As income inequality grows, there’s a call for a reconfiguration of the way companies do business.
For years, business has been driven by three things: a move toward globalization, the embrace of fresh technological innovations, and a push to maximize shareholder returns. According to a recent Boston Consulting Group (BCG) article, the sun is setting on that strategy.
As income inequality grows, more people are calling for a reconfiguration of the way companies do business. The BCG article, “An Agenda for the Future of Global Business,” looks at the problems inherent in the old model. Globalization has spurred income inequality, technology has eliminated whole swaths of jobs, and the focus on shareholder returns has made corporations more short-sighted and less focused on long-term growth potential.
BCG predicts the new agenda will see businesses looking after their own prosperity but also “securing the conditions for sustained prosperity”—not only of their shareholders, but also on a global level of impact.