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Lord John Browne: Values-based Leadership

Lord John Browne’s recent speech at Columbia Business School demonstrated the tremendous potential impact of a socially-committed CEO.

Published
November 30, 2006
Publication
Bernstein Center for Leadership and Ethics
Jump to main content
Article Author(s)

Cai Steger '08

Affiliated Author
NYC Skyline. Photo Credit: Frank Oudeman.
News Type(s)
Leadership and Ethics News
Topic(s)
Ethics and Leadership, Leadership, Social Enterprise

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It further provided an example of the business community’s increasing willingness to confront its social and environmental responsibilities. 

Lord John Browne With open access to traditional energy sources no longer guaranteed, there is considerable consternation among a number of groups – governments, business leaders and consumers – regarding our energy future. Businesses and countries face significant energy challenges moving forward, be it in the dramatic global growth in energy demand, the increasing instability of key resource-producing regions, or the growing concern surrounding atmospheric carbon-concentration. 

In his remarks, Lord Browne offered up equal parts radical innovation and sage counsel. His willingness to openly confront the myriad of energy challenges facing the world gave the audience a fascinating glimpse into his vision of a profitable, energy-efficient and sustainable future. 

After listening to Browne, there is little doubt that when it comes to climate change, few companies are following a business-as-usual approach. BP, through the leadership of Lord Browne, has consistently led the way in this area, going back to public statements almost a decade ago that recognized the existence of human-induced climate impact. 

This speech proved no different, as Browne called explicitly for a carbon emissions cap, under which all businesses should operate. This broad and far-reaching initiative would represent perhaps the most impactful environmental legislation to business since the Clean Air Act and point the business community towards a far more sustainable reality. 

Lord Browne also spent a good deal of time discussing opportunities in renewable energy technology, and left little doubt that BP would be investing considerable resources in this space. It is especially interesting to consider that despite the negative potential effect of cheap renewables on the extraction industry, BP is investing billions in the development of this alternative technology. 

As Browne stated: “the moment the cost of carbon is internalized, the playing field for renewable energies is leveled.” BP expects this to occur and plans to play a leading role in this field as a result. Finally, Lord Browne was adamant about the leading roles that corporations can, and perhaps should, play politically regarding alternative energies and climate change. That BP, the fourth largest company in the world, has chosen to highlight these challenges cannot be understated. 

Lord John Browne closed with a quote from Abraham Lincoln: “The dogmas of the quiet past are inadequate to the stormy present. The occasion is piled high with difficulty, and we must rise with the occasion.” His and BP’s efforts provide and example of leadership in engaging with these issues in this dynamic and turbulent business environment.

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