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February 2007
Almost half of U.S. executives believe they and their peers should play a leadership role in publicly shaping debate and in efforts to address sociopolitical issues such as education, health care, and foreign policy, according to a McKinsey Quarterly survey. Yet only one-seventh of survey respondents consider themselves to be playing that role now.
The few who do play a leading role are likely to be board members or CEOs and often represent privately held companies. Most of them say they are motivated primarily by personal reasons, and they usually act as private citizens. Moreover, they say a comprehensive understanding of public issues and a strong network of peers with a similar interest make it easier for them to play a leadership role. The primary barrier to being even more involved is a lack of time.
These results expand on the findings of an earlier McKinsey Quarterly survey in which business leaders around the world recognized the importance of a corporation’s contract with society and the imperative for them to engage in discussions of crucial sociopolitical issues. These opinions are not surprising, considering that the social and political forces that today can define and swiftly remake a company’s reputation and regulatory environment can dramatically alter an industry’s strategic landscape and market opportunities over the long term. That survey (in which three out of four respondents said the CEO or chair should take the lead when companies try to manage sociopolitical issues) suggested a prominent role for top executives in articulating and helping to resolve the complex trade-offs inherent in big public-policy issues such as health care, education, poverty, and climate change.
The McKinsey data also reinforce the findings of Boston College Center for Corporate Citizenship researchers who asked 26 CEOs and 22 other senior executives to address the issue of the role of business leadership in society. Three strong messages emerged from The Center’s research, which is summarized in the monograph, Step Up: A Call for Business Leadership in Society:
- Public perception of the role of business has changed significantly since the 1970s.
- New responsibilities are being thrust on companies.
- The current business model is on a collision course unless companies recognize that society’s issues are impacting—positively and negatively—their long-term business success.
View the complete article here.
» Download a free copy of The Center’s monograph, Step Up: A Call for Business Leadership in Society (PDF; registration and/or login required).
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