Stakeholder-Centric Leadership Linked to Stronger Financial Performance, According to Study from the World Economic Forum & A...
January 20 2020 - 12:01AM
Business Wire
Mission, innovation and inclusion are at the
heart of a new model of responsible leadership
A new research study from the World Economic Forum in
collaboration with Accenture (NYSE: ACN) has identified five
elements at the heart of a new model of responsible leadership for
an era of stakeholder capitalism — one that focuses on strong
organizational performance in concert with positive social and
environmental impact.
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The study suggests that tackling the challenges of the coming
decade to accelerate growth and improve societal outcomes will
require a wider range of attributes and characteristics from
leaders, which the study identifies as:
- Stakeholder Inclusion. Safeguarding trust and positive
impact for all by standing in the shoes of diverse stakeholders
when making decisions and fostering an inclusive environment in
which diverse individuals have a voice and feel they belong.
- Emotion & Intuition. Unlocking commitment and
creativity by being truly human, showing compassion, humility and
openness.
- Mission & Purpose. Advancing common goals by
inspiring a shared vision of sustainable prosperity for the
organization and its stakeholders.
- Technology & Innovation. Creating new organizational
and societal value by innovating responsibly with emerging
technology.
- Intellect & Insight. Finding ever-improved paths to
success by embracing continuous learning and knowledge
exchange.
“The climate crisis, growing inequality and economic fragility
threaten human wellbeing like never before,” said Adrian Monck,
managing director for the World Economic Forum. “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.”
Titled Seeking New Leadership, the report is based on surveys of
more than 20,000 people — comprising members of the World Economic
Forum’s Young Global Leaders and Global Shapers communities
(“emerging leaders”); CEOs and other business leaders; and
employees, consumers and other stakeholder groups — as well as an
econometric analysis of company performance and other original
research.
The report highlights the growing demand for businesses to
address environmental, social and economic issues in return for
their “license to prosper.” For instance, six in 10 (61%) of the
emerging leaders surveyed said that business models should be
pursued only if they improve both societal outcomes and profitable
growth. Further, the 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.
According to the study, many business executives are out of step
with stakeholders, who want leaders with more Emotion &
Intuition and Mission & Purpose. Findings from an online focus
group of more than 500 people from Generation Y and Generation Z
(people born since 1980) conducted as part of the research also
suggest that younger people believe that leadership decisions in
the coming decade will require a balanced approach across all five
attributes of responsible leadership.
Performance Premiums Associated with Sustainability, Trust
and Innovation At the same time, the study notes that profits
and responsible leadership needn’t be mutually exclusive; in fact,
it finds a link between responsible leadership and higher financial
performance. As part of the research, Accenture examined the
financial performance and actions related to sustainability,
stakeholder trust and innovation of more than 2,500 publicly listed
companies between 2015 and 2018.
A key finding: Companies that achieve high levels of both
innovation and stakeholder trust outperform their industry peers
financially — with an average of 3.1% higher operating profits as
well as greater returns for shareholders. In addition, companies
that achieve industry-leading innovation, stakeholder trust and
financial performance display all five elements of responsible
leadership to a greater extent than do their peers.
According to the report, the findings suggest that only
stakeholder-centric business models can unlock the full power of
innovation to elevate organizational performance and drive societal
progress.
“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,” said Ellyn Shook, Accenture’s chief
leadership and human resources officer. “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 represents the first stage of a multi-year initiative
between Accenture and the Young Global Leaders and Global Shapers
communities of the World Economic Forum to create a new framework
for responsible leadership and to help organizations cultivate
environments in which responsible leadership can flourish.
For more information on Seeking New Leadership, please visit
www.accenture.com/responsible-leadership.
About the Research The research comprised several
streams, all of which were undertaken in 2019: The Accenture
Responsible Business survey of 2,298 business leaders and 2,971
stakeholders in 11 countries; the Accenture Whole Brain Leadership
survey of 11,400 consumers and employees and 200 C-suite executives
across six countries; the annual survey of the World Economic
Forum’s Young Global Leaders and Global Shapers (1,830
respondents); and economic modelling of data related to publicly
listed companies.
About the World Economic Forum’s Young Global Leaders and
Global Shapers The Forum of Young Global Leaders is a community
of enterprising, socially-minded leaders who have achieved
individual success and want to build and leverage their talents for
social good. A sought-after peer network, with more than 1,300
members and alumni, that offers executive education courses, global
summits, group expeditions, and opportunities to collaborate and
test ideas with peers. Visit us at
www.weforum.org/communities/young-global-leaders.
About the Global Shapers Community Born out of the World
Economic Forum, the Global Shapers Community is a network of
inspiring young people under the age of 30 working together to
address local, regional and global challenges. With more than
10,000 members, the Global Shapers Community spans 400+ city-based
hubs in 150+ countries. Visit us at www.globalshapers.org.
About Accenture Accenture is a leading global
professional services company, providing a broad range of services
and solutions in strategy, consulting, digital, technology and
operations. Combining unmatched experience and specialized skills
across more than 40 industries and all business functions —
underpinned by the world’s largest delivery network — Accenture
works at the intersection of business and technology to help
clients improve their performance and create sustainable value for
their stakeholders. With 505,000 people serving clients in more
than 120 countries, Accenture drives innovation to improve the way
the world works and lives. Visit us at www.accenture.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20200119005004/en/
Tourang Nazari Accenture +1 202.322.4640
tourang.nazari@accenture.com
Sam Hyland Accenture +1 914 924 1749
samuel.hyland@accenture.com
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