Inclusive approach

AS the man charged with running Rio Tinto’s powerhouse global iron ore business, which turned over a lazy $17.2 billion from the Pilbara alone last financial year, Sam Walsh could well be the most important individual at the multinational mining giant.

And as both an executive director on Rio’s main board and chief executive of Rio Tinto Australia, Mr Walsh could justifiably lay claim to wielding more economic might than some small nations.

Yet the avuncular 60-something is clearly no thundering Pacific tyrant who rules with an iron fist to keep the Rio juggernaut on track.

Speaking at a WA Business News Success and Leadership function this week, Mr Walsh revealed a softer, more inclusive approach aimed at embracing the abilities of all individuals was his recipe for delivering better business performance.

And it is a recipe he believes has the power to also create a better society for all Australians, irrespective of their gender, ethnicity or social background.

“My end goal is a stronger Australia, an Australia in a fit state to withstand the needs and diverse challenges that lie ahead,” Mr Walsh said.

“An Australia that’s not just healthy, wealthy and educated, but one that is inclusive, resilient and rich in diversity.”

Mr Walsh said Rio’s Australian businesses had obviously generated many benefits for the nation in terms of jobs, investment, taxes and royalties during the past few decades.

But increasingly, he said, it was “what we do outside our organisations that will help to make a real and lasting difference”.

It is a view reflected in Mr Walsh’s personal involvement in a broad range of external organisations, including Scouts WA, Black Swan State Theatre Company, the Australian Business Arts Foundation, the State Library of WA Foundation, and UWA Hackett Foundation.

It is also reflected in Rio’s policy of supporting employees’ involvement in charities and volunteer organisations.

Mr Walsh said creating a sense of inclusion was a key objective on the road to a better, fairer, society for all Australians.

“A well-rounded society … means one that is inclusive of every human being,” he said. “We all have a responsibility to ensure that no-one is left behind and that there are opportunities for everyone.”

But that also meant employing “multi-layered solutions” to deal with the complex problems of social exclusion.

“That requires recognition of the fine line between handing out and helping out,” Mr Walsh said.

“We (also) need to examine the potential costs of excluding whole groups of society. Through exclusion, we increase the gap between the haves and have nots, and lose a huge amount of human capital, and the possibilities to discover untapped talent and potential.”

To that end, Mr Walsh noted Rio had been a pioneer in providing indigenous training and employment opportunities for 15 years as part of its broader commitment to community engagement and development.

Rio already employed around 1,000 Aborigines in Western Australia and had awarded $250 million in contracts to Aboriginal contracting companies in the past two years.

It also engaged in less typical initiatives such as early intervention programs to boost literacy, and reduce suicide rates.

Fostering creativity and innovation was another key weapon in both achieving a better society and better business performance, he said.

That meant fostering an environment in which it was “OK to be different, to be brave in your thoughts and actions, and to be at least a little out-there.

“The stamp of a creative mind is a highly prized commodity,” he said.

That was one reason for Rio’s strong support for the arts, which had the power to transform individuals, communities and organisations, and support for initiatives such as the $9 million ‘experiential’ bush playground in Kings Park to encourage children’s natural curiosity and imagination.

“Its our responsibility as leaders to nurture the future caretakers of our planet … and help create healthy educated human beings, who can add value and live by values,” Mr Walsh said.

Finally, developing a more rounded society also hinged on developing greater empathy between everyone in a community.

Mr Walsh said one of Rio’s great successes had been in establishing a sense of family and caring in its workforce, a trait that had manifested itself in Rio’s strong safety record in recent years.

“If you want to succeed in almost anything you do within an organisation, you actually have to care intensely about the people who work there,” he said.

“We actually physically care.”