- Jun 4, 2020
- Reaction score
My experience leads me to believe the change in CEO focus is clearly in progress in some industries but just as clearly not in others. Often where pension plans, institutional funds, and hedge funds hold significant positions the role of a CEO is indeed to maximize profit for stakeholders over a shorter term horizon, rather than generate the best impact, unless by impact we mean profit. I don't see progressive leadership in the majority at the top of the Canadian publicly-traded corporates I am familiar with, albeit we are an economy dominated by resource extraction and banking.Sustainability and innovation are on their minds. The job of a CEO is to maximize capital allocation to generate the best impact, and Western consumer sentiment has clearly shifted to this regardless of industry.
The role of a business is no longer to maximize profit for stakeholders. Please note I am not taking sides and do not want this to turn into another pissing match about economic theory and how interventionist one should be.
GenZ has repeatedly said that they want mission-driven, meaningful work ahead of maximizing profit and income. As this generation enters the workforce in higher numbers, businesses will adapt simply because leaders are rotating out.