Time for Business Leadership to Rethink Profit and Reset to Deliver Values for Money

Published
19 Sep 2017
2017
Share

Fon Mathuros, Head of Media, Public Engagement, World Economic Forum, Tel.: +41 (0)79 201 0211; fmathuro@weforum.org

· Companies should revise their approach to making profits and consider social and environmental metrics

· Investors and stakeholders including employees are expecting enterprises to deliver values for money

· For more information about the Sustainable Development Impact Summit, visit http://wef.ch/SDI17

· Follow the conversation using #wefimpact

New York City, USA, 19 September 2017 – Companies are changing their way of thinking, taking a broader long-term view of their business models and how to make them sustainable. On the second and final day of the World Economic Forum’s inaugural Sustainable Development Impact Summit, in a session on how the private sector can drive the global effort to achieve the Sustainable Development Goals (SDGs) by 2030, business leaders called on enterprises to revise their approach to making profits to consider social and environmental performance.

“The world is being reset around us and the clock is ticking,” declared Jean-Christophe Flatin, President of Mars in the US. “Our customers now expect us to show accountability across the entire value chain. People expect values for money.” Rather than view this pressure as a burden, corporations should take a positive approach, Flatin argued. “This provides an opportunity for us to reinvent ourselves. It is a humbling duty to reinvent how we do business.” Mars recently launched a long-term sustainability programme.

The key, Flatin explained, is to look at the facts about the benefits of sustainability and to take appropriate action. “This is a business agenda. The data is out there. It is robust. The question is not if but how and how quickly.” Mars, he explained, has had to tackle the issue of what is the right level of profit. This has meant looking beyond the traditional boundaries of the firm. His advice to businesses: “Embrace the discomfort of measuring the world beyond. New questions and provocations are being brought to the table. Embrace the journey of mapping the value chains beyond the world of your company.”

André S. Hoffmann, Vice-Chairman of pharmaceutical group Roche in Switzerland, echoed Flatin’s call for looking at social and environmental performance as well as the financial bottom line. He stressed that top management must set out the values of the company – “principles expressed by the principals”. Added Hoffmann: “When you take investment decisions, just think long term. It’s an easy thing to say but it is difficult to do. The system needs resetting, and the best way is to think long term. It is not how you spend money that is important; it is how you make it.”

Investing for impact in growth markets does not require a trade-off, maintained Arif M. Naqvi, Founder and Group Chief Executive of the Abraaj Group in the United Arab Emirates. “There is a ‘trade-on’. You don’t have to compromise on investment returns.” The SDGs, Naqvi noted, “are clear action points – every one of them convertible to investment opportunities – and the financial services industry is waking up to that.”

Investing for impact is about partnerships, Naqvi explained. Business leaders and stakeholders are now speaking the same language. “Convergence is happening despite ourselves,” he said. “Convergence is being forced on us.” Young job applicants want to work for responsible companies and, when being interviewed, “they interview us and ask what our company is doing. Every company is going to have to reflect the SDGs. More and more people are thinking the same way. You cannot build a great company without starting with a good company.”

Reiterating the need for motivating metrics, Kristalina Georgieva, Chief Executive Officer at The World Bank in Washington DC, cited her institution’s annual Doing Business Report as a vital tool. “It is very important that we create pressure through peer competition for conditions to improve,” she remarked. “We target our investments to address” the weaknesses in countries, whether in education or infrastructure. The World Bank has also provided innovative financial instruments including green bonds and pandemic bonds. She concluded: “We are the first generation to live in this world of converging aspirations and we are the last that can match aspirations with opportunities. We are now at this tipping point where we are getting on with doing it because we have no choice.”

Notes to Editors

Follow the Sustainability Development Impact Summit 2017 at http://wef.ch/SDI17

Follow our special campaign on Instagram at http://wef.ch/instagram

View the best Forum Flickr photos at http://wef.ch/pix

Watch live webcasts of sessions at http://wef.ch/live

Become a fan of the Forum on Facebook at http://wef.ch/facebook

Follow the Forum on Twitter at http://wef.ch/twitter and http://wef.ch/livetweet

Read the Forum Agenda at http://wef.ch/agenda

Subscribe to Forum news releases at http://wef.ch/news

All opinions expressed are those of the author. The World Economic Forum Blog is an independent and neutral platform dedicated to generating debate around the key topics that shape global, regional and industry agendas.
About Us
Events
Media
Partners & Members
Language Editions

Privacy Policy & Terms of Service

© 2022 World Economic Forum