27 | PwC’s 21st CEO Survey Business executives are contending more value) – have fuelled a virtuous cycle that First, adopt new measures of prosperity in a number, but we can create metrics that A Message from PwC Global Chairman Bob Moritz:and more with the results of societal has lifted billions out of poverty, prolonged that look beyond economic growth to capture and convey effectiveness in meeting Re-Aligning Global Economic Growth with Local Social Progressupheaval – geopolitical uncertainty, life expectancy worldwide, and facilitated a social progress. Financial performance is an these goals. populism, terrorism – rather than economic rich exchange of knowledge and talent that essential element underpinning any market or corporate risks such as access to affordable has spurred unprecedented productivity and economy, but it cannot be the only measure Second, foster a beneficial place for capital, new market entrants, or their own innovation. of success in a globalised economy. Other, technology in our society. Artificial readiness to respond to a crisis. Whether it broader measures, reflecting target outcomes intelligence expands technology’s potential is tax reform in the US, the Brexit talks, the However, the past decade has also seen in societal terms, must also be considered. for both good and ill. There is the clear risk spectre of Catalonian secession in Spain, a growing gap between the beneficiaries As business executives, we can supplement that it may displace more and more of the or China’s emerging vision for the next few of this prosperity, as these same market measures such as GDP and shareholder value human workforce and contribute further years, we continue to see geopolitics play forces – globalisation, technological with indicators of quality of life. to social isolation and the disruption of a critical role in how leaders craft their advances, and financial focus – increase communities. But this need not be the business strategy. transparency and enhance instantaneous, Leading CEOs are already actively exploring whole truth. Emerging technologies can global communication. Now the ‘haves’, alternative metrics for measuring the long- also help meet human needs in new and This year’s study also sheds light on a broader even in advanced economies, are feeling like term health of their companies and the profound ways (e.g., telemedicine, distance trend: the developing misalignment between ‘have nots’. The result has become glaringly communities they serve, beyond just earnings learning) and will create new industries and global economic growth on the one hand and evident in the bitter and divisive politics of or stock price, and boards are facilitating that unforeseen types of new jobs – jobs that will social progress on the other. For decades they our times. Too many people in too many parts shift by asking more qualitative questions: be more creative and fulfilling. CEOs are moved in tandem. Market-based economies of the world feel they are being left behind by What are we doing on talent? What is our already laying the commercial groundwork to have prospered, and so have their citizens. a system that no longer promises them and pipeline of innovation? How do our actions allow this socially positive innovation to take The three principal drivers of change – their children a better life. align with our mission statement? Are our place. In addition, we need to help ensure globalisation, technological advances, and customers satisfied? Are we contributing that it takes place across the globe in a broad financial focus (meaning a view of value What role can CEOs play to help arrest this to our community and society as a whole? and inclusive way. based primarily on GDP and shareholder growing divide? We outline four possible These are things that aren’t easily captured approaches: