wall street in 2050

CB Bhattacharya, Dean of International RelationsE.ON Chair inCorporate Responsibility

ESMT, European School of Management and Technology

Wall Street 2050: A New World Order

ESMT Annual ForumJuly 3rd, 2014

ESMT, European School of Management and Technology

The world today

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World is sleepwalking to a global energy crisis

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To have a stock market in 2050 – and onethat we like – we must rediscover thecompany’s role in society

The three aspects of responsibility:

Accountabilitywho is to blame for what?

Expectationwhat is socially expected?

Trustare they trustworthy and reliable?

(Goodpaster and Matthews)

Challenge: Reassess the company’s responsibility

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Lack of trust in business

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How much do you trust business leaders to do the following?

(Edelmann Trust Barometer 2013)

Challenge: Rising expectations –Recognize and communicate interdependence

Globalization means interdependence

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International business more powerful More responsibility to safeguard the common good New role in society

Of the 100 largest economies, 42 are corporations (IMF, World Bank, 2011)

Doing Well

Fulfil expectations and do well

Doing WellDoing Well

Doing good

CR

Doing well

Strategic CR

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Triple Bottom Line

Challenge: Redefine the purpose of the company

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Future business leaders care much more about making an impact on the job

(Forbes, 2012, Corporate Social Responsibility: A Lever For Employee Attraction & Engagement)

The challenge today: Integrate responsibility into core activity

Key tasks on the journey to responsibility:

− Be open to change− Humanize the corporation− Make the business case− Reassess the time-value

equation− Leadership at all levels− Create a portfolio

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Integrated Reporting – a big step forward

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“Integrated Reporting brings togetherthe material information about anorganization’s strategy, governance,performance and prospects in a waythat reflects the commercial, socialand environmental context withinwhich it operates.”

International Integrated Reporting Council (IIRC), 2011

Sustainability becomes materialSustainability Accounting Standards Board

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Juha LeppänenJuha Leppänen

Where do we want to go?Positive scenarios of sustainable business

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• Governing the Commons

• Local Loops

• Empathetic Communities

• Singular Super ChampionsJuha Leppänen et al, Demos Helsinki (2012)

• Market Forces

• Policy Reform• Fortress World• Great Transition

Raskin et al, Tellus Institute (2010)

Now, let’s take a leap forward to the world of banking in 2050

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