Company Value and Sociopolitical Issues
November 13th, 2007A McKinsey global survey has found that sociopolitical issues are making a more significant impact on companies.
A few of the findings include:
- Executives expect the environment, including climate change, to affect shareholder value far more than any other societal issue during the next five years. Their concern now exceeds that of consumers.
- Most managers are personally worried about global warming. Only one in ten reports not worrying at all, and just 3 percent say they do not believe that it is happening. Corporate political influence and involvement, health care and other employee benefits, and job losses from offshoring also rank high on the sociopolitical agendas of business leaders.
- Executives indicate that companies are getting a little better at managing sociopolitical issues and understanding what the public expects of them.
Consumers vote with their wallets, and employees want to work for the most reputable companies.
We expect that consumers and employees will expect a higher standard of ethics – including a concern for the common good – from companies in the coming years.
