A NEW BUSINESS ENVIRONMENT
The global landscape is transitioning to greater interdependency as a convergence of markets and commerce, governing institutions and national cultures takes hold. The unprecedented resettlement of people and resources, accelerated by technology, is melding beliefs and behavioral norms. The world is becoming a lot smaller. What was once only local can overnight become global.
Smart organizations are realizing they need to reconfigure their relationships with a wider group of stakeholders including, local public and nonprofit constituencies where their economic interests are most dependent. They are investing in new partnerships and collaborations to become more responsible around utilization and consumption in their pursuit of profitability.
In addition, state and local governments are implementing their own sustainability programs as municipalities drive grassroots community efforts in response to a call for greater interdependency between private, commercial and public interests.
Financial markets are responding as well. The financial and investment communities are bestowing new respectability to the traditional soft drivers of business value – as reputation and brand equity, ethics policies, environmental impacts, human capital practices and leadership competency move front and center in direct proportion to share price and EBITDA. With some $1.3 trillion in global assets under financial management today, the use of information on a company’s environmental, social and governance performance is soaring as financial planners look to better manage risk and increase asset value.