The only constant in business is change, writes Future Food Movement founder Kate Cawley.
“Every company and every industry will be transformed by the transition to a net zero world. The question is, will you lead, or will you be led?” A powerful question posed by one of the world’s most powerful investors.
In his 2022 Letter to CEOs, Blackrock chairman and CEO Larry Fink asks what companies are now doing to disrupt their business so they can spearhead this transition and in doing so, become a vital investment opportunity in themselves.
Fink’s advocacy for climate action is clear, both in his defence of stakeholder capitalism and in his call for companies to embrace greater transparency and disclosure when it comes to environmental, social, and governance (ESG) practice and policy. But alongside this, CEOs also have a wealth of socially-minded themes to grapple with. Fink talks of how racial equity, childcare and mental health are revealing the gap between generational expectations at work.
CEOs must not only use their voice to connect on the issues most important to their employees and stakeholders, but on a more fundamental level, translate more eloquently what their business stands for. “Your company’s purpose is its north star in this tumultuous environment,” Fink maintains. In other words, if you can better communicate the guiding principles that drive your vision and mission, those you value most are more likely to stand by you, even in the most difficult of times.
Navigating this changing world is not easy. The pandemic has clearly shown that. Every company must now constantly adapt, not only so they can respond to evolving market and regulatory forces, but to meet changing stakeholder expectations.
Is your business ready?
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