Worcester Business Journal

wbjournal.com | March 2, 2020 | Worcester Business Journal 29 Finding purpose in profits V I E W P O I N T E D I T O R I A L I n mid-January, the chairman and CEO of global investment firm BlackRock, Inc. wrote an open letter to CEOs worldwide, compelling them to combat climate change. As the head of the world's largest asset manager, Larry Fink holds a unique position of influence, particularly with publicly traded companies, and his annual letter receives a lot of attention in the corporate world. For the last couple of years, Fink's letter has urged companies to think about more than the bottom line, asking them to find ways to improve the societies in which they operate. While companies must maintain a fiduciary responsibility to their investors, Fink says thinking about social issues and community well-being is ultimately good for any firm's long-term outlook. Considering the greater good of the community is probably a no-brainer for most business leaders, which is why you find the best ones participating on nonprofit boards, volunteering, and giving a slice of their revenues to charitable causes. Yet, Fink's letters may have been among the highest-profile efforts to date to link profits and purpose. Especially in the public corporate world where the very system pushes executives to be beholden to quarterly results, stock prices and the bottom line at the expense of nearly all else, it is eye-opening to hear from the world's leading investor that a singular focus on money isn't the only bottom line we should be paying attention to. In this annual edition, WBJ honors our Business Leaders of the Year and the Hall of Fame Class of 2020, who all make for wonderful examples of how best to succeed in the business world. Yet, more importantly, and pertinent to Fink's letters, you will find each of them have done good business while keeping in mind the dual higher purpose in running their organizations. Brandale D. Randolph (Small Business Leader of the Year) essentially created a company to give job opportunities to ex- convicts. Paul Sellew (Innovative Business Leader of the Year) wants to change the way the world grows and consumes its food. Karen A. Koller, Linda Cavaioli (WBJ Hall of Famers) and Stephanie Page (Nonprofit Business Leader of the Year), as the heads of high-profile nonprofits, have dedicated their entire careers to community betterment. Scott Richardson (WBJ Hall of Famer) is lauded for his ability to find the perfect balance between purpose and profits, which has made his Hopkinton architecture firm successful over the long term. e Hyder family (Family Business Leaders of the Year) carry on their father's tradition and remain an important staple in community-focused small business. Harry Kokkinis (Large Business Leader of the Year) is keeping the operations of long-time Worcester manufacturer Table Talk Pies in the city, despite lower-cost alternatives elsewhere. As the global corporate mindset shis toward a more well-rounded world view of success, these are stories which must be told. Central Massachusetts isn't home to many CEOs singularly focused on the bottom line (the region has only 16 public companies), but as the world moves toward solving a number of complex problems, it is critical to have leaders who understand the important place their company has in the community it operates in. The Worcester Business Journal welcomes letters to the editor and commentary submissions. Please send submissions to Brad Kane, editor, at bkane@wbjournal.com. A T H O U SA N D WO R D S B Y D O N L A N D G R E N W Climate initiative takes fuel prices too far I f Gov. Charlie Baker succeeds in his efforts to have Mas- sachusetts join the Transportation and Climate Initia- tive, a 12-state compact to reduce carbon emissions by imposing fees on fuel distributors, it will be a Pyrrhic victo- ry. It will put our state's small businesses at a major compet- itive disadvantage and increase gas prices significantly for every driver. As details of TCI become clear, more states are wavering on supporting this deeply flawed public policy. TCI is a backdoor way to increase Mass. gas prices, a hidden tax. While the initial fee would be levied upon fuel distributors, those costs will be passed on directly to motorists. Proponents deceptively argue TCI isn't a tax as the fuel distributors would be forced to buy allowances for the car- bon intensity of their product. ese fees would be used by the state to promote non-fossil fuel transportation such as public transit or electric car charging stations. But have no doubt, it's a regressive tax on commuters and small businesses. Economic projections from the craers of TCI show if implemented, gas prices would rise as high as 17 cents a gal- lon. Ironically, they admit carbon would already be reduced without TCI over the next 10 years by 19% due to better fuel economies and technology. So, according to the program's own analysis, TCI would only deliver between a 1% and 6% reduction in carbon but at an extremely high pricetag for all Massachusetts commuters and small businesses. Small businesses require fuel for their operations, from landscapers and excavators powering machines to pizza and flower shops making deliveries. If the price of fuel rises, the cost of products and services will increase. It will be more expensive to ship products from Mass. manufacturers, and retail stores will pay more for goods. Consumers would be forced to spend more of their hard-earned money. e multi-state approach of TCI was intended to ensure fuel prices would rise uniformly so no state would get an economic advantage. But the compact is falling apart. Aer TCI's organizers announced projections of much higher gas prices, New Hampshire Gov. Chris Sununu dropped out of the pact, declaring his state's residents should not face significantly higher fuel charges to fix Mas- sachusetts' crumbling infrastructure, calling TCI a financial boondoggle. Now, if Massachusetts goes forth with TCI, gas stations in Haverhill and Methuen would face a competitive disadvantage just over the border in New Hampshire. Other governors and legislative leaders are raising similar concerns. Gov. Phil Scott of Vermont said penalties aren't the way to go when it comes to carbon reduction, indicat- ing he doesn't support TCI. Governors of Connecticut and Maine and the Rhode Island House Speaker have hinted they too have concerns about adopting the program. As the coalition crumbles, Massachusetts stubbornly limps forward. Small businesses, their employees, and all drivers in our state should tell their lawmakers and Gov. Baker to reject TCI to keep transportation costs affordable and avoid this economically devastating policy. Christopher Carlozzi is the Massachusetts state director for the small business advocacy group NFIB. BY CHRISTOPHER CARLOZZI Special to the Worcester Business Journal Christopher Carlozzi W

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