Embrace Complexity to Act in the Best Interest of Stakeholders

This time last year, I joined my peers on the Business Roundtable in signing the Statement on the Purpose of a Corporation. At its core, the statement affirms that the best companies have always known that serving our teammates, customers, and communities is the reliable path to creating long-term value for shareholders.

It strikes me that the Purpose of a Corporation has never been more relevant. The last six months have thrust the business community into roles that go far beyond creating jobs, stimulating the economy, and innovating for the future.

All companies — even those that specialize in managing risk like Verisk — have had to rise to the challenge of the pandemic’s mental, physical, and financial toll. In addition, many businesses have had difficult conversations about race and come to the uncomfortable realization that they may not be doing enough to end bias and racial inequality.

This dynamic time has reinforced my belief that leaders must be willing to embrace the complexity of these challenges so they can act with precision and make decisions in the best interest of all stakeholders.

Adapting to the (virtual) unknown

The pandemic has strained businesses with scientific, logistical, and economic challenges unlike any in recent history. Leaders had to become quick studies in disease transmission and microbiology. And overnight, entire companies shifted to working remotely for an unknown period of time.

As the appeal of video chats waned, businesses had to consider how to keep their teams engaged and thriving, knowing many employees were playing the role of parent, teacher, caretaker, and professional, all from their kitchen table.

The best innovations come from team collaborations in a shared space. But business can’t be put on pause because it’s operating remotely. Companies have had to find virtual ways to keep innovating and bringing great ideas to life because even in a pandemic, customers want to know that their long-term expectations and needs are being met.

Ending bias, making lasting change

The racial protests and conversations about diversity and inclusion added another layer of complexity to the unique challenges businesses were already facing from COVID-19.

In the spring, Verisk held a town hall to give team members a chance to share their thoughts about the untimely deaths of George Floyd, Ahmaud Arbery, and Breonna Taylor. We planned one hour for the virtual event, but four hours later, thousands of Verisk employees — of all races, backgrounds, beliefs, and genders — were still sharing their personal stories of inequality, of hardship, but also of inspiration. It was among the most authentic, humbling, and emotional experiences I’ve had in my professional career.

Verisk has always had a policy of non-discrimination. But, at the end of that four hours, it was clear: It was no longer enough for Verisk — or any other company — to simply say that we value diversity. We had to prove it.

Our board of directors, leaders from my team, as well as the company’s REACH Network for Black professionals, developed Verisk’s 14-point Statement on Racial Equity and Diversity. The statement outlines the measurable steps we’re taking to ensure Verisk reflects the world around us.

We know we have work to do. And, we know that changing behaviors and attitudes won’t be simple. But the Verisk team is committed to taking a critical eye to our processes and procedures, to having tough conversations, and to delving into the details of this critical issue so we can achieve racial equity and make lasting change.

Preparing for tomorrow’s challenges

It’s not easy to navigate a pandemic or to eradicate systemic racism. Recent events have stretched the business community far beyond the typical challenges of daily operations, product development, and achieving growth targets.

Five years from now, I suspect 2020 will be seen as an acute case of the challenging conditions from which companies have continually demonstrated their ability to adapt, learn, and grow. The issues on the horizon — climate change, cybersecurity, ethical AI, sustainable energy — aren’t getting any easier. And, we won’t be able to solve them by glossing over the details.

Since signing the Purpose of a Corporation last year, the events around us have reinforced that the business community can contribute to the strength of our economy and make decisions that are in the best interest of all stakeholders — if we’re willing to embrace complexity.