Thursday, December 13, 2012

InsideOut Interview: Daniel Goleman



DANIEL GOLEMAN ON OUR EVOLVING ECOLOGICAL INTELLIGENCE
by Owen Lipstein

Daniel Goleman is an internationally renowned psychologist best known for popularizing cutting-edge neuroscience on emotional and social intelligence. In Ecological Intelligence: How Knowing the Hidden Impacts of What We Buy Can Change Everything (Broadway Business, 2009), this best-selling author once again showcases his consummate ability to harvest complex data and boil it down to what really matters. But this time his focus is on our capacity to understand and address our current ecological crisis

When we spoke he helped us understand why it’s actually physiologically difficult for us to care about things like global warming, why, even if we do care, it's realistically harder to act, and why that's all about to change—beginning with the least likely of places.

Owen Lipstein: Ecological Intelligence is the third book in your narrative about intelligence. 

Daniel Coleman: Yes, you could say that Emotional Intelligence (Bantam, 1995) is really about self-awareness and self-mastery. Social Intelligence (Bantam, 2006) is about our relationships with other people, and Ecological Intelligence is about our relationship with the material world. The root meaning of ecological comes from the word for home; it is our relationship with the physical. It's about being intelligent and learning how to take better care of the planet, its ecosystems and the people on it. 

OL: Basically, what this book discusses is the cost and benefit of actually behaving well—as a business premise. 

DG: The book is aimed at both you and me as shoppers, and as business people. I talk about how we are about to be given complete transparency about the full ecological footprint of the stuff we buy, from the extracts of the ingredients, to manufacture, transport, retail and disposal. So over the entire life cycle of a box of Kleenex, or detergent, or an X-Box, we can know what toxic chemicals were dumped where, and what the impacts on global warming were, and what chemicals are going to come into our body—or someone else's—as a result of buying this product, or even how the workers who made it were treated. We can know all of that at the point of purchase, and in fact, have it immediately compared to other competitive products. 

OL: Now that we are about to have, as you say, better transparency in consumer information, are you optimistic that information will actually cause people to buy or behave differently? 

DG: Well, for years there has been a kind of static number coming up in consumer surveys that suggests about one in ten shoppers are passionate about this and will go out of their way to get the more virtuous product, that about 25 percent couldn't care less, and that about two-thirds in the middle say, "I would do it if it was easy."

Well, it's about to get easy. Last week Wal-Mart announced that it is developing a sustainability index, which is basically ecological transparency on the products they stock. They are going to put the ratings of products next to the price tag in their stores, and they invite other retailers like Target and Costco—and everybody else—to do the same.

What has prevented most people from taking advantage of dozens and dozens of eco-labels around is that there's what is called "high information costs." You have to make an effort. You have to get online, you have to go to the website, you have to look up your product, you have compare it to other products, and you have to remember all of that when you go shopping. Now we are on the verge of that being made completely effortless for us, and that lowers information costs to zero.

I think that smart money says that lots of shoppers who haven't bothered before are now going to include this in their shopping decision, and what that does is put ecological virtue into play in terms of market share in a way that it has never been before.

Now, this is a business implication, but once that happens it changes the game. You have to have sustainability as part of your core strategy—not just something nice to do because it's socially responsible, but really there's no business benefit—now it's survival. In fact, Wal-Mart hinted that if you don't do this, if you don't reveal your impact and so on, they won't stock you anymore. 

OL: Don't you think that people actually have to believe—not just in their intellectual self, but in their core self—that if we don't do something, then really bad things are going to happen and alongside that, they also have to believe that they as individuals, in some small way, can make a difference?

DG: I think that we're wired in evolution to be alert and hypersensitive to a very narrow range of things. Global warming is not one of them: it’s too remote, too slow—it's not like a wildcat about to leap. However, these new sustainability indices also include toxic chemicals—things that can make us or our loved ones sick down the road because our body accumulates these chemicals, and that begins an inflammatory syndrome, which leads to disease—so I think the more immediate motivator will be self-interest, and trying to avoid toxic chemicals.

I mean, I care very much about the environment, but speaking as a psychologist, the environmental crisis, the destruction of non-renewable resources, and the dead zones in water, and global warming including the air, and so on, are actually all removed from any one us, and not as compelling as the danger of tocix chemicals in our home.

OL: In effect, you're saying that we're simply not hard-wired to respond to global crisis. 

DG: We’re wired to prioritize crises, but the ones we respond to immediately are the ones that seem imminent and are personal. A crisis someone else is not as compelling as a crisis in our own life, and a crisis for someone else fifty years from now is not as compelling as what is happening to us this minute. 

OL: Given your various books on intelligence, do you think that there is kind of a turning point in this area—that people are changing now, not just because they have better information, but because there is something else going on? 

DG: Well, I think that a huge generational shift is about to happen. I'm a baby boomer and our generation grew up during the cold war. The big trauma was the nuclear fear. This generation is growing up with ecological, environmental and climate warming crises foremost on their mind, and I think that they are going to vote with their dollars much more enthusiastically than our generation about all of this, and I think that is what's going to make a huge difference.

I also think it's part of a mass awakening from a trance we've been in that led us to tell ourselves the story about how [our lifestyles] had no bad consequence. 

OL: We're working on our harvest issue now, and of course the harvest is largely about food, but on a slightly different level it is also about what we reap from our activities. 

DG: Well, I think there is a direct analog from food, and harvesting food, and what goes into the food, and what the consequences of what goes into growing the food are. With consumer goods, that's just another harvest: we have a year-round crop of a seemingly endless flow of consumer goods, where the ingredients are being harvested—usually in some distant part of the world. [For instance, we are] clear cutting the Amazon, or destroying the rain forests in Malaysia at a vast rate for rubber plantations, or [upsetting] the delicate ecosystem of Tibet, which is the source of the main rivers for half of Eurasia—and it's all to feed the same massive appetite which we experience every time we go to the store. It's being driven by the consumer. All of that is happening to make stuff to sell to us, and once we understand the cost of that harvest—and that we now have the data at our fingertips that will allow us to make wiser decisions—that can change. We can redirect. 

OL: At one point in your book you refer to Paul Hawken's book [Blessed Unrest: How the Largest Movement in the World Came into Being and Why No One Saw If Coming (Viking. 2007)] where he basically hopes and hypothesizes that there is going to be some kind of event, a process that is going to happen, that is spontaneous and from a lot of different places. Do you think that is true? 

DG: There is no question that there are stirrings at the grassroots worldwide. I think Paul has really identified something, because we are all responding in one way or another to the same forces in our lives, and how we need to respond varies from group to group and person to person, but the great commonality, I think, is the ecological—the inexorable destruction of the human niche on the planet by humans, and how we enumerate that depends on what part of it we can reach. 

OL: We are having this conversation in the midst of bad economic times, unprecedented in most of our lifetimes. What about the fact that many of us think, I can't afford to worry about any of this stuff—it's all I can do to make ends meet? 

DC: Well, the nice thing about this is that it's being spearheaded by Wal-Mart. Wal-Mart is not only going to make the suppliers engage in a process of perpetually upgrading the ecological impact of the products in order to survive; they are also going to make them cheap. This sustainability index is a disruptive technology. It's a game changer.

It has been a luxury to have organic, or to have the ecologically virtuous product, but that is actually an artifact of those products being early in the market—and also that they have been marketed as premium. Wal-Mart is not going to market this stuff as premium. It's going to make sure there are safer, greener, smarter products within reach of everyone, and that is quite revolutionary.

OL: I guess it isn't useful to think about what Wal-Mart's reasons —whether they're doing it because they conclude they can sell more product, or if they're doing it because they want to help save the planet in small ways, or if they just decided it looks good.

DG: I have no idea what their motivation is. But it really doesn't matter to me because what they are going to do is creating an earthquake in in business and in manufacturing—a wake-up call for everyone who is doing strategic planning in any company. 

OL: You think that just their very power in the marketplace—for whatever reasons—will affect outcome?

DG: Wal-Mart has 100,000 suppliers. When I say suppliers, they count Proctor and Gamble as one supplier. In other words, almost everybody sells stuff to Wal-Mart to sell to us, and Wal-Mart is now telling its suppliers, "You have to become transparent about the stuff we are selling from you, and if you don't do it, you may not be able to sell your stuff at our store anymore."

OL: Has Wal-Mart found that people are willing to pay slightly more for these products? 

DC: Not at all. We're talking Wal-Mart. Wal-Mart finds ways to do whatever it does cheaply. This means it's going to present this conundrum to manufacturers that you've got to upgrade the ecological impacts of what you sell us—and keep the price the same. That opens the door to an enormous entrepreneurial opportunity, because now those suppliers have to find suppliers for them that have new ways of doing things ecologically.

OL: It's a game change. 

DG: One guy at Wal-Mari said to me that it's "the biggest innovative opportunity for the next 50 years. We have to reinvent everything." What it means, for example, is that people who are struggling with, say, a green chemistry alternative to something that now is petrochemical based, are all of a sudden going to have a better face for investors. There is going to be a demand for this stuff. This is the future. Wal-Mart is driving it.