Revisiting the Purpose and Responsibility of Business :
Creating Value for Stakeholders
Since early 2020, the coronavirus pandemic has disrupted all business sectors and the lives of people worldwide. This once-in-a-century pandemic will change the world's political and economic order, prompting us to rethink our socioeconomic system and our values.
Indeed, after several hundred years of vibrant development, the free-market economic ideals of capitalism now face various challenges. The impacts of the pandemic seem to be a warning to us that we need to accelerate the pace of reforms and to confront our new predicament. Many governments' temporary relief measures are not sustainable. We need to transform the socioeconomic system into an adaptable one to better balance economic efficiency, resilience and social inclusiveness.
In addition to the need for governments to enact policy reforms, there is a need for the rules of business to continue to change. Attitude shifts are redefining the way we measure business success. Intangible elements like corporate culture, reputation and trust are becoming new guiding principles used to assess business performance and investment potential. Other dynamic forces shaping the ecology of the business landscape include new industry and job structures, Internet-powered transparency, the strengthening of employee and customer voices and the decline in the importance of capital. ...