How to Shape a Better Future
We need a reset. It’s time for businesses to go beyond business as usual.
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A Time of Instability and Uncertainty
The rapid convergence of environmental forces, economic struggles, and social tensions has led to widespread uncertainty and called into question the role that institutions play in the world today. In this new context, businesses and governments face risk, volatility, and public skepticism like never before.
Society Wants More from Business
Consumers and investors expect shareholder returns and solutions for a better future. Businesses can deliver both—in fact, they’ll have to. Society is pushing companies to take a broader view of how they create value and improve their total societal impact.
The following trends are putting pressure on businesses to widen their commitments.
Businesses need a model for growth and value creation that can drive change, withstand the test of crises, and deliver long-term results for all stakeholders in a fractious and fast-moving world.
How to Reduce the Wealth Gap Between Black and White Americans
Financial institutions and governments can work together to address the racial wealth gap in the United States.
KEDRA NEWSOM REEVES
BCG MANAGING DIRECTOR AND PARTNER
Businesses Can Pave the Way for Change
Business leaders have a powerful opportunity to shape a better future, often in collaboration with the public sector. Six actions are critical to this effort.
The pandemic has intensified some of the greatest challenges facing the world today. In this environment, institutions have a unique opportunity and responsibility to help bring about a better tomorrow.
Great Is No Longer Good Enough
Great performance in the 21st century is all about delivering consistently strong returns to shareholders—right? The world has been transformed by environmental realities, economic struggles, and social tensions—three powerful, disruptive forces. In this new era, great performance is no longer good enough. And the old playbook for building business advantage is no longer sufficient.
LEARN HOW TO GO BEYOND GREAT
THE PANDEMIC HAS DEVASTATED COMMUNITIES
1.7 million
The number of lives that were lost to COVID-19 in 2020
IT HAS WREAKED HAVOC ON THE GLOBAL ECONOMY
4.4%
The loss in GDP growth worldwide in 2020 due to the crisis
AND IT HAS LEFT MANY COUNTRIES IN DEBT
30% to 130%
The amount of debt incurred by most nations to keep businesses and individuals solvent amid the pandemic, relative to annual GDP
CLIMATE CHANGE THREATENS TO COMPOUND THESE ISSUES
$20 trillion
The value of assets that could be affected by climate change
geopolitical UNCERTAINTY IS POISED TO EXACERBATE THEM
$10 trillion
The potential reduction in global GDP that could result from the continuation of high tariffs and trade restrictions
PEOPLE ARE READY FOR CHANGE
11.5%
The average annual increase, worldwide, in the number of mass protests from 2009 through 2019—a percentage that has certainly risen since
BUILD SUSTAINABLE COMPETITIVE ADVANTAGE
IN A NEW SOCIETAL CONTEXT
Companies can create innovative business models to optimize for business, environmental, and societal value.
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Increasing pressure to mitigate climate impacts
Expanding demand for good products that do good
Rising expectations for a powerful corporate purpose
Escalating investor and social activism
More than half of investors think that it’s important for healthy companies to pursue their environmental, social, and governance priorities fully as they navigate the coronavirus crisis, even if it means lower earnings per share.
In the wake of the pandemic, approximately 70% of consumers believe that tackling environmental issues is at least as important as economic recovery.
About 87% of consumers believe that companies should integrate environmental concerns into their products, services, and operations to a greater extent than they have in the past.
Nearly 75% of people want CEOs to discuss how their company benefits society, according to a 2018 Edelman study.
LEARN HOW BCG CAN HELP
JOIN THE FIGHT FOR RACIAL EQUITY
The time for climate action is now
Read more
Get our latest insights on leading in the new reality
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How to Lead in the New Reality
Explore more topics in the How to by BCG collection
How to Transform Amid a Crisis
How to Change Course on Climate
How to Cultivate a Corporate Strategy to Serve All Stakeholders
How to Lead in the New Reality
How to Transform Amid a Crisis
How to Change Course on Climate
How to Cultivate a Corporate Strategy to Serve All Stakeholders
1
Crush the coronavirus—
once and for all
2
Challenge your mental model
3
Build back greener
4
Mobilize collective action
5
Reskill employees for the future of work
6
Derive action from purpose
1
Crush the coronavirus—
once and for all
2
Challenge your mental model
3
Build back greener
4
Mobilize collective action
5
Reskill employees for the future of work
6
Derive action from purpose
1
Crush the coronavirus—once and for all
The end may finally be in view, but getting there will take a society-wide response. Collaborate with governments to protect the vulnerable, monitor virus spread, deploy fiscal stimulus, and ensure an efficient vaccine rollout.
GET TO THE COVID-19 FINISH LINE
2
Challenge your mental model
To adapt to new realities, challenge preconceived notions about what matters, including competitive priorities. Adopt new personal and organizational frameworks to address uncertainty and the conflicting demands of the day.
LEAD IN A CONTRADICTORY WORLD
3
Build back greener
The recovery will provide the opportunity to build a greener global economy. Support government-backed stimulus and development programs by creating jobs and providing the technology that will be needed to reduce greenhouse gas emissions and sustain long-term growth.
FUEL A GREEN RECOVERY
4
Mobilize collective action
In large organizations and societies, enacting change requires many people to synchronize new beliefs and behaviors. To rally many disparate stakeholders, ensure your organization's cause is worthy and strive for appeal, diversity, and unity.
UNLOCK COLLECTIVE ACTION IN A CONNECTED WORLD
5
Reskill employees for the future of work
The pandemic has accelerated rapid automation and digitization. The result is fewer qualified workers, which has stymied GDP and reduced innovation. Provide workers with personal development opportunities and the skills that they need to participate in an increasingly complex world.
ALLEVIATE THE TOLL OF THE GLOBAL SKILLS MISMATCH
6
Derive action from purpose
Well-wishing and understanding won’t solve large-scale problems. Identify your organization’s role in the world and use it to discover the unique ways that it can contribute to building a better society. The clearer the purpose, the greater the opportunity to effect positive change.
CHANNEL OUTRAGE INTO PURPOSE-DRIVEN ACTION
(Projected October 2020)
