5 Things You Need To Know From Jamie Dimon's Letter On Morality And Society

JPMorgan Chase & Co. JPM CEO Jamie Dimon recently published a new letter in which he discussed the positive role private business should play in society. Here’s a look at five key takeaways from Dimon’s letter.

1. Business And Society Have Common Drivers

While the business world is motivated directly by the bottom line, companies make money by providing communities with cheaper, more convenient or more effective solutions to their problems.

“The same attributes that drive business success — innovation, ingenuity, and the ability to efficiently marshal human and financial capital — also offer tremendous promise to help solve pressing societal challenges,” Dimon wrote.

2. Business Growth And Societal Advancement Are Directly Linked

According to Dimon, the business world cannot outgrow society in the long term. He points out that 125 million of the 145 million total U.S. employees work in the private sector.

“It is the private sector that generates the jobs and economic growth that fuel progress, underpin opportunity and support the critical services on which we all depend,” Dimon said.

3. Wage Increases Are Good For Business And Society

Over the next three years, JPMorgan plans to raise the minimum wage for its 240,000 global employees from $10.15 per hour to between $12.00 and $16.50 per hour. Dimon says this is a win-win adjustment for both JPMorgan and the economy as a whole.

“Giving people a raise is both the smart thing to do — it helps our firm attract and retain talented people in a competitive environment — and the right thing to do. Wages for too many Americans have gone nowhere for too long,” Dimon said.

4. The Private Sector Can Create Unique Opportunities

From education to wage growth to income inequality, the private sector can address societal issues in a unique way. Dimon said each company’s advantages are unique.

“As a bank, JPMorgan’s societal value proposition is clear: we enable and catalyze economic growth by providing the capital that businesses, government and nonprofits need to expand, create jobs and fulfill their vital missons.”

5. Philanthropy Can Be Beneficial To Business

Donating to philanthropic causes can be mutually beneficial for the business world as well. Dimon said JPMorgan carefully chooses the causes it supports to help maximize the potential benefit of their dollars.

“For example, we are investing $325 million in career-oriented education to help young people and adults develop the skills they need to get on a stable career path and move up the economic ladder,” Dimon concluded.

Related Link:

A Trio Of Financial Upgrades: American Express, JPMorgan And Wells Fargo

Jamie Dimon On Donald Trump's Presidency: A Reset Moment For How Businesses Are Going To Be Treated _________ Image Credit: By Steve Jurvetson - Flickr: Jamie Dimon, CEO of JPMorgan Chase, CC BY 2.0, via Wikimedia Commons