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Kevin Sneader, global managing partner for McKinsey & Company, shares his perspective on the business world: What's driving the shift from shareholders to stakeholders?
There's five reasons: First, inequality. A growing awareness that while the inequality gap has closed between countries, it's increased within countries. Secondly, climate change and the environment. An awareness of the growing threat and the need for action, now. Thirdly, globalization receding. A move towards more regional, even local approach, with all the impact that has on everyone in the supply chain. Fourthly, trust. It's hard for any CEO not to be aware of the breakdown in trust, not just between business and society, but between many institutions in society, more generally. And we have our part to play. Fifth, and perhaps most importantly, technology, the way in which it's shifting. The way in which is shifting jobs and the real recognition that the workforce and how it operates is no longer going to be taken for granted. There really needs to be a different approach. Those are the five reasons I offer up as a reason for the shift from shareholder to stakeholder economy.
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