Kevin Trapani offered insight into the transition of a firm’s focus to all stakeholders, not just shareholders.
Kevin Trapani, CEO of The Redwoods Group, a B Corp-certified insurance company, sat down with senior business students as part of the Martha and Spencer Love School of Business ‘Lessons from Leaders’ speaker series on Sept. 5. Recognized as an influential leader in North Carolina for his social consciousness and ethical leadership, Trapani served as an insightful and empowering speaker to Elon seniors.
In light of Business Roundtable’s Aug. 19 release of “Statement on the Purpose of a Corporation,” in which 181 CEOs committed to lead their companies for the benefit of all stakeholders, Trapani directed his conversation toward the transition of a firm’s focus from solely shareholders to alternate stakeholders such as customers, employees, suppliers and communities through measuring environmental, social and governance (ESG) metrics. Though Trapani encouraged students to be wary and skeptical of this statement, he emphasized the importance of intention for change as a starting point.
Trapani began his discussion in a unique and thought-provoking manner. His presentation began with a few slides to help students “understand where we are as a society.” For example, he noted that one in four American children live in poverty, and because of social and economic mobility in our society, these children are likely to remain in poverty their whole lives. He also touched on foster children’s likely yet unfortunate path to incarceration, the excessive number of mass shootings since Sandy Hook, and the alarming displacement rates of refugees around the world.
Our global community is profoundly broken. No business can succeed in a community that is failing.
He immediately called upon students to realize the opportunity they possess to make progress through business. Businesses cross borders, have competition for capital, and can make change quickly; however, businesses must decide whether purpose or profit is their priority, Trapani said.
Trapani’s pride in detailing his company’s integrity, autonomy, B Corp certification, and lack of layoffs reflected Redwoods’ compromise of profit for purpose. Despite his belief that Redwoods will be profitable in the next few years, Trapani believes that his social mission of keeping people – predominantly children – safe must be the company’s priority. He called students to question the purpose of business, encouraging them to devote their career for good rather than short-term profit.
With a daughter who graduated from Elon in 2007 and another daughter currently enrolled at Elon, Trapani certainly understands the position of the seniors in the audience. “This is when you decide how you are going to live to your most deeply held values on a platform that is not your college campus,” he stated while commending Love School of Business students on the “powerful choice [they] have made – choosing the platform of business to make change.”
With their time left in the Love School of Business, Trapani encouraged students to be changemakers: “Figure out what your common and shared values are, and then examine everything that is taught against those values. Hold one another accountable.” In doing so, students can “embrace the blessing that [they] get to be a participant in the shaping of a school.”
After his presentation, a Q&A with Trapani was hosted by Scott Hayward, assistant professor of management.