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CB Bhattacharya,
Dean of International Relations
E.ON Chair in
Corporate Responsibility
ESMT, European School of
Management and Technology
Wall Street 2050: A New World Order
ESMT Annual Forum
July 3rd, 2014
ESMT, European School of
Management and Technology
The world today
7/8/2014 © C.B. Bhattacharya: All rights reserved 2
World is sleepwalking to a global energy crisis
7/8/2014 © C.B. Bhattacharya: All rights reserved 3
To have a stock market in 2050 – and one
that we like – we must rediscover the
company’s role in society
The three aspects of responsibility:
Accountability
who is to blame for what?
Expectation
what is socially expected?
Trust
are they trustworthy and reliable?
(Goodpaster and Matthews)
Challenge:
Reassess the company’s responsibility
7/8/2014 © C.B. Bhattacharya: All rights reserved 4
Lack of trust in business
7/8/2014 © C.B. Bhattacharya: All rights reserved 5
How much do you trust business leaders to do the following?
(Edelmann Trust Barometer 2013)
Challenge: Rising expectations –
Recognize and communicate interdependence
Globalization means interdependence
7/8/2014 © C.B. Bhattacharya: All rights reserved 6
International business more powerful  More responsibility to safeguard the common good
 New role in society
Of the 100 largest economies, 42 are corporations (IMF, World Bank, 2011)
Doing Well
Fulfil expectations and do well
Doing WellDoing Well
Doing good
CR
Doing well
Strategic CR
10/22/2012 © C.B. Bhattacharya: All rights reserved 7
Triple Bottom
Line
Challenge: Redefine the purpose of the company
7/8/2014 © C.B. Bhattacharya: All rights reserved 8
Future business leaders care much more about making an impact on the job
(Forbes, 2012, Corporate Social Responsibility: A
Lever For Employee Attraction & Engagement)
The challenge today:
Integrate responsibility into core activity
Key tasks on the journey to responsibility:
− Be open to change
− Humanize the corporation
− Make the business case
− Reassess the time-value
equation
− Leadership at all levels
− Create a portfolio
7/8/2014 © C.B. Bhattacharya: All rights reserved 9
Integrated Reporting – a big step forward
7/8/2014 © C.B. Bhattacharya: All rights reserved 10
“Integrated Reporting brings together
the material information about an
organization’s strategy, governance,
performance and prospects in a way
that reflects the commercial, social
and environmental context within
which it operates.”
International Integrated Reporting Council
(IIRC), 2011
Sustainability becomes material
Sustainability Accounting Standards Board
7/8/2014 © C.B. Bhattacharya: All rights reserved 11
Juha LeppänenJuha Leppänen
Where do we want to go?
Positive scenarios of sustainable business
7/8/2014 © C.B. Bhattacharya: All rights reserved 12
• Governing the Commons
• Local Loops
• Empathetic Communities
• Singular Super Champions
Juha Leppänen et al, Demos Helsinki (2012)
• Market Forces
• Policy Reform
• Fortress World
• Great Transition
Raskin et al, Tellus Institute (2010)
Now, let’s take a leap forward to
the world of banking in 2050
7/8/2014 © C.B. Bhattacharya: All rights reserved 13

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Wall Street in 2050

  • 1. CB Bhattacharya, Dean of International Relations E.ON Chair in Corporate Responsibility ESMT, European School of Management and Technology Wall Street 2050: A New World Order ESMT Annual Forum July 3rd, 2014 ESMT, European School of Management and Technology
  • 2. The world today 7/8/2014 © C.B. Bhattacharya: All rights reserved 2 World is sleepwalking to a global energy crisis
  • 3. 7/8/2014 © C.B. Bhattacharya: All rights reserved 3 To have a stock market in 2050 – and one that we like – we must rediscover the company’s role in society
  • 4. The three aspects of responsibility: Accountability who is to blame for what? Expectation what is socially expected? Trust are they trustworthy and reliable? (Goodpaster and Matthews) Challenge: Reassess the company’s responsibility 7/8/2014 © C.B. Bhattacharya: All rights reserved 4
  • 5. Lack of trust in business 7/8/2014 © C.B. Bhattacharya: All rights reserved 5 How much do you trust business leaders to do the following? (Edelmann Trust Barometer 2013)
  • 6. Challenge: Rising expectations – Recognize and communicate interdependence Globalization means interdependence 7/8/2014 © C.B. Bhattacharya: All rights reserved 6 International business more powerful  More responsibility to safeguard the common good  New role in society Of the 100 largest economies, 42 are corporations (IMF, World Bank, 2011)
  • 7. Doing Well Fulfil expectations and do well Doing WellDoing Well Doing good CR Doing well Strategic CR 10/22/2012 © C.B. Bhattacharya: All rights reserved 7 Triple Bottom Line
  • 8. Challenge: Redefine the purpose of the company 7/8/2014 © C.B. Bhattacharya: All rights reserved 8 Future business leaders care much more about making an impact on the job (Forbes, 2012, Corporate Social Responsibility: A Lever For Employee Attraction & Engagement)
  • 9. The challenge today: Integrate responsibility into core activity Key tasks on the journey to responsibility: − Be open to change − Humanize the corporation − Make the business case − Reassess the time-value equation − Leadership at all levels − Create a portfolio 7/8/2014 © C.B. Bhattacharya: All rights reserved 9
  • 10. Integrated Reporting – a big step forward 7/8/2014 © C.B. Bhattacharya: All rights reserved 10 “Integrated Reporting brings together the material information about an organization’s strategy, governance, performance and prospects in a way that reflects the commercial, social and environmental context within which it operates.” International Integrated Reporting Council (IIRC), 2011
  • 11. Sustainability becomes material Sustainability Accounting Standards Board 7/8/2014 © C.B. Bhattacharya: All rights reserved 11
  • 12. Juha LeppänenJuha Leppänen Where do we want to go? Positive scenarios of sustainable business 7/8/2014 © C.B. Bhattacharya: All rights reserved 12 • Governing the Commons • Local Loops • Empathetic Communities • Singular Super Champions Juha Leppänen et al, Demos Helsinki (2012) • Market Forces • Policy Reform • Fortress World • Great Transition Raskin et al, Tellus Institute (2010)
  • 13. Now, let’s take a leap forward to the world of banking in 2050 7/8/2014 © C.B. Bhattacharya: All rights reserved 13