Decelerating economies – business must innovate sustainable capitalism

Companies must innovate sustainable capitalism and define targets beyond profit.

This wakeup call also comes from the US Business Roundtable representing $7tn in annual revenues.

A vision that promotes a major transformation taking account of broader interests, leadership with focus on long-term value creation, employee engagement and customer demand has the potential to trigger changes in corporate behavior and innovate opportunities.

Global competitiveness report 2019 from World Economic Forum.

Shareholder primacy has dominated capitalism for two generations. So skepticism is obvious.

Management interests in share price performance, with a time horizon of just a year or two, must change.

Promoting longer-term interests will undoubtedly run into conflict with quarterly reporting requirements. Corporations can align compensation structures with long-term sustainable performance, measured in actual results achieved.

Fifty years of shareholder primacy has fostered short-termism.  Senior managers should not receive bonuses automatically, or for turning in quarterly profits. Rather, their compensation should be tied to longer-term objectives, including environmental and social goals.

Corporations must now prove that sustainability is not just a branding stunt.

Companies must be driven by a purpose beyond merely maximizing profits.  

Business must mobilize sustainable transformation through actions that generates what the world need.

A new corporate purpose has the chance to generate sustainable wealth and to share resources more evenly.

And most importantly – globally the demand for green and sustainable products, processes, visions are rising – so which companies do you think will survive the next 10 years?

Innovating sustainable business is sound capitalism.

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Lene Gammelgaard is a TOP 10 Motivational Business Speaker and a leading advocate for a more sustainable and engaging form of capitalism.

Lene Gammelgaard

Lene Gammelgaard short bio: International keynote speaker & bestselling author. Female. Knows how to inspire as well as mobilize people to innovate immediate action. Lene has combined her intellectual capacity with her hard won experiences from high altitude mountaineering into mental strategies backed by leading neuro science. Lene comes from a background in extreme sports and became the 1. Scandinavian woman to summit Mount Everest May 10 1996. Lene has a law degree, is a journalist as well as psychotherapist. Speaks English, German and Danish on conference level.

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