WIN-WIN

“In natural ecology systems, the end game is balanced relationships between system participants. Without balance, an eco-system loses its capability to support its stakeholders. Under these conditions, the system will eventually disintegrate.” Rajendra Sisodia

“Biological organisms can only be understood in the context of their relationships in their ecosystems. It is the same with business organisations. Their true nature is only revealed in the dynamic relationships they have with members of all stakeholder groups.” Rajendra Sisodia

“Companies are like biological organisms. They’re either fundamentally healthy or out of balance. If they’re in balance with their employees, customers, shareholders and the greater community they can grow and thrive. If not, they can seem in sync for a while, but eventually there will be an imbalance.” Henry Ellenbogen

“A business is like a very delicate ecosystem. Every component part of it counts and every part has an impact on everything else. People often ask me whether ultimately it’s the employee or the customer who is more important to commercial success. To my mind it’s not a valid question. In the business ecosystem each element has a vital role and each element is connected to all the others. That’s why creating the right overarching culture is so crucial. Without it, things fall apart.” Julian Richer

“A great business is very good at doing the things we expect a business to do - rewarding its investors, providing satisfying employment, offering goods and services of good quality at reasonable prices, fulfilling a role in the community - and to fail in any of these is, in the long run, to fail in all of them.” John Kay

‘‘Equity’ was one of my father's favorite words. He conceived that equity must be practiced with all who did business with Neiman-Marcus - employees, customers, vendors alike. This was another way of saying, ‘Let's practice the Golden Rule in all of our dealings.’ To this day we carry this message to all new employees as the one inviolable rule of operation.’ Stanley Marcus, Neiman Marcus

“No business can do well for its shareholders without first doing well by all the people its business touches. For us, that means doing our best to treat everyone with respect and dignity, from coffee farmers and baristas to customers and neighbours.” Howard Schultz, Starbucks

“Any business that doesn’t create value for those it touches, even if it appears successful on the surface, isn’t long for this world. It’s on the way out.” Jeff Bezos

“I believe that the purpose of industry is quite as much to advance social well-being as material prosperity ; that in the pursuit of that purpose, the interests of the community should be carefully considered, the well-being of employees fully guarded, management adequately recognized, and capital justly compensated, and that failure in any of these particulars means loss to all four parties.” John D Rockefeller Jr

“Shareholder value can be built only if you maintain a healthy and vibrant company, which means doing a good job taking care of your customers, employees and communities.” Jamie Dimon

“Every business has a deeper purpose than short-term profit maximization. Indeed, we regard profit and the creation of shareholder value as the by-product of making a difference for our key stakeholders and society. When we deliver for our customers, employees, vendors, and the wider community, shareholder value follows." Ron Shaich

“To prosper over time, every company must not only deliver financial performance but also show how it makes a positive contribution to society. Without a sense of purpose, no company, either public or private, can achieve its full potential. It will lose the license to operate from key stakeholders.” Larry Fink

“A company must realise that the needs of the four stakeholders [customers, employees, shareholders and community] are related and mutually supportive.” Madan Birla, Fedex

“Stakeholder capitalism is the only way to create sustainable shareholder value, adapting their business models to meet customers’ emerging needs, inspire employees, partner with suppliers, and build communities.” Bill George, Medtronic

“Relationships are at the core of how [companies in the Centuries Club] operate. They regards the maintenance of relationships with employees, customers, suppliers, and others in their community from generation to generation as the foundation for their long-term success. They see themselves as one part of a larger system or interconnected web, and truly believe they cannot maintain their success for long periods of time without the co-operation of others.” Vicki Tenhaken, ‘Lessons from the Century Club Companies’

“Endearing behaviour by a company toward its stakeholders is one of the most decisive competitive differences ever wielded in capitalistic enterprise.” Rajendra Sisodia

“Management must be fair to its employees, stockholders, customers and suppliers.” J P Getty

“I want to invest only in companies that are a win-win for their entire ecosystem. I don’t want to invest in companies that make society worse even if their products are legal.” Guy Spier

"I always said that we look for managers who have reached a balance in treating fairly the customers, the suppliers, the employees and the shareholders." Francois Rochon

“I am more interested in my nature, in win-win situations.” Li Lu

"We prefer to own businesses that deserve the right to win because they are fostering a win with all their counterparties, including society at large." Christopher Begg

“For business to survive and prosper, it must create real long-term value in society through principled behaviour.” Charles Koch 

“There is an excellent correlation between giving society what it wants and making money, and almost no correlation between the desire to make money and how much money one makes.” Ray Dalio

“One of the things I now look very carefully for in a business we invest in is that the entire ecosystem serves everyone, everyone is a winner. If you look, for example at a company like Geico, the consumers win because they get a lower rate. Buffett wins because he has a lower cost of operation, so he has nice margins. Everyone, pretty much, comes out ahead. So those are win-win companies.” Mohnish Pabrai

“Win-lose is not sustainable over time. You can’t do what Koch has done over 50 years by us winning and our customers losing. Competitive advantages assumes that we can provide goods and services to customers and be the best alternative. The spread in that equation is profit, and we believe profit really is the measure of how much value we are adding to society. The only reason a business exists is to make people’s lives better.” Dave Robertson

“The three hallmarks of a great investment are superior returns, low risk, and long duration. The whole world concentrates on Category 1. But if you’re a leader of any merit at all, you should be treating these three as what? Co-priorities. How do you get low risk and long duration? Win-Win. This is the biggest blind spot in business. People are actually proud of a win-lose relationship. ‘Yeah we really beat the crap out of our suppliers.’ You know, ‘We’ve got these employees for…you know, we’ve got them on an HB1 visa, they can’t work anywhere else for three years.’ They’re proud of it! Total Win-Lose. You take game theory and you insert the word lose in any scenario in game theory and what do you have? A sub-optimal outcome. What happens when you insert win-win in any game theory scenario, what do you get? Optimal every time.. The secret to leadership is to see through the eyes of all six important counterparty groups and make sure that everything you do is structured in such a way to be win-win with them. So here are the six. Your customers, your suppliers, your employees, your owners, your regulators, and the communities you operate in. And if you can truly see through the eyes of all six of these counterparty groups and understand their needs, their aspirations, their insecurities, their time horizons. How many blind spots do you have now? Zero. How many mistakes are you going to make? You’re going to make zero.” Peter Kaufman

“People benefit through profit and loss according to the value they create in society.” Charles Koch

“Corporations owe an obligation not only to shareholders but also to other stakeholders including employees, suppliers, customers, and communities. To us, the objective of a corporation was always to serve the interests of its various stakeholders. We support companies that articulate how they meet customer needs with quality goods and services; foster diversity and inclusion; offer competitive pay, health benefits, and a nurturing environment for employees; adopt measures that reduce carbon footprints and minimize environmental impact; and, behave in a noble manner in their communities not only by providing jobs and economic growth but also by encouraging employees and leadership to engage in civic projects. From a shareholder perspective, this is simply good business.” Dan Loeb

“Profits are an outcome of successfully creating stakeholder value, rather than a goal that should be pursued in isolation. This isn’t a statement rooted in values or beliefs about how the world should work, but an observation of where profits actually come from.” Ensemble Capital

“My theory of life is win-win. I want suppliers that trust me and I trust them and I don’t want to screw the suppliers as much as I can.” Charlie Munger

“A dynamic of win-win relationships across all counterparties will determine an organization’s sustainability.” Christopher Begg

“We used to pay more attention to the stockholder; How well did you do on this investment? Today we worry about the environment, the community, the employees - they’re all top of mind.” Henry Kravis

“Every business has three main stakeholders: Customers, employees, and shareholders. You can ignore any one of those for a while, but eventually all three have to be cared for. Otherwise they’ll revolt, and no company can survive when any one of the big three walks out. Many companies can take care of one, many can do two. But getting all three aligned is brutally hard, because the easiest way to appease one group is at the expense of another. That’s why the rewards for those that can find the balance are so great.” Morgan Housel

“Both of us [Warren] know that we’ve done better by having ethics.” Charlie Munger

“We consider some investments unacceptable because they take advantage of others or are anathema to our values or to the interests of the United States. They have no place in our portfolio.” Seth Klarman

“He wanted win/win results everywhere--in gaining loyalty by giving it, for instance." Charlie Munger [describing Buffett's aim in designing the Berkshire System]

“We define a great company as one with a culture and system of Win-Win-Win for our employees, our customers, and our shareholders. These values define our strategy and frame every tactical decision. They apply to any and every specific line of business.” Tom Gayner

"We want our operations and the businesses we invest in to pass the “Win-Win Test” with all six counterparties: customers, employees, suppliers, stewards, shareholders, and the community. Win-Win is the only system that is sustainable over the long-term – any fatal flaw with any counterparty will inevitably self-correct. We believe by striving to eliminate Win-Lose, Lose-Win, and Lose-Lose situations we can go far in removing many of the blind spots that those unsustainable relationships nurture." Christopher Begg

"I believe that businesses should aim to reach a balance in its management style in which all stakeholders are treated with respect and fairness: employees, clients, the environment, executives, and shareholders. It is with this in mind that we look for businesses that try to maintain this balance. Ultimately, I believe that these businesses will experience the most success." Francois Rochon

"The more a business serves others, and the more problems they solve, the more profitable they will be and the more an investor in those enterprises should make." Thomas Gayner

"I have increasingly come to see a purpose beyond simply making money as absolutely central to the long-term success and health of a company. In ‘Conscious Capitalism,’ David Mackey (the founder of Whole Foods) argues compellingly that businesses must have a higher purpose. I feel increasingly drawn to companies that create alignment, sometimes described as “win-wins” between different stakeholders." Robert Vinall

“The right way to go through life is win-win. Just anything else is crazy. To be all take and no give is just an absolute disaster.” Charlie Munger

"My definition of "win" is not binary. It is not a zero sum game. Negotiation that leads to a winner and loser rarely leads to a successful transaction, or another one down the road." Sam Zell

"By and large, highly conscious businesses grow faster and generate more economic value than their counterparts." Steven Wood

“If you have a motivated workforce that you pay and treat well, you produce a high quality and low cost product that has some benefit, and you treat your customers throughout with respect - this is a winning formula and these companies are outperforming those that don’t. It’s a win-win. Go look at the companies that are doing it, they’re outperforming everyone else.” Paul Tudor Jones

“The most prosperous businesses will be those which think about all their stakeholders and not just their shareholders. We need to be broad in our thinking about how any company we invest in thinks about its suppliers, its customers, its employees and their health, the environment and the company’s place in society. I don’t think it is hyperbole to propose that the most successful businesses over the coming decades will be those which think most broadly about the type of enterprise they wish to be in the 21st century.” Michael Urquhart

“What really works in life is win-win. That requires some sensitivity to the other fellow's way of thinking, and his needs, too. But win-win is the only formula that really will work on, and on, and on. So, we're trying to get these win-win relations. Of course, I see it all the time. I'm a director of Costco. Costco is into win-win. That's what really works.” Charlie Munger

“Portfolio companies must have a clear sense of social responsibility and must be sustainable. They must think about a broad range of stakeholders: staff, society, the environment and more.” Baillie Gifford

“I say that the best model is clearly one that wins for everybody. Wins for your employees, wins for your customers, wins for your suppliers and then ends up winning for your shareholders.” Steve Mandel

“The most important criterion in our investment selection process is our assessment of the long-term quality of a business, which is informed by, among other considerations, our assessment of the long-term impact of the company on all of its stakeholders and society at large. As a result, assessing the sustainability risks of a potential investment is a critical component of our investment selection process.” Bill Ackman

“Very successful companies delight customers, attract, retain and motivate employees, and collaborate with suppliers. Of course, not all businesses achieve all these lofty goals, and a few can be quite successful despite a few gaping weaknesses. However, in all cases, increasing attractiveness to customers, employees and suppliers is the true north of business. At a minimum a company must make employees, customers and suppliers better off from their voluntary association with the business than they would otherwise be in order to survive.” Clifford Sosin

“Companies that are not good environmental and social stewards are unlikely to be good stewards of our capital over the coming decades. Taking shortcuts (underpaying labor, not investing in renewable energy sources, etc.) might boost margins and ROIC today, but could make the company less competitive in the coming decades.” Todd Wenning

“The real artists see beauty in what they're building and are focused on creating value for all stakeholders, especially the owners of the business. When discussing people who want to serve all stakeholders, it's not about rank-ordering which stakeholders to reward first. It's about understanding that a business can do well for its employees, shareholders, and vendors. Munger talked about this all the time.” Peter Keefe

“I have also shifted my philosophy of business. Transformation for economic value isn't enough. Each business in which I am involved needs not just to be a leader in its field but should set itself targets that involve making the world a better place. This is not the same ambition as simply saying we will 'do no harm' or that we will only invest in businesses that are deemed 'good' or 'ethical. I want to be involved in transforming existing businesses that may be neither, so that, for example, they no longer pose environmental dangers and are active in reducing carbon emissions and in carbon capture. They must also support a positive social agenda, focusing on the communities in which we invest and promoting diverse representation, social inclusion and a safe workplace. They must drive transparency, accountability and sustainable business practices across all stakeholder groups, including employees, customers, suppliers, investors and communities. They should also ensure they secure active engagement across the whole value chain in each of our businesses, from suppliers to investors, explaining to everyone if they do not meet our standards, why they did not. That also makes us accountable for monitoring the sustainability practices of the parties we do engage with. At one stage having strong environmental, social and governance (ESG) credentials was a nice-to-have. Today, I believe, its a must-have. It's about baking ESG into everything we do in business, making the mantra leaving the world a better place a rule for every single day. I say to my colleagues all the time that if ESG is the elephant in the room, our job is to get the elephant to dance.” Guy Hands