WEF / Accenture: the era of stakeholder capitalism – study

WEF / Accenture: the era of stakeholder capitalism – study

• Stronger financial performance thanks to stakeholder-centric leadership
• A new model of responsible leadership: mission, innovation and inclusion

(PRESS RELEASE) DAVOS, 20-Jan-2020 — /EuropaWire/ — The World Economic Forum in partnership with Accenture have unveiled their new study called Seeking New Leadership. The report looks into what sits at the heart of a new model of responsible leadership for an era of stakeholder capitalism. The stakeholder capitalism is focused on strong organizational performance aligned with positive social and environmental impact.

The study boldly identifies the following attributes and characteristics required by the next generation leaders to effectively and successfully deal with the challenges of the coming years and decades: Stakeholder Inclusion; Emotion & Intuition; Mission & Purpose; Technology & Innovation; Intellect & Insight.

Commenting on the stakeholder approach, Adrian Monck, managing director for the World Economic Forum, said:

“The climate crisis, growing inequality and economic fragility threaten human wellbeing like never before. We need a stakeholder approach in which companies combine entrepreneurialism with purpose, working with others to improve the state of the world in which they operate. The good news is that the next generations want to develop the broad range of leadership skills needed to make this happen.”

The study, carried out during 2019, has surveyed over 20,000 people, largely members of the World Economic Forum’s Young Global Leaders and Global Shapers communities, CEOs as well as employees, consumers and other stakeholder groups coupled with an econometric analysis of company performance and other original research. More particularly, the Accenture Responsible Business surveyed 2,298 business leaders and 2,971 stakeholders in 11 countries while the Accenture Whole Brain Leadership surveyed  11,400 consumers and employees and 200 C-suite executives across six countries. Furthermore, the annual survey of the World Economic Forum’s Young Global Leaders and Global Shapers had 1,830 respondents. The research also includes economic modelling of data related to publicly listed companies.

In order to prosper, according to the research, there is a growing demand for businesses to address environmental, social and economic issues. As per the report, some 61% of the emerging leaders surveyed said that business models should be pursued only if they improve both societal outcomes and profitable growth while vast majority of both business leaders (79%) and stakeholders (73%) said that the positive potential of emerging technology calls for businesses to reconsider their role in society.

The study also found that stakeholders want business executives and leaders with more Emotion & Intuition and Mission & Purpose. In general younger people believe that leadership decisions in the coming decade will require a balanced approach across all five attributes of responsible leadership according to quick online focus group survey among 500 people from Generation Y and Generation Z conducted as part of the research.

Further in the study the profits and responsible leadership are not seen as mutually exclusive and a link between responsible leadership and higher financial performance has been discovered. More than 2,500 publicly listed companies have been examined by Accenture as part of the research. The data looked at in particular was the financial performance and actions related to sustainability, stakeholder trust and innovation for a period of 3 years (2015 – 2018).

A main conclusion: businesses that achieve high rates of innovation as well as stakeholder confidence financially outperform their business peers— the average operating profits are 3.1 per cent higher and shareholders are more profitable. Furthermore, organizations that achieve leadership of the market, stakeholder trust and do financially better exhibit to a greater extent all five elements of responsible leadership as compared to their peers.

The report suggests that the full strength of innovation can only be unlocked by stakeholder-centric business models to increase organizational performance and lead to societal progress.

Accenture’s chief leadership and HR officer, Ellyn Shook, on what it means to lead responsibly:

“Organizations have not only the opportunity, but an obligation, to drive organizational growth in tandem with positive social and environmental outcomes.  This starts with redefining what it means to lead responsibly.  A new generation is leading the way, focused on driving value while honoring values ― where a sense of mission, stakeholder inclusion and compassion becomes second nature. Through our collaboration with the Young Global Leaders and Global Shapers, we are excited to define and catalyze these new leadership qualities in the individuals and teams entrusted to shape the world’s future.”

The study marks the first stage of a multi-year effort between Accenture and the World Economic Forum’s Young Global Leaders and Global Shapers communities to build a new framework for leadership and help organizations to develop environments where responsible leadership can flourish. Please visit Seeking New Leadership for more information at www.accenture.com/responsible-leadership.

Media contacts:

Tourang Nazari
Accenture
+1 202 322 4640
tourang.nazari@accenture.com

Sam Hyland
Accenture
+1 914 924 1749
samuel.hyland@accenture.com

SOURCE: Accenture