Business Wire India
Authored by Sunil Puri, Head of Research and Development, CCL and Elisa Mallis, Managing Director & Vice President, APAC, CCL, the report examines how the pandemic has awakened leaders across Asia to the need to move towards stakeholder capitalism as opposed to shareholder capitalism.
Based on in-depth interviews with 20 C-suite leaders and board directors across Asia, the report articulates the six shifts organizations must make as they evolve into more socially accepted and financially better-off versions of themselves in the future. The six mindset shifts outlined include altruism to impact, nation-centric to world-centric, short-term to long-term, exclusive to inclusive, organizational to personal, and why to how.
Business leaders across the private and public sector recognize that the world has entered an era where inclusive growth is essential to preserving global stability and well-being. Focusing primarily on maximizing profits to shareholders is no longer enough. Business focus has been shifting at an accelerated pace, evident from 2019 when 181 CEOs of the Business Roundtable adapted a new statement on the “purpose of a corporation,” declaring that “companies should serve not only their shareholders, but also deliver value to their customers, invest in employees, deal fairly with suppliers, and support the communities in which they operate.”
Business leaders now recognize that longer-term, inclusive growth requires an ecosystem approach, focusing on the well-being of employees, customers, suppliers, communities, and the environment.
Speaking about the report, Sunil Puri, Head of Research and Development said, “Drawing from the collective wisdom of C-suite and board leaders, we have found that the post-pandemic world has created a new set of rules that corporations must live by. Adapting to this new world order will require a shift towards a purpose-driven organizational culture, where the top management is able to flex a different set of leadership muscles that encompass traits like humility, courage, and empathy.”
For more information and to download the report, visit this link.
Notes to the Editor:
Quotes by some leaders from the research paper are as follows:
“This is a new era, and we are not going back to the narrative of shareholder primacy; any company that dares follow that route will be ‘punished’ by the society, customers, employees, and most certainly by investors,” as articulated by a senior corporate leader.
“Altruism is not very commonly associated with business; conventional wisdom suggests that business is played on a competitive playground and often a zero-sum game, but interestingly it [altruism] forms the basis of our organization,” shared a senior business leader in a regional organization.
“Green washing can provide some short-term gains; in the long term, however, stakeholders are able to see through the dressing up of the sustainability report,” a senior leader said.
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