Executive Summary Chapter 1: The Relationship Between Society and Business Matters 1) The Status Quo is Not Sustainable Beyond the enormous and acute global challenge of the COVID-19 pandemic, the Survey Participants – including the business leaders - identify climate change, inequality and inequity, a lack of trust and social cohesion, Canada’s place in the world, and Indigenous reconciliation as the largest challenges facing Canada and the world. To tackle these societal challenges, the role of business in society must evolve.
2) Business is Critical to Solving Today’s Toughest Challenges There is a need for a holistic and concerted effort by all institutions – including businesses - to solve the complex and consequential societal challenges confronting the world today. Businesses need to link profit with purpose by creating and sharing value with stakeholders which includes helping to tackle the immense challenges facing the world.
Chapter 2: Why Business Leaders Should Care 1) The Fraying Relationship Between Society and Business The relationship between society and business is strained and has degraded since the financial crisis of 2008. The relationship risks deteriorating even further if business leaders do not help tackle the world’s most important challenges through linking profit with purpose by creating and sharing value with stakeholders.
2) Growing Criticisms of Capitalism Although there are benefits produced by capitalism, there is a desire held by many that capitalism be reformed to help address societal challenges and focus more on a variety of stakeholders. It is felt that if capitalism is not proactively modernized with the assistance of the business community, this modernization will be thrust upon the private sector.
3) Impact on Their Business The challenges facing this generation will have a direct or indirect impact on the profitability and financial sustainability of businesses in the long term. Consequently, by increasing efforts to help tackle societal challenges, business leaders are helping mitigate external risks to their business.
4) Personal Legacy Concentrating on the legacy of a business leader is a poignant argument to utilize when trying to convince the business community to be purpose-driven and stakeholder-centric. 7
