The Development of Chicago’s Lake Front
Cahn Reidy Advisors LLC
Helping Clients Deliver Better Results in the Age of Uncertainty
The Development of Chicago: A Spectacular Lake Front[1]
The development of Chicago's Grant Park, including institutions like the Shedd Aquarium, is a story deeply intertwined with the city's ambitious businessmen and their desire to contribute to Chicago's cultural and civic landscape.
Chicago's late 19th and early 20th-century business leaders invested heavily in developing Grant Park and cultural institutions like the Shedd Aquarium, driven by a multifaceted vision. Firstly, they sought to elevate Chicago's status from a mere commercial hub to a world-class cultural center, fostering civic pride and contributing to the city's urban development. Philanthropic individuals, like John G. Shedd, aimed to leave a lasting legacy by providing the city with exceptional amenities. Secondly, these investments were strategically designed to enhance Chicago's image, attracting residents, tourists, and further economic growth.
Critically, a strong element of "cleaning up" the city underpinned these efforts. This involved addressing public health concerns stemming from industrialization, such as poor air quality and overcrowding, by creating green spaces for recreation and fresh air. These parks also served to promote social order and civic improvement, offering structured leisure activities. Furthermore, the beautification of the city was essential for projecting an image of modernity and progress, attracting further investment and solidifying Chicago's position as a sophisticated and desirable metropolis. Therefore, the investments were a blend of altruism, strategic urban planning, and a desire to create a healthier, more beautiful, and prestigious city.
The investments in Grant Park and other cultural institutions were part of a broader effort to transform Chicago into a healthier, more orderly, and more attractive city.
Henry Ford: Ford Motor Company[2]
In 1914, Ford revolutionized the industry by implementing the $5 workday, doubling the prevailing wage for his factory workers. This bold move had several key benefits: it drastically reduced employee turnover, saving on training and recruitment costs; it boosted worker morale and productivity; and, crucially, it enabled Ford's workers to afford the very cars they were producing, expanding his consumer base.
Ford also played a pivotal role in popularizing the 40-hour workweek. While it's debated whether this was solely to give people time to drive his cars, it was undoubtedly a factor. He recognized that leisure time drives consumption, allowing people to engage in activities that required his products. Furthermore, he understood that a less stressed workforce is a more productive one.
Henry Ford was a shrewd businessman, not a philanthropist. He recognized that treating his employees well ultimately benefited his company. His actions had a ripple effect, influencing other businesses and contributing to the development of modern labor standards. While Ford was a complex figure with some negative views, his business practices regarding worker pay and hours had a profoundly positive impact on the American economy.
Jamsetji Tata: Taj Mahal Palace Hotel[3]
Jamsetji Tata is widely believed to have built the Taj Mahal Palace Hotel as a response to racial discrimination prevalent during British colonial rule in India. The most common narrative suggests that Tata was denied entry to a prominent hotel in Bombay that catered exclusively to Europeans. This experience of exclusion is said to have spurred him to create a grand hotel that would be open to everyone, regardless of race or nationality, thus challenging the discriminatory practices of the time.
The Taj Mahal Palace Hotel quickly became more than just a place to stay; it became a symbol of national pride and hospitality, significantly enhancing the Tata Group's reputation. The hotel not only provided a needed service but also cemented the Tata company as an organization that stood for the values of all people. Furthermore, the enduring legacy of the Taj Mahal Palace Hotel, standing as a landmark for over a century, demonstrates the lasting impact of Tata's vision and the enduring power of inclusive principles. The Tata group itself serves as a prime example of a company that has, for a very long time, performed actions that today would be considered ESG-driven, further solidifying their commitment to values beyond profit.
Royal Bank of Canada: Marketing and People Metrics Drive Customer Satisfaction
In a diverse market like Canada, RBC's customer base comprises individuals from various cultural, ethnic, and socio-economic backgrounds. To effectively serve these diverse customers, RBC recognized the necessity of building a workforce that mirrors this diversity. By actively recruiting and developing talent from underrepresented groups, RBC ensures that its employees possess the cultural competency and understanding required to connect with and serve a broad range of customers. This alignment fosters stronger customer relationships, enhances customer satisfaction, and ultimately drives business growth.
Moreover, a diverse workforce brings a wider range of perspectives, experiences, and ideas to the table, leading to more innovative solutions and better decision-making. In the financial services industry, where understanding and responding to evolving customer needs is crucial, this diverse perspective is a significant competitive advantage. For RBC, leveraging diversity is not merely a matter of social responsibility; it's a strategic imperative. By building a workforce that reflects the diversity of its customers and markets, RBC strengthens its ability to meet customer demands, adapt to market changes, and achieve sustainable business success.
The RBC example highlighted in the book "Transformative HR,"[4] serves as a compelling example of how aligning workforce demographics with customer and market demands can directly benefit a business.
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These examples illustrate that long before the terms ESG and DEI became commonplace and organizations like the SEC, Institutional Shareholder Services (“ISS”), and Glass Lewis began pontificating on the topic, businesses recognized the fundamental connection between community well-being and their own prosperity. Historically, this understanding drove investment in social and environmental responsibility, demonstrating that such practices are not a modern invention.
Today’s Backlash
The perception that some corporations treat climate initiatives, DEI efforts, and ESG frameworks as mere virtue signaling, rather than foundational elements of sustainable business practice, has fueled a significant backlash. When these concepts are deployed primarily for public relations or to appease certain stakeholder groups, without genuine internal commitment or measurable impact, they can be seen as inauthentic. This perceived performative activism has led to skepticism and resentment, particularly among those who feel these issues are being weaponized for political or marketing purposes, rather than being addressed with substantive action. Consequently, the credibility of DEI and ESG has been undermined, creating space for counter-movements that dismiss these initiatives as unnecessary or harmful, rather than engaging with them productively.
What to do?
“Peter Drucker's timeless insight, "The purpose of business is to create and keep a customer," [5] encapsulates the fundamental objective that should guide every strategic initiative”,[6] including the role that ESG and DEI play in building long term value.
While the perception of virtue signaling[7] has undeniably contributed to the backlash against ESG and DEI, it's crucial to acknowledge the counterargument: that legitimate, strategically integrated ESG and DEI initiatives are fundamental to long-term business success. Proponents argue that diverse workforces foster innovation and better decision-making, leading to improved financial performance. Similarly, sustainable practices can mitigate risks associated with climate change, resource scarcity, and regulatory changes, while also opening up new market opportunities. Furthermore, companies with strong ESG profiles often attract and retain top talent, enhance brand reputation, and build stronger relationships with stakeholders, including investors and consumers. When DEI and ESG are embedded within a company's core strategy, rather than treated as peripheral add-ons, they can drive tangible business results, enhance resilience, and create a more equitable and sustainable future.
A forward-thinking board and C-suite should focus on building a sustainable and resilient business, recognizing that long-term success hinges on more than just quarterly earnings. This involves:
Strategic Integration: Aligning core business operations with a long-term vision that considers evolving stakeholder expectations, including those related to responsible environmental impact and social equity. This means moving beyond compliance and embedding these considerations into strategic decision-making.
Data-Driven, Material Focus: Prioritizing the factors that genuinely impact the business, establishing clear metrics, and rigorously tracking performance. This includes understanding and addressing the material risks and opportunities associated with environmental, social, and governance factors, as well as fostering a diverse and inclusive workforce.
Transparent and Accountable Operations: Fostering open communication with all stakeholders, building trust through honesty, and ensuring accountability for performance, including progress on relevant environmental and social goals.
Proactive Stakeholder Engagement: Actively listening to and addressing the needs and concerns of all stakeholders, recognizing their role in the company's success and incorporating feedback on key issues, including those related to workplace culture and community impact.
Ethical Foundation and Talent Development: Cultivating a culture of integrity, respect, and inclusion, where all individuals feel valued and empowered. This includes attracting and retaining top talent by creating a positive and equitable work environment.
Effective Risk Management and Long-Term Value Creation: Identifying and mitigating potential risks, including those related to operational inefficiencies, changing market dynamics, and evolving societal expectations, while focusing on building a sustainable business model that delivers lasting value to all stakeholders.
Conclusion
The examples of pioneering figures like Henry Ford and Jamsetji Tata serve as a powerful reminder that the core principles underpinning ESG and DEI are not fleeting trends, but enduring values that have long shaped successful businesses. By recognizing the intrinsic link between business success and the well-being of society and their employees, these individuals demonstrated that a commitment to positive social impact is not only ethically sound but also strategically advantageous. As businesses navigate the complexities of the 21st century, these historical precedents offer valuable lessons, underscoring the importance of integrating social responsibility and inclusive practices into the very fabric of their operations.
References:
“How to Tell ESG and DEI stories in 2025”, by Shama Hyder, February 13, 2025, https://www.inc.com/shama-hyder/how-to-tell-esg-and-dei-stories-in-2025/91146988
“The Death Of DEI Is A Myth: Here’s Why 7 In 8 Companies Are Continuing DEI Efforts in 2025”, by Janice Gassam Asare, March 8, 2025,
“Using organizational change to embed your corporate ESG and DEI strategies amid the backlash”, by Natalie Runyon, September 9, 2024,
About the Authors:
David Cahn is co-founder of Cahn Reidy Advisors. Visit us at www.cahnreidy.com
Brian Reidy is co-founder of Cahn Reidy Advisors. Visit us at www.cahnreidy.com
[1] The Encyclopedia of Chicago, https://www.encyclopedia.chicagohistory.org/?_gl=1*192ofp0*_gcl_au*MTg2Mzg5OTgxMS4xNzQxODg5ODA3*_ga*MzE2NDI1MjQ1LjE3NDE4ODk4MDc.*_ga_LE22YBGVJ5*MTc0MTg4OTgwNy4xLjEuMTc0MTg4OTgyMC40Ny4wLjg3MzU2NTkzNA..
[2] “Workers and wages: What Henry Ford Understood”, by Jon Talton, January 5, 2016, https://www.seattletimes.com/business/economy/workers-and-wages-what-henry-ford-understood/#:~:text=Today%20in%20middle%2Dclass%20history,two%20years%20Ford's%20profit%20doubled.
[3] Taj Hotels, Wikipedia, https://en.wikipedia.org/wiki/Taj_Hotels#:~:text=Taj%20Hotels%20is%20a%20chain,people%20in%20the%20year%202010.
[4] Transformative HR, by John W. Boudreau, Ravin Jesuthasan, 2011, Jossey-Bass
[5] “Peter Drucker on the Purpose of Business”, Center for Responsible Business, Jim Rossi, February 9, 2016, https://haas.berkeley.edu/responsible-business/blog/posts/peter-drucker-on-the-purpose-of-business/
[6] “Why AI Use Case Selection Should be Driven by Customer Needs”, by David Cahn, Brian Reidy, July 25, 2024, https://cahnreidy.com/wp-content/uploads/2024/07/AI-Use-Case-Selection-Considerations.pdf
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