Business leaders face increasing uncertainty from geopolitics and policy to regulations and labor market fluctuations. As a fiduciary to stakeholders, executives are under continuous pressure to deliver earnings growth. 

Among the 500 business leaders surveyed worldwide by the Conference Board in 2017, their top goal was “creating more agile, aligned, transparent, and responsive companies.” Rather than seek disruptive analytics or business model changes, these executives planned to emphasize “fiscal discipline, an engaged and resilient workforce, strong and inclusive leadership, and [sought to] develop and nurture talent with expanded twenty-first-century skills” to achieve this goal.

Their practical approach reflects the stakes of their cause. Executives and managers are charged with driving value for shareholders throughout their organization while minimizing its exposure to risk. These dual goals often conflict, and faltering productivity persists. Conventional management wisdom suggests a structural change to reflect the growing complexity of the organization and its operations. Since a company creates profit only when it invests capital at returns that exceed their cost of capital, it is crucial that all kinds of capital—and particularly intellectual (and human) capital—is managed to achieve maximum economic value from its investments. 

To build a twenty-first-century workforce, managers require better methods to foster skills development in their workers that will enhance productivity over the long term. To better understand why the old models no longer work and, more importantly, the opportunity at hand for managers who adapt, let’s examine the forces of change reshaping markets and workplaces.

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As an investor interested in corporate social responsibility (CSR), Buffett provides practical insights into sustainability, investment policy, and governance grounded in Enlightenment philosophies of Adam Smith and Immanuel Kant, but rooted in twenty-first-century realities. Buffett and BRK are brilliant managers of risk, allocators of capital, and disciples of market trends, yet the source of their sustained competitive advantage is reputation. Reputation as a source of competitive strength for the fifth largest company by market capitalization is good news those interested in CSR. In this paper, I will argue that Buffett has employed his managerial values and social responsibility (in the historical sense) for developing, marketing, and influencing stakeholders thereby building a sustained competitive advantage.

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To disruptively innovate requires more than a product or service evolution, but rather a complete business model innovation that challenges existing paradigms and perception of the possible.  Successful innovators have embraced different techniques, including asset sharing, personalization, closed-loop models, usage-based pricing, collaboration, open innovation, and agility to upgrade outdated practices. These transformations can augment the financial performance and resilience of businesses while creating robust societal and environmental benefits.

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