy shipping port and have a marine operation there providing medical services to ships coming in and out of the port, and pharmaceutical supplies. We also have a cosmetic surgery business. We see roughly 500,000 patients a year throughout the system and are the largest private healthcare operation in Fujairah serving the local population and community. How has the global pandemic impacted Al Sharq Healthcare and the UAE? There has been a health impact and we have been somewhat fortunate in this area as the number of deaths have been relatively small

“We worked very closely with the government sector to support the needs for hospital beds and we were receiving patients and supporting all government mandates so it was truly a public-private partnership.”

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“When I think about the resilience and selflessness of our people during this time, it reminds me of why I pursued a career in medicine in the first place.”

and the number of critical cases has been relatively small. A large part of that has been due to the way the government has handled the situation which has been amazing. I feel very fortunate and lucky to live here as they have taken a meritocratic approach with everyone having the same rights and obligations. We have had many people suffer cases of the virus and have worked hard to provide the best care possible, and overall, I think we have done much better than other countries. Another impact has been on healthcare as a business since all of the hospitals had to stop surgeries and non-essential treatments to keep beds available for COVID patients. We worked very closely with the government sector to support the needs for hospital beds and we were receiving patients and supporting all government mandates so it was truly a public-private partnership. Many healthcare businesses have suffered since the majority of income comes from surgeries and procedures resulting from complex cases and since we had to stop doing these for a period of time to manage COVID, it has caused a major financial impact for healthcare operators. How important has it been to support the mental and emotional needs of your team during this stressful time? It has been critical. As a management team, this has been a priority. From the early days of the pandemic, I was sending a regular update to our entire team informing them how things were going and how many cases we were treating and what would be happening next. This was a time for communication and to provide

confidence to our team that we were there for them and focused on their needs. We committed to them early on that there would be no layoffs so that they did not have to worry about their financial situation or whether they had a secure job. We have tried as best we can to rotate our staff and to manage the workflow and I have been very visible walking the floors to share the risk with our frontline staff. We are a transparent operation; we have an open-door policy and want our people to know that they are supported and loved. I think this commitment and engagement has been a major factor in making sure that the emotional and mental health needs of our staff have been addressed and prioritized. When I think about the resilience and selflessness of our people during this time, it reminds me of why I pursued a career in medicine in the first place. It is incredible to see and it is when times are most difficult and challenging that you see the true character of people. I am very proud to say that every one of our doctors and nurses have stepped up to do their duty. This time has restored my faith in the work we do because sometimes in healthcare it can be a thankless job, especially for our nurses, and I think we have come together and reinforced what we do and why we do it. How critical are lessons learned from the pandemic in order to be better prepared for future crises? I think it is vital that we look at systems and processes and that the link between the public and private sector working together is essential. The UAE has done very well during

this crisis, thanks to strong leadership that is revered by the people, with the public and private sectors working in close partnership to do what is best for the country. The government has asked the private sector to do things that are in the interest of the nation and have worked with the private sector, and I feel that the importance of this partnership is one of the key lessons learned. I also think that the way healthcare will be delivered in the future has changed dramatically. We have seen advances in telemedicine and healthcare systems have reassessed their staffing needs and processes. Do you miss practicing medicine and being with patients as your role has progressed into management? There are different types of people in the profession. There are people who have practiced for a very short period of time and then went into administration, so while they are doctors, they never really practiced. Then there are doctors that have one foot inside practicing medicine and one foot in administration which can be very difficult to balance. In my case, I realized that it would not be possible to do halfway. I tried for a long time and even kept my license when I was working earlier in my career in banking at Merrill Lynch when I would work on the weekends in the emergency room, but it was not sustainable. I made a conscious decision that what I am doing as an administrator can impact thousands of people a day while as a doctor, I may be able to touch a hundred people a day. I definitely miss being by the bedside but know that I am able to touch the lives of many more people in my current role.

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“The UAE has done very well during this crisis, thanks to strong leadership that is revered by the people, with the public and private sectors working in close partnership to do what is best for the country.”

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Skadden’s Culture An Interview with Stephen C. Robinson, Of Counsel, Litigation, Government Enforcement and White Collar Crime; Brenna K. DeVaney, Director of Pro Bono Programs/Pro Bono Counsel; and Lauren E. Aguiar, Partner, Complex Litigation and Trials; Skadden, Arps, Slate, Meagher & Flom LLP FIRM BRIEF Founded in 1948, Skadden, Arps, Slate, Meagher & Flom LLP and affiliates (skadden.com) is one of the world’s most highlyrespected law firms. Skadden has 22 offices, approximately 1,700 attorneys and more than 50 distinct areas of practice. The firm’s clients include approximately 50 percent of Fortune 250 industrial and service corporations, as well as financial and governmental entities, startup companies and nonprofits. Stephen Robinson is of counsel in S k a d d e n ’ s Litigation Group and a co-chair of the firm’s global Diversity, Equity and Inclusion Coordinating Committee. Prior to joining Skadden, he served as a judge for the U.S. District Court for the Southern District of New York and as the U.S. attorney for the District of Connecticut.

Stephen C. Robinson

What is the relationship between a firm’s culture and its efforts to promote diversity, equity and inclusion? Advancing diversity, equity and inclusion requires the sustained attention of a firm, from the very top of its leadership to its youngest associates. If a firm’s culture is one of rugged individualism or “every person for themselves,” it becomes difficult to focus on issues of diversity and inclusion, bias and oversight. If a firm generally has a culture of inclusion, respect for all employees and a willingness to take hard looks at, for example, recruiting, matter assignments, and reviews and promotions, the firm will be much more likely to uncover gaps and potential biases in its processes and to move steadfastly toward an equitable and inclusive work environment. H ow h ave r e c e n t d eve l o p m e n t s , including the protests in suppor t of racial justice, impacted the firm’s perspective on and approach to fostering inclusion? The events of the past year, and in particular the protests in support of racial justice and equity, have had a profound impact at every level of our firm. They have motivated 116 LEADERS

us to scrutinize our processes and outcomes, and to deepen discussions of bias, “organic attorney development” and meritocracy. This spotlight also has encouraged us to learn more about, and hold a series of webinars on, American history and the legacies that we continue to grapple with today of slavery, Jim Crow, redlining and racism. It has moved many of us to reconsider and reassess how we can learn and get better. This ongoing conversation inspired our Executive Partner to join other law firm and corporate leaders to come together and, through the Leadership Council on Legal Diversity, publicly commit to identifiable, measurable goals of processes, progress and outcomes. What are the keys for a large law firm to attract diverse candidates? Diverse candidates, like the majority of all candidates, want to join a firm that is paying attention to these issues. They want to know that they will get substantive work, good developmental feedback and opportunities to work on significant matters for sophisticated clients. They also want to stretch and grow and learn from their mistakes. Young attorneys need to know that someone is looking out for them and will provide meaningful advice, support and sponsorship along their professional journey. They want to see a path to advancement and success at the firm and in the profession. What diverse candidates are increasingly demanding is that firms show a recognition of issues of racism and bias, and demonstrate a plan to attack those evils, so that the candidates will be able to avail themselves of all of these opportunities. Has the past year made you more optimistic, or less, regarding diversity within Big Law? I am by nature an optimistic person. The past year has made me much more optimistic about our nation and the legal profession having the discussions and self-examination that can lead to progress on these issues. Big Law has recognized that it has much work to do and has set about doing that work. Clients are demanding accountability and results. Much of American society has coalesced around the need to address racial disparities and racial justice. I think these are all heartening signs, but those flames of hope can quickly be extinguished if they are not continually fueled.

Brenna DeVaney, who became Skadden’s first full-time pro bono associate in 2008 and now serves as director of pro bono programs and pro bono counsel, leads the fir m’s global pr o bono practice. She previously served for six years as an associate in Skadden’s Government Enforcement and White Collar Crime Group.

Brenna K. DeVaney

How did Skadden develop its strong pro bono culture? If there was a list of the factors that contribute to building a culture committed to public service, I think we’d check all the boxes. It’s in the firm’s DNA – giving back and pro bono service were incredibly important to Skadden’s founders; it has been part of our culture from the beginning. The firm’s senior leadership supports the work at every level – their dedication to pro bono is sincere and tangible, which inspires partners, counsel, associates and professional staff to get involved. We devote significant resources to our program, not only directly but also by providing attorneys billable-hour equivalents for their time. We also include everyone at Skadden, not just the lawyers, in our efforts. We recognize that everyone at Skadden cares about something and has skills that enable them to give back. Ultimately, it all comes down to our people who believe that it is their professional and personal responsibility and want to make a difference. Those are qualities we value, seek out and cultivate.

“We recognize that everyone at Skadden cares about something and has skills that enable them to give back.” - Brenna DeVaney VOLUME 44, NUMBER 2

“If a firm generally has a culture of inclusion, respect for all employees and a willingness to take hard looks at, for example, recruiting, matter assignments, and reviews and promotions, the firm will be much more likely to uncover gaps and potential biases in its processes and to move steadfastly toward an equitable and inclusive work environment.” - Stephen Robinson Will you discuss the new initiative that Skadden helped launch, the Law Firm Antiracism Alliance? Last year, soon after George Floyd’s death, a group of pro bono counsel from several firms came together to discuss the heightened desire to engage in racial justice work among our firms’ lawyers. We looked at what our firms already were doing through pro bono programs and what we could do better. We landed at the realization that firms have been fairly good at addressing the symptoms and manifestations of racism through direct representation of individuals, but less often through rooting out racism within the justice system. That’s what we wanted to do. I suggested that we identify all of the racist laws and then set about the very long-term project of dismantling them together. At the same time, a group of managing partners was talking about the importance of collaborating across law firms to address systemic racism, and those two discussions soon converged. We launched the LFAA in June, and there are now nearly 300 Alliance Firms teaming up to take on systemic racism in the legal system. We already have brought hundreds of attorneys together for virtual training sessions and launched 18 working groups to investigate problematic laws in categories such as policing, education and access to justice. Excitingly, the substantive work is now underway. LFAA Alliance Firms have begun working on addressing the continuing effects of non-unanimous Jim Crow juries, supporting low-income taxpayers and conducting targeted research requested by racial justice-focused legal services organizations throughout the country. How has the spotlight on racial justice and equity impacted Skadden’s pro bono program? I’ve heard this question asked in a number of different ways throughout the past year. At the heart of it is, “Why now and why not before?” It’s not as if racism in the justice system is new or surprising. The short answer is that of course law firms should have done more to help address these problems long ago. However, lawyers at law firms across the country are now activated and ready to do the heavy lifting that this endeavor requires. When our attorneys are ready to do the right thing, it is the job of law firm pro bono programs to help create the opportunities and structures that allow such work to take place. That’s what’s happening here. VOLUME 44, NUMBER 2

Lauren Aguiar is a partner in Skadden’s Complex Litigation and Trials Group in New York and has been with the firm for 25 years. She serves as the President/ Chair of the Skadden Foundation, which runs the Skadden Fellowship Program. Since its founding in 1988, the Lauren E. Aguiar Fellowship Program has provided more than 900 two-year, full-time fellowships for recent law school graduates and law clerks to practice public interest law. What was the original vision for the Skadden Fellowship Program and how has the program evolved? Skadden launched the program to develop the next generation of talented public interest attorneys who would work to improve legal services for underserved and poor communities. The Foundation assists the Fellows early in their careers – right out of law school or following judicial clerkships – by providing them a professional springboard. Over the past thr ee decades, our mission hasn’t wavered. Our alumni network of Fellows is now 900-strong and includes many of the most innovative and accomplished attorneys working in public service today. In many ways, they function as a virtual public interest law firm, teaming up for amicus briefs, working together on largescale projects and turning to each other for advice or support. Former Fellows can be found throughout the system, from direct service attorneys in legal aid offices in underrepresented communities, to executive directors of nonprofit organizations, to judges and law professors, to senior positions in the Biden Administration. We continue to find innovative ways to assist our former Fellows throughout their careers. We bring them together for annual conferences, local networking events and substantive webinars on topics of interest to their practice. We also provide funding to support their new ideas through what we call “incubator” grants. As we always have,

Skadden attorneys in all of our U.S. offices regularly collaborate with former Fellows on pro bono matters. What has the Foundation done in response to the events of the past year, including the pandemic and the renewed calls for racial justice and equity? As you might imagine, this has been one of our busiest years in a long time. We’ve developed a broad menu of new initiatives, such as awarding dozens of special COVID grants for former Fellows to take on pressing initiatives related to the pandemic. These projects include, for example, supporting self-litigants in eviction cases in Michigan; connecting Native Americans in New Mexico with assistance under the CARES Act and other governmental resources; and helping to get children out of group care and juvenile detention programs in California with potentially high COVID infection rates. The Foundation also has provided technology stipends to assist both current and incoming Fellows who are working remotely, and we’ve hosted educational programs around systemic racism and racial justice to foster important conversations around many of the underlying issues that Fellows address through their work. In addition, the Foundation has offered several new wellness programs to help members of our community care for themselves during this exceedingly challenging time. What effect have recent events had on the process for selecting Skadden Fellows and the projects they will pursue? Although our basic process remains the same, we are always evolving to meet the current needs of the communities served by Skadden Fellows. The pandemic has both exacerbated old challenges and created many new ones for individuals living in poverty, and we took that into account when selecting our latest class of Fellows who will start their projects in the fall of 2021. Their projects include, for example, providing direct, bilingual debt-collection defense and bankruptcy assistance for lowincome Washington, D.C. residents hardest hit by the pandemic, and offering direct services and systemic advocacy to combat the wave of pandemic-related evictions in Massachusetts.

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Transforming Healthcare An Interview with Michael J. Alkire, President and Incoming CEO, Premier Inc. EDITORS’ NOTE Michael Alkire, healthcare. With integrated data and anawho joined Premier in 2003, is a lytics, collaboratives, supply chain soluseasoned healthcare executive with tions, and consulting and other services, nearly 30 years of operational, Premier enables better care outcomes at a technology and business developlower cost. Premier plays a critical role in ment leadership experience. He the rapidly evolving healthcare industry, was named the company’s Chief collaborating with members to co-develop Operating Officer in 2013 and long-term innovations that reinvent President in 2019. In February and improve the way care is delivered to 2021 it was announced Alkir e patients nationwide. Headquartered in would succeed Susan DeVore as Charlotte, Premier is passionate about CEO in May 2021. In his role as transforming American healthcare. Michael J. Alkire President, he led the evolution of Premier’s Per formance Services Will you discuss your transition business, which combines artificial intelligence into the CEO role and how you feel Premier (AI)-driven technology, data and actionable is positioned for continued growth? insights with wraparound implementation serI have been with Premier for 17 years and I vices to improve health outcomes and reduce am humbled to take over the helm of this company costs. Prior to joining Premier, Alkire worked for because of the incredible work we have done and 12 years at Cap Gemini Ernst & Young in leader- continue to do. I look at Premier as a change agent ship roles where he was responsible for its North working with our healthcare systems to disrupt the American supply chain and high-tech manufac- industry from the inside. Susan (DeVore, Premier turing sector business. He received his under- outgoing CEO) created incredible building blocks, graduate degree from Indiana State University taking all of the data we have acquired around and his MBA from Indiana University. how best to provide higher levels of quality and safety while reducing costs, and created one of COMPANY BRIEF Premier Inc. (premierinc.com) the first electronic data warehouses in the indusis a leading healthcare improvement company, try. This is so meaningful because we can create uniting an alliance of more than 4,100 U.S. hospi- insights to help our healthcare systems and hostals and health systems, and approximately 200,000 pitals achieve improvement across the board and other providers and organizations, to transform ensure competitive differentiation. We can now

take these insights and write them directly into the workflow of the electronic health record (EHR), which is incredibly important as we aim to enable our members to standardize care and reduce unnecessary variation, waste and low-value care. How has Premier adapted its business to address the challenges caused by the pandemic and what are some of the lessons learned from this crisis? There are a number of things we learned when it comes to COVID-19. We learned that we need more transparency in the supply chain. We also learned how critical it is to diversify our supply chain for both personal protective equipment (PPE) and critical pharmaceuticals, along with the raw materials that make up these products. We have seen that we are too reliant on a few geographies for a disproportionate amount of these goods. We have been advocating for the need to create nearshore and domestic manufacturing capacity, coupled with better visibility into the supply chain. A resilient supply chain would reduce our dependence on China and other countries that have controlled the market in certain categories. We’ve also been calling for Infrastructure 2.0, where the country makes significant investments in domestic manufacturing of certain drugs and PPE. COVID-19 created a situation where everyone needed product at the same time, leading to a supply and demand imbalance, which resulted

“We need to use technology like machine learning and AI more effectively to generate insights around where the disease may be surging and where it is heading, helping us direct supplies to areas in need now and those that will be in the near term.”

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“We can now take these insights and write them directly into the workflow of the electronic health record (EHR), which is incredibly important as we aim to enable our members to standardize care and reduce unnecessary variation, waste and low-value care.” in inflated product costs. Premier has technology that can help dynamically allocate product, ultimately alleviating some of these constraints at the federal and state level. We need to use technology like machine learning and AI more effectively to generate insights around where the disease may be surging and where it is heading, helping us direct supplies to areas in need now and those that will be in the near term. Premier is not a well-known brand even with its industry leadership. Is brand awareness important for Premier? We want to help our members – which are comprised of thousands of hospitals, health systems, skilled nursing facilities and other providers – disrupt healthcare and transform the industry. Going forward, we may build out some brands that potentially have overlap with consumers and may have a bigger emphasis on brand awareness. However, we will also be focused on delivering on our mission of improving the health of communities and transforming healthcare from the inside – the consumer branding is secondary to our brand reputation within the industry. Do you drive the Premier culture throughout the brands or do the brands have their own cultures? I believe that one of the biggest differentiators for Premier is our mission and vision, which is improving the health of our communities

and working with our health system members to transform the industry from the inside out. These differentiators help establish a culture of innovation and a desire to disrupt the status quo. This infuses all our brands and businesses, but individual brands will have their own unique cultures as they deal with specific markets. What are the keys to disrupting healthcare and transforming the industry? I arrived at Premier from the high-tech world where change happens instantly. When I came to healthcare, which is so rooted in people’s lives and guaranteeing their futures, I was reminded that while we want to be disruptive and we want to be innovative, at the end of the day we are going to be very thoughtful. Having said that, it’s amazing to think about the changes in care delivery brought about just in the last year – while we were dealing with a global pandemic. One example is the notion of virtual visits as a viable alternative for many interactions we once thought had to be done in person. There is an increased focus on what the consumer – in this case, the patient – wants. The pandemic has opened all our minds to what is possible. Look at the conversation we are having right now – what would have been done in person in 2019 and the beginning of 2020 has been done as a video call ever since. Much of what we now do virtually is working well and, in many ways, is more productive.

The need to transform the industry is clear. I believe we have the building blocks in place with tools like AI, machine learning and natural language processing to provide evidence-backed insights at the point of care, tech-enable the supply chain and propel care delivery forward to meet the healthcare challenges of the future. What skill sets are you looking to attract to Premier and how critical is it for Premier to build a diverse and inclusive workforce? We are attracting the tech talent with our vision and mission – people want to make a difference and find meaning in their careers – we offer that. We also need the next-generation of supply chain experts who understand the importance of best price, but also know that resiliency is probably as critical as price, particularly for critical products like generic drugs and PPE that are needed in both day-today operations and emergencies. We are also committed to building a diverse and inclusive workforce as it is critical to bringing varied perspectives and experiences to the table when making business decisions. Premier has always had a strong inclusive environment and I am looking forward to elevating that effort. This is a dynamic and innovative business and I am excited to lead a team of talented professionals as we work to fulfill our mission of transforming healthcare.

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“I believe that one of the biggest differentiators for Premier is our mission and vision, which is improving the health of our communities and working with our health system members to transform the industry from the inside out.”

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Aiming High An Interview with Oscar Sanchez, Chief Executive Officer and President, Kyocera Document Solutions America EDITORS’ NOTE Oscar Sanchez was customers is the norm for us, not the previously Executive Vice President exception. That’s why we seek to have of KYOCERA Document Solutions Europe. our experts and technicians available in He began his career at Kyocera in regional hubs across the nation. This belief 1996 and by 2002 had risen to in valuing the importance of the human General Manager of KYOCERA side of the business comes from the Document Solutions Spain, deliver“doing the right thing as a human being” ing the highest revenue in the compaphilosophy of our founder, Dr. Kazuo ny’s history and increasing profits over Inamori. We always set out to do things 1,000 percent. Sanchez then took on the the right way, not the easy way. It is this additional responsibilities for Business attention to detail which has helped cultiDevelopment throughout Europe, evenvate a Kyocera brand which our customOscar Sanchez tually relocating to the Netherlands to ers associate with quality and reliability. head both the Corporate Sales Division That trust cannot be bought – it is earned. and Marketing Division as Executive Vice President How do you describe Kyocera America’s of KYOCERA Document Solutions Europe. He earned culture? an International MBA in Marketing at IE during I think our culture is very much defined by our which he spent the final semester studying at the UCLA human touch; the way we treat one another with Anderson School of Management. respect, and the understanding and empathy we show during each interaction with our customers. These COMPANY BRIEF Kyocera Document Solutions values have shone through during the pandemic, a America, Inc. (kyoceradocumentsolutions.us) is a time where we all faced tremendous personal and group company of Kyocera Document Solutions Inc., professional challenges. Without that human element, a global leading provider of total document solu- building a long-lasting relationship with partners and tions based in Osaka, Japan. The company’s portfolio customers becomes extremely difficult. includes reliable and eco-friendly MFPs and printers, Where do you see the greatest opportunias well as business applications and consultative ser- ties for growth for Kyocera America? vices which enable customers to optimize and manage At Kyocera, we want to continue consolidating their document workflow, reaching new heights of effi- our position as a complete document solutions prociency. With professional expertise and a customer first vider. We also must be pragmatic and realize that the culture, the objective of the company is to help organi- environment around us has changed dramatically zations put knowledge to work to drive change. over the past 12 months and will continue to evolve. Many of these changes are here to stay and we, as Will you highlight the history and heritage of an organization, must continue to adapt. Remote Kyocera Document Solutions America and how working will see the demand for cloud-based soluthe business has evolved? tions surge. Moreover, as we have seen with the likes With more than 60 years’ experience in cutting- of television, music and cell phones, our lives are edge technology, Kyocera has always been at the becoming increasingly subscription-based service forefront of innovation across a number of industries. driven. I envisage that the printing sector will folKyocera Document Solutions America continues to low suit. These are radical changes and we must uphold our corporate legacy of always “aiming high,” have the right infrastructure in place, both in terms of to keep pushing boundaries in search of ways of cre- hardware and software solutions, to be able to satisfy ating new value for our end users. In many ways, changing customer needs and wants. printing is no different to any other industry; new How has Kyocera America adapted its technologies have brought about new challenges, be business to address the challenges caused by it remote working or the shift towards paperless work- the pandemic? places, which has pushed us to become more creative. Like all businesses across the country, we have This period of disruption has also yielded numerous had to embrace the reality staring us in the face. We opportunities and we are primed and ready to capital- could not ignore the fact that a huge number of proize on them. fessionals suddenly found themselves working from How do you define the Kyocera America home, and many will continue to do so going forward. difference? With the sudden shift to working from home, compaAt Kyocera, we are committed to excellence nies soon realized that many of their employees were in everything we do. Going that extra mile for our ill-equipped to carry out their work as they would in 120 LEADERS

the traditional office. This created a clear gap in the market for compact A4 printing devices and Kyocera’s robust offering in this department meant that we were well-positioned to serve this need. Furthermore, with teams spread across remote locations, collaboration also became a major headache for managers. Once again, we were able to leverage our capabilities in digital workflow solutions to deliver the document sharing solutions needed for organizations to be able to maintain productivity levels. How critical is it for Kyocera America to build a diverse and inclusive workforce in order to bring diverse perspectives and experiences to the table when making business decisions? It is fundamental. Diversity and inclusivity are two words that immediately spring to mind when I think about Kyocera. We have a tremendously talented team who represent a vast range of nationalities, backgrounds, and cultures. This has helped create an environment of talented, open-minded professionals who think in different ways, and this makes for a dynamic, vibrant workforce. A team which is open to new ideas is one which can adapt quickly to new challenges, and this has proven to be a major benefit during the pandemic. Will you highlight Kyocera America’s commitment to corporate responsibility and engagement in the communities it serves? It is, quite simply, in everyone’s best interests to contribute to a more sustainable world, and Kyocera is no different. For us to continue growing as an organization we must play our part in ensuring that the communities around us become more equal and more sustainable. As a multinational corporation, we are well aware of our responsibility to act as a role model for others to follow. We will continue to step up to the plate and lead by example, be it through our recycling programs, eco-conscious printing devices, or community-focused initiatives. What advice do you offer young people beginning their careers during this challenging and uncertain time? I have said it before, but it is worth repeating: uncertainty is one of the few things we can be certain of when looking ahead to the next five years. To combat uncertainty, we must become more flexible and adaptable, both as people and professionals. The accumulation of knowledge through lifelong learning will be crucial to this – those who stand still will be left behind. Despite the qualifications we may hold, the need to continuously upskill will become more important than ever. In my opinion, those who show an ability to adapt and learn new skills will be the big winners of the coming decade.

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www.Sherry-Lehmann.com

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The Four Ps An Interview with Ed Hajim, Chairman, HighVista Strategies, LLC EDITORS’ NOTE Ed Hajim, the son by using the endowment model of investof a Syrian immigrant, is a seasoned ing. Since I had chaired the investment Wall Street executive with more than committee of the University of Rochester 50 years of investment experience. for 15 years and had a great respect for He has held senior management André, this was a great opportunity. My positions with the Capital Group, focus has been on offering guidance E.F. Hutton, and Lehman Brothers related to corporate strategy and new before serving as Co-Chairman of products. Much of HighVista’s success ING Barings, Americas Region; has evolved around partnering with careChairman and CEO of ING Aeltus fully vetted specialist investment firms. Group and ING Furman Selz Asset You are a leader who was visManagement; and Chairman and ible and engaged with your peoEd Hajim CEO of MLH Capital. He is now ple. Will you discuss your views on Chairman of HighVista, a Bostoneffective leadership? based money management company. Through the I ran an investment banking business with Hajim Family Foundation, he has made generous 800 people. I think as a leader you need to donations to organizations that promote educa- be with your team and constantly communition, healthcare, arts, culture and conservation. In cate with them about what is going on in the 2008, after 20 years as a trustee of the University business. In addition, I wanted to know what of Rochester, Hajim began an eight-year tenure as was happening in their personal lives as well. Chairman of the university’s board. Upon assum- The head of human relations would tell me ing that office he gave the school $30 million, the who was sick, who was getting married, who largest single donation in its history, to support scholarships and endow the Edmund A. Hajim School of Engineering and Applied Sciences. In 2015, he received the Horatio Alger Award, given to Americans who exemplify the values of initiative, leadership and commitment to excellence and who have succeeded despite personal adversities. He has recently published his memoir: On the Road Less Traveled, An Unlikely Journey from the Orphanage to the Boardroom. Hajim received a BS from the University of Rochester and an MBA with distinction from Harvard Business School.

was having a baby. I still remember calling one of our people who was giving a kidney to his brother in order to tell him how special I thought it was that he was doing this. I did these things because I wanted to do it, but I also think this resonates with the entire company because it shows that leadership cares and is invested in the team. What interested you in writing your book, On the Road Less Traveled, and what are the key messages of the book? The book is an odyssey. When I went to college, I buried my past because I was ashamed of it. I was not comfortable talking about my childhood of growing up in foster homes and orphanages and everything I went through. Fast forward 55 years when I became chairman of the University of Rochester and wanted to make a substantial donation to the University, I told them I wanted it to be anonymous. They said I needed to acknowledge my donation. At that time, they researched my background and

“The book highlights the importance of

FIRM BRIEF With roots in endowment-style investing, HighVista (highvistastrategies.com) partners with institutional clients and families to pursue high risk-adjusted r etur ns through exploiting market inefficiencies in a diversified manner. HighVista views alpha generation as being critically important for investment success and believes it most likely to be found where there are catalysts, structural imbalances, barriers to entry and/or significant dislocations.

the Four Ps – finding your Passions, finding your Principles, finding your Partners and finding your Plans. I believe that the Four Ps cover almost everything.”

What interested you in serving as chairman of HighVista and how do you focus your efforts in this role? HighVista was cofounded in 2004 by André Perold, a distinguished Harvard Business School professor, with the vision of producing portfolios with above-average return and below-average risk 122 LEADERS

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discovered information about my childhood and beginnings. They thought my story would be interesting and valuable for others to hear. My family was also telling me it was time to put down my experiences and my life story for posterity and our grandchildren. I have never looked for publicity and always try to deflect any credit, but as I started to write the book, I began to realize why I made some of the decisions I made and that there were valuable lessons that could be learned from my experiences. I discovered my inner voice, which I believe is the only VOLUME 44, NUMBER 2

constant in life. Conversations with my inner voice were vital to my success in both business and philanthropy. Skyhorse Publishing was interested in publishing the book and I decided that while I was always resistant to be out in the public, it was time to tell my story. The book highlights the importance of the Four Ps – finding your Passions, finding your Principles, finding your Partners and finding your Plans. I believe that the Four Ps cover almost everything. If you pursue your passions, define your principles, develop the right partners and have a plan, most things will fall into place.

It was fascinating to me to see how writing changed the way I see things. As I began to write down my thoughts, they popped out on the page and gave me a different perspective on my life. I wanted to target the book to people aged 16-25, since this is a critical age period when young people are making their first job and career decisions. One of the most critical decisions they will make is where they go to college since each person needs to find the right college for themselves where they will feel confident, have fun and find success. My career was a series of transitions as I served in many roles and I think my story can provide a guide and framework to make someone else’s experience a little easier. There are things that seem simple like making a list of pros and cons when you are making a decision in order to weigh both sides which seems easy, but many people don’t do it. You have been very engaged in philanthropy. Do you feel that the same skills that made you successful in business translate to being effective in philanthropy? I believe that philanthropy requires a different mentality than business. Philanthropy required me to stop and rethink my approach, since in philanthropy you are dealing with different types of people than in business and it requires more consensus-building, as you are dealing with volunteers rather than employees. In business it is about getting things done, and while that is the end goal in philanthropy, you need to focus on bringing people together and building consensus. The parts of business which do translate well is the need to be focused and energetic and passionate about the work, but operationally it is different. What do you feel were the keys to your ability to overcome the challenges of your childhood? That was the question that was in my mind when I started writing the book. How did I get out? I would say that there were a number of factors beginning with the fact that I did have a dream. One thing my father always told me was that I was a special person and that impacted me and gave me hope that one day things would be better. I had the drive to succeed, to have a family and to create a better life. I also feel that resilience is like a muscle and the more you use it, the stronger it gets. I needed to have a lot of resilience during my early years and I believe that this contributed to my being able to cope and deal with any challenge. I am not sure if I really know the answer to the question of how I made it out, but I think that these are some of the things that helped in my journey. I believed in the American dream. I remember the head of the orphanage telling all of us there that we could overcome our past, which gave me the belief and confidence that I could do it. I got knocked down an awful lot but found a way to bounce back with the belief that there was something more for me in life and that I could achieve it. That belief helped me succeed. I now want to share my story with others on a similar journey. In the end, being able to help others is the most rewarding indicator of success.

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Life Lessons An Interview with L. Dennis Kozlowski EDITORS’ NOTE Dennis Kozlowski grip our country today – job creation, began his career serving in varitechnology development, race relations ous management positions at SCM and more. Throughout my life I have Corporation in New York City and worked to create jobs and to develop Cabot Corporation in Boston. He technology at virtually every turn. It has joined Tyco International in 1975 at been important to me to make sure that a time when the company had $20 everyone who has talent, regardless of million in r evenue. Kozlowski race or any other factor, has the opporwas appointed Chief Operating tunity to advance their interests. Officer of Tyco in 1989 and became Do you feel that the ability to its Chief Executive Officer in 1990. take risks and be entrepreneurial Under his leadership, Tyco grew to is something a person can learn? L. Dennis Kozlowski over $40 billion in revenue and a Absolutely. I have tried to teach market capitalization in excess of entrepreneurial skills a lot over the past $110 billion. Kozlowski received his BS in business 30 years. The result? New businesses have been administration from Seton Hall University and created, careers have been developed, and opporreceived a doctorate of business administration tunities have been provided to tens of thousands. from the University of New Hampshire, Honoris I believe that there are some innate abilities for Causa, and Roger Williams University. people who want to be entrepreneurs, similar to having innate abilities to be a successful musician You grew up in Newark, New Jersey, with or athlete. I think there is an innate willingness to modest means and worked a number of take risks, turn an idea into something tangible, jobs throughout your youth. How did your and to be able to adapt and be resilient. childhood shape you? You started your career at Tyco as It was great to grow up in New Jersey in an accountant and went on to become its the late 1950s to mid-1960s. It was a very diverse chief executive. What were the keys to your area, and I was able to meet people from all success? walks of life. Newark was an industrial city, so I attribute my success to lessons I learned as a young man in high school I was able to early on such as to truly understand your find jobs and worked my way through high product and your customer. It was also clear school and college. These jobs provided me to me that successful people get along well with mentors who were significantly influen- and support others in their organization. This tial. They taught me that success meant doing is something I have worked hard at. I became your best and being the best at what you did, as involved in the various businesses we had. well as having a willingness to take risks. These I would go to trade shows, listen to our cuswere lessons that stayed with me throughout my tomers and study the competition in order to career. My experience in Newark showed how analyze what we needed to do to improve. As very important some of the big issues are that I grew in the company and became CEO, I was

able to find and hire great talent, which changed my role from that of running a business to one of running an enterprise and supporting our people. We looked for people who were smart and willing to take risks. We were highly decentralized, seeking good people who could lead our growth as we focused on having products that were number one in their categories. Our ability to attract great talent to the company was due to our willingness to let them run their businesses and make decisions. I saw my job as motivating and supporting those people in order for them to be successful. Was it challenging for you to transition from a hands-on executive running a business to being a CEO who needed to delegate to others working in the organization? One thing I learned in my career was that nobody came to us to sell their company because their business was doing well. Typically, they came because they had issues in the company, and often the founder of the company had never effectively filled his own position as the company became larger. I think that a lot of people who move up to the C-suite fail to do a good job of filling in behind them. I wanted to make sure that I was filling in with people who were highly capable, highly motivated and were able to do their jobs effectively. It took time to build the team, but once we did, we had a deep and talented group of executives who were responsible for growing the company. In retrospect, what do you see as the factors that led to the problems at Tyco? We were put on a pedestal. This was during the 1990s when CEOs were in the spotlight. We were viewed as the leading company in the S&P 500 by one business magazine’s

“Our ability to attract great talent to the company was due to our willingness to let them run their businesses and make decisions. I saw my job as motivating and supporting those people in order for them to be successful.”

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“They taught me that success meant doing your best and being the best at what you did, as well as having a willingness to take risks. These were lessons that stayed with me throughout my career.”

criteria. We were sought after. Once the markets turned downward in the late 1990s/early 2000s, CEOs went from being praised to being something else. At this time, Enron, WorldCom, Global Crossing and other hot companies that went bankrupt. Tyco was different from these other companies even though it was grouped with them. Any investor who put money into Tyco at the beginning of my management tenure at the company and stayed throughout my time leading Tyco, made money. Tyco was a strong company and continued to be a strong company after I left, but we were caught up in the whirlwind of these other companies that had failed at that time. There was a lot of misinformation that was being put out during this time about both the company and about me personally, which caused a lot of pressure for the company. For instance, there were front page stories in newspapers about Tyco doing things that we never did and which were completely false. We would approach these media outlets to explain that their information was incorrect, and a week later they would publish a correction somewhere buried in the back pages. Of course, that did not correct the damage that already had been done. Did this difficult experience change you? I prefer to say that it taught me who my friends were, as there were people who stuck by me and supported me throughout this difficult time. They had my back and were highly supportive through my two trials and have continued to be supportive to this day. I was not going to just sit back and feel sorry for myself. I was going to try to grow from this. I wanted to do something good for others and helped to

develop a GED program. I thought about criminal justice a lot and joined a group called the Fortune Society, which I now chair. It helps thousands of people every year get on their feet when they come out of incarceration. I would say that where the experience changed me is that it had me take my talent and energy and put it into helping a group of people that I had previously not really thought about while I was a CEO. I stayed positive during this time and became closer to my family, loved ones and friends and was determined to become a better version of myself. I am now spending a lot of my time mentoring young people in business and am involved in a few businesses, typically in healthcare or technology or some combination of the two. I try to share with young people things that I have learned along the way in order to help make them successful. What are your views on the need to reform the criminal justice system? The system is totally broken. We are taking people and warehousing them. We do not provide any training or support to allow people to get back on their feet after they serve their time. Many of the people who are incarcerated should not be in jail. While there is clearly a purpose for jails, and there are people who are a threat and risk to society, many of the people in prisons are not a risk and once they end up incarcerated their hope is lost. The system is setting people up for failure. We need to do more to create alternatives to incarceration, and alternatives for those that are incarcerated. We need to do more in terms of training and getting them to be productive members of society. This is the focus of the Fortune Society and why I decided to get involved in the organization.

You mentioned finding out who your friends are during challenging times. What did this teach you about people? It gave me confidence in the fact that I had true friends that had my back no matter what. Having said that, of my hundreds of acquaintances, I can count my true friends on probably two hands. The people who were most dependent on me and that I did the most for actually turned their backs on me quickly, in some cases for their own self-preservation. It was a real lesson in friendship and there were surprises along the way. People became true friends who I had not really known were true friends, and people that I expected to be there for me were long gone. You really don’t find out who your true friends are and who you can count on until you really need them. What advice do you offer young people who are concerned and unsure about the future? I tell them that whatever they do, they need to approach it with a passion which makes the journey much easier. You also have to stay optimistic and remember that winning and losing are both temporary states. You need to engage in social interactions and get away from the technology from time to time. It is also important to maintain close relationships with your loved ones, family and those that are important to you in your life. You should also not forget about giving back to your community since no matter what shape you are in, there are people who are in worse positions than you are. Stay focused on the present – there is nothing you can do about the past, and you never know what the future will be.

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“I think that a lot of people who move up to the C-suite fail to do a good job of filling in behind them. I wanted to make sure that I was filling in with people who were highly capable, highly motivated and were able to do their jobs effectively.”

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Taking a Long-Term View An Interview with Brian Tomlinson, Director of Research, CEO Investor Forum, CECP EDITORS’ NOTE As Dir ector of communities, investors and customResearch at CECP’s CEO Investor ers – determines a company’s success. Forum, Brian Tomlinson develops CECP provides its members customized practical executive-ready research connections and networking, counto enable issuers to reorient their dissel and support, benchmarking and closures toward the long term. The trends, and awareness building and research program provides prinrecognition striving to solve some of ciples, frameworks, and managethe world’s most pressing problems and ment approaches for the practice drive through their sustainable value. of long-term disclosure. The work Through CECP’s CEO Investor Forums, also draws on structured collaboCECP provides a platform for CEOs to rations with organizations such as present long-term strategic plans to Brian Tomlinson Edelman, FCLTGlobal, KKS Advisors, long-term investors, supporting progand NYU Stern. Tomlinson’s work on ress towards reorienting capital marcapital markets has been published by Harvard kets toward sustainable value creation. Business Review, Institutional Investor, MIT Sloan Management Review, World Economic Forum, How do you define the mission of Chief Financial Times, Journal of Applied Corporate Executives for Corporate Purpose (CECP) Finance, Harvard Business School, Harvard Law and how has the organization evolved since School Forum on Corporate Governance, Top its founding? 1000 Funds, and Huffington Post. Tomlinson Our work is focused on enabling compais a regular presenter at conferences having nies to embed ESG, purpose and a long-term recently spoken at the Securities and Exchange outlook into both corporate practice and capiCommission’s Roundtable on Short-Term Markets, tal markets disclosure. We do that by providing Deutsche Bank’s ESG Conference and Investor executive-ready research in the form of prinRelations Magazine’s ESG Symposium, among ciples, disclosure frameworks, advisory sermany others. He is an expert in fiduciary duty, vices on management approaches, real-world sustainable business and investment practice examples, and publications on key topics. That and has a decade of experience as a corporate work is an outgrowth from CECP which was finance attorney specializing in leverage finance originally founded by luminaries such as John and financial restructuring and also worked in Whitehead and Paul Newman with an expectathe business turnaround group of an invest- tion that corporations can and should be a force ment bank. Tomlinson served as the Managing for good in society. Our work has adjusted to Director of the Coalition for Inclusive Capitalism. help management teams meet a broader and As a research fellow at Harvard, he worked growing set of expectations about the role of with Professor Rebecca Henderson, Professor the corporation in society. Roberto Unger, the Committee on Capital Markets How has CECP adapted its business Regulation, and Professor Robert D. Putnam. to address the challenges caused by the Tomlinson has authored several reports on inves- pandemic? tor Fiduciary Duty, including on capital marWe’re now a remote work company. All kets in the U.S., U.K., Japan, Canada, Brazil and our meetings are conducted online and everySouth Africa, and a report on the role of sustain- one is in a remote work setting. The work ability in corporate pension plans. Tomlinson environment was set up for flexibility prior to has an MPA from Harvard Kennedy School and COVID; some of us never had commutes, and a degree in politics, philosophy and economics some of us are now adjusting to not being on from the University of Oxford. Metro-North every morning. We’ve transitioned all our events and engagements to virtual too. ORGANIZATION BRIEF Chief Executives for I would say that we responded creatively to Corporate Purpose (cecp.co), a global nonprofit the challenge of reimagining our events and organization, is a CEO-led coalition of more engagement with companies, giving people than 200 CEOs of the world’s largest companies experiences which don’t just try to replicate across a wide range of industries that believes that real-world encounters, but give our audiences a a company’s social strategy – how it engages variety of ways to meet their peers and interact with key stakeholders including employees, with our content. 126 LEADERS

I speak at events on ESG themes on a very regular basis. I can certainly say that going virtual means you can reach a bigger audience at a much smaller environmental impact, more efficiently and better for the planet. How critical is research as a part of CECP’s work and mission? You’d expect a Director of Research to say that research is essential…but it is. ESG, purpose, and long-termism can be quite technical topics and broad in scope. To speak with credibility on these topics, content has to be driven by expertise – a stable platform of knowledge. That comes from experience, research, collaboration, and regularly taking the temperature of market participants. Our work is intended for use by practitioners and those advocating for change within their organizations. That means our work needs to “meet the markets where they are” and understand the different starting points of the teams we interact with in terms of their ESG journey. We design content for and regularly work with CEOs, investor relations officers, corporate sustainability officers, corporate secretaries, in addition to Boards and ESG working groups that many companies now convene. Will you discuss CECP’s thinking around the connection of purpose and long-termism? Corporate purpose, ESG and long-termism are all about truly understanding how companies make and destroy value. That involves thinking about the stakeholders that companies rely on and the time horizon over which companies are managed. When we talk about corporate purpose we are talking about a whole-firm concept that flows from the board through to the brands. Having a high-level, quite general, statement of “corporate purpose” doesn’t make you a purposeful company. Rather, purpose has to be developed, managed, operationalized, overseen, communicated and, ultimately, incentivized. The development of a clear corporate purpose cannot happen instantaneously and the potential performance benefits from a thoroughly operationalized corporate purpose may take some time to play out, similar to ESG. Given that, thinking about purpose and the stakeholders you both rely on and impact can encourage management teams to think in years, rather than quarters. VOLUME 44, NUMBER 2

“Having a high-level, quite general, statement of ‘corporate purpose’ doesn’t make you a purposeful company. Rather, purpose has to be developed, managed, operationalized, overseen, communicated and, ultimately, incentivized.”

CECP recently issued a report titled, “The Return on Purpose: Before and During a Crisis.” What were the findings from this report and what can leading executives and companies take from this research? We found that high-purpose brands significantly outperformed on common measures of financial performance, market valuation and shareholder value creation. Better financial performance (+5% ROIC) and better valuation multiples (+4x EBITDA) combine to deliver better long-term shareholder value creation, as evidenced by the nearly 20 percentage point advantage in annualized total shareholder returns for companies with high-purpose scores versus those with low-purpose scores. To generate this data, we used a new corporate purpose by BERA Brand Management, in collaboration with the Jim Stengel Company, to sort our universe of mono-brand companies where the majority of the revenue comes from one brand, into two groups: high purpose and low purpose. The “purpose score” is a construct of 13 different attributes of corporate purpose that have a direct, causal link to value creation including social commitment, cultural relevance, point of view and inclusivity. In addition to “purpose can pay” and understanding changing consumer preferences, we also suggest that corporations consider steps to enact corporate purpose internally, for example: • Structure for open stakeholder engagement: One technique for stakeholder transparency is to disclose a stakeholderfocused materiality assessment with explanatory commentary on how it was developed, how it is overseen, and how regularly it is refreshed. In addition to external visibility, it is important to articulate how such insights inform internal decision-making. • Develop a board-issued statement of purpose: An early and emerging approach to purpose are board-issued purpose statements. Many institutional investors have indicated that the board should own and oversee purpose as part of framing the strategic direction and stance of the company. • Convert purpose into teachable moments: Through salient examples, derived from the core business, companies can communicate how their stated purpose really changed decision-making. VOLUME 44, NUMBER 2

Will you highlight some of the other key research papers that CECP has published during this unprecedented time? ESG and the Earnings Call: ESG is recognized as relevant to operational and financial performance, and the earnings call is a key venue for management teams to discuss prospects and performance, yet ESG content has tended not to be a feature of earnings call content. However, the COVID crisis has given ESG more prominence in the earnings calls of more issuers - it has clearly compelled reflection and disclosure on ESG themes from human capital to supply chain sustainability. Given that ESG themes underlie how a company creates value, key ESG information should be part of earnings call disclosures. We make recommendations to enable companies to build ESG content into earnings call disclosures in a stable and nondisruptive fashion. For example: • Sequence: Build toward the earnings call by integrating ESG into disclosures in a sequential manner, from sustainability reports, proxy statements and investor day presentations to ESG-specific webinars/presentations and earnings calls. This builds comfort and confidence with the investor base as well as with management. • Prime the Analysts: Share ESG-specific questions with your sell-side analysts to shape the Q&A discussion and more regularly bring ESG and long-term strategy into the conversation. • Share Buybacks: People are watching corporations and forming conclusions about the implications of stakeholder capitalism. An interesting topic for review is share buybacks. For example, is it appropriate for a corporation at a time that it is furloughing or laying off workers to be continuing with large share buyback programs? We wanted to ask a few questions on this topic and suggest that corporations provide more commentary on buybacks when they are announced. What was the vision for CECP creating the CEO Investor Forum and what has been the impact of the Forum? Short-termism is a real problem and leading CEOs and investors can help reduce its negative impact. In fact, over 80 percent of the CEOs we polled identified short-term time

horizons as a problem in their own practice as CEOs. Mirroring that, institutional investors we surveyed told us that only a minority of portfolio companies are effectively communicating a long-term value story and that there are significant information gaps in disclosure to assess long-term prospects. This can play out like a blame game, with issuers and investors pointing the finger at each other about the sources of short-termism. All that points to there being a type of consensus that short-termism is a problem, but not much consensus on what to do about it. We resolved to convene a conversation in the form of a Reg FD-compliant investor conference to enable CEOs to talk to investors about long-term and other relevant themes. We wanted that to be additive to the existing investor relations timetable, but also to provide disclosure examples that could be infused across the disclosure ecosystem, from investor days and proxy statements to earnings calls. This is also informed by the view that the short term and the long term are not inherently in conflict. We’ve convened eight CEO Investor Forum’s so far with presentations made by over 30 companies representing in excess of $2 trillion market cap. Our next CEO Investor Forum on June 7th will feature presentations by leading Biopharma companies, including critical COVID vaccine makers such as Pfizer and Moderna. How valuable has it been for CECP to build collaborations and partnerships with other leading organizations in its research efforts? The emerging debate about the role of the corporation in society is broad in scale and complex in its implications. This debate can be reviewed from countless angles and disciplines and can take in almost any area of corporate practice, including executive pay, worker pay, share buybacks, diversity, corporate political spending, and environmental impact, among others. Given that potential scope, collaboration and expertise-pooling is important. Collectively we want to ensure that we are amplifying good work and ensuring that it gets to the right audiences. We also want to avoid duplication and confusion. We all have limited bandwidth, so let’s use it wisely. I’d highlight the work of our research partners such as Professor George Serafeim, FCLTGlobal, Fortuna Advisors, and NYU Stern Center for Sustainable Business as being particularly useful.

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Risk Management An Interview with Richard Apostolik, President and Chief Executive Officer, Global Association of Risk Professionals (GARP) EDITORS’ NOTE Richard Apostolik as the Sustainability and Climate Risk has led the world’s premiere asso(SCR™) certificate and on-going educiation for risk professionals for 19 cational and networking opportuniyears. While at a previous role at ties through Continuing Professional Bankers Trust’s (Deutsche Bank) Development and global chapter strategic ventures group, Apostolik meetings. developed financial risk manageIn its early days, prior to my joining ment initiatives there designed to the organization, GARP was orgaprovide credit risk mitigation and nized primarily as a conduit for management services to financial convening consultants and very early service companies. He also served risk-based practitioners in the finanas JPMorgan & Co.’s global head of cial world to network and discuss Richard Apostolik energy brokerage activities and ways in which they could strengthen Chief Operating Officer of its global their respective businesses. It was listed product businesses. He ran his own consult- initially organized as a U.S.-based not-for-profit ing firm and was responsible for the start-up of activity. At that time, in the late 1990s, risk SG Warburg & Co.’s North American futures and management was not considered its own prooptions business. He was an attorney with the fession. GARP shortly thereafter expanded to U.S. Securities and Exchange Commission, prac- the UK and a third entity was created to engage ticed law with a private law firm in Chicago, and was the Chicago Mercantile Exchange’s house counsel. Apostolik holds a BSBA, MBA, and JD from the University of Dayton.

“In addition to building

ORGANIZATION BRIEF The Global Association of Risk Professionals (GARP.com)is a non-partisan, not-for-profit membership organization focused on elevating the practice of risk management. GARP offers role-based risk certification, the Financial Risk Manager (FRM®), as well as the Sustainability and Climate Risk (SCR™) certificate and on-going educational opportunities through Continuing Professional Development. Through the GARP Benchmarking Initiative and GARP Risk Institute, GARP sponsors research in risk management and promotes collaboration among practitioners, academics and regulators. Founded in 1996, and governed by a Board of Trustees, GARP is headquartered in Jersey City, NJ, with offices in London, Washington, D.C., Beijing, and Hong Kong. Will you discuss the history and heritage of the Global Association of Risk Professionals (GARP) and how you define the organization’s mission? The Global Association of Risk Professionals, known as GARP, was organized in 1996 and is a non-partisan, not-for-profit membership organization focused on setting standards around and elevating the practice of risk management. GARP offers a practitionerfocused professional risk certification – namely the Financial Risk Manager (FRM®) – as well 128 LEADERS

our education and

certification programs, we recognized there were many other prospective areas of focus for GARP in the risk management space.” in events-related programs, mainly to host an annual convention and organize other networking activities. In 1997, GARP launched its first professional examination program called the Financial Risk Manager (FRM) certification program. At its inception, GARP registered about 110 people for the first FRM exam. Now, 24 years later, earning the FRM designation has become the gold standard for professional financial risk management practitioners worldwide.

In 2001, I became involved with GARP during what was a transitional time for the organization. At that point, approximately 2000 people were taking the FRM exams on an annual basis, and GARP had roughly $1 million in revenue. We appointed our first formal Board of Trustees, who together with our senior leaders led the charge in expanding and promoting the FRM exam program globally. The program grew between 10-20 percent annually from 2002 up until COVID hit us last year. Even with the challenges COVID presented in 2020 to GARP’s abilities to deliver the examinations to interested risk management professionals, we found that the interest in the FRM program did not wane and through the adaptability and perseverance of our employees, we still delivered our exams to over 60,000 registrants in about 100 locations on three different exam dates globally. The FRM has become, in many ways, the embodiment of GARP’s mission – to advance and promote best practices of risk management around the world. Another interesting piece of the GARP story is our growth and visibility in China. I made my first trip to China for GARP in 2005. We introduced the FRM program directly to the Chinese marketplace at that time, as well as throughout Asia. Up until the onset of COVID, for the last 16 years, we had been regularly traveling back and forth to China to ensure we were meeting the demands of the Chinese marketplace for building capabilities in financial risk management based on globally accepted approaches and standards. The tangible results of that effort have been very successful and we are the only organization formally noted by the Chinese government as professionals in financial risk management. I have been back and forth to China since 2005 more than 75 different times to promote our program and introduce best practices in financial risk management. Our work in China, and throughout Asia, has been integral to GARP’s growth. Will you provide an over view of GARP’s services and solutions for risk professionals? In addition to building our education and certification programs, we recognized there were many other prospective areas of focus for GARP in the risk management space. A strategically significant piece of the GARP business is around one of our key initiatives called the GARP Benchmarking Initiative (GBI). To provide VOLUME 44, NUMBER 2

“We are the only organization in the world who has been able, because of our work with GBI and our non-partisan standing, to bring together individuals from academia, the regulatory community, and risk management practitioners to senior level forums to discuss issues important to them in a confidential setting, called the Global Risk Forum.” some context, during the Great Financial Crisis of 2007-2009, there were a multitude of issues that arose around bank capital – how bank capital was being utilized, how it was being analyzed, how banks were identifying risks in their portfolio, and determining how much capital banks should have in their portfolios and/ or on their balance sheet. That resulted in the issuance of a series of Basel Committee-based rules to strengthen the capital of financial institutions. In or about 2011, the Basel Committee on Banking Supervision (BCBS) came out with its first of what they called hypothetical portfolio exercises. Those exercises were designed to look at how banks were assessing risk weights of the various assets they had on their balance sheets. Banks were asked to run their risk measures against the hypothetical portfolios and this concept of assessing risk measures had never been used before. GARP became involved in hypothetical portfolio assessment work after reading and thinking through an op-ed written by the then Chairman and President of Citibank, Vikram Pandit, on January 11, 2012. In the op-ed, he suggested that a number of hypothetical portfolios be developed on behalf of banks and that banks run the risk measures against those benchmark portfolios and make the results public. We thought it a great suggestion and brought it before GARP’s Board of Trustees. We recommended that GARP become involved in helping banks develop these portfolios and work with them to compile and analyze the results. GARP was, in our view, the ideal partner for this as we do not lobby or consult, and since this was a risk management activity, it fit perfectly within our mission. We reached out to the banks and regulators, indicating to them that we had or would develop the depth of expertise to further what we felt was a crucial way forward toward reestablishing confidence in the banking system during what was still a time of crisis. We initially spent an entire year developing our own market risk hypothetical portfolio and learned a lot in terms of how these representative portfolios should be developed, and results were aggregated and then published back to the participating financial institutions and regulatory bodies around the world. In doing so, GARP became a “trusted third party” for other studies that provided aggregated, anonymized, objective factbased feedback to banks and regulators. Today, VOLUME 44, NUMBER 2

74 banks, 34 asset managers and other institutions take part in GBI, adding up to a total of 122 participants from every region of the world. GARP is the only organization globally that engages in this type of work as a trusted third party to the global financial services industry. In addition to GBI, about three years ago, we created the GARP Risk Institute (GRI). GRI was created to conduct objective and non-partisan research around a variety of different issues that affect risk management on a global basis. One of its primary areas of focus has been on climate risk, an emerging risk in the financial services industry. We’ve acted as secretariat to the Bank of England’s Climate Forum for the scenario analysis and risk management workstreams, have worked extensively on developing educational webcasts and podcasts on a number of climate-related risk management issues, and published papers and articles on developments in this still relatively nascent industry. GRI, in just three short years, has become the leader in climate risk management. In addition, GRI has also focused on an issue we feel is highly important, especially now that the corporate financial effects of COVID will start to be seen: leveraged loans. Leveraged loan defaults may come to the forefront once the various measures of government support and stimulus are removed from the marketplace. Another area where we feel we’ve added considerable value is assessing the issues and alternative reform approaches concerning liquidity and the tools to manage liquidity. As the trusted third party, we also play the role of “convener.” We are the only organization in the world who has been able, because of our work with GBI and our non-partisan standing, to bring together individuals from academia, the regulatory community, and risk management practitioners to senior level forums to discuss issues important to them in a confidential setting, called the Global Risk Forum. The forums bring together senior professionals from various parts of the world to sit down and talk about issues in a nonpartisan, open and constructive way under Chatham House rules. They occur once a year and are co-hosted each year by GARP and a different central bank. They travel the globe, moving from the Americas to Europe and Asia. Attendance is by invitation-only, and only senior industry professionals are invited. The forum agendas each year change depending on the current issues of interest and are

developed by a forum steering committee consisting of very senior practitioners and regulators and academics. The Global Risk Forum has served as a model for other types of forums that GARP has administered and developed. Today, we have the GARP Buyside Risk Managers Forum in the U.S., and a second Buyside Risk Managers Forum in Europe. We are right now in the process of developing an Asian Buyside Risk Manager’s Forum. We are taking this forum concept and its successes and bringing it around the world. What are the keys to being effective as a risk manager and how has the risk manager role evolved? Risk managers look at very complex issues on a regular basis. It is important for risk managers to be able to communicate these issues in a very easy to understand way to senior management, and to company board members, making them aware of the key risks so they can do their jobs appropriately. Most people think risk managers need to be quants but that’s not the case. They just need to understand what a quant is doing, understand and interpret the results and clearly communicate how those findings can be used in a way to support the company’s business. The risk manager must be a partner to the business while maintaining his/her independence. He or she is expected to work with the business to achieve its goals while simultaneously ensuring the firm and its business units comply with the company’s risk appetite statements and capital requirements, among other things. The role and function of the risk manager has dramatically evolved and expanded. Historically, the risk manager in financial firms was primarily or only concerned with credit risk, market risk or both. Today, the role of the risk manager is considerably broader and has pivoted to the C-suite. Risk managers are now overseeing such activities as climate risk, cyber security and financial crime and in some cases even the firm’s technology function, as technology is vital to ensuring a viable risk management function. So, today, many organizations have technology areas and departments reporting into the risk management function given the data being generated to support most risk assessments is driven by technologies that these companies are using. The role of the risk manager is to help make things happen in a way that still protects and manages potential risks to the organization.

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Delighting Doctors An Interview with Jeffrey Queen, Chief Executive Officer, and Andrew Queen, Executive Chairman, Integrated Dermatology EDITORS’ NOTE Jeffrey and Andrew Queen are the co-founders of Integrated Dermatology. They serve as the CEO and executive chairman, respectively. They bring more than 30 years of sales, technology, and management experience to Integrated Dermatology. The Queen brothers also founded and serve as executive officers of US Path Labs, LLC, On Site Dermatology, LLC, and eDerm Systems, LLC. Prior to co-founding these businesses in 2004, 2005, and 2009, they cofounded Health Watch, Inc. in 1991. From 1991 through 2001, they served in director and executive officer capacities with Health Watch and its successor, to whom Health Watch was successfully sold. The Queen brothers are members of the Young Presidents’ Organization (YPO) Gold, Palm Beach Chapter, and they also serve on the Kelly/Strul Emerging Scholars Board at Florida Atlantic University. Additionally, they serve on the Board of the Boca Raton Police Foundation. COMPANY BRIEF Integrated Dermatology (mydermgroup.com) acquires, manages and grows dermatology practices across the United States and has opportunities for dermatologists in all stages of their careers. Integrated Dermatology empowers selling dermatologists to unlock their practices’ value while enjoying autonomy over the practice of medicine. Additionally, dermatologists can join Integrated Dermatology as an associate or a partner, focusing on high-quality patient care while Integrated Dermatology implements best practices in the areas of compliance, financial services, human resources, payers and more. What was your vision for creating Integrated Dermatology and how do you define its mission? Jeffrey: Our vision was to create a platform that provides dermatologists across the country with the business support and guidance they need to be the doctor they want to be. As an independent practice, we do not use a cookiecutter approach. Each of our partnerships is unique and tailored to the doctor’s individual goals and priorities. For many, that goal includes long-term financial and practice growth, while maintaining complete medical autonomy. Our mission is to give our dermatologist-partners the freedom to focus on what they do best: provide great patient care. We were the first acquirer in the specialty and now others have joined us. Integrated Dermatology began when a dermatologist, who was a friend, asked for 130 LEADERS

Jeffrey Queen

Andrew Queen

help and we said yes. We were looking to make a difference and realized that dermatologists were being bogged down with regulation, required technology changes, and other complexities unrelated to providing patient care. These tasks, plus the back-office administration, required more and more of the dermatologists’ attention. We are able to relieve this burden and allow dermatologists to do what they love and what they are highly trained to do: provide great care for their patients. Integrated Dermatology was built on a core set of values. Will you highlight these values and how critical they are to the foundation of the business? Andrew: Our core values define us and the relationships we build and grow with our

partners. First, we always operate with integrity. It is vital to earn and keep the trust of our partners by being honest with ourselves and, ultimately, doing the right thing. Our team members go the extra mile by striving for excellence and delivering quality results. The pride and passion our team members have is impressive. We also encourage our team members to “own it” and be accountable in keeping their commitments. We take initiative to be part of the solution and go to great lengths to support one another and our practices. We strive to make Integrated Dermatology the best place to work. We care for others and our practices. In the end, our goal is simple: Delight our Docs. We do this by coming to work with the goal of improving our processes, systems, and practices so that every day we are better than the day before. How has Integrated Dermatology addressed the challenges caused by the pandemic? Jeffrey: The pandemic was an immense challenge for the company and our dermatologist-partners. Fortunately, we have a seasoned leadership team. We immediately created a war room to develop a strategy for how to manage and navigate the crisis. Every evening we hosted a conference call with all of our medical practitioner partners to provide guidance, share best practices and communicate updates. With our corporate headquarters in South Florida, we already

“We care for others and our practices. In the end, our goal is simple: Delight our Docs.”

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“Throughout the past year, our operations team has taken every step necessary to help our doctors through the pandemic and set them up to continue thriving in the new normal. By being thoughtful during COVID, we grew our business instead of contracting it, and we focused on retaining and hiring top talent.” had a plan in place to work remotely. On March 13, we executed that plan and all of the employees started working from home. We immediately developed tele-dermatology. Our technology development team in charge of this did a fantastic job. In only two weeks, we rolled out TeleDerm (video) for patients and dermatologists to conduct dermatology visits online. We also added kiosks – the ability for patients to register, schedule a visit (online or in-person), and check-in from their cars to avoid spending time in our waiting rooms. It was important for us that patients did not need to download another app and that they could do this through their phone and also by text message. Throughout the past year, our operations team has taken every step necessary to help our doctors through the pandemic and set them up to continue thriving in the new normal. By being thoughtful during COVID, we grew our business instead of contracting it, and we focused on retaining and hiring top talent. Integrated Dermatology is a national company and now with remote work, we can hire across the country. We have been successful in complementing our existing talented team with a new group of rock stars. How will the move toward telemedicine impact dermatology? Jeffrey: Dermatology is a visual specialty, so telemedicine is a natural fit. The technology has come a long way and the trend towards

telemedicine will continue. Many diseases are appropriate for tele-dermatology such as acne and rashes. In addition, tele-dermatology allows patients to stay safe at home and receive an initial impression from the dermatologist. If the dermatologist’s impression is a suspected skin cancer, treatment still requires the patient in to come in to one of our offices. Whether online or in-person. our doctors prioritize doing what is best for each patient. How critical has it been to continue to attract and retain top talent and will you discuss the expertise and experience of the dermatologists you work with? Andrew: Dermatologists are the core of our business so attracting and retaining top doctors is vital. We are proud that we have never had a partner doctor leave Integrated Dermatology except to retire. We also focus on recruiting young doctors during their dermatology residency. That is why we pay above-market compensation and provide freedom and flexibility as well as excellent benefit packages. Since we are an independent, nationwide practice, we offer growth opportunities that include enabling physicians to ascend to partnership without having to buy in and without sweat equity. We are proud of the unique opportunities we provide to dermatologists. Our 125-person practice support team offers extensive expertise and uniquely positions us in the market. We are a long-term

“We are proud that we have never had a partner doctor leave Integrated Dermatology except to retire.”

partner – a trusted partner that knows dermatology. We know the ins and outs of the specialty and have built a support ecosystem around our dermatologists that is unlike anything else in dermatology. Our team of experts provides all non-clinical, back-office business management support, including legal, compliance, IT, human resources, accounting, payroll management, recruitment, revenue cycle management operations and so much more. From medical to technology to equipment to analytics to hiring, the decisions are up to the physician. We just do the legwork. How important is brand awareness for Integrated Dermatology? Jeffrey: Dermatology is a local specialty meaning we keep it personal. We want the doctors to keep their local touch and feel. One example in our model is to have the front desk of the practice answering the phone, making appointments, and checking in patients. Our front office staff at every location knows their patients and have built that relationship. Other large practices in the specialty create call centers for making appointments, which saves personnel cost. We systematize things that should be, but we personalize the human experience, which we believe is a big differentiator for Integrated Dermatology. How important were mentors during your career and what has made your working relationship so effective? Jeffrey: We were especially lucky to have one mentor who was life changing, Lester Schner. He steered us in the right direction for success and was always there to advise and guide us when we were facing critical decisions. We were so lucky to have such a great mentor. We want to pay it forward, and we spend a great deal of our time advising young people. We try to provide advice and guidance from our experiences in order to hopefully make their career journey a little easier. Andrew: Jeff and my working relationship is based on mutual respect. Our skill sets complement each other. The conflict with partners usually happens when it comes to making decisions, but for us, we typically agree on the direction we want to go, and when there is a differing viewpoint, we let the person who is leading that specific matter make the decision. It has been a great ride, and there is no one I would rather have by my side than Jeff.

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A Home and a Business An Interview with Rachel Emma Manners, Duchess of Rutland, Chief Executive Officer, Belvoir Castle CASTLE BRIEF Dating back to 1066, the Belvoir Estate has been passed down through 36 successive generations. Belvoir is one of the country’s finest Regency castles. The estate’s landscaped garden was restored in 2016 from Lancelot “Capability” Brown’s 1780 original designs. The restoration of the 18th century buildings at the foot of the castle allowed the “Engine Yard” to become the heartbeat of the local community and a center of excellence for local food, drink and artisan shopping. The Engine Yard is open seven days a week and includes a cocktail bar, the Balloon Bar, the Fuel Tank restaurant which is open for breakfast and lunch, and The Duchess’ Gallery featuring a collection of interiors, clothing and much more curated by the Duchess of Rutland herself. Will you provide an overview of Belvoir Castle? Belvoir was built as a hunting lodge with enormous rooms for entertaining. We live in this castle very much as a home and I would say that in the 21st century it is truly about keeping it a home while also focusing on making it a viable business. It is critical in doing that

to protect the fragile artifacts and respect the history, while appealing to visitors and special groups from around the world who come and stay by invitation. It is a delicate balance. We have to be open to the public for at least 100 days a year based on our agreement with the government. With such a large property that has 250 rooms, you often won’t see any visitors or members of the public due to the size of the property. It has been my priority to find a balance between being a home and a business which has been incredibly difficult given that when we first arrived, we had four small children. You have to be willing to share your lives with others so there is not much privacy, but I believe it is very important that families like ours live in these buildings to keep them alive so that they have a heartbeat. How accessible is it to visit Belvoir Castle? We have our own private airstrip in front of the castle and East Midlands Airport is 40 minutes from the property, so it is very accessible for groups and visitors from all over the world.

The Duchess in Belvoir Castle’s Rose Garden (above) and horseback riding with the Castle in the background (below)

EDITORS’ NOTE Emma Manners was schooled at Ellerslie School, Malvern, and then trained as an opera singer at the Guildhall School of Music. After leaving opera school to train to become a land agent in Southampton, she worked for a time marketing properties in London before becoming an interior designer. Today, the Duchess runs the commercial activities of Belvoir Castle. She has also produced a book about Belvoir Castle.

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“The Engine Yard” at Belvoir Castle

How has Belvoir Castle had to adapt its business to address the global pandemic which caused tremendous strain on the hospitality industry? We have had to pull down the shutters and shut the rooms. During the first lockdown, the family really struggled to come together as a group. In the second lockdown, we have become much better at respecting each other’s boundaries. As a business, we are working to find a way to still allow people to come and walk around the grounds so they can get a reprieve from the stress of the times and experience a positive impact on their mental health. We have kept our restaurant, The Fuel Tank, open for takeout. We have had to think on our feet and be creative to try to provide visitors the level of service and experience we are known for while following all safety protocols. How do you focus your efforts as chief executive of Belvoir Castle and what do you see as the keys to effective leadership? I focus my efforts on running this private heritage but must do the dull bits as well such as concentrating on costs going out and monies coming in. If you do the dull bits well, the rest will follow. Effective leadership is sharing a vision, encouraging your team and leading from the front, like going into battle each day.

The dining room at Belvoir Castle

Chinese bedroom (above) and another Belvoir Castle bedroom (below)

It has always been my priority to find a balance between being a mother and being a business leader. I think that working mothers always have an element of guilt about what they do because it is hard to do it all and I have had that guilt. What are your priorities for Belvoir Castle as you look to the future? One of my priorities for Belvoir Castle moving forward is to further establish my American Friends Foundation, enabling people to gift money to support restoration projects and hence having their name on the door. I would like to make this heritage secure for future generations of my family and so the public will be able to continue to enjoy Belvoir. Moving forward business-wise, we will look to maintain a delicate balance of not over-commercializing what we do and still respecting the history. My chief priority will continue to be keeping the lights on. What advice do you offer to young women beginning their careers? I believe in women always being true to themselves and never asking others to do anything they would not do. They should write down their vision and share it with their team. Record your successes along the way because no one else will and always retain a woman’s feminine charm – don’t take on the mantle of men.

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Two views of The Regency Gallery at Belvoir Castle VOLUME 44, NUMBER 2

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Mission Over Margin An Interview with Stephen Shaya, M.D., Managing Director, Akkad Holdings and Executive Servant Leader, J&B Medical EDITORS’ NOTE In 2017, Stephen COMPANY BRIEF J&B Medical Shaya established his family office, (jandbmedical.com) is a privately-held Akkad Holdings, which focuses on global healthcare consortium based in healthcare investment opportuWixom, Michigan. Founded in 1996, nities. Since 2004, he has been J&B has 17 different business enterthe Executive Servant Leader at prises and has customers in 48 states J&B Medical, a global healthand 28 countries. The company has care solutions company. His role brought many new ideas and solutions oversees all strategy, innovaforward to the delivery of care and tion and growth for the company. continues to strive to improve patient He has received many recogniaccess and quality. tions including the 2015 Global Stephen Shaya Distinguished Healthcare Award How critical is it for leading comfrom the Center of Economic and panies to be purpose-driven and Leadership Development, and a United States how do you define J&B Medical’s purpose? Congressional Commendation. In 2017, Dr. It’s critical today for any company or organizaShaya was named the American Diabetes tion to have a clearly defined purpose. Today, more “Father of the Year.” Dr. Shaya spoke at the than ever, people, especially millennials, want to Vatican in 2018 on how leveraging tech- work with people whose purpose they can relate nology could help extend car e globally. to and believe in. J&B’s purpose is to provide cost He curr ently sits on a number of boards effective care to people around the world leveragincluding as the Chairman of the American ing technology and innovation. When people can Diabetes Association in Michigan, Henry reach their health potential, they can reach their For d Hospital (West Bloomfield) Boar d, human potential. Our mantra has always been C i t i z e n ’ s R x , a n d Ve l a t u r a . D r. S h a y a “mission over margin” and this has enabled us to graduated from Birmingham Brother Rice work with like-minded people around the world. High School summa cum laude and was Will you discuss how J&B Medical has a w a r d e d a M e r i t S c h o l a r s h i p t o a t t e n d adapted its business during the pandemic Wayne State University. He attended Wayne and how proud you are to see the strength State University Medical School and grad- and resilience of the team during this chaluated in 1996. Dr. Shaya subsequently fin- lenging and uncertain time? ished training in Family Practice at North This pandemic has been the true test Oakland Medical Center. of the leadership of organizations. The ones

who have been able to adapt have seen the opportunities to make a meaningful difference during this crazy time. The ones who haven’t adapted have struggled. Because of the strong underlying desire to serve of J&B Medical and my family office, Akkad Holdings, both have been able to thrive during the pandemic. We have worked through some of the most difficult situations with a can-do approach to get products to those most in need, especially the people on the frontlines. God’s light shines brightest during the darkest moments and we have experienced many miraculous outcomes during these most challenging times. Will you provide an overview of your family office, Akkad Holdings, and the key areas of focus for the firm? Akkad Holdings was set up in 2017 to help invest in healthcare opportunities which could leverage J&B’s global distribution channels. During this pandemic, we have been investing in new global medical supply chain sources and trying to bring medical manufacturing back to the United States. The need for medical products has gone up exponentially and we believe the demand will continue to be high. Remember, this is COVID-19. There will be COVID-20, -21, etc. Our world is going to be fundamentally different moving forward. Testing is going to play a big role moving forward and going to be part of the fabric of our society for the foreseeable future.

“This pandemic has been the true test of the leadership of organizations. The ones who have been able to adapt have seen the opportunities to make a meaningful difference during this crazy time.”

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“J&B’s purpose is to provide cost effective care to people around the world leveraging technology and innovation. When people can reach their health potential, they can reach their human potential.”

What do you see as the keys to effective leadership? There are five keys to effective leadership – Vision, Communication, Preparation, Optimism, and Versatility. Vision helps everyone see everything from a high level and develop an understandable road map of success. Communication is the way a leader helps everyone understand and work through any challenges to achieve the goals. Preparation helps to optimize everyone’s time and efforts. Optimism is positively visualizing results of your efforts. Versatility helps one adapt to the unexpected circumstances of every situation. Strong and effective leadership has never been needed more than now. There is much debate about lessons learned from the pandemic, including the challenges around the global supply chain. What are your views of the steps needed to be taken in order to be better prepared for future health crises? This pandemic was a cataclysmic, 9/11 like event, which has fundamentally changed our world. The global supply chain was antiquated and too dependent on China. Moving forward, there needs to be more manufacturing done in the U.S. and other places around the world. In addition, technology and innovation are going to be required to mitigate the risk around the financing, shipping, and insuring of bringing medical products to the U.S. Right now, the global medical supply chain is like an 8-track tape. We need to make it an iPod.

How important is it for leading companies and business leaders to address the mental health concerns and emotional strain experienced by their workforce during this difficult time? It will take us a long time before we really understand the long-term mental health issues of COVID. The prevalence of depression, abuse and neglect are up dramatically across the board. This pandemic has amplified underlying issues many already had. We are going to need to leverage technology like telemedicine to extend the reach of care and make possible treatment modalities more accessible. You devote a great deal of your time and resources to philanthropic causes. How do you focus your efforts and decide what areas to support? My grandmother was a midwife in Iraq and delivered thousands of babies, many times without financial compensation. My father, who passed away on November 23rd of last year, also believed passionately in the importance of giving and did not miss an opportunity to do so. A strong sense of servant leadership was instilled into me from both of them. Our philanthropy revolves around improving the well-being of the people in our world. Some of the areas which we have invested in have focused on advocacy and research for people with diabetes; providing opportunities for people with special needs; providing healthcare leveraging technology to the most remote, rural places around the

globe; supporting abused and neglected mothers and children; and advancing innovation around global health. All of these efforts are not simply a function of money, but also of time and caring. We truly believe that our efforts have helped to build much needed “bridges” to people and places globally which transcend any religious, cultural or socioeconomic differences. Do the skills that made you successful in business translate to being effective in philanthropy? In business, one wants to build something that will continue on when they are no longer there. This is the same approach we have taken in philanthropy. Our investments need to lead to situations which are sustainable and scalable. There is so much negativity in the world today. How important is it to stay positive and have hope? There are many benefits to positive thinking which include stress relief, increased immunity, improved wellness and better resilience. Jonas Salk said it best. “Hope lies in dreams, in imagination, and in the courage of those who dare to make their dreams into reality.” Only by seeing and believing in a better future will it come to pass. What advice do you offer to young people beginning their careers during this unprecedented time? Chase your passion. Get involved with people and opportunities that energize you. When you chase your passion, you will find your purpose.

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“During this pandemic, we have been investing in new global medical supply chain sources and trying to bring medical manufacturing back to the United States. The need for medical products has gone up exponentially and we believe the demand will continue to be high.”

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Farm to Factory An Interview with Gerry Morton, Chief Executive Officer, NutriScience Corporation EDITORS’ NOTE Gerry Morton and supplements. We built on those founded NutriScience Corporation foundational products and offer in 2003 as a platform to build, pre-workout powder, protein bars and grow and acquire nutrition prodgreen bars. Doctors, fitness trainers and uct brands with the potential to lead nutritionists are excited to recomtheir categories. On the nonprofit mend our products for weight loss, side, he is the Rotarian of the Year for muscle building and overall nutrition the Manhattan Beach Rotary Club and wellness. Recognizing that CEOs, and Chair of the Manhattan Beach business leaders, busy parents, and, Planning Commission. He is Pastreally, everyone, could benefit from President and Chairman of the Board our products, we expanded our reach for the Greater Los Angeles Area to anyone seeking to supplement their Gerry Morton Council of the Boy Scouts of America, daily nutrition for peak performance Past-President of the Entrepreneur’s and complement their healthy eating Organization (EO) in Los Angeles and is on the and exercise regime with our products. Board of Directors for the Global One Chapter of Will you provide an over view of YPO (formerly Young President’s Organization). NutriScience’s brands and your outlook for Morton is a veteran of four Ironman Triathlons, growth for the brands? over 36 marathons, the Catalina Classic 32-mile Our leading brands include EnergyFirst and paddleboard race and other top athletic competi- Greens Plus, both multi-decade leaders in their tions. He completed the 230-mile John Muir Trail industries. EnergyFirst was founded in 1997 and in 7 days. He is a private pilot, ship captain, and is a leader in premium low glycemic products that licensed real estate broker. Morton earned a BSBA facilitate stable blood sugar and optimal health. in entrepreneurship at the University of Arizona – EnergyFirst was the first to market a low glycemic Eller College of Management, an MS in nutrition all-natural whey protein isolate product. Greens from Clayton College, an Executive MBA from Plus was founded in 1989 and was the first comUCLA Anderson School of Management and fin- pany to ever market a blended green superfood ished an Entrepreneurial Masters Program at MIT powder. Greens Plus bars and powders have been Sloan School of Management and the HBS/YPO atop SPIN nationally and its bars have been a best President’s Program in Leadership at Harvard seller at Trader Joes. Greens Plus was inspired Business School. by the Guinness Book of World Records’ longest living quadriplegic who used Greens COMPANY BRIEF NutriScience (nutriscience.com) Plus Superfoods to achieve her longevity and was founded in 1997 to build, grow and acquire wrote a best-selling book about her experiences. nutrition product companies with the potential to lead their categories. NutriScience helps companies to grow by working to bring leading nutrition options to the marketplace and developing world class nutrition products brands. It offers sciencebased supplements of the highest quality directly to the consumer and through retail stores. Will you highlight the history and heritage of NutriScience and discuss how the business has evolved? Since 2003, we have been sharing our passion and commitment to 100 percent natural supplements, wellness products and education with the world. Founded and inspired by ultraendurance athletes seeking to achieve peak performance, we have worked with talented nutritionists and scientists to develop effective science-based, all natural, gluten free, non-GMO, organic whey protein, green superfood powders, 136 LEADERS

Greens Plus bar (above) and Greenergy powder (top)

How critical is innovation for NutriScience and where is innovation taking place within the business? Innovation is core to who we are as a company. We release new products to tackle new

markets and are always improving our product sourcing in ways that keep us at the forefront of the industry. The industry landscape is always changing and our “Farm to Factory” approach has allowed us to stay ahead of these trends in quality and focus. Did you always know that you had an entrepreneurial spirit and desire to build your own business? I’ve been an entrepreneur since birth. I enjoy solving problems and creating businesses to address unmet market needs. I started my first business as a disc jockey in high school and haven’t looked back. A desire for solving problems and building systems around those solutions has continued to lead me down the path of entrepreneurship. I even chose entrepreneurship as a major in college where I graduated with honors. What do you see as the keys to effective leadership and how do you describe your management style? I tend to hire great people and then give them the flexibility to run with their ideas. I also feel that we can accomplish great things if we don’t care who gets the credit so I work to share any credit for a job well done. I like to focus on systems and processes that support our team members and allow them to focus as much of their time and energy on their own unique abilities where they offer the most value to the organization. I like to create a big vision and then inspire people to reach beyond their capabilities to achieve that vision. We never know how much we can accomplish until we put ourselves out there. You commit your time and energy to supporting many causes through your philanthropic work. What makes this so important to you and how do you focus these efforts? Philanthropic efforts are a continuation of the mission we have as a company of helping people to live healthier and happier lives. My wife and I have always been passionate about supporting young people since they are the future of our country. In keeping with that, we’ve each run two of the largest youth serving nonprofits in Los Angeles with me serving as President and Chairman of the Greater Los Angeles Area Council of the Boy Scouts of America and my wife serving as the President and Chair of the LA Conservation Corps. We work hard to instill the value of service in our children and make it a core part of our family focus.

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PURPOSE

Rebuilding Travel An Interview with Valerie Ann Wilson, Founder, CEO, Chairman, & Owner; Jennifer Wilson-Buttigieg and Kimberly Wilson Wetty, Co-Presidents & Owners; and Brian J. Buttigieg, Chief Financial Officer & Owner; Valerie Wilson Travel

Jennifer Wilson-Buttigieg, Valerie Ann Wilson, Kimberly Wilson Wetty, Brian J. Buttigieg

EDITORS’ NOTE Valerie Ann Wilson initially moved to New York City to pursue a fashion career. Within two years, she was hired as Vice President to start the ladies’ division of Gant. Beginning in 1967, she spent the next 13 years serving on numerous committees and boards of directors, and played a part in a multitude of fundraising efforts with not-for-profit organizations in Westchester County, New York City and London. In 1977, the Wilson family moved to London wher e she became a founding member of the Junior League of London. Her three years in London fostered much of her passion for travel and on September 8, 1981, Valerie Wilson Travel, Inc. (VWT) was born, opening in the Pan Am Building in New York City. In 2001, she became a published author with Valerie Wilson’s World: The Top Hotels & Resorts. Ten years later, she authored the second edition and on February 2, 2012, Valerie Wilson’s World: The Top Hotels & Resorts, Second Edition and the VWT 30th anniversary campaign were both unveiled at the Astor Library at The St. Regis New York with industry leaders and high-profile travel, business and lifestyle media. 138 LEADERS

Jennifer Wilson-Buttigieg joined Valerie Wilson Travel in February 1991. Her consistent success with both sales and business d e v e l o p m e n t h a s k e p t Va l e r i e W i l s o n Travel in the spotlight as she provides oversight and leadership to the company’s corporate travel, meetings, incentives, and fulfillment divisions, its business development and its strategic initiatives. She is actively involved with the American Society of Travel Advisors (ASTA) as Co-Chair of the Government & Political Affairs Committee and was former Chair of the ASTA Corporate Advisory Council. Her efforts have earned her a number of honors, including the 2018 Paul Ruden Industry Ambassador Award, Luxury Travel Advisor Award of Excellence, the Top Humanitarian Award, and the ISTA/ASTA Barbara O’Hara Advocacy Award. She graduated from Haverford College with a BA in history and a minor in political science and received her Executive MBA from the Owner/ President Management (OPM) Program at Harvard Business School. She began her career as a Corporate Sales Manager of the Westbury Hotel in New York.

Kimberly Wilson Wetty joined Valerie Wilson Travel in February 1995 and has been instrumental in developing the company’s cruise division and launching the company’s first website. Today, she is responsible for managing the leisure division, VWT’s membership in Virtuoso®, as well as human resources. She is also responsible for all the brand and marketing strategy for VWT. Renowned for her extensive travel expertise, she has been awarded many honors in the industry, including Family Travel Specialist on the Travel+Leisure A-List and is a member of Travel+Leisure’s Travel Advisory Board. In 2015, she won the Most Innovative Advisor award from Virtuoso®. She is also a member of the Young Presidents’ Organization (YPO). A graduate of Bucknell University with a BA in sociology, she is the President of their Alumni Board of Directors. She began her career as a Store Manager for Ann Taylor in New York City and left retail to join the travel industry as Marketing Coordinator for the Americas at CIGA Hotels. Brian J. Buttigieg is responsible for Valerie Wilson Travel’s financial matters and provides leadership guidance for the company’s technology and administrative operations. Having started his career as a lawyer, he built an impressive resume prior to joining VWT in 2007, serving as a senior executive with broad functional experience in operations, finance/M&A, legal and business strategy. Having begun his career as an associate in the corporate department at the New York office of Chadbourne & Parke LLP (now Norton Rose Fulbright), he later served as in-house counsel to a major consumer products company and as general counsel to, and an operations officer at, a number of e-commerce businesses. He serves on the Board of Directors of Healthcare Chaplaincy Network and on the consistory of the Reformed Church in Bronxville. He received his BA in economics from Haverford College in Pennsylvania and a law degree magna cum laude from Brooklyn Law School. He is married to Jennifer Wilson-Buttigieg, Co-President & Owner of Valerie Wilson Travel. COMPANY BRIEF With high regard for attention to detail and customer service, Valerie Wilson Travel (ValerieWilsonTravel.com) is one of today’s largest women-owned and familymanaged travel consulting firms in the United States. Headquartered in New York City, VWT has a diverse client base and offices nationwide, stretching across the Eastern seaboard, the VOLUME 44, NUMBER 2

Midwest, and the West Coast. VWT’s team consists of a highly specialized and knowledgeable network of 315+ Travel Advisors and Associates. Valerie Wilson Travel handles the travel management needs of companies and organizations in industries as diverse as fashion, publishing, finance, new media, pharmaceuticals and notfor-profits. All Valerie Wilson Travel locations are proud members of Virtuoso®. VWT’s Power of Access® guarantees clients VIP treatment, exceptional service, as well as exclusive rates and amenities with preferred partners. Every year since 1998, the company has been counted among Travel Weekly’s Top 50 Travel Agencies. The hospitality industry has been severely impacted by the global pandemic. What is your outlook for the industry and what are the keys for the industry to rebuild from this crisis? Jennifer: The pandemic continues to have a significant impact on global tourism and the entire travel ecosystem. We were one of the first industries to be impacted by the effects of the pandemic. In January and February 2020, travel started to slow before an abrupt stop in March. We pivoted from booking extensive travel to getting people home, canceling reservations, postponing trips, securing refunds and being our clients’ travel advocate. By summer, specific segments, such as vacation travel, slowly began to restart, but nowhere near the levels it was in 2019. Travel spend is pacing at 1990 levels – 20 years of growth vanished. Kimberly: In terms of rebuilding, Travel Advisors are essential and are the trusted voice of the travel industry. They are advocates for our clients, as well as advocates for the industry. They can sift through travel regulations, industry jargon, and cancellation policies, examining current offerings from preferred partners to identify the best options for each situation and convey those advantageous options to each client. We also believe working closely with our supplier partners is vital. The only way to go forward is together as an industry. At Valerie Wilson Travel, we work with our trusted global connections to bring our clients our Power of Access – reliable and exclusive experiences every time. We believe the work Travel Advisors are doing will rebuild consumer confidence. Will you discuss how VWT has adapted its business to address the challenges caused by the pandemic and how proud are you to see the way the VWT team has shown strength and resilience during this challenging and uncertain time? Brian: Over the last year, this pandemic has taught us resilience, adaptability and flexibility. We are proof that extraordinary people rise in extraordinary circumstances. From our entire team, including those at our New York City headquarters, going remote in under 24 hours to fearlessly guiding our clients through cancellations and rebooking despite lost revenue, we are proud of how our VWT Family responded to this crisis. Jennifer: Additionally, over 70 percent of our corporate and leisure business was international in scope before this pandemic. With most VOLUME 44, NUMBER 2

international flights grounded, ships docked, and changing international travel regulations, we focused immediately towards “staycations” and domestic travel. We created different initiatives to maintain connection with our clients and preferred partners. Our Travel Temptations client series came to fruition in 2020, which features some of our favorite U.S. properties in a fun, easily consumable format. We launched a new website to provide both accurate and up to date information as well as inspiration for “dream travel.” Additionally, our first edition of VWT Suite Access digital magazine was released, a resource for destinations. Our Travel Unites campaign’s goal was to offer reassurance to our clients, suppliers and Employees/Associates and express our gratitude and optimism for the future. Committed to rebuilding travel confidence, we partnered with multiple companies to combat fears, such as GeoSure, to provide updates on travel restrictions, and Omnia for COVID testing. VWT has a long history of being committed to its customers, employees, and communities. Will you highlight VWT’s commitment to supporting these three stakeholders? Jennifer: Whenever we make decisions at Valerie Wilson Travel, we always take all our stakeholders into account. Throughout 2020, one of our top priorities was our Associates, Advisors and Employees and their health and safety. We went to a virtual work environment on March 13, 2020 and have not yet returned to our New York City headquarters office. We created a weekly Town Hall Zoom to ensure lines of open and honest communication. At the end of the year, we co-hosted events with American Airlines to boost morale from a Halloween virtual costume parade to a virtual mixology contest and our “peach linings,” where we asked the VWT team to share one photo of a moment that brought them joy in 2020. The 2020 year in review video we created was so emotionally moving. It was amazing to see all the good that happened in a tough year – births, weddings, engagements, puppies, and the magical beauty of nature from sunrises to sunsets to beaches, rivers and mountains. Of course, our customers are always forefront of our minds as well. At first, we needed to make sure all our clients abroad returned home safely. Next, we began working on rebooking canceled trips, and now we are working to inspire and communicate the ins and outs of this new era of travel with our clients. We hosted a Power of Access client series featuring conversations with travel influencers, from a Delta pilot to the Editor-in-Chief of Travel+Leisure magazine to the first female captain of a cruise ship. Kimberly: We also expanded our marketing efforts to help our Advisors communicate our favorite U.S. destinations to clients, give updated information and practical tips, as well as offering “armchair” travel inspiration. We have partnerships with COVID testing firms so that our clients can get tested quickly and easily, which is critical with the new travel guidelines. We also extensively advocate for clients and the travel industry at a government level and in the press.

Giving back to others always has been a core principle at VWT. While 2020 made the financial contributions to our VWT Giving Tree more challenging, we were proud to support a new charity, Meals4Hereos, that partnered with local restaurants to supply meals to frontline workers during COVID. How do you define the VWT culture and how critical is culture to the success of the business? Valerie: First and foremost, we define ourselves as a family. We take immense pride that we are a family-owned business founded on core values of integrity, trust and respect. Our entire VWT community from our Employees and Associates to our clients and suppliers are our family. We are so grateful to have had each person by our side for all of 2020. Last year was, to say the least, a year of unknowns and unexpected events, yet through it all, VWT remained steady and committed to inclusion, gratitude, and hope. We could not have done that without each one of our team members. Looking on to 2021, having our VWT family by our side is critical so we can lean on and support each other. From going remote in under 24 hours to creating new ways for our Advisors and Associates to stay in touch with clients, we are so proud of how we have reacted to the crises we have seen. As we move into a new era of travel, we are confident our team will be at the forefront. Will you highlight VWT’s commitment to building a diverse and inclusive workforce and how important it is to bring diverse perspectives and experiences to the table when making business decisions? Kimberly: Bringing diverse perspectives to the table when making decisions is so important. As a minority-owned business, VWT is certified by the Women’s Business Enterprise National Council, which validates that we are majorityowned, controlled, operated, and managed by women. Additionally, we are always looking for the leaders of tomorrow. VWT’s Associate Access program empowers and enables entrepreneurs to build a successful travel business. The 12-month program helps new travel professionals receive personalized training, develop marketing skills, and attain travel industry certification through the Virtuoso Certified Travel Advisor and ASTA’s Verified Travel Advisor programs. When you graduate from this program, you enter the industry with VWT Advisors & Associates’ network by your side. Additionally, over the summer, we distributed a statement about VWT’s intolerance for social injustice and our commitment to equality and inclusion for all. We reaffirmed that message after the attack on our Nation’s Capitol in January 2021. What advice do you offer young people hoping to build a career in the hospitality industry during this unprecedented time? Valerie: We have seen travel react in the most positive and collaborative ways during this crisis and the industry is incredibly resilient. Remain positive. There will be so much room for growth and opportunity when travel flourishes again. If you have a real passion for hospitality, tourism, and travel, there is definitely a place in the industry for you.

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Science First An Interview with Percival Barretto-Ko, Chief Business Officer, Astellas EDITORS’ NOTE Percival Barretto-Ko Our culture is part of our DNA and is the Chief Business Of fi ce r of following the “Astellas Way” means Astellas. In this role, Barretto-Ko acting with integrity and respect for is responsible for the execution all partners while maintaining a clear of the company’s corporate strafocus on delivering safe, effective and tegic plan to advance external and reliable medicines for patients. inter nal innovation and h e l p I believe that establishing an ensure Astellas continues to authentic organizational culture built serve the unmet needs of patients on shared values has never been more ar ound the world. Pr eviously, important which is why I am proud to Barr etto-Ko was the Pr esident, see Astellas leading by example. Our Astellas Pharma US, where he was long-term focus on employee diversity Percival Barretto-Ko responsible for the operations for and cultural inclusion has taken on Astellas Pharma across the U.S., increased urgency with an emphasis headquartered in Northbrook, Illinois. on a top-down commitment to sustain meaningful engagement for years to come. COMPANY BRIEF Astellas (astellas.com) is a How has Astellas adapted the way it company dedicated to improving the health of works to address the challenges caused by people around the world through the provision the global pandemic? of innovative pharmaceutical products. Astellas The past year was a powerful catalyst focuses on serving patients’ medical needs across for self-reflection across the pharmaceutical multiple therapeutic areas, including cardiology, industry, and Astellas was no exception. We hematology, immunology, infectious diseases, spent much time thinking about how we serve oncology and urology. patients and protect our employees and communities – and how we might do better. As the Will you highlight the history and heri- pandemic spread, we moved swiftly with steps tage of Astellas and how the business has to prioritize product supply and continuity for evolved? patients, ensure safety in clinical trials and Astellas was founded in Tokyo in 2005 support affordability and access in high-need when Yamanouchi and Fujisawa merged, join- communities for the patients we serve. One ing nearly two centuries of experience in proof our first steps was preventing disruption ducing pharmaceutical drugs. Today, Astellas in our supply chain so patients would not lose employs more than 17,000 people globally and is a world leader in developing innovative medicines. From the beginning, we’ve continued to build on our deep-rooted heritage of openness, forward-thinking and respect for all. Our R&D organization, for example, focuses steadfastly on the patient by seeking novel innovation that serves their unmet needs. By creating solutions for some of the most challenging disease areas – including oncology, our largest disease area of focus – our “Science First” approach delivers breakthroughs to patients in need while contributing growth to our shareholders and stakeholders. How do you define the Astellas culture and how critical is culture to the success of the company? At Astellas, our employees’ unique perspectives help build our inclusive culture and are critical to delivering value to patients. We operate each day with a shared purpose of meeting the needs of patients around the world.

“We operate each

day with a shared

purpose of meeting

the needs of patients around the world.”

140 LEADERS

access to critical medicines. We also initially halted clinical trial enrollments to avoid putting any patients or healthcare professionals at risk. Once it was safe to resume, we rapidly adjusted our clinical trial operations to accommodate patients who could not visit doctors’ offices by implementing direct-to-patient drug shipments. This enabled trial continuity while minimizing delays in advancing portfolio milestones. While the pandemic caused all companies to change the way they operate during the pandemic, it also challenged and motivated us to tackle issues we had been trying to solve for a long time. We plan to carry many of these positive changes with us as we enter a “postCOVID” world. Will you highlight the key areas of focus for Astellas and the therapeutic areas that it addresses? Our current pipeline includes potential treatments in oncology, urology and nephrology, immunology and neuroscience, while also advancing new areas of discovery research in ophthalmology and muscle diseases. Oncology is the largest disease area of focus for Astellas. We pursue targeted therapies for hard-to-treat cancers where few therapies exist. We are committed to delivering value to cancer patients and their families through innovative science in areas with high unmet need. In our Medical Specialties function, we are focusing on the biology underpinning many disease areas and the multiple modalities used to treat them. At Astellas, we focus our research and development in areas of high unmet need in underserved and serious diseases. We believe the key to successfully treating these challenging diseases lies in a deeper understanding of biology to reveal the mechanisms and drivers of disease and their potential treatment targets. This biology-led approach uncovers the secrets of why and how diseases develop which we combine with versatile treatment modalities to create pioneering strategies for disease prevention, treatment and even cure. Within our Focus Area Approach, we have identified four current Primary Focuses for increased investment and prioritization where we have the expertise and capabilities to deliver significant, rapid and meaningful value for patients: 1. Blindness and Regeneration 2. Genetic Regulation 3. Immuno-oncology 4. Mitochondria Biology VOLUME 44, NUMBER 2

“By creating solutions for some of the most challenging disease areas – including oncology, our largest disease area of focus – our ‘Science First’ approach delivers breakthroughs to patients in need while contributing growth to our shareholders and stakeholders.” Will you discuss the products that Astellas has in its portfolio and what products are in the pipeline? We’re focused on maximizing the value of our portfolio’s primary products, including XTANDI to treat forms of advanced prostate cancer, and Myrbetriq for addressing an overactive bladder. We are also enthusiastic about the potential value for patients of our newer products, including XOSPATA for acute myeloid leukemia, Cresemba, an important antifungal treatment addressing a high medical need, and PADCEV for locally advanced or metastatic urothelial cancer, the most common type of bladder cancer. In terms of what’s in development, we continue advancing our focus areas outlined in our Corporate Strategic Plan, drilling down on modalities, basic science and where we feel we can generate molecules to apply to different indications. These include mitochondrial pathways, immuno-oncology, eyesight, ophthalmology and cell therapy. We need to go back to the science, find truly innovative first-in-class treatments and take it from there. We are incredibly proud of our robust oncology pipeline. We currently deliver important treatments for solid tumors and hematologic cancers. Our pipeline features small molecules, monoclonal antibodies, and novel immuno-oncology approaches directed at some of the hardest-to-treat cancers with few medical options. As much as immuno-oncology has been exciting and successful over the past five years, there are still many unmet needs and patients who do not respond. We’re also expecting and hopeful for zolbetuximab, which we are developing for the treatment of gastric and gastroesophageal junction cancer, and other therapies. How critical is innovation to Astellas’ business and where is innovation taking place in the company? Innovation is fundamental to what we do at Astellas. It is at the core of who we are, and as a result, we are continually working to turn innovative science into value for patients. Throughout our R&D process, from bench to clinic and to our patients, our “Science First” approach optimizes our chances of creating new treatment options and maximizes value for patients with high unmet needs. This means recruiting and retaining top diverse talent to pursue the most VOLUME 44, NUMBER 2

meaningful breakthroughs and then advancing these discoveries at the best locations. Our work does not stop at developing medicines. In our “Rx+” business, we combine our existing expertise with technology and knowledge from different fields to expand to new products and services beyond our core prescription pharmaceutical products that will contribute positively to the patient journey. Our Rx+ programs encompass prevention, diagnosis, treatment and post-treatment care and management products and services. Astellas is approaching innovation in a new way this year by bringing together key divisions that play a role in driving our internal and external innovation under a single umbrella. I recently assumed the role of chief business officer and will focus on advancing innovation across the organization while spearheading the execution of Astellas’ new Corporate Strategic Plan. I will be helping to drive transformation in our core business processes, including discovery, patient and customer interactions, employee engagement and business development. This includes ensuring the acquisition and integration of exciting, innovative technologies and new businesses into Astellas, with the ultimate goal of seeking ways to continually serve patients’ unmet needs. W i l l yo u d i s c u s s A s t e l l a s ’ f o c u s o n building a diverse and inclusive workforce? I believe there is too much at stake today for companies not to prioritize a diverse workforce and inclusive workplace in authentic and sustainable ways. In just over two decades, people of diverse racial and ethnic backgrounds are expected to be the majority in the U.S., yet hiring practices and leadership across the pharmaceutical industry still don’t reflect these numbers. At Astellas, we’ve outlined tangible steps our leaders can take to promote diversity and inclusion, now and in the future. Key areas we’re targeting include: • Setting D&I goals and benchmarks – holding ourselves accountable to improvements by identifying, implementing and learning from KPIs. For example, we’ve committed to sharing diverse workforce data with employees on a quarterly basis.

• Mitigating implicit bias – expanding efforts to identify and address bias in companywide systems and processes, including the way we recruit, hire and promote top talent. • Addressing health equity – centralizing and advancing our efforts to reach diverse communities in a range of activities, from trial recruitment and patient advocacy to disease awareness and marketing operations. What do you see as Astellas’ responsibility to the communities it serves and how critical is community engagement for the company? From the COVID-19 pandemic to issues of racial unrest and social injustice, 2020 highlighted many longstanding disparities in our systems and communities across the U.S. These events have only elevated our industry’s opportunity and responsibility to positively impact the areas where we live and work. Over the past year, we’ve prioritized support focused on our local and global communities’ safety and wellbeing. This ranged from donations to several humanitarian organizations to aid in the prevention, diagnosis and treatment of COVID-19 in affected communities and nonprofit organizations focused on racial justice and equity. The Astellas Global Health Foundation is providing $2 million in emergency funding for projects focused on improved healthcare infrastructure, COVID-19 training and education in lowincome countries. Each year, Astellas provides up to five days of paid time off to full-time employees to volunteer for charitable organizations, in addition to their holiday and vacation time. In 2019, this resulted in approximately 27,005 total volunteer hours. Because giving back is so deeply rooted in our culture, we worked hard to keep that spirit alive in our virtual working environments throughout 2020. We found a partner who helped us create an employee volunteerism program to build caregiving kits donated to select hospitals. We also collected and donated more than 35,000 items during virtual collection drives. More than any other year, 2020 challenged Astellas to keep patients and employees at the center of all we do and I feel confident and hopeful about what lies ahead. As monumental changes continue reshaping our culture and society, we’re committed to showing the world how we’re part of the solution.

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Business and Sports An Interview with Bode Miller, Champion Alpine Skier 2014–15 ski season while recovering from back surgery. During his first race of the season, a super-G event at the World Championships in February 2015, he crashed and severed a tendon in his right leg, forcing him to miss the remainder of the World Championships. After not being able to return to the racing circuit for two years, Miller officially retired from competitive skiing in 2017 and then joined the National Broadcasting Company as an analyst for the company’s Olympic skiing broadcasts. Miller’s autobiography, Bode: Go Fast, Be Good, Have Fun, which was written with Jack McEnany, was published in 2005.

Bode Miller

EDITORS’ NOTE Bode Miller is an American Alpine skier who won six Olympic medals, more than any other male American skier. He also won the men’s World Cup overall championship in 2005 and 2008. Miller was born in the heart of the White Mountains and initially lived in a house with no electricity or running water. After his parents divorced, his mother moved him to nearby Cannon Mountain and often left him in the care of the ski school staff. He began skiing competitively at age 11. A natural athlete, Miller earned all-state honors in high school in soccer and tennis and was an accomplished golfer. Ultimately, he decided to focus on skiing. He first made the U.S. ski team in 1998 and competed that year in the Nagano (Japan) Winter Olympics, where he failed to win a medal. At the 2001 Fédération Internationale de Ski (FIS) World Ski Championships in St. Anton, Austria, he tore ligaments in his left knee in a racing crash, but he rebounded to collect silver medals in the giant slalom (GS) and the combined event at the 2002 Olympic Winter Games in Salt Lake City, Utah. In 2011, he won his 33rd career World Cup race, a downhill event. Miller skipped the 2013 World Cup season to recover from knee surgery. At the 2014 Olympic Winter Games in Sochi, Russia, he won a bronze medal in the super-G to become the most-decorated American Olympic skier of all time. In addition, at age 36, he became the oldest individual to win an Olympic medal in an Alpine skiing event. Miller missed the beginning of the 142 LEADERS

When did you know that you had a passion for skiing and a desire to be the best in the sport? I developed a passion for skiing as a young child. Before I started public school, I would walk about a mile from our rural home in New Hampshire through the woods, then hitch a ride up to Cannon Mountain. I was homeschooled at that time, which freed up time to enjoy the sport, and I would capitalize on second-hand equipment from swap meets to use when needed. My desire to win was initially fueled by desperation, honestly, as local ski races I competed in for elementary school students offered a full season ski lift ticket as first prize. I wasn’t the best of the best at that point but was able

to win that race a couple times with the motivation to earn that pass access that I otherwise couldn’t afford. What were the keys to your success in the sport and what set you apart from the competition? Firstly, I’m hyper-critical of my performance in all aspects of my life, and have always held myself to the highest standards for everything I set out to achieve, but balance that drive with reality. While I believe that’s mostly innate, outside of the obvious decades I spent training, I have learned how to harness a very specific, valuable mindset that allows me to max out on intensity and focus which I attribute to my success. What interested you in business and did you always know that you had an entrepreneurial spirit? While traveling across the globe, I was thankfully exposed to brilliant business leaders with expertise in many industries who inspired me to think more strategically about my future beyond the slopes. While I was still competing, I also had the opportunity to weigh in on several products along the way which sparked my interest in moving into the realm of business and entrepreneurship. Will you highlight the launch of your new tech venture, SKEO, and your vision for the business?

Revo x Bode Miller No 1 Blue Water lens VOLUME 44, NUMBER 2

The SKEO app records skier performance, including from optional wearable sensors, and gives the skier real-time feedback and instructions to improve performance and safety

I teamed up with Snowcookie Sports CEO, Dr. Martin Kawalski, to recently launch SKEO, a digital ski platform that finally allows skiers to objectively measure their performance, improve their skills, exchange stats and access coaching tips through our free app which can also be paired with wearable sensors for more detailed and immersive assessments. Our goal for the platform is to help people better understand and develop their skiing technique with inspiration to improve, have fun and mitigate risk of related injuries. Our proprietary algorithm finetunes body position, edge control and improves safety, giving all skiers tools to safely take every edge they’ve got. In terms of where we’re headed, we’re working to further develop our wearable technology for next season and will be releasing a premium version of the app as well. Until now, there really hasn’t been any comparable technology that offers instruction and access for everyday skiers like we’ve seen in other markets such as cycling, running, yoga, etc. There also hasn’t been a social network dedicated to snowsports until now, so we envision SKEO becoming the go-to for education, community engagement and meaningful connection within our space. You serve as Global Ambassador for Revo. What interested you in working with Revo and how do you focus your efforts in this role? I’ve always been a huge fan of Revo, given their heritage as one of America’s longstanding independent eyewear retailers. I continue to have a deep appreciation for solid products that are proven to perform, so when I was approached by Revo to collaborate as their new global ambassador of winter sports, it was a VOLUME 44, NUMBER 2

no-brainer to join their team. The technology and innovation they drive is unmatched in my opinion, so I was thrilled to team up on our first capsule collection of goggles that are available today – the first of many collaborations to come. My role at Revo is to not only promote the brand as an ambassador, but to also serve as a true partner, weighing in on product development and offering creative solutions before we

go to market. I really enjoy working with the Revo team as well, which is so important to me. How did your experience on the slopes impact your views on running a business and how did it shape your management style? Throughout my career, I was always looking to improve or modify my skill set to be more effective as a ski racer which is the same approach I take in business today. It seems very common for people to find themselves in positions that don’t really align with their greatest talents, so finding ways to help them develop those skills to perform, or identifying the right role for them, is a really important part of leadership in business. During your career, you were always known to push yourself to get better and to focus on the next competition. Were you able to enjoy the process and take moments to appreciate what you accomplished? You’re not wrong – I have always been a forward-looking person who tries to stay focused on what’s next. That said, yes, I was mindful to ensure that behind closed doors with my close family and friends, I took time to humbly celebrate the triumphs along the way as they really did transform my life. What advice do you offer to young people beginning their careers, whether it be in sports or business, and what do you see as the keys to success? I think you have to have a deep passion for what you’re doing and truly enjoy it. This doesn’t mean that there won’t be very difficult times filled with frustration along the way, but the passion and love for whatever you are doing will catalyze the motivation you’ll need to stick with it and achieve success.

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The Future of Work An Interview with Richard Mines, Principal, WB Wood EDITORS’ NOTE Richard Mines Will you highlight the history and started his career in furniture at heritage of WB Wood and discuss William Doyle Galleries. In 1993, how the business has evolved? he entered the contract furniture WB Wood was founded in 1905 industry at a Knoll Dealership, by William Barton Wood as an office where he specialized in new busisupplies company which, in later ness development. In 2004, fasciyears, morphed into office furnishings. nated by Herman Miller’s Design WB Wood started to solidify its posiConcepts and Heritage, Mines left tion as a major office furnishings supthe Knoll Dealership and teamed plier in the 1970s with offices in New up with Bob Blau. Together, they York, New Jersey, and Connecticut bought WB Wood New York and, servicing the Tri-state area. In the Richard Mines in 2007, they purchased Corporate mid-1990s, Herman Miller purchased Environments based in New Jersey. WB Wood, buying-out the New York This created one organization with branches division of WB Wood, closing the Connecticut in New York City and Basking Ridge, New division, and the New Jersey division was taken Jersey. In 2009, Mines became sole owner of WB private by one of the partners. New York WB Wood and built up the organization to be one Wood, which was the largest of the three offices of the highest-grossing Herman Miller Certified by far, continued to be led and run by one of Network Dealers in the country. In November the partners who stayed on as an employee of 2020, WB Wood became a Haworth Preferred Herman Miller. Fast forward several years later, Dealer. Mines is a Board Member of WFUV, Herman Miller realized that it did not make LMCC and FIAF. sense for them to be both the manufacturer and distributor. To be a viable distributor they also COMPANY BRIEF WB Wood (wbwood.com), had to sell competing manufacturers, which was founded in 1905, is recognized as a prominent a bit of a conundrum, so Herman Miller, who furniture dealership and management com- had purchased about 15 commercial furniture pany in the United States. In addition to being dealers around the country, had a corporate a Haworth Preferred Dealer, it represents 300 mandate to divest of dealerships. other manufacturers with products spanning the I teamed up with the person running design and budget spectrum. WB Wood provides WB Wood at the time and we purchased it a full range of procurement, furniture and proj- back from Herman Miller in 2005. We made ect management services to a variety of businesses some tweaks to the company – strengthened and institutions in the New York metro area and efficiencies, implemented new technologies, across the United States, working alongside their super-charged growth of the sales force and architects, design firms and consultants. acquired a couple of other dealerships around

the New York metropolitan area. I bought out my business partner nine years ago and continued to further maximize operational efficiencies, enhanced the company’s brand equity, and have fostered WB Wood’s long heritage and reputation of being a superservice organization. It is what WB Wood has been known for throughout its lengthy history. We have continued to grow the organization and expand the geographic footprint throughout the country, working with major companies. In late 2020, we decided that it made sense to change alignment of the main line manufacturer from Herman Miller to Haworth. Today, we have around 120 employees. How has WB Wood adapted its business to address the challenges caused by the pandemic? The premise of our business is people working in offices and hospitals. We are following CDC required guidelines while helping our customers create environments that implement the current return to in-person work policies. Based on our research, we are educating our clients on what the workplace post-pandemic will look like and have aligned ourselves with manufacturers that provide the appropriate products. What are your views on the future of work and how is WB Wood positioned for growth with the changes taking place around workspaces? We have experienced points in time where far fewer people were going to the office, making the shift toward working from home. After 9/11, looking back at that time, people were

“Though the current circumstances are clearly more extreme around a pandemic, I believe the future of work will be in an office environment.”

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“Based on our research, we are educating our clients on what the workplace post-pandemic will look like and have aligned ourselves with manufacturers that provide the appropriate products.”

fleeing for the suburbs, and in 2008-2009 during the Great Recession, people were getting rid of their real estate. Though the current circumstances are clearly more extreme around a pandemic, I believe the future of work will be in an office environment. The largest and most successful companies – Facebook, Google, and Amazon among many others, are investing heavily in the office environment and the office of the future. They know that there is no substitution for face-to-face, human interaction. The office is where spontaneous ideas, conversations, and creative thinking take place, and that is how an organization’s culture is shaped and fostered. I also believe that for many people, the workplace is their social outlet. People go to work to socialize and to meet other people. Many are very eager to have that escape each day and go to the office, meet with colleagues and chit chat at the water cooler and admire someone’s new suit or new shoes, or just talk about work and maybe what they did over the weekend. Those little rituals, though they may seem routine, are very important in a person’s workday. Additionally, for the younger generation, particularly those members moving to a new city, the office becomes a social outlet. Work colleagues can become part of a social network that extends beyond the office to include, perhaps, going out for drinks after work or joining a company softball team. Whatever the social outlet may be, in-person interaction is important and I think what most of us have been missing living through the current situation.

Will you discuss your new partnership with Haworth and how this partnership will help fur ther elevate the W B Wood brand? The office is not going away although there may be tweaks to how people sit, or the height of the panels, for instance. As I think about the future of WB Wood, its incumbent upon me, as a business owner, to help feed the mouths of all WB Wood employees, their families, and extended families. It is extremely important to me that we are aligned with a manufacturer that truly sees the future of work as their number one priority and concern. They are focused on continuing to develop and innovate their product mix, and to modify its product offerings around the office space of the future, near and longer-term. That is Haworth’s primary business. Their single most important focus is designing, developing, promoting and supporting their distribution dealer network to bring these products to the office environment. Haworth is a multi-billion-dollar, privately-held company, which allows them to be more flexible and agile versus publicly traded office furniture manufacturers. How do you describe the WB Wood culture and how critical is culture to the success of the company? Culture and reputation, I believe, are equally shared and critical priorities for WB Wood. Our organizational and cultural mantra is to enjoy the people you work with, have fun along the way and make a good living while you are at it. It is a professional

environment with the atmosphere of an extended family. That type of culture is critical for me, as a leader and business owner. We just have one ask of our employees – excel at what you are hired to do, exceed our client’s expectations, live up to our values and brand promise, and focus on delivering superior customer service. How critical is it for WB Wood to build a diverse and inclusive workforce? It’s very important for WB Wood to have a diverse and inclusive workforce. In fact, I believe it is that diversity that strengthens WB Wood. At our organization, the majority of our employees are female. We have a strategic alliance with a WNBE/NBE, which allows this start-up organization to pursue larger opportunities than it ordinarily would be able to by partnering with WB Wood, and utilizing some of WB Wood’s back offices. This synergistic relationship also allows corporations to satisfy their Supplier Diversity Requirements, while having the “bench strength” of a larger organization, if required. These are important initiatives within the WB Wood universe. We also host a women’s forum every year with women leaders from our organization. This 2- to 3-day retreat includes guest speakers and breakout sessions. It is a wonderful opportunity for the group to leave the office for a few days and spend time discussing various professional issues and topics while further bonding as a team. These types of events are embedded within the culture of our firm and are something that we prioritize.

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“The largest and most successful companies – Facebook, Google, and Amazon among many others, are investing heavily in the office environment and the office of the future. They know that there is no substitution for face-to-face, human interaction.”

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An Educational Content Platform An Interview with Alison Marckstadt and Sisi Provost, Co-Founders, Succession Advisors EDITORS’ NOTE Alison Marckstadt has more than 15 years of experience in private equity and family office, supporting successful entrepreneurs and investors alike. Most recently, she was Vice President and Client Relations expert at Caprock, a multi-family office, focused on developing and advising on customized wealth strategies for individuals and families. Previously, she worked for Tom Barrack, the Founder and Chairman of Colony Capital, where she provided day-to-day oversight and management of the various aspects of his public and private businesses, in addition to being a lead for his Single Family Office team. Prior to Colony Capital, Marckstadt held positions at Leonard Green & Partners and formerly as the Chief of Staff for Marty Geller of Geller & Company. Sisi Provost brings over 15 years of experience counseling and advising families in the ultra high-net worth space. Prior to cofounding Succession Advisors, she held executive and senior management positions at both Cresset Asset Management and at Ascent Private Capital Management of U.S. Bank, as subject matter expert for Wealth Strategy and Family Office Services; and as Director of Trust & Estate Planning at Convergent Wealth Advisors, an affiliate of City National Bank. She practiced as an estate tax attorney at national firms, including at Proskauer and at Katten, where she was based in Los Angeles. FIRM BRIEF Succession Advisors (successionadvisors.com) is an online membership platform providing access to a library of credible, educational content in the form of articles, podcasts, videos, activities and templates. With unprecedented access to practical and useful information in the areas of accumulation, inheriting, management and administration of personal wealth, Succession Advisors is removing the barriers in support of individuals, families, and professionals. What was your vision for creating Succession Advisors and what made you feel that there was a need in the market for its services? Sisi: Our vision was to create an educational content platform giving access to credible, easy to understand, useful information that you can apply in a practical way whether it’s you as the end user or your client if you’re a wealth professional. The content is largely within two broad areas we call family legacy planning and 146 LEADERS

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luxury lifestyle. It’s also access to a network of vetted industry experts in their respective fields – all at a reasonable cost. The type of content we provide has traditionally been accessible only through larger RIAs or financial institutions that can afford to pay big salaries to retain in-house subject matter experts. Even in those cases, most use it as a marketing tool to win assets to manage but don’t necessarily focus on consistent and meaningful application of the content. The reality is that much of this stuff is hands-on, high-touch service work that doesn’t scale well because it requires human bodies with the right expertise to deliver. That’s why you’ll find niche consulting firms that will focus on one or two services, but getting access to these firms also requires that you first find them and then have the knowledge and understanding to vet them out.

Alison: O u r f o c u s i s t o e d u c a t e , empower and engage people from all sides of the table around issues that are relevant to successful families and individuals. Both Sisi and I come from the RIA and Family Office world where the focus for both client and advisor is typically on the overall return. However, we saw there was a growing need for additional support to families which we felt was equally as important. Will you highlight the Succession Advisors platform and offerings? Sisi: Our online content platform is called the WealthCAP HUB®. The CAP stands for “Content Access Pass,” which provides our members an all-access pass to the entire library of content, whether that be articles, blogs, podcasts or tools such as activity worksheets and templates. In general, the content is robust but tailored for the market consumer who is proactive about self-education as it relates to wealth planning beyond investing assets. However, our content offering continues to grow based on feedback we receive from our members identifying areas they would like to learn more about. We are not investment advisors, but we have worked in the wealth management world long enough to know that there are other important elements of an individual or family’s wealth that needs equal attention and understanding. Will you discuss the range of content that is provided on the Succession Advisors platform and the quality of the content?

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“The type of content we provide has traditionally been accessible only through larger RIAs or financial institutions that can afford to pay big salaries to retain in-house subject matter experts.”

Alison: We provide and curate content for trust and estate planning, family governance and next generation stewardship, family wealth education and financial literacy, risk management/mitigation, estate management for highend properties and all things luxury inclusive of experiences and specialized services. Will you descr ibe your business model? Sisi: It is a membership-based model that is available for purchase at the individual or firm level. With a firm membership all employees, as well as clients, have the ability to create an account and access the full library of content within the WealthCAP HUB. How do you define the Succession Advisors client and how broad is the target focus? Alison: It is truly for everyone – the successful individual or family, consultant, attorney, CPA, client advisor, wealth manager, multi-family office, business owner and entrepreneur. The Succession Advisor client is a highly-motivated individual who seeks to expand upon their personal knowledge either for their own benefit or in an effort to be of greater service and support to their clients. What makes the partnership between the two of you work so well and do you focus on different areas of the business? Alison: Sisi called me recently and said, “someone once told me a partnership is like

a marriage, so I guess we’re basically married,” which is a pretty accurate description. We were introduced by a very good friend a couple of years ago and hit it off instantly. I was extremely impressed by Sisi’s knowledge and background, but even more so her immediate willingness to collaborate in an effort to better support my clients at that time. We have focused on differing areas throughout our careers – she on trust and estate, family governance and wealth strategies for clients and I have been a strategic partner to principals within a single-family and multi-family office environment, with over a decade of experience in private equity. We collaborate on all aspects, but vary on who ultimately takes the lead as it pertains to their specific area of expertise. Most importantly, it is more fun than I ever could have imagined and I continue to learn from Sisi daily. Sisi: What makes our partnership great is that we are the same in the right places and different in the right places so that it strengthens our ability to work together. Where we are exactly alike is that we both have the same work ethic, high standards and expectations from those we work with and in the delivery of our services to clients. In general, we like being around each other, we laugh a lot together which cannot be underestimated when you work with someone 24/7. On the other hand, I believe our partnership is even more effective because we’re

“We provide and curate content for trust and estate planning, family governance and next generation stewardship, family wealth education and financial literacy, risk management/ mitigation, estate management for high-end properties and all things luxury inclusive of experiences and specialized services.”

different in our expertise. We both come from the wealth management industry and environment, but our separate education, training and professional backgrounds are in different critical areas which means as partners we’ve got all the bases covered. To me, this makes us so much more powerful together. I like that she’s smarter than me in a lot of things I’m familiar with but not an expert in because now I’m learning from her in those areas which I’ve always known were valuable to our target market. This makes our company better, it gives our offering a competitive advantage, and it gives our members more value than if it was just me solo. Did you always know you had the entrepreneurial spirit and desire to build your own company? Alison: No. It was not until I started working for Tom Barrack and had the opportunity to run projects across a multitude of areas that I developed the desire to do something on my own. A couple years ago, I joined a multi-family office with the intent of opening a new location in the Los Angeles area which would allow me to provide expanded services to a broader client base. When unforeseen events interrupted that quest, I realized pursuing the same goal with the right partner would provide an even greater opportunity and doing so from outside the RIA framework was the best approach. Sisi: Yes, always, because I became frustrated with the average wealth consumer’s lack of access to persons like me and the knowledge I had that could be helpful to them. I also recognized that the wealth management industry finds what I do so unscalable that they never really wanted to invest resources into it, consistently talk about it and implement it in a way that would truly impact clients’ lives. What always took precedence was how much assets they could manage, because that they could scale. The first time I felt really confident to make the leap was back in 2016, but I always knew I wanted to partner with someone who I could trust and who had complementary skill sets to mine, someone who would bring something to the table that I couldn’t necessarily. A partner who had expertise in an area that is completely different than my own but that when combined together creates a super effective offering. I know I hit the target on both.

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A Single Therapeutic Focus An Interview with Marc Meachem, Head of U.S. External Affairs, ViiV Healthcare EDITORS’ NOTE With more than with HIV behind is reflected in every two decades of experience in the aspect of our business. Since 2009, pharmaceutical industry, Marc we have developed and brought new Meachem has held leadership roles medicines to patients, including some in various therapeutic areas across pediatric populations. Our current commercial development, marketportfolio consists of 16 antiretroviral ing and communications. As head medicines. of U.S. External Affairs, he directs Our work developing and bringall U.S. exter nal public affairs ing to market innovative new mediactivities. He has designed and cines for HIV is complemented by our launched initiatives to address the community facing work that seeks to unmet needs of dispr oportionaddress the things that can get in the Marc Meachem ately affected populations, includway of treatment and care including ing ViiV Healthcar e’s Positive social determinants and stigma. At Action Southern Initiative, Positive Action ViiV Healthcare we know that medicines don’t for Women, the accelerate Initiative, and the work if people can’t or won’t take them. In Youth Scholars Program with NMAC. Meachem 2020, we made $10.18 million in grants suphas received a number of accolades from the porting 221 community-based organizations. community including a “Heroes in the Struggle This year we are deepening that commitment Award” by the Black AIDS Institute, the Angel to disrupting health disparities by doubling Award from Gay Men of African Descent, Inc., our funding with a multi-year commitment for and a Corporate Leader Award from Iris House. people living with HIV. He earned a BA in French language and literaJust as important as the funding is the way ture and a BS in economics from the University we work with the community. For the last seven of Pennsylvania and an MBA from the Fuqua years, ViiV Healthcare has been ranked the School of Business at Duke University. C O M PA N Y B R I E F V i i V H e a l t h c a r e (viivhealthcare.com) is a global specialist HIV company established in November 2009 by GlaxoSmithKline (GSK) and Pfizer dedicated to delivering advances in treatment and care for people living with HIV (PLWHIV) and for people who are at risk of becoming infected with HIV. The company’s aim is to take a deeper and broader interest in HIV/AIDS than any company has done before and take a new approach to deliver effective and innovative medicines for HIV treatment and prevention, as well as support communities affected by HIV. Will you highlight the history and heritage of ViiV Healthcare and how the business has evolved? ViiV Healthcare was formed in 2009 by GSK and Pfizer based on the belief that a pharmaceutical company with a single therapeutic focus would be able to achieve more for people living with HIV. Our heritage in HIV goes back to developing the first treatment for AIDS and we have focused on unmet patient needs throughout that history. We’re the only pharmaceutical company focused solely on HIV, and our commitment to leaving no one living 148 LEADERS

“The continued focus on engagement allowed us to quickly assess and react to the challenges created by the pandemic for community-based and PLWHIV-serving organizations.”

#1 pharmaceutical company for patient centricity in the global PatientView survey. This is an indicator that our approach to engagement with the community sets us apart as a trusted community partner and recognized leader in the field. How has ViiV Healthcare adapted its business to address the challenges created by the pandemic? From a U.S. external affairs perspective, which I lead, we’ve had to adapt quickly to replace the face-to-face interactions that we had with the HIV community with virtual ones. Our annual Youth and Community Summits were moved to online platforms while maintaining the engagement of attendees and integrating discussions of the COVID impact on the field. We’ve found that for people working in the HIV field, the need for connection has never been greater than during the pandemic. The continued focus on engagement allowed us to quickly assess and react to the challenges created by the pandemic for community-based and PLWHIVserving organizations. Pre-COVID, these organizations did not have the necessary PPE nor the technology required to work remotely and deliver care virtually. In light of these seismic changes for the field, ViiV Healthcare created a COVID Emergency Response Fund to help organizations with the unanticipated needs to stay operational and continue to serve communities during the pandemic. This $1 million fund supported 66 nonprofit organizations. A focus on engagement with people, both externally and internally to ViiV Healthcare, along with a willingness to step up to the crisis needs within the HIV community, carried us through the storm of 2020. How is ViiV Healthcare working to accelerate the HIV response in the communities most impacted by the disease? We are doing this by seeking insight from those communities and then acting on it together with the community. Utilizing a suite of tools: ethnographic research; storytelling gathering; community listening calls with Black gay and bisexual men, women of color inclusive of transgender women, Latinx men, and youth, allows us to authentically advocate for the communities in most need. We then elevate the voices of these communities. For example, in Chicago we funded a local community-led assessment of the needs of Black women in accessing and remaining in HIV care. The learnings and needs from this assessment ended up VOLUME 44, NUMBER 2

“Our work developing and bringing to market innovative new medicines for HIV is complemented by our community facing work that seeks to address the things that can get in the way of treatment and care including social determinants and stigma.”

being integrated into the Illinois state HIV plan. This is what involving people in their own solutions looks like. We are giving them a voice in the response. Too often our systems and experts – healthcare, education, local government – are not informed by nor sufficiently in tune with the communities they purport to serve. People experiencing disparities need to be part of the response. Supporting local organizations that are truly reflective of the communities they serve and focused on the realities and needs can reset patterns of neglect for certain communities and rebuild trust, something that is needed now more than ever. Throughout 2021, we will be announcing grant opportunities for organizations in need of technical, operating, and strategic assistance and those that work directly with Cis and Transgender Women; Black gay, bisexual and queer men; Latinx men; youth; and residents of the southern U.S. regions. We know that in order to accelerate the HIV response, we must focus on these communities that continue to be disproportionately impacted by HIV. Will you discuss ViiV Healthcare’s efforts to address the social determinants that exacerbate disparities in HIV care and how critical is it to collaborate with the community to develop programs and foster a new generation of community advocates? Transportation, food and housing insecurity, lack of access to information, incarceration, substance abuse, and stigma are key factors driving disparities in HIV. Hopelessness is a less often named but evident force in disenfranchised communities – the sentiment of that’s the way it’s always been. We are looking to instill hope that we can end the HIV epidemic while supporting work that addresses these social determinants. Our grants support local community-based groups with a focus that ranges from homeless LGBT youth to HIV+ women leaving the prison system. The 221 groups we supported in 2020 allowed us to impact all of the most disproportionately affected populations. Beyond our grantmaking, we engage in ethnographic research and deep listening and then share these findings broadly. Our ten-month listening tour in the Latinx community led to the issuance of a report in Spanish and English called Tal Como Soy / Here As I Am outlining barriers to HIV care and potential solutions. We heard from more than 750 men living with HIV VOLUME 44, NUMBER 2

in 11 communities across the U.S. and Puerto Rico including major metro areas and rural communities. That work allowed us to engage with the current leaders in those communities around HIV and related issues, but perhaps more importantly, communicate to young people in the community that their experiences matter and that someone cares enough to listen. We know from our prior work in the community that this is how you inspire and create the next generation of leaders and community advocates. ViiV Healthcare has launched a number of initiatives to address the unmet needs of disproportionately affected populations, including ViiV Healthcare’s Positive Action Southern Initiative, Positive Action for Women, the accelerate Initiative, and the Youth Scholars Program with NMAC. Will you highlight these programs and the impact that they are having on addressing this challenge? We approach our work with the community as a partnership. We have population-specific funding streams based on insights as to what can most impact change in those populations. • According to a 2019 CDC issue brief, the South now experiences the greatest burden of HIV and deaths of any U.S. region and lags behind in providing quality HIV prevention services and care. We saw the signs of this geographic disparity in our first year of ViiV Healthcare and established our Positive Action Southern Initiative in 2010. This fund supports linkage to care and wraparound adherence services to help people in the South stay in care. • We learned through our ethnographic research that women, particularly Women of Color, living with HIV are heavily impacted by isolation from their family and friends, service providers, and the larger cultural discourse around women’s health and wellness. We were the first pharmaceutical company to design a national platform focused on the needs of Women of Color, including Transgender women, with Positive Action for Women. This fund supports community partnerships that help link women to networks of care to break down isolation and develop plans that address stigma.

• CDC research shows that Black men who have sex with men are more disproportionately affected by HIV than any other group in the U.S. accelerate Initiative is our commitment to fund projects that support empowerment, prevention, treatment and care services geared toward the health and wellbeing of B la ck ga y and bisexual men. The landmark ethnographic research that informed this program is called Meet Me Where I Want to Be. • Finally, we also have our Positive Action for Youth funding stream, and associated programs like the U.S. Conference on HIV/AIDS Youth Scholars with NMAC program, that helps generate and grow young leaders in the fight to end the HIV epidemic. In 2019, 1 in 5 new HIV diagnoses in the U.S. were among young people aged 13-24 and only about half knew their status. Our Positive Action for Youth program supports innovative solutions, nurtures mentorship and develops young leaders to close the gaps in HIV for a group who hasn’t known a world without the disease. What are your key priorities for ViiV Healthcare as you look to the future? For U.S. external affairs, we are doubling our community investments in 2021 with a goal of: supporting community groups to disrupt disparities and accelerate the HIV response; using cultural interventions as a more powerful way to inform and engage communities and decrease stigma; increasing trust in HIV care and the systems that serve PLWHIV; and ultimately improving outcomes along the HIV care continuum. Our latest project in our cultural intervention work is our first-ever podcast series, Being Seen. This series explores culture’s role in resolving the tension between how we are seen and how we see ourselves. Through this channel with the help of artists, writers, activists, entertainers and community leaders we were able to create nuanced and accurate cultural portrayals of the Black, Queer, Male experience to help change the perception of this demographic and create space for those who don’t often see accurate reflections of their lives in popular culture. We believe the authenticity and connections made through this project will create a positive ripple effect throughout the community.

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Creating a More Secure and Inclusive World An Interview with Carey O’Connor Kolaja, Chief Executive Officer, AU10TIX EDITORS’ NOTE Car ey Kolaja physical and digital identities. Over served as the Global Chief Product the last decade, AU10TIX has defined Officer at Citi Fintech and Vice the way global enterprises automate Pr esident of Global Consumer customer onboarding and ongoing Products at PayPal. She was honcustomer verification through cuttingored as one of the Most Influential edge machine learning and computer Women in Payments in 2021 by vision, enabling companies to onboard PaymentsSource and named one faster, prevent fraud, meet compliance of the Top 10 Women in FinTech mandates, and establish trust with of 2020 by FinTech Magazine their customers. Headquartered in and Top 25 Women Leaders in Israel, AU10TIX is a subsidiary of ICTS Financial Technology of 2019 by International N.V. Carey O’Connor Kolaja The Financial Technology Report, and among the 10 Most Innovative Will you provide an overview of CEOs in Banking 2016 by Bank Innovation. She AU10TIX’s business and where you see was also recognized on the 2016 Power List for the greatest opportunities for growth? Global Women in FinTech. In 2015, Kolaja was AU10TIX is a game-changing identity named one of the 20 Most Influential Women in intelligence company on a mission to obliterPayments by PaymentsSource and was recog- ate fraud, enable business to provide safer sernized by Innotribe as one of the leading Women vices, promote trust and seamlessly secure our in Fintech bridging the gender gap. She also everyday access to life, work and play. We use received PYMNTS’ “Woman in Payments to groundbreaking technologies to provide autoWatch” Innovator award, honoring those mated solutions that link physical and digital who have shaped the payments industry, and identities, verifying who people say they are Fortune 500 Next Generation of Female Talent with speed and scale. Our ambition is to harfor 2015 and 2014. Kolaja earned a BS from ness the power of our identities to further a the University of Indiana Business School and is more secure and inclusive world. an executive program graduate from Stanford Over the past decade, AU10TIX has defined University. the way global enterprises automate customer onboarding and customer reverification through COMPANY BRIEF AU10TIX (au10tix.com) is cutting-edge machine learning that enables an identity intelligence company with the mis- companies to onboard faster, prevent fraud, sion of ending fraud and making the world more meet compliance mandates and establish trust secure with forensic grade technology that links with their customers. The company’s proprietary

technology, unlike traditional, semi-manual identity verification solutions, returns identity verification results in a matter of seconds, safely meeting the real-time demands of today’s world of physical-digital transactions. As the sophistication and agility of fraudsters has greatly accelerated due to widespread, rapid digitization spurred by the pandemic, the greatest opportunity we see for growth is in combatting the explosion in synthetic fraud. Fraudsters are using this emerging technique to create complete, convincing identities that bypass existing fraud detection by collecting breadcrumbs of information people leave online – date of birth, Social Security number, medical history, financial information – and assembling them together with fake information. The costs to businesses are significant: Aite Group estimated synthetic fraud-related losses of up to $1.2 billion by the end of 2020, while others predict losses as high as $8 billion. When the pandemic drove digital interactions to historic highs overnight, it also drove synthetic fraud. Further, The Economist notes COVID-19 has led to a 75 percent increase in daily digital crime, while the Federal Bureau of Investigation reports a 300 percent increase. In response, we accelerated the launch of INSTINCT, an anonymous platform designed to unify the business community around global identity signals that can fight synthetic identity fraud. INSTINCT is aimed at detecting criminal attempts to create multiple accounts using fraudulent ID credentials that have already

“As the sophistication and agility of fraudsters has greatly accelerated due to widespread, rapid digitization spurred by the pandemic, the greatest opportunity we see for growth is in combatting the explosion in synthetic fraud.”

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“We use groundbreaking technologies to provide automated solutions that link physical and digital identities, verifying who people say they are with speed and scale. Our ambition is to harness the power of our identities to further a more secure and inclusive world.” penetrated the service provider’s system. Such attacks may be carried out using same “cleared” credentials (“Clones”), or such submitted with slight alterations (“Mutants”). This innovative networked approach builds on AU10TIX’s globally trusted identity verification solution and has helped our customers discover suspicious patterns and anomalies in historical and emerging datasets. INSTINCT can operate within a single “node” or across “nodes” as part of a global consortium. The interest and impact have been overwhelming and we are projecting to have 30–50 million identities flow through the platform within its first year. Within this autonomous ecosystem, our customers and businesses are keeping one another safe, preventing fraud-related expenses and headaches when business continuity is the priority and peace-of-mind is truly priceless. Who is the AU10TIX customer and how broad is the target market? The global identity verification market size is expected to reach $17.8 billion by 2026. According to a recent report by global investment firm William Blair which named AU10TIX’s identity management platform as the “broadest” and “most automated” in the market, businesses must adapt to the post-pandemic reality in which the safety, security and efficiency of physical and digital experiences are inherently connected to people’s identities. The response to the current pandemic, and the preparation for the next one, has brought digital identity to the top of the strategic agenda for individuals,

businesses and governments alike. Fueled by the immediate need to adapt to unprecedented change in customer behavior and market risks, businesses are increasingly turning to AU10TIX for our innovative identity intelligence solutions. We work with customers across financial services, retail, the sharing economy, mobility services, healthcare and education by providing critical, modular solutions to link physical and digital identities that enable them to confidently connect with their customers. How critical has it been to attract and retain top talent for AU10TIX and what do you see as the keys to effective leadership? For the last 12 years, I’ve worked and led remotely across five different time zones and 12 countries. My experience at different companies, in various roles, repeatedly building high-performing organizations, required me to find a way in which we can work in a distributed environment. This experience has made me accustomed to leading teams remotely and serves as validation that, as leaders, we don’t have to limit ourselves and the talent we hire based on physical proximity. Rather, we can hire for the best talent in the world to solve the challenges in front of us today. I look for people who possess a certain set of attributes, such as an appreciation for thinking and acting globally, intellectual curiosity, creative and critical thinking, a change agent mentality, and grit. My role models taught me that you don’t ask anyone to do something you wouldn’t do yourself and rolling up my sleeves and doing

the work is as important as leading the work. People who can learn, adapt and maneuver across not just time zones, but also different cultures, are those who will thrive at AU10TIX. We are truly diverse. Cultivating and keeping talent, particularly in such an unpredictable environment, is finding the balance between being an empathetic leader while growing a company that is adapting as continuously as the fraud we prevent. Trust is the foundation of creativity and productivity. If people don’t feel secure, then they aren’t able to reach their highest potential. While many trusted leaders value this idea, each of us has a few key leadership philosophies that we live by to help it manifest in our organizations. In my role at AU10TIX, I am focused first on radical transparency. On my team, the only conversations that are off-limits to broader audiences are around personal performance. We need to be able to have a healthy debate and to stand behind our positions without being judged for having a contrarian point of view. My second focus is on a “High Say/Do Ratio,” fostering a workforce that does what it says it will do so that everyone feels accountable to one another and can trust each other to follow through. Finally, we need to be comfortable being uncomfortable. Vulnerability, particularly during COVID when for the first time in society we are all going through the same experience, offers leaders the opportunity to show themselves to their team on a deeply authentic level.

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“We work with customers across financial services, retail, the sharing economy, mobility services, healthcare and education by providing critical, modular solutions to link physical and digital identities that enable them to confidently connect with their customers.”

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PURPOSE

A Commitment to Quality An Interview with Shyda Gilmer, Chief Operating Officer and Co-Owner, Sherry-Lehmann Wine & Spirits EDITORS’ NOTE Shyda Gilmer is the CEO and Co-Owner of SherryLehmann Wine & Spirits, the leading New York fine wine and spirits retailer. He brings over 20 years of experience in business, wine and philanthropy. This commitment to quality continues to lead SherryLehmann and the Sherry-Lehmann Foundation to a bright future.

ourselves on maintaining an extensive inventory in our cellars, from the perfect daily drinking wines all the way to the rare treasures for celebratory occasions. Sherry-Lehmann has always stood behind our brand and we are proud that if you ask us directly or speak with one of our partner brands, our focus on quality and service will be the first thing that you hear about and come to experience. You mentioned the increase in COMPANY BRIEF Sherry-Lehmann online business. Will the store remain Shyda Gilmer Wine & Spirits (sherry-lehmann.com) relevant as you look to the future? is currently in its 87th year of busiWe are a New York institution ness. The Sherry-Lehmann store combines old- and I believe in New York as much as ever. I am world charm with modern sophistication and confident that New York will be back and will caters to wine pundits and amateurs alike. be back better than before. We know that the Sherry-Lehmann is consistently rated the number- recovery will take time and that brick and morone wine shop in New York by the Zagat Survey tar will not be what it was before the pandemic, and was referred to as the most “justly celebrated but it is an important part of our business. We wine store in the nation” by Vanity Fair. The store have seen multiple recessions in our history and is located at 505 Park Avenue in New York City. have learned how to toggle our costs and our focus effectively and decisively. The store has What have been the keys to the ability for always been a place where we can meet our Sherry-Lehmann to stay relevant and stand customers and build relationships and tell the the test of time? Sherry-Lehmann story, but most recently this has Sherry-Lehmann has been in existence for not been possible due to COVID. We have piveighty-seven years and is an exciting, iconic brand oted to heavy investment in our online business that has stood the test of time. Our strength has and are working to tell these stories online and been the partnerships we have forged with the continue to provide education and introduce brands that make the wine, going back to launch- new wines to our consumers. While it has been ing Dom Perignon in New York in 1928, before it important to continue to do this online, it is of was launched in France. We partner with brands course not the same as being in person with the who share our passion and are committed to bring- customer and having that human interaction. ing the highest quality product to the most discern- Our efforts are showing strong results thus far, ing individuals in the world who are looking for it. and I look forward to when we can once again Is it challenging to differentiate in interact face to face since relationships are at the such a crowded industry? heart of Sherry-Lehmann’s business. We believe that our focus and commitment Sherry-Lehmann is known for its vast to quality at any price point is our advantage. wine offerings. Will you highlight the strength Every bottle of wine that we have ever carried of your spirits offerings and business? has been properly stored at 55 degrees and we Spirits have always been as important as do not spare any expense to assure this level of wine for Sherry-Lehmann and we have a long quality. We believe that when the consumer buys history of being a leader in this space. We have from Sherry-Lehmann, they know they are experi- been collecting special cognacs, bourbons and encing something different and that from the point scotches and many other spirits since day one of acquisition to the time the bottle is in the con- of the business. The difference between wine sumer’s hands, it has been perfectly taken care of and spirits is that when people purchase spirits and protected, and we can guarantee the quality. it is something that is added to their bar or put It has become somewhat more challenging into a cocktail, while with wine you are trying today to differentiate since all brands make simi- to find the right bottle to serve with your dinlar claims and with the increase in online retail- ner or for that special occasion. Spirits generally ing, there is a proliferation of information and have a longer life, and you can figure out its it is difficult to know what is correct. We pride story over time while with wine you need to tell 152 LEADERS

the story of the bottle which is being consumed much faster. How has Sherry-Lehmann adapted its business to address the challenges caused by the pandemic? With the substantial decrease in Midtown Manhattan foot traffic caused by the pandemic, we have aggressively invested in our infrastructure, logistics and technology platforms to address the surge in online purchasing and contactless delivery to the customer’s doorstep. We have incredibly sophisticated logistics systems and large warehouses where we store our inventory, and we were always structured to ship large numbers of cases throughout the world. We are an essential business which has allowed our team to continue to work night and day, in a safe environment, to fulfill customer orders and I must commend our director of operations and our entire team for doing an amazing job during this unprecedented time. What was the vision for opening a warehouse in California and have you been happy with its impact on the business? California has been a big focus for us as we continue to grow. By having a warehouse and online operation in California, it allows us to fulfill more effectively both the East Coast and the West Coast and to be more efficient in the way we operate. We have never been comfortable using third parties since we want to maintain control over quality and making sure we are protecting the wines so that the consumer knows that every bottle that they get from Sherry-Lehmann has been handled with the highest level of care. Scaling our global logistics capabilities has always been a top priority, and the pandemic has only accelerated this trend. Did you always know that you were interested in working in the wine industry? I feel very fortunate that I get to do what I love to do. I am also incredibly proud of the team that I am surrounded with, who all share the passion and dedication to the Sherry-Lehmann brand and reputation. I have been able to visit some of the most beautiful places in the world and meet some of the most special families in winemaking and enjoy a bottle of wine together. I cannot think of anything more fulfilling and enjoyable than walking through the vineyards and seeing how it all comes together to create these amazing wines. As the famous saying goes: “Find a job you enjoy doing, and you will never have to work a day in your life.”

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PURPOSE

Sharing Wine and Giving Hope An Interview with Mari Wells Coyle, Winemaker, ONEHOPE EDITORS’ NOTE Mari Coyle honed her support the causes that matter most to winemaking skills in some of the world’s them through wine. finest wine regions, apprenticing under Will you provide an overview premier pinot noir producers such as of ONEHOPE’s wines and how the Gloria Ferrer and Merry Edwards. She wines are positioned in the market? later came to Napa as winemaker at the ONEHOPE’s award-winning wines iconic Sterling Vineyards. Coyle’s first are made from the finest grapes sourced vintage wines received regional “best from world-renowned winemaking of show” and gold medal awards. As regions. Our commitment to exquithe winemaker for David Girard site taste, quality and excellence are as Vineyards, she earned some of the important to us as our commitment to region’s highest accolades for her supporting meaningful causes that make Mari Wells Coyle Rhone-style wines. Her Rhone varithe world a better place. Our collections etals have been recognized by the likes range from our Estate Collection, with of wine critic Robert Parker, San Francisco Chronicle, grapes grown at our vineyard in the heart of Napa Sunset Magazine, and The Connoisseur’s Guide to Valley, to our Vintner Collection, which is our California Wine. Since joining ONEHOPE, Coyle has most awarded collection at $25 per bottle. played an integral part in developing wine education While there is strong awareness for for the brand and its direct selling platform which the ONEHOPE mission, is there an effecempowers entrepreneurs to make an impact while tive understanding of the high-quality and making an income. In her role at ONEHOPE, she strength of the wines? also acts as winemaker and works with partners to Many of our customers love the give back create wines that customers enjoy. aspect of our brand, but we believe it is the quality of our wine that keeps them coming back for COMPANY BRIEF ONEHOPE (onehopewine.com) is another taste. With the launch of our state-of-thea winery on a mission to share wine and give art boutique winery in Rutherford in Napa Valley, hope. ONEHOPE has quickly become one of the we look forward to connecting with new and most recognizable cause brands due to the success of current customers to further share our story and their cornerstone product, ONEHOPE Wine. award-winning wines from our vineyard. To date, ONEHOPE has donated over $6 million to nonprofits around the world and inspired a community of entrepreneurs to make an impact while earning an income. Through the company’s wine fundraisers, ONEHOPE is democratizing the Napa Valley wine tasting experience and empowering consumers to support the causes that matter most to them through wine. ONEHOPE was created with purpose at its foundation. Will you discuss the ONEHOPE mission and commitment to being purpose-driven? ONEHOPE Wine launched in 2007 with a mission to change the world by sharing wine and giving hope. To date, through the sales of our wine, we have donated over $6 million which has funded over three million meals to children in need, planted an entire forest in Indonesia, built three schools in the developing world to provide quality education for thousands of children, and so much more. Our company’s wine fundraisers, led by our Cause Entrepreneurs, are democratizing the Napa Valley wine tasting experience and, in turn, empowering others to 154 LEADERS

How has technology impacted the winemaking process for ONEHOPE? Technology is a core competency at ONEHOPE, from shipping and customer experience to our fundraising platform and our vineyard and sustainability efforts. We are currently working on the latest technology to clean our wastewater and improve our impact on the environment. ONEHOPE is opening a new winery in Napa. Will you highlight the new winery and its significance for the brand? Our flagship winery, designed by Howard Backen, opens this summer and sits in the prestigious Rutherford Bench amongst some of the greatest wine brands in the world. Our winery and vineyard are fully sustainable with practices that include recycling our process water, generating our own drinking water, organic farming and more. These practices help us craft the highest quality wines while providing a healthy and beautiful environment for our guests and team. Our ONEHOPE Estate Wine will be made in our state-of-the-art production facility, starting in our stainless and concrete fermentation tanks and ending in our barrel-aging cellar. These wines have become our most highly sought after and rare varietals. As a leading female winemaker in the industry, what do you tell young women about the opportunities that exist to grow and lead in the industry? The wine industry has so much room for women in leadership positions. I believe there are opportunities at every part of the business from marketing to production. I’m learning to lead with my most authentic self and encourage other women to do the same. For so many years I thought that I needed to mimic the men in our industry and I’m realizing there are still so many contributions to make for the future of our industry. Did you always know that you had a passion for winemaking and that this is what you wanted to do for your career? I had no idea I would step into such a rewarding and joyful career. From my early days in school, I always loved science and art. Fortunately, I found the science of winemaking early in my college studies and fell madly in love. But, believe it or not, I attended the California Maritime Academy before transferring to UC DAVIS where I received my degree in Viticulture and Enology. My experience at the academy helped me prepare for a male-dominated industry and taught me vital industrial skills like mechanical engineering, crane and forklift operations, and the discipline of keeping a tight ship. There are so many paths that lead to such a multifaceted industry.

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PURPOSE

Veteran-Owned An Interview with Sean Magee, Founder and Chief Executive Officer, Anchor Trading E D I TO R S ’ N OT E S e a n M a g e e Will you highlight the history and served in the United States Navy heritage of Anchor Trading and disonboard the U.S.S. Thorn (DD-988) cuss how the business has evolved? in support of Operations Desert With a lot of heart and a fair dose of Shield and Desert Storm. prayer, not to mention our life savings, In 1996, he joined Active Anchor Trading was founded in January International as a Media Market 2016. We hit the ground running – we Specialist and rose quickly rolled up our sleeves and learned many thr ough the ranks in Active’s lessons along the way, both positive and Sales and Account Management negative. We never lost sight of the big Department becoming Vice picture and made the necessary investPresident of Sales for Enterprise ments of time, effort and resources that Sean Magee Accounts. In 2008, Magee left have paid dividends to our clients, our Active Inter national to join team, and our community. Sherwood Trading Group as Executive Vice I entered the industry in the mid-90s at a President. He is an active participant and company called Active International. While there, supporter of his community and veteran in the back of my mind, I always envisioned causes and sits on the Board of Directors for building a corporate trade company of my own, B.R.i.D.G.E.S., the Advisory Council for New much like the founders of Active did. I hold a York State’s PFC Joseph Patrick Dwyer Vet to lot of respect for the founders of that company, Vet Pr ogram, and Rockland Community for their love of the business, for how hard they College’s Veteran Affairs Board. He is also worked, and for the many lives, including mine, a Rally Champion for the National Relay of that were positively influenced and inspired by Carry The Load, a 501(c)(3) national charity what they built. whose mission is to restore the true meaning After leaving Active in 2008, I joined of Memorial Day while honoring and support- Sherwood Trading, a young corporate trade ing the military, first-responders, firefighters company. It was there that my vision truly and police officers. Magee graduated from evolved into what I really wanted to do, which the State University of New York at Cortland with a BS degree in political science with a concentration in international relations. C O M PA N Y B R I E F A n c h o r T r a d i n g (anchortrading.com) is a full-service, independent, and veteran-owned corporate trade and media buying company that provides financial and marketing solutions to consumer advertisers across industry. Anchor’s corporate trade programs improve EBITDA and increase cash flow while restoring full value to any type of underperforming asset including, but not limited to, excess inventory, real estate, fleet vehicles, capital equipment, and unwanted sponsorships. It is a cutting-edge technologydriven media company that invests in and secures all types of media including programmatic, mobile, television, radio, print, and out-of-home. Anchor clients have the option of paying for their media and other goods and services with cash, an underperforming asset or a combination of both. Anchor is a member of the American Association of Advertising Agencies and is certified by the U.S. Department of Veteran Affairs. 156 LEADERS

was to leverage my experiences to build a corporate trade company that not only delivers the best business results for its clients, but does it with a solid and profound culture behind it. We embody the principles of being an omnichannel, independent and veteran-owned business. These are the qualities that drive not just a great internal culture, but an external one as well. Our business has evolved into providing financial and marketing solutions to consumer advertisers across multiple industries, from wine and spirits and furniture retail all the way to financial institutions and food manufacturers. Our client portfolio, billing and trade credit redemption has grown substantially over the past five years, even during the pandemic. Our growth and performance have propelled Anchor Trading to #19 on the 2020 Inc. 500 Fastest-Growing Privately Held Companies in the U.S., and just before that, we were named the 2019 Veteran-Owned Business of the Year by the National Veterans Business Development Council. We are very proud of these accomplishments, but we could never have done it without our clients and a team that leads with their hearts in everything they do. While

Collaborating at Anchor Trading’s corporate headquarters in New City, New York VOLUME 44, NUMBER 2

“Being veteran-owned and managed brings additional client value. First, we bring a combination of civilian and military understanding and values to the table.”

2020 has been a year of challenges like no other, we have weathered the storm and are well-positioned to achieve great things in 2021 and beyond. Will you provide an overview of Anchor Trading’s capabilities and how you define the Anchor Trading advantage? Anchor Trading is an independent and omni-channel corporate trade company that provides corporate trade and media buying solutions for our clients on a global basis. All of Anchor’s programs, regardless of industry or structure, provide the client with both financial and marketing benefits. Some clients use us to solve problems with underperforming assets such as excess inventory, problematic real estate (owned or leased), capital equipment and fleet vehicles. Others use us to increase their media deliverables, while still others partner with us to reduce their cash outlays for media. No matter what the structure, our programs improve our clients’ EBITDA and increase their cash flow. Anchor’s media and trading capabilities are driven primarily by data. As an omni-channel agency, we live and breathe data not only on the media side of our business, but also on the asset solutions side as well. For instance, the continuing shift of media spends into areas of e-commerce, programmatic and streaming media has led our team to take a deep dive into how the retail sector is rapidly changing. How will consumers shop? What brick and mortar will be needed with foot traffic significantly scaled back? How can we help our clients with properties they want to sell, or manage leases they want to draw down on? The pandemic, while challenging for all of us on so many levels, has also created new frontiers and potential opportunities for our clients. Being veteran-owned and managed brings additional client value. First, we bring a combination of civilian and military understanding and values to the table. We are attention-todetail oriented with a deep and connected understanding of consumer behavior and global markets and economies. I believe these two worlds combined make for an extremely healthy and productive culture which, in turn, creates a great product for our clients. This is reflected not only in the quantifiable financial and marketing metrics that we deliver, but also in the service deliverables to our clients, vendors and the communities we support. As the VOLUME 44, NUMBER 2

only corporate trade company that is a certified veteran-owned business, we help those companies who have goals, or even expansion plans, for working with a diverse supplier base. Our status works in both commercial and government sectors as evidenced by the work we do for the U.S. Marine Corps and the MTA of New York. As technology continues to advance it allows for the use of data and analytics across all media types and allows for a targeted, individualized message to be delivered cohesively using an omni-channel approach. Our “best of both worlds” approach allows for innovative thinking and execution backed by strategic insights, increased accountability, access to agency leadership and a standard of transparency in everything we do. How has Anchor Trading adapted its business to address the challenges caused by the pandemic? With all things considered, we adapted our business extremely well to the pandemic. Our size and corporate structure allowed us to pivot and invest in areas of our business that brought increased value to our diverse client base. As an organization we were able to immediately adapt to the “new way of working.” We set up internal systems to continue to stay in constant contact with each other. Because we were no longer able to travel to our clients and potential clients, we set up accounts with a multitude of online social meeting companies to adapt to outside company requests and vendors. The team never missed a beat. For instance, in late March, we were able to shift media gears away from traditional brand awareness TV and radio to a heavy up in e-commerce, helping our clients drive online sales and curbside pick-up orders. Brand owners needed nimbleness and execution more than ever, and we delivered just that and continue to do so. The feedback from our client marketing partners was unanimously positive, the common thread being how quickly we moved to ensure their brands were best positioned to minimize the impact to sales. Within our client base, we have seen COVID-19 drive temporary store closures, delays in shipping, manufacturing shutdowns, and disruption in supply chain forecasts resulting in an excess inventory problem for many brands across industries. One of our responses to these challenges was to invest in additional

warehouse resources to help our clients move product when they needed it shipped. During the last year, in response to the supply chain issues created by the pandemic, we helped our clients move everything from wine and coffee all the way to foodservice items such as cheese curds and diced ham. One thing that nearly everybody can agree on is that we never want to go through a global pandemic like this again. The Anchor team really stepped up to the challenge and were able to work effectively to provide the service that our clients have come to expect. In the military, there is a commonly uttered phrase “embrace the suck,” which basically boils down to controlling your attitude to be comfortable in a very uncomfortable situation. I am proud to say that the team here at Anchor truly “embraced the suck” during the pandemic and we are coming out of this stronger than ever. How proud are you to see the strength and resilience that the Anchor Trading team has shown during this uncertain time? The challenges that we faced, and continue to face, as a company, as a community, and as a country, are truly unprecedented. Having said that, words cannot express how proud I am of the Anchor team. Each department, from our media group to our inside sales force, demonstrated true teamwork, and more importantly, showed how great teams react in trying times. Both individually and collectively, the Anchor team galvanized to work efficiently and effectively during a crisis of historical proportions. They adjusted rapidly to the climate and created positive results for our clients and each other. At the onset of the pandemic, I told the team that we will go into this as a team and we will come out of this as a team, and that is exactly what happened. Not only that, but by staying the course and working together, we ended 2020 by keeping our base and adding eight new clients – a true testament to a great team that continues to work amazingly together during unprecedented times. I certainly would never want to experience a situation like this ever again, and we still have some time to go until things get back to normal as we once knew it, but this team right here kept Anchor on the path of continued growth and success for both our clients and the company. I will say, without an ounce of hesitation, that if I had to do this again, I would not want to do it with any other team.

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Join us

in building ties across the Americas The Atlantic Council’s Adrienne Arsht Latin America Center— Since 2013, bringing together business executives and policymakers to achieve constructive solutions for advancing prosperity in Latin America and the Caribbean.

Learn more: Maria Fernanda Bozmoski MBozmoski@AtlanticCouncil.org

Latin America and the Caribbean

Contents Latin America’s Global Importance Adrienne Arsht

160

A Key Partner for Latin America Jason Marczak, Director, Adrienne Arsht Latin America Center, Atlantic Council

162

Vision, Values and Determination Laura Chinchilla Miranda, Former President of Costa Rica

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A Platform for Entrepreneurship Marcelo Claure, Chief Executive Officer, SoftBank Group International and Chief Operating Officer, SoftBank Group Corp.

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Advancing Aerospace Innovation Landon Loomis, Vice President for Global Policy & Managing Director Brazil, The Boeing Company

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Duty, Honor and Patriotism Admiral Craig S. Faller, Commander, U.S. Southern Command

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Nourishing a Better World Daniel Servitje, Chairman and Chief Executive Officer, Grupo Bimbo SAB de CV

Clients First Gerardo Mato, Chairman of Global Banking & Markets – Americas, HSBC Securities (USA) Inc.

A Passion for Public Service Mauricio Cárdenas, Senior Research Fellow at the Center on Global Energy Policy, Columbia University

Driving Change Susana Malcorra, Dean of the IE School of Global and Public Affairs and Former Minister of Foreign Affairs and Worship for the Republic of Argentina

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Commitment to Colombia The Honorable José Manuel Restrepo, Minister of Commerce, Industry and Tourism, Republic of Colombia

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Positive Valorization The Honorable María Eugenia Brizuela de Ávila

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Humanitarian Work Susana Raffalli, Humanitarian Expert, Advisor to Cáritas de Venezuela

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Strengthening U.S.-Caribbean Ties Melanie Chen, Board Director, Atlantic Council

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Trust, Adaptability, Rigor and Solidarity Diego de Sola, Chief Executive Officer, De Sola Group, Co-Founder and Board Member, Glasswing International, Fellow and Moderator, Aspen Institute, and 2012 Young Global Leader, World Economic Forum

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A Roadmap for Venezuela’s Future Isadora Zubillaga, Deputy Minister for Foreign Affairs of Venezuela and Special Envoy of President Juan Guaidó to France

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The New Colombia María Claudia Lacouture, Executive Director, AmCham Colombia

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A Force for Good Pablo E. Vargas, Executive Chairman, Grupo Britt

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Transforming Lives Salvador Paiz, Chairman, Grupo PDC

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Roadmap for Impact Andrew M. Herscowitz, Chief Development Officer, U.S. International Development Finance Corporation (DFC)

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The Quintessential Caribbean Destination The Honorable Lindsay F.P. Grant, Minister of Tourism, Transport and Ports, St. Kitts & Nevis

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Improving People’s Lives Juliana Azevedo, President, Procter & Gamble Brazil

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Latin America and the Caribbean

Latin America’s Global Importance An Interview with Adrienne Arsht EDITORS’ NOTE Adrienne Arsht is a her mother, which focuses on domestic business leader and impact phiviolence and other urgent family matlanthropist. She has taken a leadters. She was the inaugural recipient of ing role promoting artistic, business the DCVLP Champion of Justice Award and civic growth in the three cities for her outstanding contributions to the she calls home: Washington, D.C., organization’s work to expand access Miami and New York. Her $30 to justice to low-income people in the million contribution to Miami’s Nation’s Capital, especially those who are Performing Arts Center in 2008 victims of domestic violence or have other secured its financial footing. In urgent family law needs. her honor, the Center was renamed Arsht is Trustee Emerita of the the Adrienne Arsht Center for the University of Miami and an honorary Adrienne Arsht Per forming Arts of Miami-Dade board member of Amigos for Kids. In County. In 2012, her contribution 2019, she was inducted as an honorary of $10 million to Lincoln Center was recognized member of the Beta Gamma Sigma society by the with the dedication of the Adrienne Arsht Stage business school at Georgetown University. She in Alice Tully Hall. received an honorary degree from her alma mater, Recently, Arsht donated $5 million to the Mount Holyoke College. Metropolitan Museum in New York City to fund In 2019, Arsht was awarded The Order of the Museum’s first ever-paid internship program, Rio Branco from the Brazilian government for her which now will be named the Adrienne Arsht outstanding dedication to U.S.-Brazil relations and Interns. With Arsht’s gift, The Met is now the single her vision toward Latin America. In 2017, she was largest art museum in the country to offer 100 per- bestowed the Carnegie Hall Medal of Excellence cent paid internships to nearly 120 undergraduate recognizing her visionary and exceptional conand graduate interns each year. The transforma- tributions to cultural and nonprofit institutions tive donation will also support MetLiveArts provid- nationally. She is the only woman to have ever ing programming focused on themes of resilience. received this distinction. Additionally, Arsht was In Washington, in 2016 Arsht spearheaded the awarded the distinguished Order of San Carlos of creation of the Adrienne Arsht Center for Resilience Colombia, which was given to her by the direction at the Atlantic Council, which was renamed in of Colombia’s President Juan Manuel Santos. In 2019, the Adrienne Arsht-Rockefeller Foundation 2013, Arsht was presented with the prestigious dipResilience Center with the $30 million Rockefeller lomatic honor, Orden de Isabel la Católica (Order Foundation gift that she matched. She also founded of the Cross of Isabella the Catholic), from The King the Adrienne Arsht Latin America Center at the of Spain. Atlantic Council in 2013 to focus on the role of South A 1966 graduate of Villanova Law School, America in the trans-Atlantic community. Arsht Arsht began her Delaware law career with Morris, is a Trustee of the John F. Kennedy Center for the Nichols, Arsht & Tunnel. In 1969, she moved to Performing Arts where she established the Adrienne New York City and joined the legal department Arsht Theater Fund. Arsht is a Vice Chairman of of Trans World Airlines (TWA). She then became Lincoln Center for the Performing Arts, and the first woman in the company’s property, cargo Executive Vice Chairman of the Atlantic Council. and government relations departments. Arsht She is a member of the National Advisory Board of moved to Washington, D.C. in 1979 where she the Sandra Day O’Connor Institute for American initially worked with a law firm, then started her Democracy. Arsht is a member of the Council on own title company. In 1996 she moved to Miami Foreign Relations and is former President of the to run her family-owned bank, TotalBank. From Vice President’s Residence Foundation and a Board 1996 to 2007, Arsht served as Chairman of the Member of the Blair House Restoration Fund. At the Board. Under her leadership, TotalBank grew request of the then Secretary of State, Hilary Clinton, from four locations to 14 with over $1.4 billion Arsht created the campaign Patrons of Diplomacy in assets. In 2007, she sold the bank to Banco to establish an endowment for the preservation of Popular Español. Arsht was named Chairman furniture and works of art for the State Department. Emerita of TotalBank. She is on the Advisory Council of the DC Volunteer In 2008 she became the first, and still is, Lawyers Project (DCVLP) where she established the the only woman to join the Five Million Dollar Roxana Cannon Arsht Law Fellowship in honor of Roundtable of United Way of Miami-Dade. 160 LEADERS

Arsht’s other notable gifts include to Goucher College, creating the Roxana Cannon Arsht Center for Ethics and Leadership in honor of her late mother, a Goucher graduate, The University of Miami Arsht Ethics Programs, and a lab at Bascom Palmer Eye Institute of the University of Miami. In Delaware, Arsht funded the creation of a Best Buddies chapter to specifically serve Hispanics and African Americans with mental disabilities. The Chronicle of Philanthropy ranked Arsht number 39 on its 2008 America’s biggest donors list. She is the daughter of the Honorable Roxana Cannon Arsht, the first female judge in the State of Delawar e, and Samuel Arsht, a prominent Wilmington attor ney. Upon graduation from Villanova Law School, Arsht was the 11th woman admitted to the Delaware bar – her mother having been the fifth. She was married to the late Myer Feldman, former counsel to Presidents John F. Kennedy and Lyndon B. Johnson. What was your vison for creating the Adrienne Arsht Latin America Center (AALAC) and how do you define the mission for the Center? In 2013, I had the idea to create the Adrienne Arsht Latin America Center because a disconnect seemed to exist between Latin America and the Caribbean, as a region, and the opportunities it offers. There was, and still is, a need for greater understanding and prioritization of the region in Washington. Living in Miami, the U.S. capital of Latin America, I saw the potential to establish this first-of-its kind Center, a center dedicated to the region’s broader global importance. My goal was to do what I could to put Latin America at the forefront of a broader global policy discussion. The work of AALAC is focused on Latin America’s strategic role in a global context with a priority on emergent and vital political, economic, and social issues that will define the trajectory of the region now and in the years ahead. In Latin America, combating the devastating health and socioeconomic consequences of COVID-19 requires unprecedented urgency and collaboration. That is why the AALAC is committed to finding ways to enhance hemispheric prosperity and why our work is more critical now than ever. VOLUME 44, NUMBER 2

“I funded the Adrienne Arsht Latin America Center to bring Latin America and the Caribbean to the forefront of American foreign policy. The AALAC is on the cutting edge of research and policy and has staked out a position as a forward-thinking policy Center that is recognized not just in Latin America, but globally.”

Where did your deep interest in Latin America develop? My interest in Latin America goes back to 1964 when I took my first trip there. I travelled for one month from Machu Pichu to the Lake Country to the Iguazu Falls to Copa Cabana Beach, and I completely fell in love with the continent, its people and its culture. Living in such an international city as Miami has just validated my interest in the region. How engaged are you in the Center’s work? I funded the Adrienne Arsht Latin America Center to bring Latin America and the Caribbean to the forefront of American foreign policy. The AALAC is on the cutting edge of research and policy and has staked out a position as a forward-thinking policy Center that is recognized not just in Latin America, but globally. In terms of engagement with the work, I work closely with Jason Marczak, the Director of the Center, and we’re in constant discussions about the current issues facing the region. I find the work the team does so impressive, and being virtual now, I have no excuse but to join in on all the amazing events the Center hosts. We have just launched a Caribbean initiative and are doing programs on the causes of migration from the Northern Triangle. We monitor the elections throughout the region and interact with the ambassadors from all of the Latin American countries. VOLUME 44, NUMBER 2

Will you highlight the diversity of talent that you have assembled to serve on the AALAC Advisory Council? One of the main pillars of the Center’s work is to focus on the region from a broader global lens, not just from the U.S. perspective. That is why I’m thrilled that we’ve built this Advisory Council composed of leaders who have been in high-level positions across the private and public sectors in Latin America, the United States, and beyond. Culture is also so important to understanding policy which is why we are delighted that Colombian singer Carlos Vives and Panamanian songwriter Erika Ender are Advisory Council members. You are results-oriented with your philanthropic work. How do you measure success for the AALAC and what is your goal for the Center’s impact? Success is when we are able to ensure that Latin American and Caribbean issues are part of the policy discourse in the United States and with our global allies and partners. One way we do that is to offer a platform for the region’s leaders – for example, in just the last few months, we hosted public events with Colombian President Duque, as well as with Prime Minister Rowley, the head of CARICOM (Caribbean Community). Another impact metric is the AALAC ability to move the policy needle and have measurable impact on accelerating ties with the region by raising issues that are not at the forefront of discussion and finding solutions to these issues. Our U.S.-Colombia Task Force, for example, led by Senators Cardin and Blunt, has consistently worked in a bipartisan way to find consensus on advancing policy necessary for stronger bilateral ties. At the same time, the Center aims to push the envelope with the U.S. government by challenging U.S. policy in the region and offering alternative perspectives and solutions.

What do you see as the keys to effective philanthropy? I learned as a child from my parents about the power and importance of giving back. One of my favorite quotes is from Mohammed Ali: “service to others is the rent you pay for a room here on earth.” I believe in and live that quote every day. I tend to be attracted to new, innovative ideas and to support work that is unique and will have a measurable, global impact. I am an active participant in the organizations to which I give. Your philanthropic work has made a major impact on so many lives. Do you take moments to reflect and celebrate what you have accomplished or are you always looking for the next challenge? I am always looking for the next challenge. I see something and I just go after it. To use a metaphor, philanthropy is like caring for plants, and while I’m not a plant person, I like to see the causes I support grow and flourish. Once you fertilize things, watching them grow is such a rewarding experience, but at the same time, I’m constantly thinking about how else I can be effective and use the resources I have to take on new challenges to assist in their growth and make lasting changes for the better. Shortly after launching the AALAC, I realized we needed to talk about Resilience and that’s when I brought the idea to the Atlantic Council leadership to launch what is today the Adrienne Arsht-Rockefeller Foundation Resilience Center. In many ways, it serves as a complementary Center to the AALAC as it focuses on migration and climate change issues that are prevalent in Latin America. With a Biden-Harris Administration, there are new opportunities to accelerate impact in the region. In this reality that we’re living where the only certainty is uncertainty, it’s important to look at what new things can be done to partner with the region.

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Latin America and the Caribbean

A Key Partner for Latin America An Interview with Jason Marczak, Director, Adrienne Arsht Latin America Center, Atlantic Council EDITORS’ NOTE Jason Marczak What excited you about the opporjoined the Council in October tunity to lead the Adrienne Arsht 2013 to launch the Center and Latin America Center (AALAC) set the strategic direction for its and what made you feel it was the Latin America work. He is a bilinright fit? gual, results-driven entrepreneur The vision of Adrienne Arsht in and senior executive, politifounding the Center along with the cal leader, academic and media prestige and global reach of the Atlantic commentator with more than 20 Council drew me to the Center. I have years of leadership experience in long shared the same perspective as public policy, communications Adrienne with regard to the region: and business operations manoverlooking Latin America and the Jason Marczak agement. Since 2016, Marczak Caribbean is a missed opportunity. The has been an adjunct professor at region’s prosperity is fundamental to U.S. The George Washington University’s Elliott strategic interests, but that is often not recognized School of Inter national Affairs, wher e he outside the small circles of Latin Americanists. teaches on Central America and U.S. immi- Untapped opportunities exist for even deeper partgration policies. He was previously Director nerships, especially when you consider the over of Policy at Americas Society/Council of the 60 million Latinos in the United States. With new Americas in New York City and co-founder of global challenges, strong U.S. ties with the region Americas Quarterly magazine. In 2003, he will be even more important in the years ahead. joined Partners of the Americas to help lead So, for me, the opportunity to lead Latin its work on Latin America-wide civil society America and Caribbean work at a center where the engagement. He has also held positions at founder cares so deeply about the region and at the National Endowment for Democracy an organization where Fred Kempe, the President and with then-Representative Sam Farr (CA) and CEO, recognizes the region’s importance for with a portfolio including trade and foreign our global work, made this position the right fit. I affairs. Since its founding, he has served on knew that I could get things done for the region the communications committee of Qualitas with this support and with the opportunity to tap of Life Foundation, which provides finan- into the expertise of the Atlantic Council’s thirteen cial education to Latinos in the New York other global and regional programs and centers. City ar ea. Marczak ear ned a BA in international relations from Tufts University and an MA in international affairs and international economics from the John Hopkins University – Paul H. Nitze School of Advanced International Studies. INSTITUTION BRIEF The Atlantic Council (atlanticcouncil.org) promotes constructive leadership and engagement in international affairs based on the Atlantic Community’s central role in meeting global challenges. The Council pr ovides an essential forum for navigating the dramatic economic and political changes defining the 21st century by informing and galvanizing its uniquely influential network of global leade r s . T h e A t l a n t i c C o u n c i l – t h r o u g h t h e papers i t publishes, the ideas it generates, the future leaders it develops, and the communities it builds, shapes policy choices and strategies to create a more free, secure, and prosperous world. 162 LEADERS

Will you provide an overview of the mission and key areas of focus for the Center? The Center broadens understanding of regional transformations and delivers resultsoriented solutions to inform how the public and private sectors can advance hemispheric prosperity. We focus on Latin America’s strategic role in a global context and place priority on pressing political and economic issues that will define the future trajectory of the region. To advance issues, we identify where we can address policy gaps and then, often in private settings, we convene stakeholders at the highest levels to reach consensus. Our findings and reports are then delivered to key public and private sector stakeholders and disseminated during engaging, unique public events and through all forms of media. Our work is regional in scope, but to be effective, we stay focused on moving policy change forward by finding common ground among policymakers, business leaders and civil society in key countries and sub-regions including Mexico, Central America, Colombia, Venezuela, Brazil and the Caribbean. Given China’s focus on accelerating loans and ramping up investment in the region, we also prioritize first-in-class work to provide nuanced understanding of China’s trajectory and influence in the region.

“The Center broadens understanding of regional transformations and delivers results-oriented solutions to inform how the public and private sectors can advance hemispheric prosperity.”

VOLUME 44, NUMBER 2

“Across our priority areas, we work closely with in-country partners to improve inclusive economic opportunities, to advance democracy and the rule of law, and to strengthen ties with the United States.”

What are the key issues that the AALAC is currently addressing throughout the region? Across our priority areas, we work closely with in-country partners to improve inclusive economic opportunities, to advance democracy and the rule of law, and to strengthen ties with the United States and the broader global community. Importantly, our work is long term and strategic, but we are also quick and nimble in order to rise to the moment. Over one year ago, we jumped into full gear to provide new ideas on how to help the region in its battle against COVID-19, and today, as we continue to look around the corner, it’s critical to use the tragedy of the pandemic as a catalyst for confronting long-standing development challenges. In Venezuela, we are leading an international campaign focused on a restoration of democratic institutions and an easing of the humanitarian emergency. In Central America, a priority for the BidenHarris Administration, we see the president’s focus on the region as a rare and unique opportunity to galvanize local buy-in for change and to hopefully advance sustainable, long-term and bipartisan support for Central America in Washington. Given the close linkage of the U.S. with our southern neighbor, a strong U.S.-Mexico partnership is essential in confronting future challenges and seizing opportunities. In addition, I’m thrilled that in 2021 we are beginning our new Caribbean work. How has the AALAC adapted the way it works to address the challenges caused by the global pandemic? My motto for our work during the pandemic has been “let’s turn adversity into opportunity.” At a time of upheaval, it is critical to be nimble and creative and to find new ways to inspire others and to engage our stakeholders. We quickly adapted to the virtual world, hosting online public events and private meetings as soon as public gatherings were not safe. These first events led to a programmatic shift in mindset. I worked with the fantastic team of the Center to take our work to our stakeholders and to our speakers, rather than wait for people to come to us. Being virtual, the Center has additional flexibility to host ministers and Heads of State as their participation is no longer constrained by travel schedules. Likewise, in a virtual world, we can convene a strategy session with participants from multiple countries and with varying perspectives without the time or cost of travel. So, our work and the perspectives that add to it, have been enriched by the forced online presence of the pandemic. VOLUME 44, NUMBER 2

What are the keys to economic recovery for Latin America as the region has been deeply impacted by the pandemic? Latin America and the Caribbean have been hit harder by the COVID-19 pandemic than any other region in the world, accounting for over one-quarter of all 2.5 million global deaths attributed to the disease as of early March. The world’s most unequal region has seen inequality on the rise. Corruption, a long-standing impediment to greater development, has been further unleased as governments expedite public procurement of medicines and medical supplies. Economic recovery will require a new focus on rooting out corruption, accelerating massive investments in technology and education, advancing clear rules of the game, and fostering public-private partnerships. For economies to recover to pre-pandemic levels, democratic stability and security must take hold. The end goal is to use the pandemic to address long-standing development challenges so that Latin America and the Caribbean are better positioned to compete and prosper in the decades ahead. We are also commercially bound to the region. Over half of the United States’ 20 free trade partners are Latin American countries. At the same time, Latin American countries account for 11 of the United States’ top-45 export partners. A quick economic recovery is in our joint, mutual interests. How valuable has it been to have assembled such an engaged and committed advisory council at the AALAC? We formed an Advisory Council a couple years ago with the recognition that we had advanced from a start-up Center focused on the region to one that had quickly become known for its timeliness in addressing major issues and for our ability to create impact. The Advisory Council is composed of top policymakers, business leaders and, importantly, musicians from countries throughout the Americas. Members are deeply committed to the work of the Center and to helping to advance prosperity across the region. We are also lucky to have the participation of Atlantic Council Board members in the work of the Center. Will you discuss the talent and expertise of the AALAC team? The AALAC team, including full-time staff, fellows, consultants, and interns, is the most dynamic and committed group of professionals with whom I have worked. Team members

each bring unique expertise on a country, set of countries, or on cross-cutting thematic issues, but it’s not just expertise that they bring to the table. Each share a passion for getting things done and for recognizing the importance of innovation in our approach. In particular, since the founding of the Center, I have had the great pleasure to work with our Ambassador-inResidence, Capricia Marshall, the former Chief of Protocol of the United States and White House Social Secretary. How critical are metrics to track the impact of the AALAC’s work? Metrics are fundamental. Quantitative results are the most efficient way to indicate impact; for example, the number of views of a report or the audience size of an event or impressions of a tweet. We also track press coverage as well. But the biggest impact, especially in our field, is seen through our qualitative results. For example, when the President of Colombia said that our U.S.-Colombia Task Force report should be the basis of the relationship moving forward or when, last year, our Brazil trade and investment roundtables and report provided key insight and momentum for a “mini” U.S.-Brazil trade deal, or when we helped to give the Venezuelan opposition a spotlight during the UN General Assembly. The list goes on. What are your key priorities for the AALAC as you look to the future? I want the AALAC to be a key partner for the region in building back stronger from the socioeconomic challenges magnified by the pandemic. As well, it’s absolutely fundamental that a broader set of stakeholders recognizes the many opportunities in the region and that we accelerate stronger and deeper partnerships for the region with the rest of the world, of course with the U.S. at the top of the list. I also worry about the increasingly ideological divides in the region. Our work must help to bridge those divides and always ensure a neutral, non-partisan space for finding common ground on policy differences. In the United States, with President Biden, who knows the region so well and cares so deeply about it, we must seize on this administration’s desire to be a better, more committed regional partner. That means providing ideas and insight alongside local stakeholders as well as working to create bipartisan momentum on Capitol Hill for key issues in our relationship with the region.

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Latin America and the Caribbean

Vision, Values and Determination An Interview with Laura Chinchilla Miranda, Former President of Costa Rica EDITORS’ NOTE Laura Chinchilla What interested you in public Miranda has dedicated her career service and led you to run for to public service and to consulting President of Costa Rica? for international organizations. Costa Rica is one of the oldest She was elected President of the democracies in Latin America and Republic of Costa Rica on February one of the three, alongside Chile 7, 2010, for a constitutional term and Uruguay, considered by The of four years. She is the first Costa Economist as “full democracies.” Rican woman to serve in this role. One of the reasons behind this is Her election as Pr esident was our strong civic culture that we have preceded by a successful polititried to instill in our children who have cal career which began with her the possibility of voting in national appointment as Minister of Public Laura Chinchilla Miranda elections. Although their vote does Security, being the first woman to not count to elect presidents or lawhold that position, between 1996 and 1998. makers, it symbolizes an important democratic While in that role, she also served as President exercise. Thanks to this tradition, since I was of the National Immigration Board and the a child, I enjoyed the civic life of our country. National Drug Council. Between 2002 and As a student, I was always interested in social 2006, she was elected member of the National problems and got involved in student governCongress where she chaired the Committee on ments and associations. What most influenced Legal Affairs and the Committee on Narcotics. my decision to dedicate myself to public serIn 2006, she was elected Vice President of vice in my country was that when I turned Costa Rica, assuming office as the Ministry 20, while in college, I decided to travel to our of Justice at the same time. During her years neighboring countries in Central America to of service, she prompted measures on institu- witness firsthand the civil wars that were tional reform of the Costa Rican government, bleeding the region at that time. What I saw on digital government, on the promotion of hurt me deeply and marked me forever. The the rights of women, on the protection of chil- brutality, the violence and sadness I witnessed dren and on environmental sustainability. could never be forgotten. Hence, I decided She has also worked as a consultant in Latin that I would do everything I could to prevent America and Africa with various inter na- our country from losing the peace and democtional organizations such as the Agency for racy we enjoyed. Therefore, I decided to get Inter national Development (USAID), the involved in politics and public service. United Nations Program for Development What are you most proud of accomplish(UNDP) and the Inter-American Development ing during your time leading Costa Rica? Bank (IDB) in the ar ea of institutional When Costa Ricans elected me as refor m, with particular emphasis on judi- President, there was a security crisis going cial and public security reform. She is active on characterized by a growth in criminal on global agenda issues as a part of various violence and the increasing presence of forums, such as the Club de Madrid, the Inter- organized crime gangs. Due to my previous American Dialogue, and the Latin America experience as Minister of Security, my main Presidencial Commission. Most recently, she pledge to Costa Ricans was to make Costa headed the Organization of American State’s Rica a safe home for all its inhabitants, and Observation Electoral Mission during the I succeeded. Between 2010 and 2014, we 2015 electoral process in México. She is invit- decreased homicide rates by 30 percent and ing professor at the Government School at the femicide rates by 50 percent. Policies for Instituto Tecnológico de Monterrey. She grad- comprehensive early childhood care, enviuated from college at the Universidad de ronmental protection – especially our seas, Costa Rica and holds a master’s degree in and women’s empowerment were also very public policy from Georgetown University. important during my administration. She holds Honorary Doctorates fr om the However, beyond these and other specific University for Peace of the United Nations, achievements, I believe my major accomplishment Georgetown University and Kyoto University was to break the glass ceilings in politics when of Foreign Studies. becoming the country’s first woman president 164 LEADERS

after nearly 200 years of Republican life. The impact this event had on Costa Rican girls was instrumental in changing perspectives. I was able to confirm this when, shortly after I was elected, I visited several schools and found many girls who told me that they too would become, one day, presidents of the country. My election as president certainly contributed to empowering a whole new generation of girls and young women. How are you focusing your efforts today as you are engaged in a number of organizations and institutions? At the end of my presidency and leaving behind about 25 years in public service, I decided to put my experience at the service of several organizations and people. As a professor at universities in this hemisphere and as a lecturer, I have been able to carry out my message about the importance of protecting democratic institutions, promoting sustainable development, providing early childhood development programs, and empowering women. I am also a member of several global and regional organizations that seek to influence decision-making in matters such as human rights, climate change and multilateralism. The COVID-19 pandemic has left us with much suffering, but also with many lessons. One of them is that precisely because the most serious threats to humanity are of global nature, we need global answers to effectively tackle them. That is why I believe in the need to act collectively, from all possible trenches. With that in mind, I will continue putting my experience at the service of all these causes. How has Latin America, and Costa Rica specifically, been impacted by the global pandemic and what are the keys to recovery and growth in the region? Latin America has been one of the regions of the world most severely impacted by the pandemic. By the end of last year, and with only 8 percent of the world’s population, Latin America accumulated 27 percent of confirmed cases and 34 percent of COVID-related deaths worldwide. According to the IMF, the drop in economic activity reached -7.4 percent in 2020, one of the highest in emerging economies, with serious consequences for employment and poverty. This crisis threatens to reverse important achievements in economic and human development and to further deepen preexisting gaps and vulnerabilities, such as weak economic growth, high levels of informality, persistent inequality and low productivity. VOLUME 44, NUMBER 2

“We hope to continue being an exemplary nation in terms of democracy, human development and the decarbonised economy, and to continue contributing to the promotion of global and regional agendas on these issues.”

In the case of Costa Rica, health responses were better than other countries in the region thanks to the robustness and effectiveness of our healthcare system which guarantees universal coverage to the entire population. Moreover, the fall in economic activity (-4.5 percent) was less serious than the regional average. However, we still have a long road to overcoming the social impacts of the pandemic and laying the foundations for building back better. While the effort ahead of us is immense, both Costa Rica and the other countries in the region have the opportunity to drive recovery strategies focusing on policies able to trigger transformative and long-term dynamics. Those policies should be grouped into five fundamental pillars, namely: strengthening development and social inclusion networks to protect and reinforce human capital; boosting economic growth by taking advantage of the transformations in global value chains and the geographical relocation of production processes; accelerating the massive use of digital technologies through more investment on the expansion of fixed and mobile networks, connectivity and digitization of homes, schools and productive units; promoting green and sustainable development through public-private partnerships and investments in clean energy and sustainable infrastructure; and fostering fair, efficient and transparent institutions that guarantee adherence to the rule of law, more legal certainty and integrity. What do you see as the role of Costa Rica in being a stabilizing force in Latin America? Thanks to its strong democracy, political stability and the absence of armed forces abolished more than 70 years ago, Costa Rica has historically been a stabilizing force in the region. During the years of dictatorships in Latin America, we were a safe haven for many refugees and political asylum seekers; today we continue to be recipients of migrants who, from countries like Venezuela and Nicaragua, are fleeing from political repression and economic deficiencies. In the ‘80s, the country promoted a peace plan for the pacification of the Central American region, and today we are joining efforts so that the international community contributes to addressing the migratory crisis that the countries of the Northern Triangle of VOLUME 44, NUMBER 2

Central America are experiencing, as well as the political crisis in Nicaragua. We hope to continue being an exemplary nation in terms of democracy, human development and the decarbonised economy, and to continue contributing to the promotion of global and regional agendas on these issues. Do you feel that Costa Rica is wellunderstood by foreign investors and what do you tell investors about the opportunities that exist in Costa Rica? Forty years ago, Costa Rica decided to complement its development strategy by promoting a solid foreign investment and trade attraction platform. Since then, the country has become one of the most important gateways to the Americas. Thanks to the free trade agreements that we have signed with the most important markets in the world, 92 percent of our exports of goods and services are covered by these agreements, and foreign investment companies grant preferential access to markets representing 65 percent of the global GDP. As a result of these policies, we have enjoyed a steady growth of FDI which represents between 4 percent to 5 percent of GDP. In recent years, investment in high-skilled sectors, such as high-tech medical equipment, has been considerable, making Costa Rica a leading exporter in industrial goods. The country evolved in a matter of decades from an agricultural economy to a diversified and thriving economy. Beyond the adoption of the right trade and regulatory policies, one of the most important keys to our success is the high quality of our human capital. Our governments have embraced education as one of our highest priorities. Currently we invest about 7 percent of GDP in financing a public education system which guarantees free education to all boys and girls. Given these conditions, to which a green economy also plays a critical part, Costa Rica is one of the best positioned countries to take advantage of the relocation of global production chains (nearshoring) and thus accelerate its post-pandemic recovery phase. We Costa Ricans are conscious of the challenges that lie ahead but, at the same time, we are convinced that Costa Rica has the fundamental requirements for a fast, sustainable and green recovery.

You served as the first woman to be president of Costa Rica. What do you tell young girls about a career in public service and the opportunities to lead in government? Public service gives us the great privilege of being able to serve the people, especially those who have the greatest needs. In order to respond in the best possible way to citizen demands and expectations, public servants must have empathy and sensitivity to the problems of others, and must act with integrity and transparency – conditions most commonly found in female leadership. If we want to improve the quality of public service and politics, we must bring more women into those areas. I am optimistic that the future will be better, thanks to the fact that more women belonging to the new generations will assume the leadership of their nations. What do you see as the keys to effective leadership in order to drive change and lasting impact? I don’t think there are natural leaders – leadership is forged along the way, and although there are many types of leadership, I believe that democratic leadership is one that is characterized by at least the following conditions: vision, values, and determination. Vision allows us to set goals that, while being realistic, seek to transcend the immediate plane and positively impact future generations. Unfortunately, many leaders seek to reap easy and immediate victories at the expense of their decisions’ long-term effects. Values are instrumental since they impose the limits of our actions. A leader cannot justify the use of any means to achieve his/her intended ends. This is particularly important when leadership is exercised in a democracy because the will and actions of the leader must be subjected to the rule of law, respect for the rights of minorities, and ethical conduct and integrity. Finally, a leader without determination and tireless ability to fight, he/she ends up becoming a demagogue unable to go beyond empty promises. The leader enhances this condition when he/she knows how to choose and shape work teams and inspire citizens to join the struggles he/she sets out to undertake. When the world sees with concern the resurgence of populist and demagogic leaderships, these characteristics become more decisive, so we must stimulate and instill them in the new generations.

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Latin America and the Caribbean

A Platform for Entrepreneurship An Interview with Marcelo Claure, Chief Executive Officer, SoftBank Group International and Chief Operating Officer, SoftBank Group Corp. EDITORS’ NOTE Marcelo Claure Will you highlight the history and serves as CEO of SoftBank Group heritage of SoftBank and define International and COO of SoftBank the SoftBank culture? Group Corp., where he oversees the Since we were founded in 1981, company’s strategic direction and SoftBank Group has invested ahead of its portfolio of operating compathe major technological trends shapnies, including WeWork, SB Energy, ing our lives – from the birth of the Fortress, Boston Dynamics, as well PC, to the internet, to the smartphone as SoftBank’s stake in T-Mobile U.S. era and now Artificial Intelligence. He also spearheads the SoftBank We believe that technology is key to Latin America organization, a $5 building a happier and more fulfillbillion fund dedicated to investing ing future. SoftBank has transformed, Marcelo Claure in technology growth opportunioriginally from a telecommunications ties throughout the region, as well company, into a global investor in as the newly-launched SB Opportunity Fund, entrepreneurs around the world. These innoa $100 million fund dedicated to investing in vators are reimagining e-commerce, healthentrepreneurs of color. In addition, Claure care, finance, mobility, and other sectors. serves as Executive Chairman of WeWork, the Headquartered in Tokyo, SoftBank has offices world’s largest co-working and space-as-a-ser- around the world, including in London, Silicon vice company, where he oversees the company’s Valley, New York City, Washington, Miami, long-term strategy and growth-led transfor- Mexico City and São Paulo. mation. Previously, Claure served as President SoftBank is a platform for entrepreneurand CEO and then as Executive Chairman of ship. Our CEO and Chairman, Masayoshi Son, Sprint, where he is widely-recognized for deliv- provides this incredible brand, global capabiliering the best financial results in Sprint’s 120- ties, and mentorship for founders and for his year history and architecting its merger with own executives to dream big and do big things. T-Mobile U.S. Prior to Sprint, Claure founded Everything I’ve done inside SoftBank has been Brightstar, which he built into the world’s larg- entrepreneurial, and that’s a very special part of est global wireless distribution and services our culture. company and the largest Hispanic-owned How has SoftBank and its portfolio business in U.S. history, with operations in adapted to address the challenges caused more than 50 countries and revenues exceed- by the uncertainty of the global pandemic? ing $10 billion. Claure is a member of the Despite its devastating impact, COVID-19 Boards of Directors of Arm and Univision, has accelerated the pace of digitization. There’s and serves as Chairman of Fortress. He is also no doubt the virus has caused tremendous pain the president of Club Bolívar, Bolivia’s most for so many, but what differentiates SoftBank popular and successful soccer team; co-owner is that our entrepreneurs look for the silver linand Chairman of Inter Miami CF, this year’s ing to bring new technologies to life and have newly debuted MLS team; and most recently a partner in SoftBank to support rapid change. co-owner of Girona FC. Some of the most innovative ideas of our time will stem from this time of uncertainty. C O M PA N Y B R I E F S o f t B a n k G r o u p (global.softbank) invests in breakthrough technology to improve the quality of life for people around the world. SoftBank Group is comprised of SoftBank Group Corp., an investment holding company that includes telecommunications, Internet services, AI, smart robotics, IoT and clean energy technology providers; SoftBank Vision Funds, which are investing up to $100 billion to help extraordinary entrepreneurs transform industries and shape new ones; and SoftBank Latin America Fund, the largest venture fund in the region.

Commercially, we have seen rapid adoption of new technologies that would have normally taken a decade or longer. Our portfolio companies have been leading the charge. Rappi revamped its app to better support customers and advance the digitalization of everyday life, from food to grocery to financial services. VTEX’s fully integrated, end-to-end commerce solution is allowing businesses across sectors to operate during the pandemic. Will you discuss SoftBank’s investment strategy and what are the key traits you look for in an entrepreneur when evaluating a potential investment? Our investment strategy is simple. SoftBank invests in companies that utilize technology to disrupt the way we work, the way we live and the way we play. We love entrepreneurs who are obsessed: obsessed with solving a problem, obsessed with finding talent, obsessed with making their mark and proving to the world what they can do. Obsession is the only thing that can get you up every morning, even when things aren’t going the way you want. I was an obsessed entrepreneur myself. We also love entrepreneurs who are specific. Everyone knows that big markets are important and competitive advantages are important. Those things sound good on PowerPoint, but the best entrepreneurs are very clear and specific about what they are doing, even though it may sound less grand than some “big idea” on a PowerPoint page. They know their business, they know their customers, they know their product intimately. I enjoy nothing more than a conversation with an entrepreneur who can go down the rabbit hole and explain all the small details. Finally, we love entrepreneurs who are building for the long term. We don’t focus on the next quarter; we focus on the next century.

“SoftBank has transformed, originally from a telecommunications company, into a global

investor in entrepreneurs around the world.”

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“SoftBank invests in companies that utilize technology to disrupt the way we work, the way we live and the way we play. We love entrepreneurs who are obsessed: obsessed with solving a problem, obsessed with finding talent, obsessed with making their mark and proving to the world what they can do.” We align most naturally with entrepreneurs who think in terms of the future value they are building, not just what revenue number they are hitting this month. The best founders are constantly investing in the future – that’s what makes them so different from most professional, public market CEOs, who are solving for the next quarter. How will the rapid expansion of artificial intelligence and the AI revolution impact SoftBank’s future investments? What’s unique about SoftBank is that the focus of our investment philosophy for the last almost 15 years has always been on technology, data, and AI. The pandemic has reaffirmed our strategy. SoftBank continues to invest in the AI Revolution – we are focused on funding companies that use AI to improve the way we work, the way we live and the way we play. We have proven our philosophy as one of the largest tech ecosystems in the world. Our habits have fundamentally changed with digitalization. These trends will continue to evolve as we leverage AI to take digitalization to a new level and make today’s technologies smarter and more agile. We are already seeing the benefits. Today, AI-enabled software helps us find the nearest restaurant or get answers to our questions within a matter of seconds. It enables businesses to sort through mountains of data, streamline processes, and provide analysis on potential operational next steps. AI is driving amazing health discoveries that will help us improve life. This is only the beginning of the AI revolution, and we have been there since the start to drive the next generation of new solutions. Will you discuss the state of WeWork’s business and what you see as the keys to its future growth and success? WeWork is resilient and on pace to meet new challenges and grow stronger. WeWork refocused on its core business of flexible space, but as the pandemic unfolded across the globe, its product has become the perfect solution for companies that need to be more agile and customize solutions that work better for their employees. A recent global study of professional office workers across industries showed that all work styles and levels have suffered negative impacts on collaboration and innovation since the work from home model took hold. Ninety percent of those surveyed want to return to the office at least one day per week. VOLUME 44, NUMBER 2

WeWork’s many locations allow employees to work in professional working spaces near home, employers to set up decentralized offices or collaboration hubs, and companies to redesign workspace to accommodate for social distancing and other COVID-19 protocols. From locations in Miami, Mexico City, Buenos Aries and more, WeWork is a ready partner to support the LATAM entrepreneur. What was the vision for launching SoftBank Latin America Fund and what do you see as the opportunities in LATAM? Latin America has massive potential and is fast becoming one of the most important economic regions in the world. The region’s environment is ripe for technology-enabled companies to flourish; it represents 10 percent of the world’s population and 8% of the world’s GDP (two times the GDP of India; half that of China). The region has a rapidly growing middle class, extremely dense urban centers, poor logistics infrastructure and significant under-penetration of a broad range of products and services. All these factors present significant growth opportunities for rapid technology deployment and adoption at scale. Despite these opportunities, capital investment in the region was seriously lacking. That is why in the spring of 2019, we launched the $5 billion SoftBank Latin America Fund with a clear goal to support the development of the region’s innovation ecosystem. In nearly two years, SoftBank has invested more than $2 billion in almost 30 transformative companies. We are by far the largest investor focused on the region. We have been positively surprised by the breadth of innovation in the region. It’s not just fintech and e-commerce. Entrepreneurs are building innovative and enduring businesses in every sector – from education to B2B SaaS. In L ATAM, which industr ies and countries has SoftBank focused on for its investments? We have invested in companies using tech to help address the challenges of consumer access faced by many emerging economies – sectors like e-commerce, digital financial services, healthcare, mobility and insurance. In addition to investment dollars, we have brought operational expertise and worked alongside management teams to grow their business model and position them for growth. Our investments span across Latin America, including in Argentina, Brazil, Colombia, and Mexico.

Brazil is undeniably the current leader in terms of entrepreneurial activity and capital. However, there are green shoots in every country and every industry. We want to make sure we find every promising entrepreneur, regardless of country or sector. Do you feel that the ability to be an entrepreneur can be taught or is the entrepreneurial spirit something a person is born with? Everyone has it in them to be an entrepreneur if they are given the right tools. Throughout my career, I’ve been lucky to have mentors, including SoftBank Group CEO and founder Masayoshi Son, that have shown me what it means to be optimistic and tenacious. Education systems need to innovate and inspire too. It’s not just about the academic coursework, but equipping students with the vision, practical know-how and technical skills they need to navigate the future. With our focus on AI, we launched a data science training program in LATAM in partnership with Correlation One. We customized the program’s structure to solve our portfolio’s specific data science needs, including upskilling internal employees who knew the company’s business but did not know enough about AI. What do you see as the keys to effective leadership and how do you describe your management style? To me, the key to being an effective leader is adapting to changes and surprises. We plan and plan and plan, but as the last year has shown, unforeseen events can change everything. In an uncertain landscape, people are looking for guidance and leadership, making it critical to lead by example. Praise and recognition are important, but constructive feedback provokes change and fuels growth. As a leader, learning how to bring out the best in others is one of the most important things you will ever do. What advice do you offer to young people beginning their careers during this challenging and unprecedented time? You must follow your passion and maintain the creativity that drove you to either start a business or become a doctor, architect, or teacher. When you follow your dreams, you will enjoy your life and the journey. In this period of uncertainty, it is essential to remain agile – this crisis is unprecedented and there’s no single playbook for success. Do what you love.

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Latin America and the Caribbean

Advancing Aerospace Innovation An Interview with Landon Loomis, Vice President for Global Policy & Managing Director Brazil, The Boeing Company EDITORS’ NOTE Landon Loomis supply chain, and maintaining our was appointed Boeing Company’s position at the forefront of technoVice President for Global Policy in logical development. August 2020 and also serves as How do you describe the Boeing Managing Dir ector for Boeing culture and how critical is culture to Brazil. He joined Boeing in the success of the company? September 2019 as the senior direcOur global community comprises tor for Trade and Alliances on the people from all backgrounds, ethniciEmbraer Partnership and Group ties, identities and perspectives with a Operations team. Prior to joining common goal to advance aerospace Boeing, Loomis served in the White innovation today so we can inspire House as a special adviser to Vice tomorrow. Safety is our number one Landon Loomis President Mike Pence from April priority. We believe that diversity and 2017 to August 2019. He has also inclusion makes us better, stronger served in various U.S. government roles, includ- and smarter. We are committed to education ing policy adviser in the Office of the U.S. Trade and training because supporting our talent Representative, as well as commercial attaché at today sets us up for a successful tomorrow. the U.S. embassies in Beijing and Brasília. He We take into account how every product we has resided in and worked in 10 countries in Latin build and service we provide affects our world America, Asia and Eastern Europe. Loomis has a now and in the future. This includes considermaster’s degree in international economics and is ing the full life cycle of our airplanes from fluent in four languages: English, Mandarin design and production to operation and endChinese, Portuguese and Spanish. of-service retirement. Through our investment in education programs, veterans care, COMPANY BRIEF Boeing (boeing.com) is the cultural organizations and support efforts, we world’s largest aerospace company and lead- give back to our communities, investing in ing provider of commercial airplanes, defense, their next generation of leaders, and extendspace and security systems, and global ser- ing equity across the globe. We hold ourselves vices. As a top U.S. exporter, the company sup- to the highest standards in our work, how we ports commercial and government customers do it and how we treat one another. We are in more than 150 countries. Building on a leg- also committed to working with our suppliers to acy of aerospace leadership, Boeing continues to lead in technology and innovation, deliver for its customers and invest in its people and future growth. Will you provide an overview of your role and key areas of focus for Boeing? I am responsible for driving company strategy, developing business and industrial partnerships, and leading Boeing’s business, operational and support functions across Latin America and the Caribbean. A key aspect of this work also entails leading our government affairs and corporate citizenship programs for the region. Globally, the company is focused on enhancing the safety of our industry, the quality of our products, the success of our customers, and the confidence of the flying public. In the region, we are also making concrete contributions to global goals like environmental sustainability, particularly sustainable aviation fuels, increasing social equality and diversity, driving the affordability and performance of our 168 LEADERS

source responsibly, create economic opportunity for diverse communities and drive industry sustainability progress. Will you discuss Boeing’s history in Latin America and its commitment to the region? Boeing has a strong aviation and aerospace presence in Latin America and the Caribbean and has been involved with a wide variety of airlines across the region from the early days of commercial aviation. Boeing’s history in the region dates back to 1932 when the company delivered 14 F4B-4 fighters to the Brazilian military. In the early days of Latin American aviation, airlines such as Colombia’s SCADTA (now Avianca) and Brazil’s VARIG expanded their routes with Boeing airplanes. Today, Boeing works with leading Brazilian researchers on technology to develop new aviation biofuels, and provides the region’s commercial and space and defense sectors with products, systems, services and support. Boeing is also working with Latin American engineers and scientists to develop the technology to make aviation more sustainable in the 21st century. One of these initiatives is taking place in Brazil where Boeing is investing $2 million on initiatives that maximize social, economic and environmental benefits to local communities engaged in the development of feedstock that can be used to produce sustainable aviation fuel.

Boeing 737 VOLUME 44, NUMBER 2

A Boeing aircraft being refueled with Boeing’s sustainable aviation fuel “Ecodemonstrator”

Boeing has a significant supply chain presence in the region. Together with our suppliers, we spend about $1 billion annually with Mexico’s aviation manufacturing industry alone. Boeing also invests in projects that support local communities in Latin America to strengthen science, technology, engineering and math (STEM) curricula in schools. By working with partners such as Pan-American Development Foundation, Educando and Instituto Ayrton Senna, Boeing has reached more than 167,000 students in Brazil, 11,000 students in Mexico and 45,000 students in nine other countries across the region. Is there close coordination at Boeing from region to region in order to provide consistent messaging and seamless service? At Boeing, we have a worldwide view of our business and for us to accomplish this mission, we collaborate with colleagues and partners from every corner of the world. The reason why Boeing works with entities across the planet is simple: In order for us to overcome the challenges we all face, and to ensure our products and services are the best in the world, we need to partner with the best of the best across the world. When these collaborators work together with the bright, diligent members of the Boeing team, whose collective talents are as broad as they are deep, amazing things happen. Technology breakthroughs are taking place not just within Boeing facilities, but also at institutions and companies worldwide. How has Boeing adapted its business to address the safety challenges caused by the global pandemic? We are investing heavily in designing, developing and testing a multi-layered approach to maintain the safety of the travel experience. One such layer of protection is VOLUME 44, NUMBER 2

the air filtration system present on Boeing airplanes that includes High Ef ficiency Particulate Air (HEPA) filters similar to those used in hospitals and industrial clean rooms. HEPA filters are more than 99.9 percent effective at removing particulates such as viruses and bacteria from the air before it’s returned to the cabin. Air is also exchanged in the cabin 20 to 30 times an hour – that’s every two to three minutes. We’re also continuing to research and evaluate new technologies to enhance safety, including ultraviolet light disinfecting systems and antimicrobial coatings for high-touch surfaces. We’re also working with academics, health experts and learning institutions worldwide to field studies and facilitate research on reducing the potential of disease transmission on airplanes. On top of that, we’re diving into data. Modeling and analytics will help us understand where to focus our energies and track the improvements our entire industry is making as we work together. The return of air travel is vital to the recovery of the global economy and to the global community. Everyone – our families, our friends, and our business colleagues around the globe – must be able to resume their journeys with confidence. When we do that, we connect nations and cultures, we foster understanding and reduce divisions, and we strengthen our human connections. What has been the impact of the global pandemic on the aviation industry in Latin America and what are the keys to recovery for the industry? While the aviation industry across Latin America and the Caribbean has been hard hit by the pandemic, fundamental growth drivers in the region remain strong. South America, in particular, has considerable untapped market

potential for air travel expansion driven by economic expansion and a large geographic area best served by air travel. Boeing projects demand for 2,610 new airplanes in Latin America and the Caribbean over the next two decades, valued at $290 billion. Single-aisle airplanes, such as the 737 family, will continue to be the main driver of capacity growth in this region. In other words, Boeing forecasts a resilient market for Latin America and the Caribbean despite near-term challenges and we are operating accordingly by supporting our customers, looking for new opportunities to partner and working to positively impact the communities where we operate. At the moment, the region remains locked down and sectors such as tourism, which contributed $358 billion to regional GDP in 2019 (and 14 percent of total GDP in the Caribbean), are down nearly 70 percent, due largely to an even larger decline in international travel over the same period. In order for the recovery to begin, there must be clear, stable and harmonized rules for international travel. Like everyone, the people of Boeing have been deeply affected by the COVID-19 pandemic. Our determination and commitment to ensuring the health and confidence of airline passengers and crews is unwavering. Your served in government prior to assuming your role at Boeing. What excited you about the opportunity to join Boeing and has it been what you expected? Before joining Boeing, I covered the aviation portfolio at the U.S. Embassies in China and Brazil, and worked on aviation trade cases in Washington, D.C. I had seen the industry from multiple angles within government and wanted to put that insight to use within the industry itself. I wanted a challenge and to be part of a motivated group of people who were tackling the biggest issues, while holding themselves accountable for concrete, quantifiable results. This is exactly what I found at The Boeing Company. We are making meaningful contributions to many of the essential challenges that face us today, from delivering COVID vaccines and developing new disinfectants, to investing in new technologies to fight climate change, to jump-starting economic recovery and driving innovation. What advice do you offer to young people interested in a career in the aviation industry? Aviation is a vibrant, diverse and creative ecosystem. There are many entry points – pilot, engineer, program manager, and strategist among them. Follow your passion, be eclectic in your interests, allow yourself “range” as described by David Epstein. The larger your field of experience, the wider your opportunities, and the more valuable you’ll be to the team down the road. STEM is at the core of what we do. Engage STEM study, participate in math competitions and science fairs, grow your network around these disciplines, and invite a mentor to give you advice. Don’t stop being inspired by the dream to fly and the opportunity to “Connect, Protect, Explore and Inspire the World.”

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Duty, Honor and Patriotism An Interview with Admiral Craig S. Faller, Commander, U.S. Southern Command EDITORS’ NOTE At sea, Admiral South America and the Caribbean Craig Faller served as Reactor (except U.S. commonwealths, territoElectrical Division Officer, Electrical ries, and possessions). The Command is Officer and Reactor Training also responsible for the force protection Assistant aboard USS South of U.S. military resources at these locaCarolina (CGN 37); Operations tions. SOUTHCOM is responsible for Officer aboard USS Peterson (DD ensuring the defense of the Panama 969); Station Officer aboard USS Canal. Under the leadership of a fourEnterprise (CVN 65), and Executive star commander, SOUTHCOM’s staff is Officer of USS John Hancock (DD organized into directorates, component 981). As Commanding Officer of USS commands and Security Cooperation Stethem (DDG 63), he deployed to Organizations that represent Admiral Craig S. Faller the Arabian Gulf and participated in SOUTHCOM in the region. SOUTHCOM maritime interception operations in is a joint command comprised of more support of United Nations sanctions against Iraq. than 1,200 military and civilian personnel repreDuring his tour as Commanding Officer of USS senting the Army, Navy, Air Force, Marine Corps, Shiloh (CG 67), he assisted victims of the devastat- Coast Guard, and several other federal agencies. ing tsunami off Indonesia. As Commander, John The services provide SOUTHCOM with component C. Stennis Strike Group / Carrier Strike Group 3, he commands which, along with the Joint Special deployed to the Middle East supporting Operations Operations component, two Joint Task Forces, New Dawn (Iraq) and Enduring Fr eedom one Joint Interagency Task Force, and Security (Afghanistan). Ashore, Admiral Faller served as a Cooperation Organizations, perform SOUTHCOM D1G Prototype Staff Officer at the Nuclear Power missions and security cooperation activities. Training unit in Ballston Spa, New York; Action SOUTHCOM exercises its Combatant Command Officer in Navy Strategy and Concepts Branch authority through the commanders of its compo(N513); Legislative Fellow on the staff of Senator nents, Joint Task Forces/Joint Interagency Task Edward M. Kennedy; Program Manager, Surface Force, and Security Cooperation Organizations. Nuclear Officer Programs and Placement; Executive Assistant to the Commander, U.S. Pacific What attracted you to public service and did Command; Executive Assistant to Commander, you always know that you wanted to serve U.S. Central Command; Executive Assistant to in the military? the Chief of Naval Operations; Commander, Navy I’ve always looked up to my parents. My Recruiting Command; Director of Operations parents are wonderful role models (my Mom has (J3) U.S. Central Command; Chief of Navy passed but my Dad is still doing great). They Legislative Affairs; and Senior Military Assistant always took a genuine interest in my sisters, to the Secretary of Defense. Admiral Faller has brother and I, and encouraged me to think bigger earned various personal, unit, service and cam- than myself – to consider service in the military paign awards. Admiral Faller is a 1983 graduate and try the most challenging career first to disof the U.S. Naval Academy with a BS in systems cover what I could achieve. I also had neighbors, engineering and a 1990 graduate of the Naval the Fletcher brothers, who were Naval Academy Postgraduate School with a master’s in national graduates. I looked up to them and they inspired security affairs (strategic planning). my interest in the Navy with their stories and cool pictures. COMMAND BRIEF U.S. Southern Command I have consistently found inspiration in other (SOUTHCOM), located in Doral, Florida, is one leaders such as my second Commanding Officer of 11 unified Combatant Commands (COCOMs) on the USS South Carolina (CGN 37), Captain in the Department of Defense with the mis- Eric Ernst, and his wife Nancy. They remain wonsion of being a ready and trusted partner that derful role models who exhibit grace, empathy works collaboratively to ensure the Western and humility. Hemisphere is secure, free, and prosperous. I always enjoyed being on teams and I SOUTHCOM (southcom.mil) is responsible for appreciate the value of good, selfless teamwork. I providing contingency planning, operations, was in the Boy Scouts and played baseball, footand security cooperation in its assigned Area of ball and basketball. Growing up in Northwest Responsibility which includes Central America, Pennsylvania, I remain a loyal Pittsburgh Steelers 170 LEADERS

and Pirates fan, fueled by the success of their great teams of the 1970s. The U.S. military is the greatest team of all. Once I realized that, I never looked back. What has been the impact of the global pandemic on the U.S. military’s Southern Command and how has Southern Command adapted its operations to address the challenges brought on by the pandemic? From the very start of this pandemic, ensuring we protected our people as a first principle in order to complete our vital mission of defending the United States has been our number-one priority. We’ve leveraged every means to keep our people informed and healthy. We tried to take the many complex sources of information and policy direction and make it simple and understandable. I believe that as a leader if you assume you are communicating effectively then you are already sliding backward into communication oblivion. My rule of thumb is to repeat everything eight or more times by every method available and then constantly challenge my own effectiveness. One of the ways we adapted that we will carry into the future was in successfully leveraging virtual technologies to remain engaged with our security partners and continue in ever-important dialogue. For example, we hosted the first ever SOUTHCOM-sponsored virtual regional security conference with chiefs of defense from the Caribbean, Central America and South America during this pandemic. Challenges like the ones our nations faced during this global health crisis highlight the importance of leadership and being a reliable, valued and trusted partner. We have to be there for our neighbors day in and day out, not just when they need our help. When they do call, we answer on the first ring and we take action – follow-up is so important. How proud are you to see the way that your team at all levels has shown strength and resilience during this challenging and unprecedented time? The pandemic did not diminish threats to our U.S. homeland nor to our regional partners across Latin America and the Caribbean. In fact, we have seen just the opposite – threats have increased as enemies of all types try to take advantage of the pandemic. True patriots, hardworking and committed, our SOUTHCOM team has done an awesome job staying safe – utilizing what we call force health VOLUME 44, NUMBER 2

“Challenges like the ones our nations faced during this global health crisis highlight the importance of leadership and being a reliable, valued and trusted partner. We have to be there for our neighbors day in and day out, not just when they need our help.” protection – while keeping our command ready. Our national security missions demand us to be ready for when a horrific event happens – and it will happen. It’s not a matter of if, just when. People want to know the “why” behind their efforts. When so much has changed so quickly in terms of basic life functions, including the risks of going to the grocery store or gas station, childcare and school, family events, vacation and on and on – this has a tremendous unsettling impact on all of us. So for our leadership team, it was important from day one of the pandemic to ensure we demonstrated by our actions and words that we get this. I have tried to remain empathetic towards all of the day in, day out pressures while doubling down on communicating to our team. I explain how our efforts are saving lives and why this results in a more secure, prosperous and free hemisphere. This is a powerful “why” that fuels my passion and energy for our mission and our people. I believe our team has embraced this. One area our entire team rallied around was helping our neighbors. From the earliest days of this pandemic, when our partners called for help, we quickly responded. We supported the region’s immediate response and are now supporting our partners’ long-term health preparedness and prevention efforts. To date, SOUTHCOM has committed more than $50 million in funding for 435 donation projects to support requests from 28 partner nations in the region for much-needed relief supplies and equipment to support their fight against the pandemic. In the midst of the pandemic, back-to-back major hurricanes (Eta and Iota) devastated Central America. Earlier in the year we had rehearsed how to respond safely to such a catastrophic event in the midst of a pandemic. When disaster struck, we did just that, rapidly deploying a team across Central America operating in four different countries, saving lives and making a difference. Our partners recognize we’re in this together, working collectively to overcome a major health crisis and threats fueled by the pandemic and major hurricanes. What do you see as the biggest threats in the region and what needs to be done to counter these threats? I call this region our neighborhood, one of promise and potential, where nations led by democratically elected leaders far outnumber those without them. I view this neighborhood as a beacon of freedom to the world. However, our VOLUME 44, NUMBER 2

neighborhood is under assault by a vicious circle of threats. Young democracies need strong institutions, yet corruption fuels transnational criminal organizations which undermine our partners, their institutions, and threaten our U.S. homeland. External state actors, in not so great power competition, are actively working in this hemisphere. They undermine democratic principles and the rule of law, placing their own interests above those of the region’s citizens. These threats undermine the stability of institutions and democracies. Left unchecked, these threats contribute to a spiral of instability, exacerbated by the negative health and economic impact of COVID-19. To succeed against this vicious circle of threats, we know we must work together, collaborate, share information and capitalize on our collective capabilities and expertise, so that every country’s security success is also a regional security success. How concerned are you about China, Russia and Iran’s growing influence in the region and what do you feel is the most effective way to address this concern? The National Defense Strategy identifies competition with China and Russia as our top national defense priority. In my view, the most pressing national security challenge facing our world is how to reconcile this competition without conflict. China is the number one trading partner with the United States and most of the nations in the hemisphere. How do we ensure the benefits of this economic relationship while maintaining a true rules-based international order? I don’t ask our allies and partners to choose. I focus on the value of a relationship with the U.S. military and SOUTHCOM. Our people, programs, equipment and professional military education are the best in the world. We have training and education grounded in human rights, diversity and inclusion, and a truly professional non-commissioned officer (enlisted) corps. The Western Hemisphere is a neighborhood of like-minded democracies whose citizens value individual freedoms, human rights, and the rule of law. The governments of Russia, China and Iran do not champion any of these values. I candidly point out the benefits and risks associated with whom you pick as your friend. This approach works, so long as, first and foremost, we stay at the top of our game – morally, mentally, physically and professionally. We must know our neighbors and learn their cultures, histories and security needs. That’s where we focus most of our efforts and in my view that’s how we will continue to win.

How critical are strong partnerships in order to combat the many challenges facing the region and how is Southern Command working to strengthen its partnerships throughout the region? Partnerships are the key to everything in life. Teamwork wins. I have never successfully accomplished any task in life and in military service or overcome any security challenge alone. SOUTHCOM has been building enduring partnerships with the Americas for more than half a century. Ties between our militaries are as close as the ties between our people. For example, one of the annual exercises we sponsor – UNITAS (which means unity) – is also the world’s longest-running annual multinational maritime security exercise. It is a true reflection of our enduring promise to one another for a cooperative, prosperous, and secure hemisphere. To succeed in protecting our shared neighborhood, we must work together, leveraging the strength that comes from a collective approach. This is what we are doing in our pandemic response and in the aftermath of hurricanes Eta and Iota. In both instances, we worked shoulderto-shoulder with regional partners to save lives and mitigate human suffering. We choose to focus on security cooperation because we know that peace and stability in our hemisphere does not happen by accident. It is the result of decades of working together, building trust, and is a testament to the shared benefits of our defense partnerships. What do you tell young people about a career in the military and the rewarding and fulfilling experience of public service? If you choose to serve in our nation’s military, you will be joining an all-volunteer team that will equip you to win. Our competitive edge is what each service member contributes to the mission. In our profession of arms, we learn to be led and to be leaders. We are guided by a legacy of uncompromising duty, honor and patriotism left by those who have served and sacrificed before us. Our oath is a commitment to preserve and defend our way of life. Whether that commitment is for three years or thirty years, every individual’s service is important. The U.S. military is also a reflection of the American people. Our men and women come from the very towns and cities we serve to defend. We are as diverse as our nation, with ties to families, friends and allies around the world.

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Latin America and the Caribbean

A Roadmap for Venezuela’s Future An Interview with Isadora Zubillaga, Deputy Minister for Foreign Affairs of Venezuela and Special Envoy of President Juan Guaidó to France EDITORS’ NOTE Isadora Zubillaga representative of the interim governhas served as Director of Speak Truth ment of Venezuela in Europe, I have to Power, a Human Rights program of had the honor and privilege to meet the Robert F. Kennedy Foundation, with political and opinion leaders of and as International Coordinator every ideological stripe in every corof NYC2010, under the leadership ner of Europe to explain the complex of Michael Bloomberg. She was a situation in Venezuela and the ramifimember of the Board of Directors of cations it has had on the Venezuelan the Alliance Francaise of Caracas people, to denounce the cruelty of and International Director of the the Maduro dictatorship, and to seek Municipality of Chacao, under the proper democratic accompaniment in term of Mayor Leopoldo López. She our cause. One of the most rewardIsadora Zubillaga also worked in venture capital as ing moments of this decade-long Vice President of eQuest Partners fight came during a December 2017 and was the CEO of LA Almazara. Zubillaga European Parliament plenary in Strasbourg was designated by Venezuelan President Juan when the Venezuelan opposition was awarded Guaidó and the National Assembly of Venezuela the Sakharov Prize for our continued fight for as Ambassador of the Republic of Venezuela to freedom and human rights. France and also as the Deputy Minister for You are creating a roadmap for Venezuela Foreign Affairs of Venezuela in 2019. Zubillaga for 2021. Will you provide an overview of this earned a degree in economics and political sci- roadmap and what you see as the keys to ence from Boston University and a master’s making this vision become a reality? degree in international relations from Sorbonne In February 2019, interim President Juan University in Paris. Guaidó designated me as his Ambassador to France and seven months later, in September, I You have been a leader in the fight for was named Deputy Minister for Foreign Affairs. change in Venezuela for many years. Will In these positions, I have contributed to the you discuss this commitment and how this enlargement of the interim government’s coalipassion and purpose developed? tion and have helped provide a voice to the My family comes from the south of Venezuelan people at the highest level. But as Venezuela, home to the majestic Angel Falls, time goes by, the men and women of my counpowerful rivers and endless plains. I was privi- try are suffering unimaginable and inexplicable leged to grow up in a family of women with great character. As the youngest of four competitive sisters, we were raised by a resilient mother who taught us to love and embrace our Venezuelan traditions, to never forget where we came from, and to respect and defend the values of freedom and humanity – values that later served as the foundation for both my passion and commitment to social justice. Every cause that I have defended, whether it be political or human rights, or simply helping to build bridges between both countries and people, I have always done so with one objective in mind – to assure that human rights are never violated in Venezuela or in any other place on earth. In 2014, I was forced to leave Venezuela due to political persecution. Ever since, I have been working with both the Venezuelan diaspora and young and dynamic leaders to represent the democratic forces in our country. For the last two years, as the top diplomatic

living conditions. Hunger is a reality for a third of Venezuela’s population. I always ask myself, and I ask your readers to do the same: how would you feel as a mother or a father if you were unable to feed your children? Our roadmap should not lose sight of the real reason behind our fight which is the recovery of human dignity for Venezuelans. Our first commitment is to build a road towards a democratic solution where Venezuelans participate in a general election that is both free and fair. We will choose between dark and light, between death and life, between a dictator that kills innocents and the rebirth of democracy led by a generation of committed, brave and talented leaders abundant both within Venezuela and within the Venezuelan diaspora. The second milestone for our coalition is to establish a National Emergency Government, conformed by all political sectors of the country except those responsible for crimes against humanity. The objective of an Emergency Government is to urgently and efficiently address the ongoing humanitarian crisis and to stabilize the country. Third, our coalition seeks to build a unified platform that will rebuild Venezuela and invest in the necessary infrastructure that will better provide basic services such as health, food, electricity, education and transport. Let’s think of Venezuela today as a post-war country that needs the assistance of the international

“Our roadmap should not lose sight

of the real reason behind our fight which is the recovery of human dignity for Venezuelans.”

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“We will work with the great democracies and economies of the free world to design and materialize a rebuilding plan that will change the direction and the future of millions in Venezuela and enhance the security and peace of the region as well.” community, but with a great opportunity to stand up again. The country can show the solidarity and the generosity that has always been a trademark, work hand in hand with the Venezuelan diaspora and with our neighboring countries that were there when we needed them the most. We will work with the great democracies and economies of the free world to design and materialize a rebuilding plan that will change the direction and the future of millions in Venezuela and enhance the security and peace of the region as well. How critical is it to build international support to bring about a democratic solution to the multidimensional crisis in Venezuela through transitional mechanisms? International support is not only critical, it is a sine qua non condition for finding a peaceful, democratic and political solution to the multidimensional crisis in Venezuela. Since January 2019, the interim government of Venezuela has built a coalition of support consisting of over 50 countries which is unprecedented in the recent history of international relations. These 50+ countries have voiced their support for the restoration of democracy and human rights in Venezuela and are working tirelessly by our side to achieve a solution to our crisis. Through their support, we have achieved the implementation of individual, targeted sanctions in Europe, the freezing and recovery of assets, and worked to facilitate access to desperately needed humanitarian aid.

However, our work is far from done and so we must continue to exert pressure on a regime that continues to commit human rights violations and crimes against humanity on a daily basis. Additionally, our people are suffering more than ever due to the ongoing COVID-19 pandemic and due to an inept regime that has allowed our hospitals to fall into a dilapidated state and where food remains scarce and electricity and access to sanitary water is unreliable. As such, pressure through targeted, individual sanctions and judicial actions, among others, must increase in order to pressure the regime to first, permit a full-fledged humanitarian response, and second, to organize free and fair elections as soon as possible. We remain hopeful that new dynamics between the Americas and Europe will help build the multilateral approach that is necessary to bring about real political change in Venezuela. What message would you want to provide to the global community about Venezuela today and its possibilities for the future? My main message would be that we cannot allow a criminal regime that commits crimes against humanity including torture, degrading and inhumane treatment, rape, forced disappearances, extrajudicial killings, and other systematic and widespread human rights violations to continue to exist as a government.

“We remain hopeful that new dynamics between the Americas and Europe will help build the multilateral approach that is necessary to bring about real political change in Venezuela.”

Even though most of the free world doesn’t recognize the dictatorship, the regime still has many potent allies. Every one of us can take a stand on the right side of history. It is our duty, as defenders of freedom, democracy and the rule of law, to speak out against these violations and to take action to protect the millions of citizens who are living under this oppressive and undemocratic regime. You are a mentor and role model to many young girls in Venezuela through your actions and efforts. What do you tell these young girls about public service and the importance of following a passion and purpose in their lives? I tell them to always support causes that are important to them, to stay true to their values, and to work hard for what they want. It is never easy, but with the necessary passion and dedication, they can achieve their goals. Resilience is a word that characterizes me the most and I continue to be inspired by this beautiful country that we all love. One must always follow their heart. We are part of a generation that is fighting to recover democracy and freedom today and the younger generation will have the responsibility to rebuild Venezuela in an honest, efficient and respectful way. That is a once in a lifetime opportunity – seize it. You have said that this is the time that the fight for freedom in Venezuela needs to happen. Are you optimistic that real, lasting change is possible? Yes, I am convinced that real, lasting change is possible and, in fact, inevitable. We are facing a very powerful adversary, and therefore, the fight has been a long and uphill struggle. However, the interim government, members of Parliament, civil society, the Venezuelan diaspora, the church, the unions, and many, many Venezuelans, both within the country and outside its borders, are ready to do everything they can in order to achieve a peaceful transition in our country. No one ever knows when the wall will fall, but we need to be ready to push because the wall has many fractures. Every one of the 5 million people that have fled the country, every case of torture and assassination, every one of the thousands of political prisoners, every beautiful river contaminated, every innocent child that suffers, every patient without medicine, those are the cracks in the wall and the wall of tyranny will fall.

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LEADERS 173

Latin America and the Caribbean

Nourishing a Better World An Interview with Daniel Servitje, Chairman and Chief Executive Officer, Grupo Bimbo SAB de CV EDITORS’ NOTE Daniel Servitje has served as CEO of Grupo Bimbo since 1997 and as Chairman since 2013. He serves on the boards of Grupo Financiero Banamex, CocaCola-Femsa, Mexican Institute for Competitiveness A.C. (IMCO), The Consumer Goods Forum, and Latin America Conservation Council (The Nature Conservancy). Servitje received an undergraduate degree from Universidad Iberoamericana and an MBA from Stanford Graduate School of Business.

the person is the center of everything we do, and leaders are always close to the operation and associates. Another important highlight is that Grupo Bimbo makes business decisions with a long-term vision. We reinvest profits, we always listen to our customers’ needs and preferences, we innovate, and we adapt our business to the local cultures and customs of the many geographies where we operate. Daniel Javier Servitje How do you define Grupo Bimbo’s culture and has it been important to keep a family feel as the busiCOMPANY BRIEF Grupo Bimbo SAB de CV ness has grown? (grupobimbo.com) is the global leader in the Our culture has been evolving for more baking industry and an important player in than 75 years, but it is grounded and retains sevsnacks. With annual sales of more than $15 bil- eral universal principles. We believe in serving, lion, 197 plants, and more than 135,000 associ- we believe in treating each other with respect, ates and 2.8 million points of sale, the company fairness, trust and caring (our Golden Rule), and produces and distributes fresh and frozen sliced we believe in continuous improvement. These bread, buns, cookies, snack cakes, English muf- core principles and a few others are the basis fins, bagels, pre-packaged foods, tortillas, salted of our culture and have been well-received in snacks and confectionery products, among oth- every geography we have entered, so much so ers, across 33 countries throughout the world. that we share the same Purpose, Mission, and Beliefs in every country and in every language. Will you highlight the history and heritage We believe that in the end, we are all of Grupo Bimbo and what have been the much more alike than we are different. We keys to the consistent strength and leader- also believe that a company is a reflection of its ship of the business? people, and that the people are a reflection of Grupo Bimbo is a Mexican company their leaders. This is why we place extra care in founded 75 years ago. We started operations in 1945 with only four products, 37 associates and 10 distribution vehicles. Its founders, a group of five young entrepreneurs, saw the opportunity to sell cellophane wrapped sliced bread, a significant improvement over existing alternatives, ensuring quality, safety and freshness, and offering excellent customer-focused service. The success of the brand drove not only the geographical expansion of the company, but also the development of other baked products and categories. By 1990, Grupo Bimbo began its international expansion by opening its first bakery outside of Mexico, in Guatemala. Today, Grupo Bimbo has 197 bakeries in 33 countries in North and South America, Asia, Europe and Africa, more than 13,000 products and 135,000 associates. Its 2019 sales were $15.1 billion. Grupo Bimbo is what it is today because of the vision of its founders – to always deliver superior quality and excellent service to the customer, nurturing the company’s culture where

selecting and nurturing our leaders so we share those principles – valuing the human person in their care and a passion for always reaching for excellence in quality and service. Under your leadership, Grupo Bimbo has expanded into the U.S., Europe and Asia markets. How critical has the international expansion of the business been for the company and will you provide an overview of Grupo Bimbo’s global footprint? Our strategy has been to enter new markets through the acquisition of companies already established and positioned with a brand portfolio who typically have a team of experts that know the business and its local reality. When we arrive at a new geography, we do it humbly and with the conviction that we must learn. We take enough time to understand the market, culture, customs, habits, and at the same time we focus on fully understanding the operation. We are aware that each business we acquire always has best practices that we can adopt at Grupo Bimbo. Grupo Bimbo’s expansion has not only been by geography, but also by incorporating new business units. For example, in 2016 we acquired East Balt Bakeries, dedicated 100 percent to the QSR (Quick Service Restaurants) business. Another example is our own electric vehicles plant, located in Mexico, which has already provided more than 500 electric distribution vehicles to our fleet.

“Grupo Bimbo is what it is today because of the

vision of its founders – to always deliver superior quality and excellent service to the customer,

nurturing the company’s culture where the person is the center of everything we do, and leaders are always close to the operation and associates.”

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“At Grupo Bimbo, on the occasion of our 75th anniversary, we renewed our purpose, responding to the challenges of today and preparing ourselves for the challenges of tomorrow. Now our purpose is ‘Nourishing a Better World.’”

Grupo Bimbo has been referred to as “the biggest company you have never heard of.” Is there an effective understanding and awareness of Grupo Bimbo’s business? Grupo Bimbo is the largest baking company in the world. However, while we currently have presence in 33 countries, we only have 4.2 percent of market share. In many countries where we operate, we are known for our iconic brands such as Bimbo, Takis, Entenmann’s, Sara Lee, Thomas, Oroweat, Dempster’s, Villagio, Bon Matin, New York Bakery Co, for example. In many others, as we have entered through acquisitions, we are recognized through those existing brands. In countries like Morocco and China, for example, we’ve decided to offer a portfolio under the Bimbo brand as well. We believe that the way to increase the knowledge of the company and its positioning is through our extensive portfolio, fulfilling our commitments with consumers, the community, the planet and other stakeholders, as well as through a robust local and global communication strategy. How has Grupo Bimbo adapted its business to address the challenges brought on by the pandemic and how proud are you to see the way Grupo Bimbo’s workforce has displayed strength and resilience during this challenging and uncertain time? The health crisis due to COVID-19 started in Wuhan, where we have a manufacturing facility. Before the pandemic spread to the entire world, we had already experienced some of the difficulties and shared best practices with our operations. As part of an essential industry, our responsibility was to ensure the availability of our products, and at the same time, offer our associates a safe workplace. Among our most immediate and relevant actions were implementing all preventive measures in work centers and vehicles, offering safe work environments for associates, and ensuring the supply chain was secure so all essential ingredients remained available. We were privileged that the manufacturing of our products was most in demand during this period and that our direct store delivery model helped us meet our customer needs. These have been very difficult times for all of us and without the work and dedication of each of Grupo Bimbo’s associates, we would not have been able to fulfill our VOLUME 44, NUMBER 2

responsibility and commitment to society. At Grupo Bimbo, now more than ever, we reaffirm that we are part of a great family where we take care of each other and together we move forward, as we have done on previous occasions. Grupo Bimbo is a purpose-driven company and deeply engaged in the communities it serves. Will you discuss your views on the role of business as a force for good in society and the need for leading companies to address global challenges? The purpose of a company is its reason for existing and it goes far beyond generating money. It must guide everything we do, inspire us – all of us who work in it – to get up every day. It is our contribution to the world and what we do for society. The role of companies must be precisely that - their purpose. Companies must assume the commitment and responsibility to move firmly towards a sustainable operation, we must bet on quality and the most advanced technologies, as well as having leaders who inspire with the most prepared minds and open to innovation. Above all, we must act as a good corporate citizen who contributes to the development of the communities where we live and serve, and at the same time, promote equity and talent. At Grupo Bimbo, on the occasion of our 75th anniversary, we renewed our purpose, responding to the challenges of today and preparing ourselves for the challenges of tomorrow. Now our purpose is “Nourishing a Better World.” What do you see as the keys to effective leadership and how do you describe your management style? At Grupo Bimbo, we want leaders to be capable of communicating the company’s purpose with clarity and passion and always treating their associates with our Golden Rule, which is to treat each other with respect, justice, trust and affection. We believe that the best leader is the one who presents the vision of a desirable future and who helps his team to achieve it. He or she is someone who sets ambitious goals, and supports and guides his/her team, removes obstacles and empowers his or her associates to achieve those goals. Likewise, these leaders value diversity and foster a true sense of belonging among their associates.

I would say that most of my style was acquired by following the example of two great leaders who were the founders of the company: my father Lorenzo Servitje and my uncle Roberto Servitje. I think people would describe me as curious, active and challenging of the status quo. I really like being close to where the business happens, in the marketplace and at our plants and sales centers. Are you able to take moments to reflect and appreciate what you have accomplished or are you always looking at what is next? I do take the time to take a break and reflect on and appreciate the past, but I am always looking forward with a long-term vision. I think it is important to celebrate achievements, but also to accept new challenges, both personal and professional. This motivates us to do more, set more ambitious goals as people and as a company. Within Grupo Bimbo, every associate at every level of the organization has a business plan that we regularly review. It aligns and connects everyone’s work to the broader goals of the business and is adapted to each associate’s working environment. It is a tangible way to guide, track and appreciate our successes. Did you always know that you wanted to join the family business and what has made the family dynamic for Grupo Bimbo work so well? Grupo Bimbo has always been part of my life; since my childhood, in our family conversations, and in my relationship with my father and other relatives. You could say that I have been associated with Bimbo even before being born. In Grupo Bimbo’s history, there have only been three CEOs, and two of them were original founders. I am the third and, in my case, my boss, who trained me and who continues to be my mentor, has always been my uncle Roberto. My father had his role as father, advisor and mentor, but he never was my direct supervisor which I think was beneficial in my growth and professional development. Grupo Bimbo was not conceived as a family business. It has always had much clarity in its structure, in its business objectives, as well as in its philosophy. Grupo Bimbo became a public company in 1980. Since then, the founder families have been represented on the Board of Directors. Grupo Bimbo applies the best corporate governance practices across its entire business.

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LEADERS 175

Latin America and the Caribbean

A Passion for Public Service An Interview with Mauricio Cárdenas, Senior Research Fellow at the Center on Global Energy Policy, Columbia University EDITORS’ NOTE Mauricio in Latin America. Previously, he served Cárdenas is Senior Research Fellow as Colombia’s Minister of Mines and at the Center on Global Energy Energy, Director of National Planning, Policy at Columbia University, Minister of Economic Development, wher e he also teaches public and Minister of Transport. Cárdenas finance. He is currently a member has twice been the Executive Director of of The Independent Panel which Fedesarrollo, Latin America’s premier is assessing the global response to economic and social policy think tank. the COVID-19 pandemic, and coHe has also been a senior fellow at the chair of the Task Force On Net Zero Brookings Institution, where he led the Goals and Carbon Pricing. He Latin American Initiative. Cárdenas also chairs the recently launched holds a PhD in economics from the Mauricio Cárdenas Review Panel that will review the University of California, Berkeley, and World Bank’s Doing Business undergraduate and master’s degrees Report. As Colombia’s Minister of Finance from from the University of the Andes. 2012 to 2018, Cárdenas oversaw a successful adjustment program during the oil shock of Latin America has been heavily impacted 2014-2016. Despite a 50 percent reduction by the global pandemic. How concerned in exports and the loss of one-fifth of govern- are you about the state of the region and ment revenues, Colombia preserved its invest- what are the keys to recovery? ment grade status and was able to achieve The crisis has had a major impact on Latin remarkable social and economic progress. America with almost 30 percent of the global While in office, Cárdenas led a series of reforms deaths having taken place in the region. At that resulted in a significant expansion in for- the same time, the economic conditions mal employment and foreign investment. He are extremely bad with a GDP contraction of was also responsible for coordinating efforts for roughly 8 percent. It is clear that on both the Colombia’s accession to the OECD, which was health side and economic front, this has been a completed in 2018. Cárdenas was Chairman of devastating crisis for the region. the Boards of Governors of the World Bank This comes after five years of very slow and the International Monetary Fund and of growth in the region. It is part of a trend that the Intergovernmental Group of Twenty-Four began around 2015 so the region was already (G-24). He was chosen by Euromoney as the in a difficult position with lots of unrest and world’s finance minister of the year in 2015, and unfulfilled expectations. I think that in 2020 we received several awards as best finance minister went through a period of hibernation from all

the social unrest because the conditions from the pandemic did not allow people to go out in the streets and protest, but beginning this year as things become slightly more normal we are going to see a wave of social unrest and pressures on governments which will have political implications. How much space and latitude do the governments in the region have to address the financial and economic challenges in Latin America? This is the main issue since there are many constraints on the governments to assume more public debt. Latin America is a region where credit ratings are not that high and for some countries this puts these ratings at the risk of becoming junk and no country wants its sovereign debt rated at this level since they will lose investors and lose appeal for foreign investment. There is very little space for these governments to take action. In addition, the region secured access to public liquidity and if it loses this, it will be a major blow since it will not just be trying to recover from the pandemic, but it will also be losing access to capital. Is Latin America well-understood by the global investment community? More and more, I believe that markets are beginning to understand the difference between the countries in Latin America. Twenty or thirty years ago, it was looked at as one category and one asset class, but now there is an understanding that Brazil is one case with its own dynamics, as is Argentina

“The government in Colombia has shown time and time again that it is willing to take the necessary actions and implement the required policies to address challenges which provides confidence for investors.”

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“I have done a lot of public service through the years and have tried to combine it with research and working with think tanks, but public service has always been my priority.”

which has a negative perception because of the recurrence of crises, and then there is a group of countries that are not necessarily grouped together but are seen as relatively similar, which are Peru, Chile and Colombia. These are open economies with similar macroeconomic policies. Then there is Mexico which has its own dynamic and currently is experiencing skepticism based on the measures that the current Administration in the country has taken. Finally, there are the remaining countries which are smaller economies. Having served as Minster of Finance in Colombia from 2012-2018, how do you describe the strengths that Colombia offers for foreign investment? Colombia tends to be seen as a success story despite its longstanding problems associated with crime and drug trafficking. It is a success story because the policies have been the right ones for the past number of years. The country has been addressing the issue of crime and today the crime rates are not much different from other countries in Latin America. The issue of drug trafficking is still a concern and unfortunately tends to take place in remote, isolated areas of the country that are very poor. These areas do not have much of a connection with areas of investment for foreign investors and investors in capital markets. Investors care about the economic management in Colombia and administration after administration has provided a source of reliability and stability, providing confidence to

investors which has made it a success story. The government in Colombia has shown time and time again that it is willing to take the necessary actions and implement the required policies to address challenges which provides confidence for investors. What can be done to address the wealth gap in Latin America which is continuing to increase due to the pandemic? This is a major effect of the pandemic. Latin America is a region which has been known for its levels of inequality, not just in terms of income, but in terms of access to health, education and land ownership, which are huge. The COVID crisis has made this worse and has reversed the improvements and advancements that have taken place over the last 20 years in this regard. This will increase the divide and the political implications of this are yet to be seen because it could lead in some countries to a transition to populism in places where populism had previously been kept out. This could happen in countries like Peru, Chile or Colombia, and this was already happening before the pandemic in Mexico. This could become a general trend for the region because of the pandemic. What interested you in public service and being in government? When you are trained as an economist in a country like Colombia, public service is part of the motivation and part of the DNA of the profession. When I went to the United States to get my PhD, I saw that not all economists felt this way and many were inclined

to pursue research and teaching rather than public service. However, I was trained in a belief that public service was an essential part of your life mission. I have done a lot of public service through the years and have tried to combine it with research and working with think tanks, but public service has always been my priority. You are engaged in the Adrienne Arsht Latin America Center at the Atlantic Council. What do you see as the role of the Center and what excited you to become involved in its work? Everything that involves Latin America, especially in regard to the region’s relationship to the United States, is something that attracts me. I believe that the U.S. takes Latin America for granted and I think that this is a mistake. Latin America deserves more attention because one day the U.S. could look at the region and see that the region has drifted away, possibly because it has become more closely linked to other regions of the world, especially China. I believe that anything that can be done to strengthen the relationship between Latin America and the U.S., and to create awareness about the issues of Latin America and how the U.S. can engage in a more constructive way with Latin America, is very attractive to me. The mission that the Center has taken on was particularly attractive because I think that the Atlantic Council is well-positioned to raise the voice that the region needs and create the type of attention that it deserves.

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“I believe that anything that can be done to strengthen the relationship between Latin America and the U.S., and to create awareness about the issues of Latin America and how the U.S. can engage in a more constructive way with Latin America, is very attractive to me.”

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LEADERS 177

Latin America and the Caribbean

Commitment to Colombia An Interview with The Honorable José Manuel Restrepo, Minister of Commerce, Industry and Tourism, Republic of Colombia EDITORS’ NOTE José Manuel responsibly and committed to health Restrepo served as rector of the and economic reactivation that allows Universidad del Rosario and, also, the country to capitalize on 50 years of Colegio de Estudios Superiores of economic growth to overcome the de Administración (CESA). current crisis. Previously, he had held the recColombia has a developed techtory of the Business Foundation of nological ecosystem with the necesthe Bogota Chamber of Commerce. sary standards for the “new” normality Restrepo has also held the position in the post-COVID-19 recovery. The of Manager of Financial Planning dynamism of its economy will allow and Budget at Fonade. He belonged the country to continue to have outto the Institutional Chamber of standing indicators, despite the global José Manuel Restrepo the National Council for Quality economic impact caused by the panAssurance in Higher Education of demic. We are the Latin American the Ministry of National Education. He has also country that has made the largest investments served as a business consultant, as well as an according to the percentage corresponding to adviser on quality issues and accreditation of its GDP as a measure to mitigate the effects of higher education institutions. Restrepo was a the pandemic. professor of macroeconomics, microeconomics, Before the pandemic, Colombia already economics introduction and planning and man- stood out due to its sustained economic growth agement control on the faculties of Economics, of the last 50 years. In 2019, Colombia’s GDP Jurisprudence, Business Administration and grew above the average of Latin America and in the postgraduate course in Finance at the the Caribbean; while the country grew 3.3 Universidad del Rosario. He is the author of a percent, the region grew 0.1 percent. The significant number of publications including IMF, World Bank and ECLAC estimate that the books, meritorious dissertations, and research Colombian economy will be one of the least drafts and academic articles published nation- contracted in 2020 in Latin America. In fact, ally and internationally. He has also been a col- according to the IMF and World Bank, the estiumnist for the newspapers El Nuevo Siglo and mated growth of the Colombian economy in El Espectador. Restrepo became an economist 2021 will be between 3.6 percent and 4.0 perand finance specialist at the Universidad del cent. Meanwhile, inflation levels will remain Rosario, earned a master’s in economics from low at 1.5 percent. Notwithstanding the positive the London School of Economics, studied senior performance, the government has prioritized management at INALDE and earned a doctor- foreign direct investment as a fundamental key ate degree in management of higher education to bolster economic recovery. institutions from Bathe University. How is Colombia addressing the global pandemic and will you discuss the current investment environment in Colombia during the COVID-19 pandemic? Colombia is a resilient country; we have identified long-term opportunities in the midst of this situation. Today, we are more than ever committed to our entrepreneurs and investors. With the necessary precautions, we will keep our projects moving forward. For the last decade, the Colombian economy has been growing at a continuous and accelerated rate, but COVID-19 will surely impact this trend. The current outlook estimates that, among the countries in the region, Colombia will present the smallest decrease in its GDP growth. Our government has acted 178 LEADERS

“Commitment to Colombia” is our government’s strategy to reactivate trade, investment and tourism. The strategy focuses on the search for investment in efficiency and is based on three pillars. The first pillar presents new facilitation tools like a one-stop shop and what we call the Red-Carpet Strategy, thoughtfully crafted to provide investors with timely and effective attention and solutions. The second pillar focuses on identifying nearshoring opportunities. We call this point “importing exporters,” taking advantage of Colombia’s value proposition to attract companies that are looking to relocate or reorganize their supply chains. The third pillar is the adoption of sectoral and regional strategic measures to reactivate the business ecosystems through private equity funds by attracting sustainable investments, special large-scale tourism projects, and adapting and simplifying export requirements and processes. We are confident that with these measures in place and our value proposition, we will continue to boost foreign direct investment in the country. What do you tell foreign investors about the opportunities for investment in Colombia and are these opportunities wellunderstood globally? Global value chains are being shortened due to the pandemic which means that large multinationals are looking for suppliers closer to their consumers. As international companies diversify their regional chains, Colombia is consolidating as an ideal “nearshoring” destination for its position and

“Colombia has a developed technological ecosystem with the necessary standards for the ‘new’ normality in the post-COVID-19 recovery. The dynamism of its economy will allow the country to continue to have outstanding indicators, despite the global economic impact caused by the pandemic.” VOLUME 44, NUMBER 2

“Since multinationals are looking for efficiency towards ‘resilient’ value chains in which the production and supply are located closer to the final consumer, Colombia’s strategic geographic location offers a constant and varied supply.”

export platform. We are certain to be a worldclass supplier and a regional leader for the arrival of Foreign Direct Investment (FDI). In effect, this makes it possible to eliminate trade and fiscal uncertainty in China, maintaining advantages in production and profitability, competitiveness and reducing risks in the supply chain. Colombia is not only a strategic point for regional supply, it also has different development hubs and a number of regions that drive the economy and provides unique opportunities for investors including various land use, agricultural and industrial markets, entrepreneurial ecosystems, high-quality human talent, and strategic geographical positions. Colombia has great connectivity: over 45 hundred sea export routes and access to 680 ports around the world, and 123 direct international flights connecting it to major hubs all over the world. Bogotá’s El Dorado Airport is the third airport by passenger movement and the first by cargo movement in Latin America. The airport is less than six hours by plane to the main cities in the Americas. We are among the most competitive in the region for advanced manufacturing in terms of access and cost of skilled labor. Our attractive free trade zone regime offers the best package of trade and investment benefits in the region. The country has agreements that allow entry to 97 percent of the continent’s economies. In total, the country has 16 trade agreements that allows it preferential access to more than 60 countries and 1.5 billion consumers around the world. Thanks to these agreements, Colombia has privileged access to the largest markets on the continent. The U.S.-Colombia FTA has very flexible rules of origin, 0 percent duty on many products and no minimum wage requirement in the manufacturing process. The strong alliance between Colombia and the United States helps protect U.S. investments for the long run in our country. Colombia’s advantages include stability of its relations with other markets, its logistical competitiveness in freight and export times, its recent entry into the OECD, and its standards of protection of intellectual property. Our government is committed to the development of private activity. We have identified the following sectors as potential for nearshoring operations: VOLUME 44, NUMBER 2

Automotive: auto parts, metalwork, construction materials (window accessories) Fashion system; PPE products; textiles, clothing and garments Chemicals: plastics, packaging, health sector, agro-chemicals. Colombia is ready to address the relocation challenge. Since multinationals are looking for efficiency towards “resilient” value chains in which the production and supply are located closer to the final consumer, Colombia’s strategic geographic location offers a constant and varied supply. We offer an ideal position as a platform to diversify production and mitigate risks in the supply chain in this context. How do you address the concerns of foreign investors about the stability and security for investment in Colombia? Colombia has stood out for its political stability and solid institutions which have made it one of the most politically stable markets in Latin America. The government of President Iván Duque has been committed to the continued development of private businesses and the implementation of the best economic and social practices to attract investment in Colombia which made it possible for the country to join the Organization for Economic Cooperation and Development in 2020. Thanks to a remarkable progress made in competitiveness and new fiscal policies developed over the last year, Colombia has investment-grade ratings from the three most important risk rating agencies in the world. Colombia offers legal security and investment guarantees with clear rules and fair treatment for investors. In our relationship with international investors, and through the Ministry of Commerce, Industry and Tourism, as well as ProColombia and the Colombian Embassies, we provide investors with information and personalized assistance in their investment processes. The National Government has strengthened its efforts throughout the country to guarantee the safety of Colombians and foreign visitors and investors, not only in terms of public order and security, but also in promoting biosecurity protocols throughout the country to ensure the protection of life, mitigate the effects of the pandemic and protect the economy. Colombia will continue to be an attractive and reliable destination. We continue to promote Colombia as a business, investment and tourism destination.

The Ministry has created programs focused on the creative and services industries. Will you highlight these programs and what you see as their impact for the Colombian economy? The Ministry of Commerce, Industry and Tourism has given special attention to the creative and services industries as they have proven to be crucial to create jobs and increase exports of value-added goods and different kinds of services. The National Government has recognized the Orange Economy as a development model in which cultural diversity and creativity are pillars of social and economic transformation of the country, and to that extent it has been a priority defined in the PND: Pact for Colombia, Pact for Equity (Colombia’s national development plan) to promote conditions that generate decent employment in the cultural sector, support the appearance of new creative ideas and innovative products, strengthen ancestral knowledge, cultural heritage practices and the transmission of traditional knowledge. Alongside the implementation of this productive commitment, the Ministry has concentrated efforts in developing an ecosystem that promotes the private sector, the generation of an entrepreneurial culture, the consolidation of local markets, internationalization, the creation of chains and associativity in the cultural and creative sectors nationwide. In this order, of the more than 60 programs available for cultural and creative sectors, about 35 are from the CIT sector and address the different needs of entrepreneurs. For example: • Recognizing the importance of improving access to funding for cultural and creative sectors, Bancoldex created the Orange Bonds in 2018. The resources obtained as a result of this issuance were focused on financing or refinancing, with credit, the activities and projects of companies linked to the Orange Economy. This issue was the first of its kind worldwide and achieved a total placement of $400,000 million COP through 103 investors. Likewise, it allowed the financing of 3,119 entrepreneurs from the creative and cultural sectors. • In these past two years of government, more than 700 Colombian companies have participated in commercial activities, wheels, business macro wheels and commercial missions with the support LEADERS 179

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of ProColombia. Currently, more than 83 investment opportunities in audiovisuals, software, apps, and video games are being monitored in the regions of North America, Europe, Latin America and Asia, helping the internationalization of the creative and cultural sectors. In the past two years of government, export business worth $434 million has been generated, carried out by 371 Orange entrepreneurs in the Audiovisual and Digital Content and Software and IT Services sectors. Regarding foreign direct investment, 24 investors reported the start of 24 projects in the country in sectors such as Software, IT Services, Audiovisual and Digital Content, for a value of $195 million. Throughout the current government, iNNpulsa Colombia has implemented different actions aimed for strengthening the Orange Economy in the country. The instruments being implemented are a response to the main needs identified in order to boost and reactivate the economic growth and sustainability of the sector. iNNpulsa Colombia has benefited 457 entrepreneurs of the Orange Economy, of which 373 participate in the programs Mega i Naranja, Capital Naranja, Acelera Región and Aldea Naranja. Through the latter, 236 entrepreneurs are being positively impacted through specialized consulting with an approximate investment of $6.800 million COP. iNNpulsa Colombia, in alliance with the Ministry of Culture and the Ministry of Commerce, Industry and Tourism, carried out in 2019 six Orange business matchmaking events (Pereira, Villavicencio, Monteria, Barranquilla, Armenia and Valledupar) with 541 companies involved and business expectations of more than $16,000 million COP. Additionally, in 2020 the first two virtual business matchmaking events were held which generated approximately 500 business appointments amongst the participants. Colombia 4.0 and Heroes Fest were combined to bring the digital creative industries and entrepreneurship to the region. Four festivals were held (Yopal, Bogotá, Barranquilla and Pereira) with an attendance of more than 32,000 people. As well, in 2020 Heroes Fest Digital, Game Changers - Heroes Fest was held, with the attendance of more than 16,000 people. Between 2019 and 2020, iNNpulsa Colombia carried out the mapping of Orange regional productive initiatives, directly related to ICTs, and the definition of roadmaps for the cluster initiatives identified in the departments of Atlántico (tourism), Bolívar (tourism), Caldas (marketing and advertising services), Santander (corporate ICTs), Valle del Cauca (tourism) and Córdoba (tourism).

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“iNNpulsa Colombia, in alliance with the Ministry of Culture and the Ministry of Commerce, Industry and Tourism, carried out in 2019 six Orange business matchmaking events (Pereira, Villavicencio, Monteria, Barranquilla, Armenia and Valledupar) with 541 companies involved and business expectations of more than $16,000 million COP.” • iNNpulsa Colombia in 2020 launched two new programs to support the Orange Economy. First, Crea Sonidos Pacífico, in alliance with Fundación Barco, which seeks to promote and strengthen 20 projects to turn them into creative ventures in the Colombian Pacific, focused mainly on musical activities. Secondly, Escalamiento Creativo, which aims to identify challenges of Orange business organizations to generate new business models through processes of open innovation, collaborative innovation and business support. • Colombia Pr oductiva applied the Orange productive linkages program, Encadenamientos Productivos Naranja, which aimed to link the country’s traditional industry with the creative and cultural industry. It had the participation of 110 companies (49 from traditional sectors and 61 from the creative and cultural industry) in seven departments of Colombia (Antioquia, Atlántico, Caldas, Bolívar, Santander, Valle del Cauca and Cundinamarca). As a result, 42 productive linkages and 42 new business models were created, granting sophistication to the products and services of these companies, allowing access to new markets. Fifty-seven percent of the productive linkages were generated with companies in the functional creations, new media, and content software subsector. Three out of ten productive linkages were made with companies in the Cultural Industries subsector. Eighteen percent of the effective linkages were generated with companies from the Arts and Heritage subsector. Data reflects the potential of the creative and cultural industry and the traditional industry when they work together. • Since August 2019, the current government signed 22 sector pacts (Pactos para el crecimiento y el empleo) with the most relevant business associations of the industry to close the gaps that affect competitiveness and productivity. There are specific deals for services industries and for the Orange Economy. • For service industries, Colombia Productiva

has also deployed a comprehensive set of initiatives to fill the gaps between human capital development, productivity, innovation and quality standards in order to make Colombian companies more competitive for the global market. For instance, Colombia Productiva signed an alliance with SENA (national training service institution) to encourage innovation and technological development in all sectors of the economy through SENA Innova, a program that provides nearly $6.8 million funds to 127 companies with at least 73 of them from the services industries. The results of this program will be available in June 2022. • Colombia Productiva has also been working to achieve a true digital economy and industries 4.0, looking forward to encouraging connections between companies of tech-offer and their potential clients, strengthening the companies with tech-solutions and IT services. With this in mind, Colombia Productiva has SOFISTICA, a program developed in agreement with the Ministry of ICT to provide around $5 million in funds for public and private projects aimed to lead the adoption of key technologies such as IA, IoT, Big Data or blockchain. • Colombia Productiva, through the Ministry of Commerce, signed a loan with the Inter-American Development Bank (IDB) for the “Program to Support Diversification and Internationalization of the Colombian Economy,” with the objective of boosting the country’s economic growth. The program accounts for $24 million and one of its components is “Export Promotion of Knowledge-Based Services (KBS)”, that seeks to boost external sales of prioritized KBS sectors like audio-visual, advertising and marketing, digital animation and video games, publishing and graphics services, software and apps and value-added BPO services, among others. Colombia Productiva oversees three programs within this component that will provide technical assistance or project funding for at least 260 KBS companies.

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VOLUME 44, NUMBER 2

Latin America and the Caribbean

Humanitarian Work An Interview with Susana Raffalli, Humanitarian Expert, Advisor to Cáritas de Venezuela EDITORS’ NOTE Susana Raffalli is with COVID-19. First, even though a Venezuelan nutritionist and activthe pandemic impacts health and is ist who has received a number of a public health emergency, it should honors including being nominated also be addressed as a humanitarian among the 100 Inspiring Women emergency which has not been the by the BBC in 2020 for her work case with COVID-19 in Venezuela in alleviating hunger in Venezuela and many other places. The focus of and in particular during the corocourse has to be on health, but it also navirus pandemic. In 2016, Raffalli has to be on food security, nutrition, designed a tool that revealed the poverty and other factors that have detail behind the humanitarian criresulted not from the virus, but from sis in Venezuela at the suggestion of the dynamic around the pandemic. Susana Raffalli Cáritas de Venezuela. Sentinell These other factors are not receivSite Monitoring System of Acute ing enough attention. Second, in Malnutrition (SAMAN) is one of the few sources approaching a public health emergency, it is of intelligence on the emergency. In 2017, she an issue for the government, and in Venezuela received the National Human Rights Award from where the government together with the army the Human Rights Platform of Venezuelan civil control everything, civil society has been put society and is recognized as one of the 10 women aside. This is very sad because civil society and whose work stood out at the national level by the community-based organizations were in a good EfectoCocuyo communication portal. In 2018, position for identifying the risks and organizing Raffalli received the Franco-German Prize for people and promoting good health behaviors in Human Rights for her humanitarian work. In the face of the virus. Third, the pandemic is not 2019, she was awarded for her public service with only about hospitals, and the solution needs to the Woodrow Wilson Awards. During the corona- also be about addressing the problem of equalvirus pandemic, she helped to keep food supplies ity outside of hospital settings and other social going for many including people with HIV, youth risks that need to be managed. In Venezuela, in prison and those with low incomes. She studied I feel that we are losing many opportunities at the Central University of Venezuela and com- focusing solely on hospitals and the UN system pleted completed her post-grad studies on Child and having it be solely with the government, Nutrition and Food Security in The Johns Hopkins and without the input of civil society. Children’s Hospital and in Guatemala with the Panamerican Health Organization. Will you highlight your humanitarian work and your role with Cáritas de Venezuela? I have been a humanitarian practitioner since 2004 and have been working with Cáritas for the past five years. Cáritas has a few mandates and I am involved in its humanitarian work. I approached Cáritas to offer my skills and expertise in the humanitarian arena since I have deep experience in this area. My focus is on saving lives and bringing comfort to people who are suffering, as well as providing advocacy towards human rights and protection. How is Venezuela addressing the challenges caused by the global pandemic? It is sad for me to answer this question and it is not only Venezuela, it is all of humanity that is suffering. There are so many lessons from pandemics in the past, especially HIV and Ebola. There are at least three lessons that we haven’t used for a better performance VOLUME 44, NUMBER 2

“My focus is on saving lives and bringing comfort to people who are suffering, as well as providing advocacy towards human rights and protection.”

Humanitarian access in Venezuela has been very limited, especially over the past few months, as the government has not seemed open to work with humanitarian agencies and NGOs. The Venezuelan government feels that these organizations are working on human rights issues and receiving funding from other governments that are against the political process in Venezuela or supporting sanctions, which is in fact true in some cases. However, while a large percentage of NGOs and humanitarian agencies are receiving funding from Europe and the United States, this does not mean that we are against the government or that we are doing political work. This is a big problem since it is limiting humanitarian access from civil society. How do you measure success for your efforts when you are addressing such longterm, complex problems? It is overwhelming at times as you experience frustration and sadness. For example, in 2016 we started our work focused on nutrition for children under five years old and we rescued approximately 15,000 children from severe malnutrition, but when you see that there are so many more children facing this problem, it can make you question what you are doing. Our mission is to keep working and to not only focus on the output, but also on the process. Our work is not only about the possibility of saving lives, but also about giving a voice to these issues so in regard to our work on nutrition for children, while we may not be able to reach every child in need, we are advocating for all of them. Did you always know that you had a passion for humanitarian work and that this was where you wanted to focus your life’s work? I have a passion for working on public issues and enjoyed working in Central America for the development agenda which focused on poverty reduction, nutrition, education and other issues. I did this until 2002 and worked on major emergences, the first being Hurricane Mitch in Central America in 1998 that destroyed all of our projects and we were not prepared for this type of risk. Another emergency was when I was working with UNICEF and we lost a team that was killed in an attack on their convoy in Burundi. I realized that it was my mission to use my expertise and knowledge to work on big public issues and major emergencies. While I am not optimistic about the situation in Venezuela at this time, I plan to continue with my passion.

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Latin America and the Caribbean

Strengthening U.S.-Caribbean Ties An Interview with Melanie Chen, Board Director, Atlantic Council EDITORS’ NOTE Melanie Chen is a Board Director at the Atlantic Council, a position which she has held since 2014. She is currently the only member of the Atlantic Council Board born in the Caribbean. She is a for mer investment banker and began her career at Salomon Brothers and worked as a managing director in the Global Energy Group at Morgan Stanley.

Will you discuss the vision for launching the Caribbean Initiative and how you define the mission of the Initiative? The Caribbean Initiative raises awareness of the strategic importance of the Caribbean in Washington while promoting greater alignment between the Caribbean and the United States on joint challenges and joint solutions. It is a response to the lack of sustained attention to the Caribbean Melanie Chen INSTITUTION BRIEF The Atlantic in Washington. My hope is that this Council (atlanticcouncil.org) proinitiative paves the way for new ideas motes constructive leadership and engagement and new commitments for the United States and in international affairs based on the Atlantic the Caribbean to work together in confronting Community’s central role in meeting global chal- shared global challenges. The Caribbean has lenges. The Council provides an essential forum not had a sustained voice in Washington since for navigating the dramatic economic and politi- the late 1980s; I now hope that it does. cal changes defining the twenty-first century by How has the global pandemic impacted informing and galvanizing its uniquely influential the Caribbean and how is the region addressnetwork of global leaders. The Atlantic Council – ing this challenging and unprecedented time? through the papers it publishes, the ideas it generates, The global COVID-19 pandemic has drastithe future leaders it develops, and the communities it cally affected our islands. Tourism is the mainstay builds – shapes policy choices and strategies to cre- of most Caribbean economies – in the Bahamas, ate a more free, secure, and prosperous world. Barbados, and Jamaica, for example, it accounts for 34 to 48 percent of GDP – and it is arguWhat do you see as the Caribbean’s stra- ably the sector most affected globally by the tegic importance as a key partner for the coronavirus. The Inter-American Development United States? Bank identified shocks such as a slowed tourFirst, sheer geography. The Caribbean ism industry, trade losses in commodity-based islands are the U.S.’ closest neighbors to the economies, and decreases in foreign direct south for a large swathe of the country extend- investments and remittances as having dramatic ing from Florida to Texas. We share the common impacts on the region. At the same time, COVID-19 waters of the Caribbean Sea and it behooves may have revealed the benefits of integrated, us to collaborate on energy and sustainability unified coordination among Caribbean nations issues in the interest of mitigating negative envi- when faced with external threats. The regional ronmental externalities. architecture of CARICOM has received praise for Second, what happens in the Caribbean has reverberations on U.S. shores – from international relationships in this era of rising superpowers to climate migration and illicit trade to narcotics trafficking and transnational crime. Additionally, look at broader hemispheric issues, such as the Venezuelan crisis, where instability spills over into Caribbean waters. In that same light, Caribbean nations can be partners in identifying solutions to some of these larger hemispheric challenges. Of course, we must recognize how Caribbean immigrants to the United States have traditionally been among the highest-performing immigrant groups, providing vital contributions to the U.S. economy.

its performance in organizing and supporting the region during the pandemic. What do you see as the role that the Caribbean can play in regard to fighting climate change? The Caribbean is potentially a global leader when it comes to fighting climate change. Nearly 30 Caribbean islands are classified as small island developing states for which climate change represents an existential crisis. These islands form a significant portion of AOSIS (Alliance of Small Island States), which has been instrumental in shaping the outcomes of the Conferences of the Parties (COP) to the Paris Agreement and advocating for reducing temperature rise well below 1.5°C. As a result of their unique vulnerabilities, the Caribbean is a great incubator of sustainable policy solutions that promote climate adaptation, mitigation and resilience. The Caribbean could be a global model of what works and what does not in terms of climate policy. Will you highlight the Caribbean’s focus on sustainable energy transition and how critical this is to the region? For over 100 years there has been substantial investment by U.S. companies in the Caribbean’s hydrocarbon sector, and the transition to green and more sustainable energies in the mid-term offers new investment prospects particularly if there is a resolution of the Venezuelan crisis. This transition is critical because the energy sector plays a crucial role in all stages of the disaster risk management cycle and all societal service systems – for example, healthcare, infrastructure, and telecommunications - rely on the energy sector for both daily activities and emergency response and recovery.

“As a result of their unique vulnerabilities, the Caribbean is a great incubator of sustainable policy solutions that promote climate

adaptation, mitigation and resilience.”

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“The Caribbean Initiative raises awareness of the strategic importance of the Caribbean in Washington while promoting greater alignment between the Caribbean and the United States on joint challenges and joint solutions.”

For these and other reasons, energy security is essential for sustainable development and poverty eradication. Green growth, low-emission policies, and climate resilient development initiatives can result in lower operational costs and create economies of scale. Fortunately, the geography and topography of the region are well-suited to most renewable technologies. What have been the repercussions of the Venezuela crisis on the region? First, we must find an international or regionally brokered resolution to the Venezuela crisis that allows for the rebirth of democratic institutions and for an alleviation of humanitarian suffering. The current situation has led to more than five million Venezuelan migrants and refugees, with most in Latin America and the Caribbean. Although Colombia has received by far the largest number of refugees, the Caribbean, especially Aruba, Curaçao, the Dominican Republic, Guyana, and Trinidad & Tobago, is projected to host some 224,000 Venezuelans by the end of 2021 and account for some of the highest percentages per capita in the region – 26,000 refugees in Curaçao is 16 percent of the total population. This is a concern not only in the humanitarian sense, but also regarding security. Host countries with limited resources and further hampered by the COVID-19 pandemic are overburdened. Countries receiving Venezuelans need greater assistance. How critical is security cooperation to address the flow of illicit activities and is this cooperation happening? Greater hemispheric cooperation is urgent when it comes to security. Corruption is a

concern in most democracies in the region, from bribery and petty crime to money laundering and terrorism financing schemes. It is in the U.S. interest to contribute to anti-corruption efforts in order to spur development, national stability, advance human rights, and reverse social exclusion and poverty. The United States has spent over $1 trillion on counter-narcotics efforts domestically and in Latin America and the Caribbean since the 1970s, but cooperation and information sharing on a range of illicit activities including, but not limited to, narcotics trafficking is fundamental. Additionally, although organized crime largely sustains itself on illicit profits, it has become increasingly creative in laundering its profits; huge sums of illicit funds have entered the legitimate economy via trade-based money laundering and value transfer, as well as cryptocurrencies and other hard-to-track wire services. These are all worrisome for democratic governance globally. We must strengthen U.S.-Caribbean ties to foster development and address the root causes of insecurity, issues upon which the Caribbean Initiative is laser focused. How can the Caribbean most effectively address the issue of inequality throughout the region? Inequality is a serious problem for the Caribbean. The small size and population of island nations have made it difficult to advocate for their preferred developmental interests in Washington, where larger hemispheric security issues, narrowly construed, have eclipsed the sustainable development trajectories that could benefit from a deeper and more cohesive partnership with the United States. That

“We must strengthen U.S.-Caribbean ties to foster development and address the root causes of insecurity, issues upon which the Caribbean Initiative is laser focused.”

is why the Caribbean Initiative is forming a Financial Inclusion Task Force to propose workable solutions for financial regulations that achieve anti-money laundering/counter-terrorism financing goals while still providing robust and needed services in the region, especially to those traditionally left out of the banking sector. Correspondent banking relations are integral to financial inclusion for Caribbean countries. Remittances are a significant portion of GDP in many Caribbean countries and require immediate convertibility to be useful to recipients. Businesses need access to hard currencies to trade and to conduct regional and international commerce. In a world where commerce itself has migrated online, the ability to pay for goods and services through credit cards necessitates a relationship with banks that can facilitate these transactions. In 2016, in response to a spate of hefty fines by regulators on banks operating internationally, many of the banks providing services to local banks in the Caribbean arbitrarily terminated the relationships with their Caribbean respondent banks. The regulators concerned with money laundering and terrorism financing intended for banks to manage the risks; instead, the banks decided to avoid risk altogether citing the small size of Caribbean markets and inadequate cost-benefit ratios. The effect of the withdrawal was severe with more than 25 banks incapacitated. The fallout has led to expanded anti-bank sentiment by ordinary citizens and businesses at a time when concerted efforts are required to transition the many entities operating in the informal or “gray” economy into the formal bankable sector. The reputational smear on the entire region has embittered many. What is your hope for the impact that the Caribbean Initiative will make and how will you define success for this effort? My hope is that the Caribbean Initiative will put the Caribbean on the agenda in Washington and that it will serve as a voluntary but powerful forum for building confidence, generating trust, and fostering ideas for how the United States and the Caribbean can work together, and ultimately, that it will lead to action. Success will be the ability to advance concrete, practical solutions for some of the longstanding challenges that the Caribbean faces – challenges that the United States can play a role in helping to solve.

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Latin America and the Caribbean

Trust, Adaptability, Rigor and Solidarity An Interview with Diego de Sola, Chief Executive Officer, De Sola Group, Co-Founder and Board Member, Glasswing International, Fellow and Moderator, Aspen Institute, and 2012 Young Global Leader, World Economic Forum EDITORS’ NOTE Diego de Sola was conglomerate spanning industries and born in El Salvador and is commitcountries in the region. ted to making a positive impact on the The late ’70s and early ’80s were region through his business and nonparticularly challenging for El Salvador. profit endeavors. He is currently CEO The Civil War, security threats and kidof the De Sola Group, a regional famnapping resulted in a mass diaspora. ily enterprise with 125 years working At the same time, the Agrarian Reform and serving in Central America. The dealt a heavy blow to the Group’s core Group manages investments in real coffee and sugar businesses. So, as the estate, coffee milling and exporting, third generation of the family assumed hotels, healthcare and remote busithe company’s leadership, they shoulness solutions. He is Co-Founder and dered the complex and often exhaustDiego de Sola Director of Glasswing International, ing task of stewarding the business a regional non-profit that designs through a challenging and changing and implements cross-sector programs that pro- context, mostly living outside El Salvador. mote youth and volunteering in the Americas. In After the peace accords in 1992, with the 2012 he was selected by the World Economic Forum sights to contribute to rebuilding the counas a Young Global Leader, and is a Fellow and try and adapt its economy, the Group’s leadModerator for the Aspen Global Leadership Network. ership returned to El Salvador and ventured Diego attended the Hotchkiss School, received his into sectors including financial services, undergraduate degree from Cornell University, and hospitality, entertainment, and new iteraan MBA from NYU Stern School of Business. tions of real estate. In 2019, the baton was passed to the fourth generation. Today, as Will you highlight the history and heri- we prepare to celebrate our 125th annivertage of De Sola Group and what have been sary, my generation has the opportunity to the keys to the Group’s success over 125 explore new avenues of value and impact, years? while doing our very best to uphold the core My great-grandfather, Herbert de Sola, a values that have contributed to the Group’s Jewish immigrant from Curaçao, set up a small sustainability for well over a century. retail business in Panama at the turn of the 20th The keys to the Group’s success for over Century during the building of the French Canal. a century are trust, adaptability, rigor and When the French project failed, he migrated solidarity. again, to El Salvador, where his small store Trust: In my opinion, the single most grew to endeavors in agriculture, manufactur- important key to the Group’s sustainability over ing, and real estate. His sons later grew the time is the capacity to build long and trusting De Sola Group further, into a diversified relationships. As part of the fourth generation, I

look to those who preceded us as examples of integrity through good times and bad. I see our first responsibility as being respectful custodians of this trust, promising what we can deliver and then delivering on our promises. Adaptability: From its very inception, the Group was founded by an immigrant in search of opportunity. Honoring this vision, and as circumstances changed, he and his successors have adapted to stay relevant, mitigate risks and take advantage of opportunities. Rigor: In Spanish, there is a phrase that captures the idea of striving for excellence in everything we do: amor al arte – for love of the art. This translates to doing things right, not only because that’s what our stakeholders expect, but because it is what we expect from ourselves. Solidarity: From the very beginning, my great-grandfather exemplified the value of enlightened self-interest. For more than 100 years, our family has understood that the capacity of any one person or group to get ahead depends, in a very concrete way, on our communities and countries progressing as well. In order to achieve sustainability, our individual successes and our communities’ collective successes cannot deviate too much from one another. This idea has translated to contributions and collaborations of all sorts from family members through our businesses, through the H. de Sola Foundation, and through individual endeavors to address social and environmental challenges. Where do you see the greatest opportunities for growth for the Group as you look to the future?

“Today, as we prepare to celebrate our 125th anniversary, my generation has the opportunity to explore new avenues of value and impact, while doing our very best to uphold the core values that have contributed to the Group’s sustainability for well over a century.”

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“Connecting ideas and people to unleash potential has always been, and will continue to be, at the core of what we do.”

As we enter our 125th year in business, the world is accelerating at breakneck speeds. This brings tremendous opportunities to reinvent our legacy businesses like real estate and coffee, while leveraging our hard-earned network to explore new businesses that align with local and global trends like remote work and the reimagining of healthcare. Connecting ideas and people to unleash potential has always been, and will continue to be, at the core of what we do. In today’s environment, capital is abundant, so we are focusing on talent, governance and data to ensure a diversity of know-how and know-who, all while placing renewed emphasis on staying relevant as the needs, tastes and preferences of our markets evolve more quickly. Finally, we are doubling down on impact, using tools like B-Corps certification to objectively manage our search for positive impact beyond the bottom line and baking sustainability into the fiber of each of our companies. You are a co-founder of Glasswing. What was the vision for creating Glasswing and how do you define its mission? Having grown up between the U.S. with its solid institutions and a highly polarized and unstable El Salvador, I came to realize that trust between individuals, groups, and ultimately sectors and institutions of society is the cornerstone of collaboration and development. Together with my co-founders, Ken Baker and Celina de Sola, we realized that with our combined expertise in the private, government, and nonprofit sectors, we could build an organization that had: (a) the capacity to design and implement high-impact programs; (b) the independence

and credibility to build strong partnerships across sectors; and (c) the convening power and community engagement to promote volunteerism as a valuable tool to generate social and economic value, help heal torn social fabric, and build trust. Will you provide an over view of Glasswing’s work and highlight its programs? Glasswing is an evolving, innovative, nonprofit, social enterprise that empowers youth and communities to address the root causes of poverty, violence and migration through education, health, and community development programs. We keep kids away from violence and enable them to thrive, despite living in extreme adversity. We do this by forging partnerships across international and local governments, corporations, nonprofits and civil society. We build on and strengthen existing resources to deliver high impact, sustainable solutions. Since 2007, Glasswing has directly impacted 1.5 million people, mobilized almost 140,000 volunteers, and expanded to a team of 300 employees in 10 countries. Over our 13 years, we have helped invest over $90 million in implementing effective programs focused on violence prevention, positive youth development, mental health, employability and community resilience. We are proud and humbled that Glasswing’s work has been recognized by the InterAmerican Development Bank and the Aspen Institute, among others, and in 2020 we were recipients of the prestigious Skoll Award. Glasswing’s founders have also been selected as Fellows of the Obama

Foundation, Ashoka, World Economic Forum, and Tallberg Global Leaders. What do you tell foreign investors about the opportunities that exist in El Salvador and what can be done to build a better understanding and awareness of these opportunities? However trite it may sound, what truly sets El Salvador apart as a country is its people. Beyond other objective advantages to investing in our country such as its strategic location; free trade agreements; widely spoken English; industrial, service, financial and logistics expertise; use of the U.S. Dollar; close affinity with the world’s largest market; and budding specialty tourism what friends and colleagues from abroad tell me over and over is how comfortable they feel when they visit. The hospitality, ingenuity and work ethic of the Salvadoran people make for ideal opportunities to invest, nearshore, collaborate, and even vacation in El Salvador. How has the global pandemic impacted your businesses and how proud are you to see the way your team has shown strength and resilience during this unprecedented time? We are beyond proud as we witness the way in which every team member throughout the Group has shown resilience, determination and solidarity. They offer us a shining example and are an inspiration to those of us who have the privilege of serving them in leadership roles. We truly hope that they all see in our Group a platform on which they can become the very best versions of themselves, both personally and professionally.

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“Glasswing is an evolving, innovative, nonprofit, social enterprise that empowers youth and communities to address the root causes of poverty, violence and migration through education, health, and community development programs.”

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Latin America and the Caribbean

The New Colombia An Interview with María Claudia Lacouture, Executive Director, AmCham Colombia EDITORS’ NOTE María Claudia knowledge between Colombia and Lacouture is the Executive Director the United States by creating value for of the Colombo American Chamber our affiliates and potential investors of Commerce (AmCham Colombia). through relevant information, activities She was Minister of Commerce, and spaces of business interest. Industry and Tourism (2016-2017), We offer our affiliates the possiPresident of ProColombia (2010bility to reach new markets within 2016), Manager of the “Colombia the U.S. and Colombia, to diversify es Pasión” campaign and Viceand innovate, and provide access to President of ‘Imagen País’ (2007information and analysis of interest 2009). She worked as a researcher to their business. The entity is confor the Swiss multinational considered a benchmark for the U.S. and sulting company Egon Zehnder María Claudia Lacouture Colombian governments in relation to International and also held roles as trade and investment and it is also a Content Administrator and Coordinator at Yupi key interlocutor in developing the bilateral Internet in Miami. She worked as a specialist agenda. in foreign trade at Trade Wing Networks. She My priorities are aligned with the goals served at ProColombia in the market intelligence of the Chamber. The idea is to provide value area in Bogotá and later was Marketing and through each one of the services we offer and Foreign Trade consultant and Tourism Director connect needs with opportunities, doing this in in the Commercial Office in the United States. line with the highest standards of ethics, social Lacouture was given the Order of Merit ‘Carlos and environmental responsibility, equity, incluLleras Restrepo’ by ANALDEX for her contribu- sion and the common good. To me, these valtion to the development of Colombian exports. ues are fundamental for business development Her first book, Turismo Sostenible (Sustainable Tourism), was published in 2019. She is also an international consultant, lecturer and columnist. Lacoutre studied finance and international relations at the University Externado de Colombia and earned a master’s degree in agricultural economics with a specialization in marketing and business at Cornell University.

“We offer our affiliates the possibility to

ORGANIZATION BRIEF AmCham Colombia’s (amchamcolombia.co) mission is to promote trade, investment and business by focusing on the commercial interests of Colombia and the United States in both hemispheric and global markets, offering its affiliated companies opportunities to enhance their businesses, reach new markets and strengthen themselves through privileged access to information and analysis on relevant topics. AmCham Colombia also strives to provide unique spaces for the development of professional networks at the highest level. Will you highlight the mission of the Colombian American Chamber of Commerce (AmCham Colombia) and your priorities leading the organization? The Colombian American Chamber of Commerce, AmCham Colombia, aims to facilitate and promote free trade, and strengthen investment, tourism, cooperation and the transfer of 186 LEADERS

reach new markets

within the U.S. and Colombia, to diversify and innovate, and provide access to information and analysis of interest to their business.”

and necessary to create good institutional relationships, obtain the necessary recognition and become a modern and efficient service platform as well as a valid and reliable interlocutor for the public and private sectors. How has AmCham Colombia been impacted by the global pandemic and how is the organization navigating its efforts during this challenging and unprecedented time? The first thing we understood at AmCham Colombia is that in the face of the pandemic and eventual confinement, the economic and business dynamics were going to slow down and we were going to have to turn on the turbo and boost our affiliates actions in order to continue finding opportunities. In these times, we evaluated what our members need. They need relevant, real-time information and in-depth analysis of all the aspects that affect their companies. They also needed clarity on the options that they have, given the situation was not clear, which generated disorientation and required guidance. We had to tell employers what was happening, how government measures could affect them, how to take advantage of different activities and circumstances without forgetting that it was of the utmost importance to save jobs, maintain productivity, take care of our health with extreme diligence, and prevent the destruction of the business fabric that contributes to poverty reduction and the development of the country. That is why we created virtual channels that provide advice and updated information which has been of enormous value to our affiliates and all government authorities including President Duque, and the ministers, directors and all relevant actors. While we brought timely and strategic information to entrepreneurs, we brought the concerns of the productive sector to governments. In the midst of that synergy, we launched the first virtual business fair held in the Americas with more than 3,500 participants from 13 Latin American countries, 11 U.S. states, three European countries, as well as two from Asia and one from Oceania. We also developed virtual sector business missions and meetings and we brought the possibility of exchanging needs and generating opportunities for U.S. and Colombian entrepreneurs to different U.S. states. In short, we created a virtual ecosystem that allowed our affiliates to move forward. VOLUME 44, NUMBER 2

“We recovered international confidence and, although some aspects need to be corrected, Colombia is being considered as an excellent destination for investment.”

You served for many years in leadership roles in the Colombian government. What attracted you to public service and will you provide an overview of your areas of focus? What is most rewarding about public service, actually any job, is to feel like it’s your calling. Climbing positions is valid in so far as you can obtain the tools necessary to help build and benefit a country. All public servants have the opportunity to do good work and give value to their work. Since I did my internships in the commercial information area of the export promotion agency – Proexport, which later became ProColombia – I knew that my work had one objective: to create value for the country’s development. Valuable information such as telling a company that their product is needed in another country, finding a client or even an investment are things that contribute to the creation of a beneficial virtuous circle for all. Through my experience in different places, I learned that nothing is easy, that every good purpose requires persistence, resistance and never giving up. Our work should focus on facilitating, fostering, guaranteeing, and above all removing psychological obstacles and economic barriers. It is useless to promote exports if we do not incorporate an export culture in companies. The public servant, whether an intern or a minister, must go the extra mile, have a sincere desire to work for the country, be honest, honorable, clear, proactive, innovative and enterprising and seek balance between the actions that need to be taken and the policies that need to be developed alongside a clear sense of responsibility, the disposition to help, leadership, optimism, will and commitment. You have worked with the Colombian business sector to create and articulate an accurate and positive image of Colombia to project to the world. Will you discuss these efforts and do you feel that there is an effective understanding of Colombia around the world? I have had the privilege of working in the public sector even when Colombia was considered a failed state. For the last two decades of the 20th century, the country was at war against drug trafficking and guerrillas. Narco-terrorism shook the country, put the government in check and haunted a troubled VOLUME 44, NUMBER 2

society. Furthermore, the guerrillas found an economic stronghold in drug trafficking, kidnapping and extortion and they managed to seize a large part of the country’s territory. From illegality, the paramilitaries did the same and the country was left in the hands of crime. We had the real and strong data showing the transformation accompanied by a strong society with solid institutions that allowed us to maintain macroeconomic stability, renew the State’s apparatus, and build a democratic security policy that made us go from a failed state to an emerging nation with great potential for the world. Additionally, it was possible to sign a peace agreement with the country’s main guerrilla group, which allowed us to show what we really are. All of the above has been critical, coupled with the effort, commitment, and forcefulness of those who worked to improve the image of the country and managed to demonstrate that it was worth betting on Colombia. We have a long way to go and there are still varying points of view regarding what we really are and the nonstop effort of all Colombians must continue so the world can see Colombia for its diversity, passion, as an investment destination, and the best place for sustainable tourism. Yo u l e d t h e c a m p a i g n , D i s c o ve r Colombia Through its Heart. What were you trying to accomplish with this message and have you been happy with the impact of this campaign? As a result of that campaign and others that followed, we gave the world information about the new Colombia that has emerged which few knew about. We had regained security and the campaign showed a prosperous, friendly, diverse country, rich in culture and tourism with many possibilities. As foreigners arrived, they returned convinced that we had changed or at least that their perception was wrong. The campaign was carried out with an intense work commitment. It had strong government leadership as well as good business support. In a relatively short time, we were able to turn around an adverse situation. We recovered international confidence and, although some aspects need to be corrected, Colombia is being considered as an excellent destination for investment. Campaigns are an efficient tool, but without national commitment it is difficult to achieve goals.

What do you tell foreign investors about the oppor tunities that exist in Colombia and how do you address potential concerns around stability and security? Historically, Colombia has been characterized as a good destination for foreign investment and it offers the conditions necessary for the arrival of foreign capital. It is a country that has democratic stability, solid institutions, fiscal responsibility, trained human capital, and diverse regions that offer diverse opportunities for productive development and investment. In addition to the above, its strategic geographical location allows entry, in competitive times, to markets in South, Central and North America, as well as Europe. Additionally, it provides the possibility of taking advantage of the two oceans to which it has access through more than 13 current trade agreements that allow export of thousands of products and services without duty. The country also has an attractive domestic market. Legal stability has always been a key factor, both for new investors and for those who are already in the country. Successive governments have made efforts to keep the rules of the game clear for investors and also respect acquired rights. This is a key message at a time when several companies are analyzing the possibility of entering the country to take advantage of the opportunities offered by nearshoring which has opened in recent years for U.S. companies in Asia so that they can transfer part of their production to Latin America. What advice do you offer to young people about a career in government and the importance of public service? Working for the country is very rewarding. To the young people who decide to work in public institutions, I can only say that there is much to do, that society is thirsty and in need of good officials. From their position in public service, they will be able to experience great happiness and fulfillment in seeing the impact they can have. Nothing is more beautiful than a smile of gratitude from communities you have helped to improve. That positive attitude is transmitted to others as they strive to create strong and more caring societies. Anyone who does not have a social sense and a personal conviction, or is indifferent, is better off leaving public service. A lot can be learned working on behalf of a state. All young people should have compulsory social service, guided by their institutions, with the purpose of building a generation that is more committed to their fellow citizens and less selfish and individualistic.

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Latin America and the Caribbean

Clients First An Interview with Gerardo Mato, Chairman of Global Banking & Markets – Americas, HSBC Securities (USA) Inc. EDITORS’ NOTE Gerardo Mato is Will you highlight the history of Chair man of Global Banking HSBC’s Global Banking & Markets & Markets – Americas, at HSBC business in the Americas and what Securities (USA) Inc., a subsidiary have been the keys to the strength of HSBC Holdings plc, one of the of the business? world’s leading and largest bankWhen I joined HSBC, I was asked ing and financial services organito develop the emerging market piece zations. Mato has more than 30 from New York to the world, includyears of experience in Investment ing building out the Latin American Banking, Markets, and in the franchise. I attribute our success to a Corporate Banking business across combination of factors. HSBC is a true the Americas. He joined HSBC in global bank which offered different Gerardo Mato 2002 from Merrill Lynch. He sits alternatives than what was currently on the boards of the Council of the being offered by mostly American Americas and The Atlantic Council. Mato is banks. We were able to open new markets globChairman of the Atlantic Council’s Adrienne ally and provide creative ideas and solutions. Arsht Latin America Center and is Co-Chair For example, Latin America was very depenof the U.S. Chamber of Commerce. He is the dent on the U.S. market and we were able to Chairman of the Advisory Council for the China open new markets like the Sterling market, the General Chamber of Commerce. Mato’s post- Asian market and the European market. This graduate studies include the Wharton School of allowed us to bring clients different products Business and Harvard Business School. and alternative ways to finance them that were not previously on the table. We also brought a COMPANY BRIEF HSBC (us.hsbc.com) is one global investor base that was not focused on of the world’s largest banking and financial ser- Latin America at that time. vices organizations serving more than 40 milA key to our success has been the strong lion customers through its global businesses: relationships we have built throughout the Wealth and Personal Banking, Commercial region as well as our focus on looking for the Banking, and Global Banking & Markets. Its synergies that existed throughout the Americas network covers 64 countries and territories in in order to look at it as a whole region. The Europe, Asia, the Middle East and Africa, North culture of HSBC is one of our key strengths America and Latin America. where we prioritize clients first. My approach

to the business was never to ask how much money we were making, but rather to be sure the client was happy. This is the culture in the bank – it is about serving clients and putting clients first. To give you an idea of what that challenge represented at that time, HSBC was thought by many to be a hospital (Hospital San Bernardo do Campo). That was our starting point and we’ve come a long way to be at the top of the league tables. How has the global pandemic impacted HSBC’s business in the region? The pandemic has clearly caused uncertainty and challenges for the global economy, but it has also created new opportunities. If addressed effectively, Latin America can use this moment to leapfrog in the global economy. I believe that the region has been hit the hardest by the pandemic, but this has created all types of possibilities. The pandemic has changed the way HSBC operates as we have been working from home. I am so proud of our employees who have kept a positive attitude and have continued to focus on the needs of our clients. In 2020, the largest deal that was done in the world was the Argentine debt restructuring and HSBC was the leading bank. This debt restructuring was a challenge for the government, the bank, and the investors as this needed to be done through Zoom and phone calls, but everyone stepped up and made it happen. It was very important for this deal to happen because if

“A key to our success has been the strong relationships we have built throughout the region as well as our focus on looking for the synergies that existed throughout the Americas in order to look at it as a whole region.”

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“This is the culture in the bank – it is about serving clients and putting clients first. To give you an idea of what that challenge represented at that time, HSBC was thought by many to be a hospital (Hospital San Bernardo do Campo).”

Argentina would not have been able to restructure the debt, the country and the economy would have gone into a much deeper depression which would have caused great challenges and strain on the people of the country. HSBC’s ability to help solve this issue directly impacted the lives of people. We have to face the fact that the world has changed, but with technology and the ability of our people to adapt and adjust to the crisis, we have proved that it is possible to continue to perform well and take care of our clients. You mentioned HSBC’s focus on putting clients first. Do you worry that technology is going to take away from the human touch and personal relationship that is such a priority for HSBC? That is a great question, but as I said before, you can go a long way with technology to execute deals although it will never replace human interaction 100 percent. I believe that personal meetings will always be critical for certain deals and situations. Being together in a room makes you more social and you discuss personal things like family and hobbies which creates the bond between the client and the banker. We are human beings and that connectivity is critical. It is not possible to build a new relationship on Zoom the same way you do in person, because at the end of the day our business is about building trust. In order to do this, you need to focus on the human

side and to truly get to know the client which happens when you are together in person. We are a bank, but we are comprised of people and our success is based on the creativity of our team and the trust we build with our clients. How critical is it for HSBC to be engaged in the communities it serves and to be a good corporate citizen? We cannot ignore what is happening in the world and what the social needs are, especially now when we need to be mindful that the pandemic has changed the world. The question is how we can help the communities we serve and the world more broadly. HSBC is the leading bank in sustainability which is a key aspect of our strategy. We are very committed to the transition to low carbon economies and we support investments in this area. One example of the importance of our work for society is the recently announced proposed acquisition of ISA by Ecopetrol. We have supported Ecopetrol in this important step towards becoming a more sustainable company by incorporating a significant business that will be a big enabler of the energy transition process. HSBC’s ability to help in facilitating this transaction will have a significant impact on the lives of people. We support the communities we serve and it is important that these communities are doing well and growing in order for our business to be successful.

You commit your time and energy to the Adrienne Arsht Latin America Center at the Atlantic Council. What interested you in working with the Center and how do you define the Center’s mission? The first issue for the Center was to make sure we assembled the right board, and by this I mean not just politicians and economists, but a broad range of people. We need people who are connected to the region and who are sensitive to its needs and issues. I believe that the ultimate goal of the Center is to touch someone’s life for the better. We want to face the realties that are taking place in the region and understand how we can make a positive impact. An example of the work of the Center goes back to the Argentine debt restructuring. We used the Adrienne Arsht Latin America Center as a resource to connect investors with the Minister of Finance and President of the country which was crucial for the success of the deal. The Center does not have any political bias – we are neutral and felt that communication was critical at the time of the restructuring. We wanted to help facilitate this in order to be a positive force. Adrienne is a special person and truly loves the region and she has so much energy and passion that she will not stop until the Center makes a difference. Adrienne is not just a name on the Center, she is the engine that drives its work. Adrienne has great contacts in the region as do all of the Center’s board members, and it is about connecting the dots in order to make someone’s life better.

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“We are a bank, but we are comprised of people and our success is based on the creativity of our team and the trust we build with our clients.”

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LEADERS 189

Latin America and the Caribbean

Driving Change An Interview with Susana Malcorra, Dean of the IE School of Global and Public Affairs and Former Minister of Foreign Affairs and Worship for the Republic of Argentina EDITORS’ NOTE Susana What interested you in public serMalcorra’s most recent position vice and being a part of the govwas as Minister of Foreign Affairs ernment in Argentina? and Worship of the Ar gentine I should start by saying that the Republic from December 2015 to offer came as a surprise to me. The June 2017. She took the job after candidate at the time called me to say more than eleven years of experithat he was considering me for the ence in the United Nations. From position and while it was not someApril 2012 to December 2015, she thing that was in my mind, the minwas the Chef de Cabinet (Chief of ute he said it, it shook me. Having the Staff) of the Secretary-General, honor to serve your country and to Ban Ki-moon. Previously, she led represent your country to the world is Susana Malcorra the Department of Field Support one of the highest honors you could (DFS) for Peace Missions, based have. I felt that I could make an impact in New York, as Under-Secretary General of based on my experience in the private sector the United Nations. In 2004, she joined the and at the United Nations with my understandWorld Food Programme (WFP) in Rome as ing of the world from that perspective. I felt that an Assistant Secretary General and Chief I could contribute from an angle where I could Operating Officer (COO). Before starting in the add value and make a difference which led me United Nations, she had almost 25 years in the to say yes. private sector. From January 1993, she worked Were you able to make the changes in Telecom Argentina, retiring in 2002 as the and create the impact that you had hoped Chief Executive Officer. She started her profes- during your time as Minister? sional development in IBM Argentina, joining I had moved from the private sector to the shortly after obtaining an Engineering degree United Nations which is a very complex system from the University of Rosario. She is an active and I had learned the need for adaptation and inter national speaker and member of the leveraging your capacities and experiences to board of multiple public and private institu- adjust to a new environment. You have to find tions. Malcorra has been awarded the Gran and create ways to bring about change, but also Cruz de Mérito Militar con distintivo blanco recognize where you are starting from in that (Kingdom of Spain), 2011; United Nations process. Nobody has a magic wand that will Foundation, Global Leadership Awar d, solve all problems. This was my first time serv2011; Cóndor de los Andes en Gran Cruz ing in a position in government in my country (Plurinational State of Bolivia), 2016; Gran and it was the first time for me to be involved Cruz de la Real Orden de Isabel la Católica (Kingdom of Spain), 2016; Orden al Mérito Cavalieri di Gran Croce (Italian Republic), 2017; Induction to the International Hall of Fame, International Women’s Forum (IWF), 2017; and the Orden de Bernardo O’Higgins (Republic of Chile), 2018. She is a founding member of the Argentine Chapter of the Inter national Women’s Forum, honora r y member of the Association of FrenchArgentinian Women, and a member of the Aspen Ministers Forum of the Aspen Institute, Atlantic Council – Adrienne Arsht Latin America Center, Kofi Annan Foundation, Brookings Foreign Policy Leadership Council, and Global Future Council on Geopolitics of the World Economic Forum. She sits on the boards of Inter-American Dialogue, Kofi Annan Foundation, Inter national Crisis Group, and Fundación Euroamerica.

in politics in my country. I feel that there are things we did which had a real impact. We were able to put Argentina back into recognition by the world and brought the voice of Argentina throughout the world. You always wish you had done more, such as my conviction to bring Argentina closer to Africa which I still believe is very important, as well as the Arab world, which we made progress in doing but need to do more. I was able to achieve what I had wanted in the short period of time that I was in the role. You have a deep understanding of the United Nations. Do you feel that the UN has been effective at evolving to meet the challenges the world is facing? The UN needs to constantly evolve as the world evolves. Every institution needs to adjust to the changing landscape in order to survive. The UN is many things – first of all, it is a constellation of member states. The UN is 193 member states coming together around the General Assembly. People need to understand that the UN is a very complex architecture that was established after World War II to avoid a reoccurrence of that war. With this as its framework, one could argue that so far so good. The UN is also the security council which is 15 member states of which five have veto power. The structure of the security council was established during a time which is very different than today. The UN is also the Secretary-General who has convening authority, but can only go so far since the member states are there to set the tone. The

“The UN needs to constantly evolve as the world evolves. Every institution needs to adjust to

the changing landscape in order to survive.”

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“I had been in the private sector for 25 years, then at the United Nations, and then served in government and I did not plan for any of these roles. These unexpected opportunities helped me discover a new person in me and new things that I could do where I could make an impact.” UN has a critical role to play in the world and is doing important work in refugee countries, addressing human rights, gender issues, environmental concerns and much more. I think the UN needs to continue to transform itself to adjust to the 21st century and that relates to all of the pieces of the UN. How concerned are you about the impact of the pandemic in Latin America and what are the keys to recovery for the region? I am very concerned. When you look at the impact in the region, it is disproportionate to the percentage of the population that the region has. The number of deaths in the region are far more based on population percentage versus the rest of the world. Something has happened that has caused this deeper impact on the region which is a great source of concern. From an economic perspective, the region does not have the ability to provide the type of support that is needed and that you see happening in the United States or in Europe. There is no fiscal space to do the things needed in Latin America. I am worried about people who have lost many years to this pandemic not being able to catch up since the governments do not have the ability to provide the necessary support and I am very worried about the economies in Latin America. This is a region that was already very uneven in terms of equality and I feel that opportunities for the future in regard to technology and the digital revolution may not materialize in Latin America if they are not properly managed. There is a

need for the international financial institutions to find ways to address the needs of the middleincome countries in order to create opportunities for the future. What attracted you to the academic world and to your current role? I had been in the private sector for 25 years, then at the United Nations, and then served in government and I did not plan for any of these roles. These unexpected opportunities helped me discover a new person in me and new things that I could do where I could make an impact. This helped me to learn to transition and adjust and embrace opportunity. This same thing happened in the academic world. I was working as an advisor at IE but it was somewhat of a removed role and through circumstances that occurred, I was offered the opportunity to be the Dean. I embraced that opportunity and I love it. I am a practitioner and not an academic so I bring a different viewpoint and feel that this is a way to shape the future of the world through helping shape the minds and profiles of future leaders. You are also involved in the Adrienne Arsht Latin America Center. What interested you in working with the Center? The Center cares about my region which provided a call to engage with it. I am a person who dedicates myself to things that can make a difference and the Center is one of those tools that through exchange and discussion can bring about ideas on how to change and how to improve the region.

“When I was very young, I believed that merit was all that mattered, but now I believe that while merit is important, we also need policies to make action happen in order to achieve the full representation of society.”

There is much debate around the world about gender equity. As a leading woman who has held senior roles in business, government and education, do you feel that progress has been made in providing opportunities for women? Women need to fight for these opportunities. I do not believe that the opportunities are there at the level that they should be. For me, it is not a matter of justice or a matter of what is right, which it is – it is really a matter of making economic sense. Having half of the population not being fully represented and fully engaged in development, production and the economy is absolutely crazy and that is what is happening. There is no question about the benefit of diversity in decision-making and achieving better results, and the first type of diversity is gender diversity. I believe it is fundamental not to give up until we achieve 50-50 representation because that is when better decisions and outcomes occur, but we are far from there today. Inequality is a reality throughout the world, and I could argue that in many places we have been pushed back on this agenda. When I was very young, I believed that merit was all that mattered, but now I believe that while merit is important, we also need policies to make action happen in order to achieve the full representation of society. What advice do you offer to young people beginning their careers during this unprecedented time? I always remind them that whatever they are learning will serve them a very short time. They need to be ready for a continuous learning journey. The jobs that they may get when they leave school might not be there in five or ten years time. Having your mind open to change is, for me, absolutely essential for the younger generation. They need to realize that their biggest asset is the capacity to associate themselves with others and to work with others. They have to learn the technical skills and be ready to embrace change and to live with uncertainty. Uncertainly can lead to fear and fear is the worst enemy in life, so you need to understand that uncertainty is part of the landscape today and you need to use that uncertainty as a trigger for positive energy to prepare yourself for continuous change.

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LEADERS 191

Latin America and the Caribbean

Positive Valorization An Interview with The Honorable María Eugenia Brizuela de Ávila EDITORS’ NOTE María Eugenia my efforts in managing my family’s coffee Brizuela de Ávila currently heads farms, salt mine and funeral home. When Inversiones Vision, her executive coachthe peace accords were signed, I began to ing and consulting firm. Founder of serve in government institutions, includInternacional de Seguros in 1997, she ing on the boards of El Salvador’s Social became the first female President of an Investment Fund and the Social Security insurance company in her country. Institute. I felt a calling to apply my priShe served as Minister of Foreign Affairs vate sector skills to public service. When in El Salvador from 1999-2004, and a friend decided to run for president of El was then elected first female president Salvador, he asked me to head his technical of a private bank, Banco Salvadoreño team and create his policy platform, which and Banistmo. She forged a strategic then became his five-year government alliance and was elected CEO, keeping The Hon. María Eugenia plan when he won the election. When I Brizuela de Ávila this position even when HSBC acquired was offered the position of minister of fora controlling majority in 2006. She pioeign affairs, I accepted enthusiastically as neered a new function in the region becoming I wanted to continue supporting the transformation Corporate Sustainability Head for HSBC Latin of my country by building stronger relations with the America from 2007-2015. When she witnessed the world and overseeing international cooperation. number of elderly clients in the Bank who could not I genuinely wanted to make a difference and read or write, she helped launch a national liter- believed that serving in office at that moment was acy campaign and became a member of the Consejo the best way to do so. With the support of a fanEjecutivo del Trienio de la Alfabetización. She sits on tastic team, I could not have been in a better place numerous boards and has received many awards. to help the implementation of the country’s development plan which I had helped conceive and to You served as Minister of Foreign Affairs serve and support all different spheres of life, from in El Salvador. What interested you in public education and health to infrastructure and border service and being a part of the government demarcations. in El Salvador? How do you describe El Salvador today One of the first things I discovered in life was and is the country effectively understood to find meaning and leverage my strengths for an around the world? inspiring purpose. Being the fourth child in a famI am proud of my country, its history, and its ily of five, I grew up witnessing and absorbing my ongoing search for its own meaning. From Mayan father’s work ethic and love of country. But I was a civilization and Spanish colonization to the birth of girl, and back then, society did not expect much of our republic, military dictatorships and civil war, El me beyond marriage. When I graduated from high Salvador today has one of Central America’s richest school, I was the top student in my class, but the cultures, but an incipient and fragile democracy. school counselor downgraded me to second place El Salvador is a young country with 54 percent to hand the first spot to a male classmate. When I of its population under 30 years old. There is a chalchallenged this, my father sided with him. My father lenge to create opportunities for them. With high refused to pay for university studies, only French immigration that tore families apart and deportation civilization at the Sorbonne was an option, so off from the United States, specifically from Los Angeles, I went to Paris. After almost two years in Europe, gangs rose in our country. Education has opened I found meaning to my life and discovered that I doors to girls, but glass ceilings or leaky pipes flush would not find happiness in living the life my father many of them out of a career path. wanted for me. I wanted to lead a life of service to Coffee exports are less than 1 percent of my fellow human beings and my country. Against the country’s gross domestic product, but in the my father’s will, I came back to El Salvador to study 1970s it was the most important export product. law and enrolled at the National University where I DR-CAFTA and other free trade agreements have paid my way working at the courts. helped shape El Salvador’s economy around When the Salvadoran Civil War began, my father manufacturing, especially textiles. In 2019, textiles and brothers were forced to leave the country. My represented $4.3 million or 15.8 percent of the father had no other option than to leave the family GDP, followed by the commercial sector which businesses in my hands. Through 12 years of civil war, represented 11.3 percent and construction which my strong sense of purpose for my country guided has had consistent growth at 5.8 percent of GDP. 192 LEADERS

Due to decades of migration, family remittances, a key variable in shaping our consumerism economy, have become an important part of our external flows, representing $5.7 million or 21 percent of GDP in 2019. El Salvador’s fiscal situation is complicated as our external debt to GDP was 71 percent in 2019, leaving little space for productive loan engagement. Even so, according to the World Bank, our country has the potential to promote economic growth based on its strategic geographic location with access to important markets, a growing young labor force and a solid industrial base that could support the commercial sector expansion. Crime has been a difficult issue to tackle. In 2015, murders reached a maximum of 6,425 which placed us as one of the most violent countries not in conflict. Homicides have diminished considerably and in 2019 we had only 2,368, with preliminary police data for 2020 at 1,325, a number influenced by the coronavirus lockdown. Let me tell you a personal story that I think can answer your question about how my country is understood around the world. On my first trip to Europe as Foreign Minister, I was greeted by a colleague in what everyone would say is a developed country, so I was expecting a relatively knowledgeable person. He received me with a question that signaled the low level of importance that developing countries may be to the first world: “Welcome Chancellor, how is the war going on in your country?” To which I replied: “I am happy to be the messenger to say that we signed peace seven years ago.” I understood then that a tree falling makes much more noise than a whole forest growing. Many countries such as El Salvador are not effectively understood around the world. A joint effort from all citizens is required to show the world who we are and what we can be. When visiting a foreign country as foreign minister, I would always meet with the Salvadoran community and recognize their immense role as global ambassadors. In a visit to the municipal authorities in Milan, where over 40,000 Salvadorans reside, I asked about my people’s behavior and how I could support them. The answer was so pleasing and realistic: “No need to worry about your laborious Salvadorans, only a couple take up drinking in the weekend, but we let them sleep it off in jail for a day. It is other immigrants we have to watch closer.” VOLUME 44, NUMBER 2

You currently are a member of several boards of for-profit companies. What is your vision for your participation in them and how do you define their purpose? Another important aspect I found in my professional life is managing my energy. To be an active participant, you must know where your energy is coming from and where it is going, and then work to manage it. This helps me find my work-life balance to continue to serve, so I identify the spaces that fill me with energy and understand those that drain me of it. Work in the private sector has always filled me with energy. It is an important pillar, with its innovative and productive capacity. It has been the driving engine to awaken the economy after the pandemic. The private sector’s resilience through adverse situations has shined through with its rapid turn to virtual technologies and innovation in the different sectors. At the same time, businesses have responded to people’s needs through their social responsibility programs, giving back to their communities in these unprecedented times. As I participate on these boards, I strive to contribute to the recognition of a higher purpose, which is what drives these companies: a focus on being the best at what they do, doing it sustainably, and with a positive impact on the communities they serve. Where do you see the greatest opportunities for growth for the companies in which you participate as you look to the future? COVID-19 has created an even more important space for information and communications. This sector showed a positive variation of 3 percent in the economic activity volume index IVAE while the rest of the sectors were negative in the country, except for public activities. As a woman that has championed flexibility at the workplace to encourage and retain more women to participate actively in corporate responsibilities, I have been an advocate for the flexibilitybased productivity that the pandemic has accelerated. There is now a huge opportunity for more women to work remotely, providing them with an important source of income and economic empowerment. Due to the fact women take on more responsibilities at home, such as child and elderly care, having access to a flexible time schedule allows them to remain involved both at home and at work. I see enormous opportunities in the companies in which I participate for more flexibility-based productivity. Regional growth in Central America has been more important during the pandemic. I also see an opportunity for deepening intraregional trade, as modeled by the European Union. Nearshoring is an opportunity for the region as international companies reevaluate their manufacturing concentration in Asia, especially China. Another opportunity is the synergy between the sectors in their digital evolution, such as the commercial sector and digital designers. You have been a leader in business and government throughout your career. What do you see as the keys to effective leadership and does the same skill set apply to being effective in the public and private sector? A key element to effective leadership I discovered along the way is positive valorization. Adopting a more constructive way of looking at the world, expanding my horizon, and gaining the determination to move forward – especially when things are not going well – has been VOLUME 44, NUMBER 2

transformative to my life. I believe this applies to both the public and the private sector. Let me share another example from my days as foreign minister. When I joined the Ministry, the first thing I did was to strategically define the most important objectives of my job. At the top of the list was the demarcation of the territorial border between Honduras and El Salvador. The rejection I received from my colleagues at the Ministry was hard to overcome as they tried to convince me not to engage in it, especially because no minister had embarked in it since the war we had with Honduras in the 1960s. I challenged this with a positive valorization of my own circumstances, the experts I engaged, the political will harnessed with the opposition, and the relations with important stakeholders in Honduras from many different sectors. One of the first Hondurans I visited to share my desire to start the border conversations was Catholic Cardinal Rodriguez Maradiaga, who immediately saw the benefits for the millions living along an unmarked and insecure border. When the go99vernment of Honduras agreed, we worked together through the Organization of American States and got the job done. What do you tell foreign investors about the opportunities that exist in El Salvador and the strengths that the country offers from an investment perspective? Speaking to foreign investors is an example of another key element to effective leadership: networking and identifying who can help us grow, building more solid relations, and expanding our access to opportunities. To reach out to potential investors you must have a clear message and a solid offer. El Salvador’s free trade agreements with the region, many of which I helped negotiate as foreign minister, provide clarity in the rule of law and specific environmental and labor matters that guarantee investors a strong framework, such as that seen in the United States-Mexico-Canada Agreement (USMCA). Our geographical proximity to the United States and access to European markets, facilitated logistics, and a young workforce are strong elements to consider. El Salvador enjoys price stability. Dollarization not only facilitates transactions with the world by neutralizing the exchange rate, it also helps maintain low levels of inflation, eliminating price uncertainty for businesses and households. Annual inflation was 0 percent in 2019 and -0.09 in 2020. The Salvadoran financial sector ranked 62nd out of 141 countries under the 2019 Competitiveness Index. Another sector that has great potential is the energy sector. It accounted for 3.1 percent in 2019, which is a smaller proportion than others, but had growth of 8.3 percent in that year, influenced by renewable energy projects. El Salvador has legislation for public/private associations that represents a great opportunity to generate efficiencies with infrastructure projects and services of general interest. You devote your time and energy to supporting many causes and addressing societal needs. Will you highlight this work and do you see this as a responsibility of business leaders and leading companies? My willingness to serve has driven me to be an active leader in the private sector, public sector and civil society sector. Addressing societal needs is a responsibility of not only business leaders, but also

everyday citizens. We all need to contribute in any way possible to make our world a better place, preserving nature, and advancing the quality of life. Let me share a couple of the causes I am involved with. I am honored to be a Senior Nonresident Fellow of the Atlantic Council and strongly support the Adrienne Arsht Latin America Center. The Atlantic Council’s Adrienne Arsht Latin America Center expands awareness of the new Latin America across diverse communities of influence by positioning the region as a core partner in the transatlantic community. It focuses on Latin America’s strategic role in a global context with a priority on pressing political and economic issues that will define the trajectory of the region now and in the years ahead. The Center’s mission and regional allies have become even more important in today’s context and so I contribute with my insights and local view. I address societal needs by helping to formulate public policy at FUSADES, the most prestigious think tank in Central America, and by helping to economically empower women through Vital Voices. Additionally, I help to prepare youth in financial literacy, work readiness skills, and entrepreneurship as a member of Junior Achievement’s global Board of Governors. I am also Vice President of the Universidad Dr. Jose Matias Delgado in El Salvador where I help to prepare our students to be honorable professionals contributing to our country’s development. As one of the first women members of INCAE Business School’s Board, I support educating our regional business leaders. I am a Commissioner at the International Commission on Missing Persons, an entity addressing the issue not only as humanitarian assistance, but also accompanying States that are legally obliged to investigate the fate and whereabouts of missing persons in an effective way, including the circumstances of their disappearance and supporting the families in their grief. I am particularly advocating support for missing migrants, as forced displacement has generated massive irregular migration flows, including those in Central America and the Mediterranean, which have resulted in large numbers of migrants going missing. I was the first female member of YPO (Young Presidents Organization) from Mexico to Panama and still participate actively in helping us be better leaders and better persons. You have broken many barriers during your career having served as the first woman Minister of Foreign Affairs in El Salvador and as the first woman to become president of a private bank and an insurance company in El Salvador.What do you tell young women beginning their careers about the opportunities that exist to lead in business and government? I wish to continue speaking to young women about my example and dedication to service. The world needs more women leaders. Our driving purpose, our will to make a difference in the world, is truly what motivates women leaders to be successful. There are many opportunities out there, but women must be prepared for when they are presented to them, which is why I highly encourage continuous education for all women. I encourage them to make sense of their lives, to find their own meaning, to manage their energy, to adopt a more constructive way of looking at the world with positive valorization, to connect, and to get involved.

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LEADERS 193

Latin America and the Caribbean

A Force for Good An Interview with Pablo E. Vargas, Executive Chairman, Grupo Britt EDITORS’ NOTE Pablo Vargas, Will you highlight the history and a Costa Rican citizen, became heritage of Grupo Britt and disExecutive Chair man for Grupo cuss how the company has evolved Britt in January 2018, after being over the years? Britt’s CEO for 18 years. He joined The brand Café Britt was conthe company in 1992, after doing ceived in 1985. I met Britt’s founder, an internship in 1990 when Britt Steve Aronson, in 1990 as a student was just a start-up company with and wrote an academic thesis on the annual sales of less than $150,000. concept of adding value to coffee Under his leadership, Britt’s revefrom Costa Rica as a hedging strategy nues went from approximately $10 to cope with this commodity’s price million to approximately $158 milvolatility. I started working full-time Pablo E. Vargas lion in 2018. During this period, the with Steve in 1992 and implemented company became a coffee and chocmany of the ideas written in my paper. olate manufacturer and travel retailer, with over Among them, we wanted to be the first coffee 130 shops, operations in 13 countries, and a company in a country of origin dedicated to head count of 1,800 employees. Prior to joining exporting the final product directly to consumBritt, Vargas worked for international private ers around the world. We dreamt of de-comand nonprofit organizations and participated moditizing coffee and started distribution to on several boards of directors. He has taught graduate and undergraduate level economics at three universities. Vargas holds BS and Licenciatura degrees from Universidad de Costa Rica, and MS and MBA degrees from Michigan State University. He is a Fulbright Scholar and his MS thesis was elected as Thesis of the Year by Michigan State University’s Agricultural Economics Department.

“I have been humbled

COMPANY BRIEF Grupo Britt (grupobritt.com) was founded in Costa Rica in 1985 with the goal of making the country’s famed gourmet coffee available for consumption around the world. In 1991, the company combined coffee with tourism with the introduction of the Britt Coffee Tour, an innovative play staged in Britt’s own plantation that traces the history of coffee and its production cycle and tasting. In 2001, Grupo Britt entered the travel retail market with its first shop at Juan Santamaria International Airport in Costa Rica. Growth continued in 2003 with the addition of stores at various hotels and parks. International expansion began in 2005 with Grupo Britt’s first shop in Peru. Today, the Group has over 2000 employees in 13 different countries. In response to three decades of growth, Grupo Britt separated its two market segments as two fully-operational companies in 2017, Morpho Travel Retail and Café Britt. Morpho Travel Retail helps make travel convenient and memorable for customers by focusing on gift shops and food and beverage operations in airports, hotels, and resorts. 194 LEADERS

by the heroic way our people responded

during 2020. Our team showed great strength and commitment in the midst of very challenging and fluid times.”

hotels, restaurants and commercial accounts in the U.S., Canada and other parts of the world. The coffee industry is very specialized and each player does its prescribed job: producers grow coffee, which is sold as a commodity to a chain of processors, exporters/importers and distributors who mostly belong to international trading and roasting groups. We wanted to stop selling this precious raw material and created a consumer brand to sell Costa Rica’s finest roasted coffee to the world. We thought of coffee as something like wine. When most people in the coffee world were obsessed with quantity, we were fanatical about quality, and we continue to be. When we had an opportunity to run gift shops in the San José, Costa Rica Airport, we fulfilled our dream of exposing our brand and products to millions of international travelers, together with a curated selection of gifts and souvenirs from Costa Rica. Then, in 2004, we replicated the model at Lima Airport in Peru, and kept adding more countries and airports to our model. We benefit from globalization, but we acknowledge that as human beings we want to appreciate our roots and cultural differences. We developed a model of travel shops with a sense of place. We toured new countries exploring their culture, music, colors, and traditional food items and presented them to world travelers usually in new airport terminals. Hence, we only do Costa Rican themed shops in Costa Rica. In Peru we do Peruvian shops, in Mexico we do Mexican shops and the same applies to the 12 countries where we operate. In coffee and cocoa producing countries, we do coffee and chocolate products under the Britt brand with those raw materials. About three years ago, we acknowledged that we operate two companies, a travel retailer now called Morpho Travel Retail, N.V., and a coffee and chocolate company called Café Britt, S.A., both controlled by Grupo Britt, N.V. How has Grupo Britt adapted its business to address the challenges brought on by the pandemic and how proud are you to see the way Grupo Britt’s workforce has displayed strength and resilience during this challenging and uncertain time? I have been humbled by the heroic way our people responded during 2020. Our team showed great strength and commitment in the midst of very challenging and fluid times. When the pandemic started in March 2020, we VOLUME 44, NUMBER 2

“...it is our responsibility, especially to our daughters, sons, and future generations, to apply our know-how to help society achieve its goals.”

prepared for the simultaneous closures of airports for an estimated period of four months. Then, as each of those four months went by, we had to make additional preparations for an extended period. In Morpho, we had to furlough most of our personnel in the shops. We had to rearrange the balance sheet of the Company and brought in fresh capital. In the coffee segment, things were much better, with the e-commerce channel hitting record sales month after month. Business is recovering across the board, although some countries are behind in this recovery cycle. What has been the impact of the pandemic on the agribusiness sector and what are the keys to recovery for the industry? Agribusiness showed great resilience during the pandemic. People continued to consume quality products and companies that went direct to consumer saw their sales grow. We believe it’s in this “direct to consumer” approach where most recovery opportunities lie on the road ahead. Facilitators to the industry in this process will also thrive. Grupo Britt is a purpose-driven company and deeply engaged in the communities it serves. Will you discuss your views on the role of business as a force for good in society and the need for leading companies to address global challenges? We always saw ourselves as a force for good in the market. We championed organic growth cultivation and marketing since the early 1990s when the regulation and coffee bureaucracy in Costa Rica did not accept the concept. We flew in the inspectors because there were no local organic certifying agencies. We believed a bit naively that by the year 2000 about 80 percent of our coffee sales would be organic. We had to face the reality that the consumer was not aware of the benefits of organic production - at least they were not as conscious of the benefits as to accept a price differential. Times are changing, and business leaders are much more aware that the responsibility of business does not end with maximizing profits. The world is still behind in pricing environmental benefits, or accounting for negative externalities, although there have been some policy successes around the world taxing carbon emissions or creating markets for carbon bonds as well as other innovative initiatives. However, in the absence of market mechanisms, consumers VOLUME 44, NUMBER 2

and investors are becoming more demanding of transparency and environmental and social responsibility from corporate leaders. I welcome those changes and I actually think that as climate change becomes more apparent, we will see an acceleration of this trend. The truth is that businesses are the most organized and efficient platforms in our current society, and sadly democracy and governments are not supplying the public goods society demands. Therefore, it is our responsibility, especially to our daughters, sons, and future generations, to apply our know-how to help society achieve its goals. What do you see as Costa Rica’s competitive advantages as a country and what do you see as its strengths from a business standpoint? Costa Rica is known for its political stability, peace efforts, sustainability, and its educated and healthy population. It is one of a select group of 23 countries rated as “full democracies” by the Economist Intelligence Unit. The country is currently rated as #15 in the Happy Country Index of the World Happiness Report, and it has been showcased in many environmental and sustainability reports for its efforts in protecting the environment. This country of healthy and educated people also performs well in terms of its innovation capacity, usually ranked number three or four in Latin America. Costa Rica constantly attracts new international companies who decide to set up manufacturing or service operations in the country. The process of setting up operations in Costa Rica has been streamlined and made simple with the help of a private-public partnership called CINDE. What do you tell foreign investors about the opportunities for investment in Latin America and the strength that the region offers for investors? Latin America continues to offer interesting opportunities in several sectors of the economy. The region has a strong agribusiness base and business models that could add value to its biodiversity have great potential. As I mentioned in the case of Costa Rica, many companies are establishing service centers. Companies are doing their human resources, IT, accounting and even R&D from centers in countries like Mexico, Colombia, Chile, Uruguay and Costa Rica. Each country offers a competitive set of incentives to foreign investors. As an example, Amazon alone

has over 9,000 employees in Costa Rica. Other areas with high potential include IT and light manufacturing operations. What are your perspectives on the regional developments taking place in Latin America as you look to the future? Latin American countries most often are in the news because of highly-charged political events. There are always a few dictatorial governments, currently Cuba, Venezuela and Nicaragua are the ones that fit that role, and they capture most of the information pipeline that fills media outlets around the world. Argentina also makes it to the newsrooms because of recurrent crises of the peso. However, most countries have vibrant economies with highly sophisticated participants in key industries. First world foreign investors without much international experience will probably need to do more homework than they use to do in order to find the right partners or the right business model, or in order to obtain the required permits to operate, but the effort can be rewarded with higher returns. Additionally, Latin America has adopted the digital revolution and it has an entrepreneurial, young population interested in creating new businesses that could solve relevant problems and fulfill societal needs. Foreign investors coming to the region could spot these young entrepreneurs and support them at different stages of select ventures’ lives. What do you see as the keys to effective leadership and how do you describe your management style? Effective leaders have always needed a high dose of character. These days you also need a high level of flexibility and vision. The adoption of digital technologies is changing society in ways that are hard to predict. Those who could see where this wave is taking us will have the opportunity to lead their organizations in a sustainable way. Mastering strategy and being close to the final customer are part of the current leader’s toolbox. At a more personal level, I have to say that I hate hierarchies and I like being around people. I consider myself a customer and I like companies and organizations that provide outstanding quality and service to the normal customer. I strive to run an organization where all customers are treated as VIP’s, and where all quality and service are premium - where a flat organization does whatever it can, and then more, to serve each of its clients.

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LEADERS 195

Latin America and the Caribbean

Transforming Lives An Interview with Salvador Paiz, Chairman, Grupo PDC EDITORS’ NOTE Salvador Paiz was Will you highlight the history and born in Guatemala and, through his heritage of Grupo PDC and probusiness and nonprofit efforts, has vide an overview of its business? worked towards the development of PDC is a young multi-latina comhis country. He was Vice President of pany with operations from Mexico to Walmart Centroamérica and, subsePeru. Our main lines of business are quently, board member of Walmart consumer goods and specialty finance. México y Centroamé rica until the On the consumer goods side, we repbeginning of 2016. Today, he is resent brands such as Hershey’s, SC Chairman of PDC, a private investJohnson, and L’Oreal, to name a ment company whose corporate purfew. We also produce and sell Magia pose is to transform lives. Paiz is Blanca, the preferred consumer bleach Salvador Paiz deeply committed to Guatemala’s brand in the region and Australian transformation, thus he has tireMilk products. We are growing in the lessly worked in spearheading effective non-gov- technology space by formalizing the informal ernmental initiatives for change. He is a Director mom-and-pop stores in the region. On the speof FUNDESA (Foundation for the Development cialty finance side, we advise on and structure of Guatamala) and helped develop Fundesa’s secured private-credit transactions for busiMejoremos Guate initiative, which strives to cre- nesses throughout the region. In essence, we ate a more prosperous, solidary, safe and just help businesses liberate cash by leveraging real nation. Paiz has also been actively involved in estate assets. the transformation of Guatemala’s education sysOur family has always been quite entrepretem, supporting initiatives such as Empresarios neurial. In 1928, my grandfather, a poor orphan por la Educación and Funsepa (Sergio Paiz with limited formal education, founded what later Andrade Foundation), which he chairs. As an became Almacenes Paiz and eventually Walmart academic, he was a Research Fellow at Fordham Centroamérica. In 1974, my own father founded University and contributed to many documents a small distribution company in Guatemala with and studies. He is a member of the Chairman’s several partners. We acquired their minority stakes Inter national Advisory Council (CIAC) of in 2011 after having launched PDC Capital in 2009 the Council of the Americas and a member of allowing for Grupo PDC to be born with two main the Inter-American Dialogue. In 2009, Paiz business units. was the first Guatemalan named Young Global PDC defines its purpose as “transformLeader by the World Economic Forum. In ing lives.” Will you discuss this mission and November 2014, he was presented with the Inter- how PDC is working to fulfill this purpose? American Dialogue Award for Civic Engagement Our purpose of “Transforming Lives” and in Washington D.C. He obtained his bachelor’s our values, “REIR” (a Spanish acronym which degree with honors from the Wharton School at means “to smile”), were inspired by our grandthe University of Pennsylvania and his MBA from father. He taught us to persevere in the face of the MIT Sloan School of Business, as a Martin adversity. He also believed profoundly that you Trust Merit Scholar. could do good business while still “doing good” for all stakeholders. We strive to be recognized C O M P A N Y B R I E F G r u p o P D C for our positive and transformational impact in (grupopdc.com) is a company with multiple society. We transform lives internally by prob u s i n e s s e s i n s e v e n c o u n t r i e s i n L atin viding employees with exceptional work condiAmerica including consumer pr oducts, tions and environments. One of our signature industrial pr oducts, financial services, projects is “Achieving a Dream” whereby every retail services and hosting services. Its pur- month we grant a dream to one of the members pose is to transform lives internally through of our team. The dream granted is selected by an excellent work environment and by pro- a group of peers based on the transformational viding growth opportunities to its employ- potential and impact the recipient has made. ees. Externally, it transforms lives through The videos of the moment the wish was realits Dejando Huella (Leaving a Footprint) ized are truly inspirational. In addition, we are program that seeks to improve schools in the working on a very ambitious project to reduce countries where it operates. poverty and assure access to housing. 196 LEADERS

We transform lives externally in each of our interactions with outside stakeholders. We try to build positive and constructive relationships that create shared value. We also devote a significant percentage of our profits to FunSEPA (Fundación Sergio Paiz Andrade). FunSEPA leverages technology to dramatically improve the quality of education on a nationwide scale throughout Guatemala. How has PDC adapted its business to address the challenges caused by the pandemic and how proud are you to see the resilience of PDC’s workforce during this challenging and uncertain time? I could not be prouder of our team and how we have managed to navigate this unprecedented storm. Certainly, the impact from the pandemic has not been uniform across our different lines of business, but what has been consistent is our methodical and holistic response. As soon as the first cases were announced in our region, the collective anxiety was quite palpable. We announced that we would take every measure to safeguard our people. The teams implemented randomized on-site antigen and antibody testing, temperature controls and disinfection tunnels. A hotline was activated for psychological and emotional support. In addition, we took a big risk in committing that nobody would lose their job because of the pandemic and provided bonuses for our “heroes” in the highest-risk jobs. In short, I am quite proud of the holistic program that the team developed and implemented in record time. The program allowed us to keep operating and to continue supplying our customers with critical products during the pandemic. What are the keys to economic recovery for the countries in Latin America coming out of the pandemic? Each country in the region has been impacted differently so it is hard to create a one-size-fits-all answer. Certainly, the speed with which the vaccine will be applied is a key variable. We need to achieve herd immunity and achieve it fast to reduce the overall social and economic impact from this disease. In the meantime, all countries should adhere to protocols such as mandatory mask use, disinfection and social distancing. These protocols seem to allow for relative openness of economies while preventing dangerous spikes in infection rates. VOLUME 44, NUMBER 2

FunSEPA has trained In the case of Guatemala, one out of two teachFUNDESA has w o r k e d i n ers in Guatemala’s public c o n j u n c t i o n with the education system in the national and city governuse of technology as an m e n t s t o d e v e l o p the educational tool. Through “Guatemala Does Not its programs, “Technology Stop” plan. The plan identifor Education” and “Na’at: fies key initiatives to turboAwakening of Knowledge,” charge our ability to attract FunSEPA’s trainers empower foreign investment and to teachers and help them generate jobs. Each country change the way they teach, in the region should perand thus transform their form a similar exercise to students’ lives. identify the concrete actions FunSEPA’s reach has that could yield the highest been pivotal during the impact in terms of economic COVID-19 pandemic. Due recovery. to the pandemic, schools Yo u h a v e b e e n a in Guatemala shut down in catalyst for Guatemala’s March 2020. FunSEPA was in transformation. Will a unique position to leveryou highlight this effort age technology to impact and the initiatives that lives. Mid-way through the have been implemented pandemic, as schools and to drive change in universities remained closed, Guatemala? “Coursera for Guatemala” was Over the last 10 years, born. Through “Coursera for Guatemala has benefited Guatemala,” FunSEPA, in colfrom having forward-thinklaboration with Guatemala’s ing donors from its private Ministry of Education and sector that committed sigCoursera, provided scholarnificant resources towards ships to more than 30,000 the transformation effort. Guatemalans who had full The homicide rate per access to Coursera’s content, 100,000 people has gone without any cost. Also, in from 46 in 2009 to 15.4 in September 2020, FunSEPA 2020. GDP per capita has Salvador Paiz (left) and his brother Sergio who are CEOs of the two lines of business of PDC developed “S.O.S. Docente,” increased from $2,898.94 • “COVID Response” which provided a chatbot designed to give Guatemalan teachers in 2010 to $4,619.98 in 2019, a 59 percent more than 60 percent of all PCR tests access to a library full of rich content, from math improvement. We can point to similar progress performed nationwide during the critical to emotional support to long-distance teaching in statistics in areas such as infant mortality, guides, and help them face the difficult chalfirst four months of the pandemic. college completion and poverty, among many You serve as president of the Fundación lenges of remote learning. This year, as schools others. Certainly, there is much more to do, but we have to start by recognizing the degree of Sergio Paiz Andrade (FunSEPA), a founda- are scheduled to re-open on hybrid models, progress that has been achieved over a relation dedicated to improving the quality of FunSEPA is working alongside Guatemala’s education in Guatemala through technol- Ministry of Education and other important allies tively short period. The process to drive transformation is cer- ogy. Will you provide an over view of to help ensure Guatemalan students and teachers tainly not easy nor linear. It is imperative to FunSEPA and the impact that the founda- can have a safe return to school. What are your priorities for Grupo know where you want to go and to set concrete tion has made in Guatemala? My father, Sergio Paiz Andrade, passed away PDC during this unprecedented time? and measurable goals to monitor the degree of PDC’s priorities have shifted throughout progress throughout the journey. The original in a tragic accident on a FUNDESA trip searching “Mejoremos Guate” initiative identified the key for ways to drive Guatemala’s inclusive devel- the pandemic. The first priority was to take care bottlenecks that were limiting our ability to opment. He was convinced that education was of our people, as I explained earlier. Once we generate jobs and to drive inclusive growth. the fundamental driver for that development. He knew that our people were ok, we transitioned We focused on driving prosperity, solidarity, was also quite “techy,” and firmly believed that to focus on the business. Certain lines of busisecurity and justice, all while strengthening technology is a transformational tool. FunSEPA ness, like our student housing project, were was born in his memory and we have been more impacted than others but every business institutions. Key initiatives that have been funded leveraging technology to improve the quality of faced enormous uncertainty and disruption of education for all Guatemalans for over 16 years. supply lines. Taking care of our businesses also through FUNDESA include: • “Scale-up Xela” to drive entrepreneur- To date, more than half a million children in the meant protecting our ability to generate cash ship and job creation in Quetzaltenango, country have access to technology thanks to flow by reducing any non-critical expenditures. The pandemic has forced us to rethink which has stimulated over 30 percent FunSEPA’s programs. More than 27,000 computgrowth by SMEs that participated in the ers have been delivered in 1,653 schools across everything, from how to generate additional the country. A classroom with technology has far redundancy in our supply chains to incorporatprogram in less than a year. • “Criminal Justice Flowchart” to identify more impact than we think. Not only does tech- ing home-office days into our new “normal.” bottlenecks and propose solutions that nology provide students with new ways of learn- We continue to scan the horizon for oppordrive efficiencies in the criminal justice ing and doing things, but it also helps decrease tunities arisi ng from rapid technological student dropout rates. Additionally, by making changes and from new patterns in customer system. • “Crime Stoppers Guatemala” to provide learning a fun process, FunSEPA’s programs have behavior. Despite all the changes and all the a safe and anonymous way for citizens helped students improve their grades in subjects turmoil, our purpose to “Transform Lives” remains steadfast. such as math and language. to share information regarding crimes.

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Roadmap for Impact An Interview with Andrew M. Herscowitz, Chief Development Officer, U.S. International Development Finance Corporation (DFC) EDITORS’ NOTE U.S. International financing for small businesses and Development Finance Corporation women entrepreneurs in order to create (DFC) launched in late 2019 with a jobs in emerging markets. DFC investstrong commitment to achieving a ments adhere to high standards and positive impact around the world. As respect the environment, human rights, part of that commitment, the agency and worker rights. created a new Chief Development Office to increase developmental benWill you highlight the mission of efits and coordinate developmental the U.S. International Development activities. Andrew Herscowitz serves as Finance Corporation (DFC)? DFC’s first Chief Development Officer, DFC is the U.S. developm e n t where he works with agency leadership f i n a n c e i n s t i t u t i o n , a n e w U.S. Andrew M. Herscowitz to set the overall development strategy, Government agency that supoversees interagency coordination on ports private sector projects that development, and project evaluation. Prior to his address critical challenges facing the develappointment as CDO, Herscowitz served from 2013 oping world. DFC was launched one year to 2000 as the coordinator of the U.S. Government’s ago through the passage of the BUILD Act Power Africa program to expand access to electric- which modernized and expanded the tools of ity on the continent. He is a Minister Counselor in the Overseas Private Investment Corporation the Senior Foreign Service and served from 2002 to (OPIC). We have more than $10 billion 2013 as Regional Legal Advisor for the U.S. Agency invested in Latin America, which is the largfor International Development in multiple countries est share of our global portfolio. Our goal is in Latin America and the Caribbean. to reach the people who are most in need of investment. That’s why we launched a $75 COMPANY BRIEF U.S. International Development billion development strategy called Roadmap Finance Corporation (dfc.gov) is America’s devel- for Impact, which aims to directly benefit at opment bank. DFC partners with the private sector least 30 million people by 2025. My hope is to finance solutions to the most critical challenges that we will reach many more. facing the developing world today. It invests across What excited you about the opportusectors including energy, healthcare, critical infra- nity to join DFC and made you feel it was structure and technology. DFC also provides the right fit?

I started my career in the private sector, but more recently ran the U.S. Government’s Power Africa initiative for seven years. Power Africa, which the Obama-Biden Administration launched, was one of the most significant U.S. Government-led models for driving private sector investment into a development sector at large scale. We worked with 12 U.S. Government agencies and over 170 outside partners to drive more than $20 billion in real investment into 120 power deals. As a career member of the Senior Foreign Service, I have served at five U.S. embassies in Latin America and the Caribbean, as well as in Africa. With this background, I was excited to lead the launch of a new government agency and to make sure that we deployed all the tools available to DFC and the U.S. Government to de-risk and drive new investment for development. By partnering with businesses, we can support development in a manner that is efficient, effective, and innovative. How has DFC been impacted by the global pandemic and how is the organization navigating its efforts during this challenging and unprecedented time? The COVID-19 pandemic struck shortly after DFC launched, creating several unforeseen challenges for developing countries. DFC moved swiftly to respond and launched multiple initiatives to help protect lives and preserve

“The countries of Latin America are not only our neighbors, they are also our partners in advancing our goal of shared prosperity. This vast region encompasses a variety of different economies and development needs.”

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“Our goal is to reach the people who are most in need of investment. That’s why we launched a $75 billion development strategy called Roadmap for Impact, which aims to directly benefit at least 30 million people by 2025. My hope is that we will reach many more.” livelihoods as lending was constrained and stayat-home orders and border closures impacted small businesses. While the DFC team shifted largely to telework, we were able with the support of technology to continue mobilizing investment around the world. We’ve launched several initiatives to respond to COVID-19 including a Rapid Response Liquidity Facility that is providing additional financing to existing DFC projects that are facing challenges as a result of the pandemic. How does DFC support development in emerging markets and will you provide an overview of these efforts? DFC partners with the private sector to mobilize investment in developing countries. We provide debt and equity financing, political risk insurance, and technical support to a range of projects from large infrastructure projects such as roads and power plants to smaller projects that provide critical support to smallholder farmers, women entrepreneurs, and individuals. Will you discuss DFC’s focus on Latin America and the Caribbean and what has made this region a priority for DFC? The countries of Latin America are not only our neighbors, they are also our partners in advancing our goal of shared prosperity. This vast region encompasses a variety of different economies and development

needs. In the Northern Triangle region of Central America, comprised of El Salvador, Honduras, and Guatemala, we are working to mobilize investment as a stabilizing force and have supported multiple projects to expand access to financial services, affordable housing, clean water, and energy. In Colombia, we are supporting projects to support rural development, including construction of two major toll roads that will help connect small farmers to larger markets. We are also investing across the region in projects that will empower women economically through our 2X Women’s Initiative. Will you elaborate on DFC’s efforts in providing critical services to women in Latin America? DFC’s 2X Women’s Initiative seeks to support projects that are owned by women, led by women, or that provide a product or service that delivers a strong benefit to women. Our 2X Americas Initiative has to date invested $7 billion to projects that advance women’s economic empowerment. One of our 2X investments in Latin America includes financing to help the nonprofit social investor Root Capital provide loans, training, and other support to sustain the livelihoods of female farmers across the region. Another involves financing to help Ecuador’s Banco Pichincha expand lending to micro- and small

and medium enterprises that are owned by or led by women or that support women. This project is expected to reach 53,000 female entrepreneurs in its first five years. Both of these projects are helping women weather some of the economic challenges of COVID19. In El Salvador, we provided financing to help Azure Source Capital invest in upgrades to the country’s water infrastructure so that more families can access clean running water in their homes and women are freed from the time consuming task of collecting it from outside sources. How cr itical are metr ics to tr ack impact and measure results of DFC’s programs? Measuring our progress is a core part of our mission. That’s the idea behind DFC’s new Roadmap for Impact. We’re not just measuring our success by how much we invest, but rather what that investment produces in terms of developmental benefits. The outputs are more important than the inputs, which is why the Roadmap identifies specific metrics that DFC hopes to achieve on a sectoral basis. In addition, DFC assesses the expected development impact of each individual transaction using its new Impact Quotient (IQ) measurement tool. Tracking data is critical to helping us know whether the investments we make are improving people’s lives.

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“We’re not just measuring our success by how much we invest, but rather what that investment produces in terms of developmental benefits.”

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The Quintessential Caribbean Destination An Interview with The Honorable Lindsay F.P. Grant, Minister of Tourism, Transport and Ports, St. Kitts & Nevis EDITORS’ NOTE Capping a career Previously, he was President of the St. of public service, The Honorable Thomas Trinity Football Association Lindsay F.P. Grant was officially and he has played on the St. Kitts & appointed as a Cabinet Minister folNevis National Table Tennis team. lowing the February 2015 elections, Grant holds a master’s degree in law serving as the Minister of Tourism, from Harvard University with a speInternational Trade, Industry and cialty in banking and finance. He Commerce. Following the successful earned his bachelor’s degree from re-election of Team Unity in 2020, the University of the West Indies, havGrant commenced his second term ing attended the Cave Hill Campus in as Minister of Tourism with the Barbados. He also earned a Certificate oversight of international transof Legal Education from Nor man port and ports added to his portfo- The Hon. Lindsay F.P. Grant Mandy Law School in Jamaica. lio. With the unprecedented onset of COVID, Grant worked closely with the Ministry How has St. Kitts & Nevis been impacted by of Health to establish the health and safety pro- the global pandemic and what do you see tocols and travel requirements that have allowed as the priorities for recovery for the twinthe Federation to see one of the lowest rates of island nations? COVID in the Caribbean while allowing tourLike much of the rest of the Caribbean, ism to reopen. Under his tenure, St. Kitts has and the world, we experienced a slowdown in benefited from record setting air and cruise tourism due to the onset of COVID and the subarrivals. Cruise passenger arrivals reached the sequent emergence of new variants. The closure one million passenger mark for the first time of our borders on March 25, 2020 had reperin the nation’s history in 2018, and that mile- cussions on all industries that are affected by stone was reached again in 2019 earning St. tourism from taxi operators and restaurants to Kitts the designation of a marquee port. He also hoteliers and activity providers. Tourism is the oversaw the completed construction of a second primary economic driver in St. Kitts & Nevis, pier at Port Zante allowing up to three Oasis followed by manufacturing, but approximately or XCEL class ships to dock simultaneously. In 60 percent of our GDP is directly or indirectly 2019, Caribbean Journal awarded St. Kitts the impacted by tourism. After closing our borders, title of Cruise Destination of the Year. Grant has we continued to follow the science to inform established crucial alliances with airline part- our decisions. While other Caribbean destinaners which attained St. Kitts’ recognition from tions reopened their borders, St. Kitts & Nevis international airlines at Routes Americas 2018 remained closed to travel and we observed awards for its strategic airlift development. He has also negotiated partnerships with some of the top hotel and hospitality groups. St. Kitts won the Destination Stewardship Award for 2019 from the World Travel & Tourism Council, the world’s top recognition in sustainable tourism. Grant has been a practicing lawyer since 1991, specializing in corporate and commercial law. He is a senior partner at the firm of Grant, Powell & Co., a position from which he is currently on sabbatical in order to fulfill his role in the new government administration. He began his career in the firm of Vieira & Grant and later became a senior partner in the firm of Lindsay Grant & Co. A member of the board of directors for a variety of private companies, Grant is also a member of the Chamber of Industry and Commerce. In addition, he is a member of the Leeward Islands Cricket Board and a former President of the St. Kitts Cricket Association.

the impact that reopening had in other destinations. We reopened our borders on October 31, 2020 with some of the most comprehensive travel requirements in the Caribbean, developed in partnership with the Ministry of Health and the National COVID-19 Task Force. We remain committed to keeping our nationals, residents and visitors safe and will therefore continue to follow the science to inform our decisions as we move through the latter phases of reopening. Our top priority at this time is to get 70 percent of our population vaccinated so we can achieve herd immunity which will hopefully allow us to get closer to returning to “normal.” Vaccination is underway in St. Kitts & Nevis and we are encouraging all stakeholders in the tourism industry to speak to their doctor about receiving their free COVID-19 vaccination. I have received my first dose of the vaccine, along with other members of the Ministry and the Cabinet, to show support for the vaccination program which as of March 10 has seen 5,176 persons receive their first dose of the vaccine. The twin-island nation is home to roughly 53,000 persons, many of whom rely on tourism and related economic activities for their income, and therefore vaccinations are critical so we can move forward towards growth. What have been the keys to the government’s ability to so effectively manage COVID with very few cases and no deaths on the island? Two primary factors have contributed to this success: the “All of Society Approach”

“The twin-island nation has also become known for its rich culture and cultural events including Sugar Mas, the St. Kitts Music Festival and Nevis’

Culturama. These events have allowed visitors to

engage with Kittitian and Nevisian culture and to get to know the warm, friendly people of the islands.”

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we’ve implemented in St. Kitts & Nevis and the comprehensive travel requirements outlined by the Ministry of Health in partnership with the St. Kitts Tourism Authority and the Nevis Tourism Authority. The “All of Society Approach” was a campaign that kicked off in March 2020 when we initially closed our borders to international travel. The focus of this campaign was to encourage our nationals and residents to adhere to the proven practices that help mitigate the spread of COVID-19 including frequent handwashing, mask-wearing and social distancing. Before opening our international borders in October 2020, we had already successfully prevented the spread of COVID-19 within the Federation and wanted to reassure our nationals and residents that we would reopen and do so safely. We identified what protocols worked for other destinations and combined this with the existing science to develop our current travel requirements. Our comprehensive travel requirements ask all persons arriving to St. Kitts & Nevis to take a nasophyrangeal RT-PCR 72 hours prior to travel. They must submit their negative test result along with the online KNA travel form (knatravelform.kn) and their booking at a Travel Approved hotel. Once on island, they “Vacation in Place” at their Travel Approved hotel where they are free to move about the property, partake in various hotels activities and use the available amenities. Those staying longer than seven days are tested on day 7 and if their test result is negative, they may book select tours and excursions through the front desk. Those who stay longer than two weeks will again be tested on day 14 and if their result is negative, they may leave their accommodation and freely move throughout the Federation. All persons departing St. Kitts & Nevis are asked to take a RT-PCR test 48-72 hours prior to travel. These factors have resulted in St. Kitts & Nevis maintaining one of the lowest case rates of COVID-19 in the Caribbean. Presently, the CDC rates the Federation at Level 1: Low Covid Risk, and the State Department assigned the Federation a Level 2 travel advisory. We are the only Caribbean island currently placed at a Level 2 (Level 1 is only New Zealand, Taiwan and Macau). Will you discuss St. Kitts & Nevis’ economic shift over the past two decades from an island nation reliant on sugar production to an emphasis on growing the tourism sector? In 2004, the economy shifted from being a monocrop sugar-based economy to a servicebased tourism economy. Our tourism industry, when compared to other Caribbean industries who have made the transition from sugar or bananas, is still in its infancy stage which allows it to be quaint and charming, as tourism was many, many years ago in other Caribbean islands – friendly, open, with the ability to choose which bar, beach or restaurant you prefer. St. Kitts & Nevis remains the quintessential Caribbean destination. It is the Caribbean we remember and love from 50 years ago. VOLUME 44, NUMBER 2

St. Kitts & Nevis offers a unique tourism product that focuses on its 500 years of history and emphasizes cultural experiences and activities. Paired with a striking landscape and secluded beaches, St. Kitts & Nevis has attracted renowned hospitality groups like Four Seasons, Hyatt Hotels & Resorts and Marriott International, each of which has a property in the Federation. We do not have any all-inclusive properties because we continue to focus on encouraging visitors to venture outside of their hotel to see the island, meet the people and experience the local life and culture. What do you tell tourists about the advantages St. Kitts & Nevis offers from a tourism standpoint and do you feel that the twinisland nation is well-understood globally? In today’s day and age, the advantage we offer is safety. St. Kitts & Nevis has been recognized worldwide for its efficient management of the COVID-19 pandemic, so for those seeking a safe destination where they can rest assured that the necessary precautions are taken for their health, they should look no further than St. Kitts & Nevis. While we lack the global profile as some other, more mass-market Caribbean islands, we are continuing to welcome visitors from all over the world and we hope they return home with fond memories and plenty of stories to tell. Right now, we are receiving global recognition for our response to the pandemic and I hope this will encourage visitors to put St. Kitts & Nevis on their travel bucket list. With vaccination efforts underway, it is imperative that we get our people vaccinated so we can get back to inviting visitors to explore our unique and authentic experiences. It is my goal as Minister of Tourism to ensure all those in the tourism sector are vaccinated so our visitors can enjoy the traditional Caribbean experience that St. Kitts & Nevis offers them. We have always actively encouraged visitors to explore the island which has allowed various local businesses to flourish. From beach bars to restaurants to artists, all of these businesses have been able to benefit from tourism and this makes for a more authentic experience for our visitors who can easily try a variety of local cuisine, shop the latest local fashions and learn about the unique culture of both St. Kitts and Nevis. Our efforts to preserve our culture are evident throughout. Historical sights or points of interest dating back hundreds of years abound. There’s the majestic UNESCO World Heritage Site of Brimstone Hill Fortress, the St. Kitts Scenic Railway, the only authentic railway in the Caribbean, Romney Manor, and the birthplace of Alexander Hamilton – one of the Founding Fathers of the U.S. – in Nevis, to name a few. The twin-island nation has also become known for its rich culture and cultural events including Sugar Mas, the St. Kitts Music Festival and Nevis’ Culturama. These events have allowed visitors to engage with Kittitian and Nevisian culture and to get to know the warm, friendly people of the islands. Then there’s the island culinary scene which has seen local restaurants and bars flourish with the influx of tourism. Dozens of different eateries

offer up an opportunity to try local dishes like saltfish, conch and fresh-caught lobster. From El Fredo’s in Basseterre to Mugsy’s in Dieppe Bay, and from Reggae Beach Bar & Grill down by Cockleshell Bay to Marshalls or Serendipity for fine dining, along with the selection of live beach bars and restaurants that line St. Kitts’ infamous “The Strip,” there’s no shortage of places to dine offering up delectable local cuisine. How accessible is St. Kitts & Nevis as a tourism destination and what are the key markets that you are focused on for future growth? Prior to the onset of the pandemic, St. Kitts & Nevis was easily accessible via non-stop airlift from several gateways in the U.S., through the U.K. and Canada, and via cruise ship lines. Worldwide these industries have been forced to cut back due to travel restrictions and health concerns and we, like all other destinations, are currently feeling the impact of that. However, we still offer convenient flights via Miami and Charlotte on American Airlines, Seaborne is flying out of San Juan, Puerto Rico at this time, Delta is scheduled to resume service out of Atlanta and New York in June, and British Airways intends to resume airlift in May once their lockdown lifts. With vaccination efforts underway in our source markets, which include the U.S., U.K. and Canada, we anticipate that there will be a significant pickup in Q4 by which time we hope to have even more flights arriving to the Federation. For the spring and summer for the U.S., we are currently targeting travelers that are planning for future travel in 2021 from the Midwest, Southwest, Southeast and Northeast. The Northeast and Southeast remain strong markets for us and we’d like to maintain our presence in these regions while drawing more visitors from the Midwest and Southwest. We are continuing to monitor the travel restrictions in Canada and the U.K. and work closely with our travel agent and advisor partners in each market. What interested you in public service and serving in government? Working in the Government is rewarding because it allows me to give back to the country that has given me and my family so much. Tourism, in particular, allows and empowers the citizens of St. Kitts & Nevis to open new businesses, achieve financial independence and, in turn, makes for a more vibrant economy. Every decision is made with the needs of our stakeholders in mind and in addition to thinking about the hoteliers and tour operators, there are other local, small, independent ventures that have flourished due to tourism including aloe rub vendors, hair braiders and our renowned primate petting vendors. Through the unprecedented challenges caused by the pandemic, we’ve seen our stakeholders rise to the challenge and innovate and that has been uplifting. We love seeing the entrepreneurial spirit of our people and we strive to do our best to help and encourage innovation through various channels such as workshops that teach social media skills. COVID slowed the pace, but it has not stopped St. Kitts & Nevis from growing and being the authentic travel destination it is.

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Improving People’s Lives An Interview with Juliana Azevedo, President, Procter & Gamble Brazil EDITORS’ NOTE Juliana Azevedo Will you provide an overview of is the first woman to hold the your role and key areas of focus General Manager position at P&G for P&G? Brazil, one of the top 10 markets for My history at P&G began in 1996 the company, and she has recently as an intern in marketing, working been recognized by Forbes as one with its feminine protection line-up. I of the most powerful women in the fell in love with the company’s princountry. During her 25 years at ciples and values, as well as with the P&G, where she joined as an intern, amazing development opportunities I she acquired a holistic vision of the had even as an intern - my graduation business, having deepened in areas paper was the development of a new such as marketing, sales, stratesanitary pad which was a real project Juliana Azevedo gic planning and management. at P&G. Hence, the plan of staying for Azevedo’s personal mission is to a couple of years to learn about sales promote education in Brazil. She believes it is and marketing turned into a life project from the basis for the development of a better world. In intern to CEO in my home country. addition to being a Council Vice President of Soon after becoming a product manager, I United Way, she is also connected to UNICEF as accumulated additional responsibilities for diaa continuous effort to improve e d u c a t i o n per products, expanding my impact into two standards. Azevedo holds a law degree from of the largest brands in the early years of P&G Pontifícia Universidade Católica de São Paulo Brazil – Always and Pampers. One of the most and a degree in industrial engineering from remarkable projects was the development of the Escola Politécnica da USP. first in the world lower priced line-extensions for Always and Pampers – from product design, COMPANY BRIEF P&G (pg.com) serves con- to packaging, to price and overall strategy. A sumers around the world with one of the milestone for a P&G subsidiary that accelerated strongest portfolios of trusted, quality, lead- profitable growth with superior products closer ership brands, including Always®, Ambi to the Brazilian consumer’s needs, the learnings Pur®, Ariel®, Bounty®, Charmin®, Crest®, were captured in a Harvard Case Study used Dawn®, Downy®, Fairy®, Febreze®, Gain®, today in many universities. Gillette®, Head & Shoulders®, Lenor®, Creating alternative business models that Olay®, Oral-B®, Pampers®, Pantene®, allowed our international brands and technology to SK-II®, Tide®, Vicks®, and Whisper®. The delight Brazilians, and doing so in a profitable manP&G community includes operations in ner, turned into a trademark in several of my projects approximately 70 countries worldwide. for different brands – Pantene development all the

way to market leadership with Gisele Bundchen’s endorsement, Head & Shoulders shampoo, and Old Spice deodorant launches in Brazil. I was also fortunate to lead Wella’s and Gillette’s integrations and businesses, wonderful opportunities to learn about new cultures and solve some of the hardest organizational challenges in my career. It was around 2009 when, already a Brand Director, I was offered the opportunity to accumulate the role of sales director, broadening my experience outside marketing. These were years of absolute vertical learning not only in sales, but also in logistics, company trade policies, and finance. This was a true blessing that jump-started me and, three years later, I was promoted to VP of Beauty for Latin America with responsibilities for five different business units, dozens of brands, several manufacturing sites around Los Angeles, and teams in every single country in the region. Under a strategy of product and execution superiority that was grounded on the local consumer business, we accelerated growth and regained the top position as a profit and growth contributor for the entire region. Finally, before returning to Brazil, I worked as Global VP for P&G Feminine Care and Adult Incontinence brands, coordinating everything from strategies to product development and communication in more than 152 countries and my teams were spread all over the world. In Femcare we were facing a declining market leadership and the business needed a total revamp. In Adult Incontinence, Always was the newcomer and challenged the status quo. We achieved our goals and delivered strong results.

“Over the past three years, my organization and I have created a plan grounded on innovation that aims to delight the Brazilian consumers, combined with strong citizenship efforts, all powered by a very strong leadership team.”

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“I believe we can use our strength to grow the business and do good for society and return more to this country that received us so well 32 years ago. Our priority is to continue with our purpose of improving people’s lives.”

Leading P&G Brazil had always been in my dreams. It is a huge honor and another great professional challenge, since Brazil is the third largest market in which P&G competes and has huge growth potential. Over the past three years, my organization and I have created a plan grounded on innovation that aims to delight the Brazilian consumers, combined with strong citizenship efforts, all powered by a very strong leadership team. We promote from within the company and it is critical to hire and develop the best people that can perform at their peak with autonomy. This is one of my most important responsibilities. While we have been strong innovators for more than 183 years, we have recently adopted a powerful start-up mentality to drive agility and advance our processes (P&G Startup Way). Strong leaders in our local innovation center (LAIC) guided by clear strategies and processes have succeeded in developing superior products for the Brazilian consumer by taking advantage of our global technologies and local touches. Finally, P&G is committed to be a force for good and a force for growth, impacting the community, driving equality and inclusion, and environmental sustainability. Through our brands, employees, operations, and business partners, we make significant differences in the lives of people around the world. In Brazil, more than 4 million kids have been helped with educational programs, more than 70 million liters of clean drinking water has been donated, 40 percent of Brazilian P&Gers are women, P&G has been carbon neutral for the decade and has been a key player to mitigate the impact of the COVID crisis. I personally expand our citizenship agenda through my work on the boards of UNICEF, United Way and AMCHAM Brazil. Will you discuss P&G’s history in Brazil and the strength and leadership of P&G’s business in Brazil? Brazil is the third largest market in potential for P&G. While globally P&G enjoys 183 years of experience, we are relatively young in Brazil only with 32 years of presence in the market. Still, we already occupy leadership positions in half of the categories where we compete, employing 4,000 direct people in the factories of Rio de Janeiro, Louveira and Manaus, our administrative office in São Paulo, and our distribution centers around the country. VOLUME 44, NUMBER 2

Brazil offers P&G growth opportunities and inspiration – both critical pillars of our “Brazil Project.” We are among the 10 largest subsidiaries globally, but not in the top three – hence a hiatus to close. In addition, I want our operation to be increasingly an inspiration to other P&Gs in the world through our thought leadership and innovation capacity, especially now, with LAIC in Louveira. Finally, we want to do more for Brazilian society. We already have beautiful projects such as Pure Water for Children which benefits more than 35,000 families, and P&G for Education, which touches more than 2 million children from early childhood to high school. I believe we can use our strength to grow the business and do good for society and return more to this country that received us so well 32 years ago. Our priority is to continue with our purpose of improving people’s lives. How has P&G adapted its business in Brazil in order to address the challenges caused by the global pandemic? Our key priorities have been the safety of our people, to guarantee the supply of our essential products and to help the communities in need. We have reinvented the way we work by working from home and transforming offices and protocols in the plants, the velocity and autonomy of our decision-making process, and innovation which has increased by more than 30 percent in the past 6 months, in order to fulfill these objectives. Our strong culture, historic partnership with customers and suppliers as well as digital transformation that had started ahead of the pandemic were fundamental for our success in these turbulent times. We have been more in touch with consumers than ever. More than 100 hours of video calls on top of active social listening and real-time analytics. This has inspired innovation, new product positionings, and new ways to talk to consumers. Due to the pandemic, consumers are seeking replacements for external activities to do at home. They want products to cook, to moisturize their hair, to wash clothes even more often, etc. Shoppers want a safe, fast and productive experience, and we have partnered with our retailers to develop these solutions. It’s up to us to help them make decisions at the point of sale. Our citizenship efforts have been intensified, and we have donated more than R$ 50,000,000 in products of all our brands,

as well as provided input for health issues and investment in science and solutions to combat COVID-19. We also donated 100 tons of food to communities in Paraisópolis and Capão Redondo in São Paulo via Projeto Vida Corrida, Associação das Mulheres de Paraisópolis and Cidade de Deus, as well as in Rio de Janeiro via the United Way and Gerando Falcões. We also invested in science through our Always brand and gave R$ 200,000 to the team led by Dr. Ester Sabino who is the first researcher to sequence the genome of the new coronavirus in Latin America from the Medical Research Laboratory of the USP Medical School Foundation. In addition, through the support of the Vicks brand, an artificial lung was purchased in the amount of R$ 315,000 for the Polytechnic School of USP as part of a low-cost ventilator project. With all of our efforts during the pandemic, we know that we have the capacity to further expand our citizenship work, being increasingly an effective agent in generating solutions, uniting investments in science and service to return to society resources that help improve critical situations. Since we know we can’t do this alone, we launched the Aceleradora P&G Social. In early 2021, Brazil entered a second wave of COVID cases. The city of Manaus suffered from a lack of oxygen and medical equipment so P&G engaged in multiple fronts to help the entire Manauara community. We gave 2500 m3 of oxygen, more than a thousand N95 masks to the Hospital 28 de Julho and Nilton Lins Hospital, plus half a million disposable masks for the vulnerable population, and supported the arrival of 43 respirators from Poli-USP to hospitals in the Amazon in partnership with LATAM. What has been the impact of the global pandemic on Brazil’s economy? Regarding the Brazilian economy, I believe that, with the pandemic, a new way of doing business has emerged that is much more collaborative and at the service of society. We have seen many companies joining efforts for a greater good and I believe this may be a positive legacy that will follow us. As an example, we’ve seen the union of retailers, distributors, and the industry in favor of the mission of taking care of people and supplying the population. This common objective has narrowed our relationships to a level that will certainly last after the crisis. LEADERS 203

“We’re also removing barriers to education for girls and providing economic opportunities for women through corporate and brand programs and policy advocacy.”

You have spent over 23 years at P&G. What has made the company so special for you? There are so many reasons to love P&G, but I believe what enchanted me the most is how we live our purpose and strong values every day. There is a match between the company and my personal mission and principles, and I found in P&G a place to learn and continuously develop myself. The company has always given me opportunities to innovate and fueled my passions in shaping future leaders, education, and equality & inclusion. I am energized to come to work every day and practice a purposeful leadership, multiplying my impact in society. As a leading woman in business, do you feel that there are strong opportunities for women to grow and lead in the industry? There are differences between men and women that come long before they hit the corporate world. In general, they grow with different at-home education and opportunities, for example. All of this is reflected in the ability of women to handle various roles daily with such efficiency, resilience and leadership that is often more humanized. Nevertheless, much remains to be done. I have always been very privileged. My parents always told me that I could achieve anything I worked hard for. I studied engineering and law, but my real inspirations were at home – my mom and my grandma. They were strong and caring women who taught me I could transform the world around me and build an inspiring future. In P&G, I found a fertile ground. A world free from gender bias with equal voice and equal representation for all individuals. A world where everyone sees equal. When we do this, economies grow, communities are healthier, businesses can thrive, and the world is a better place for everyone.

At P&G, we’re focused on areas where we can make the greatest impact. We’re leveraging our significant voice in advertising and media to tackle gender bias. The Always brand has the beautiful purpose of empowering women to live life without limits and it was an honor to work with this brand and lead initiatives such as #likeagirl. We’re also removing barriers to education for girls and providing economic opportunities for women through corporate and brand programs and policy advocacy. We have long created an inclusive, genderequal environment within P&G, while advocating for gender and intersectional equality in workplaces everywhere, so that everyone can contribute to their full potential. In each of these areas, we partner with highly-engaged organizations that share our commitment, combining our resources, talents and skills to have a bigger impact. Today, women represent 66 percent of the global workforce and are responsible for 85 percent of consumer goods purchasing decisions. However, less than 1 percent of multinationals’ spending on purchases goes to women-led companies. Therefore, companies need to put their efforts into understanding the importance of equality and make this a real thing. The She2Be initiative designed by WeConnect in partnership with P&G is one project I am very fond of, and we want to change this scenario and invest on several fronts so that all women can take their places of prominence, with the necessary skills to expand and manage businesses. I am very, very proud of what we have achieved so far, how we are impacting and shaping the society in Brazil, and in the world, and the legacy we are building for our organization,

our brands, our partners, and our community. I strongly believe a diverse team builds a thriving business and how reflecting the world outside within our walls mitigates consumer understanding gaps, gives us other perspectives and develops new avenues by bringing more diversity to the table. Equality and Inclusion cannot be a tactical, superficial effort. It is part of why and how we do our business, and it must be as intentional, strategic, and articulated as any other business measure. There needs to be a mindset change, a systematic approach to analyze and activate this matter that can be applied to multiple realities and contexts. We can use our power, our scale, and our influence to mobilize change for a more equal world. We must use the individual privilege we have to repair and equitize. I hope to inspire other leaders to exercise what I call “Practical Empathy” and invite you to question whether you have in your business the diversity that truly reflects the consumers your serve. What advice do you offer to young people beginning their careers during this challenging and uncertain time? Be mindful that your focus should be on results and your happiness, not on getting the job done as others have done in the past. Do not waste energy in trying to do things the same way it has always been done. It is important to think about the unthinkable and question the unquestionable. Know yourself and build a plan that suits you and your business. I believe the challenges of the pandemic not only reinforced the above lesson, but also taught us the importance of adaptability, resilience, and empathy. Even after this entire crisis is over, these are critical skills for everybody’s success.

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“We can use our power, our scale, and our influence to mobilize change for a more equal world.”

204 LEADERS

VOLUME 44, NUMBER 2

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