Peter Tufano, Peter Moores Dean, Saïd Business School was one of the guests at a White House Convening on Inclusive Business Practices and Long-Termism on 30 September 2016.
The event brought together senior leaders from the business, academic and philanthropic communities to share sustainable business practices that are good for both stakeholders and the bottom line, and to develop new, longer-term metrics to evaluate company success.
At the convening, Peter Tufano shared Oxford Saïd’s latest research in this area, In Pursuit of Inclusive Capitalism, a study carried out with the Ford Foundation and Monitor Institute. The study reveals that while recent political developments in the US and Europe emphasise that businesses need to advance more inclusive models of capitalism, initiatives focussed on promoting these models are struggling to change business behaviour.
The study, carried out among over 40 leading Business Collaborations and Non-Governmental organisations active in promoting more inclusive economies, looks at the approaches taken by these organisations and the challenges these and other leaders and innovators face in catalysing significant change.
• The majority of organisations in the study are focussed on influencing CEOs and leaders directly to affect change, with fewer targeting investors, consumers, or employees.
• However, there is uncertainty regarding the capacity of CEOs and boards to enable change, as they are hampered by narrow, short-term financial targets.
• In particular, current corporate governance and performance metrics, such as quarterly reporting, do not support necessary, healthy changes in business practice. New metrics and processes to organisationally embed them are needed.
• Organisations helping to promote more inclusive economies need to proliferate in Africa, Asia and Latin America as well as the US and Western Europe, where they are already active.
The study was conducted among over 40 leading Business Collaborations and Non-Governmental organisations active in promoting more inclusive economies through changing business practices. Many of the organisations—the B Team, B Lab, Just Capital, the Sustainability Accounting Standards Board (SASB), and others—are backed or advised by some of the world’s most successful entrepreneurs and innovative companies.