Responsible leadership for a sustainable and equitable worldIn collaboration with AccentureSeeking New LeadershipThe study represents the first stage of a multi-year initiative between the Forum of Young Global Leaders and the Global Shapers Community, in collaboration with Accenture, to create a new framework for responsible leadership and to help organizations cultivate environments in which it can flourish.ContentsFOREWORD ELLYN SHOOK, PETER LACY, ADRIAN MONCK, AND JOHN DUTTONEXECUTIVE SUMMARY THE DECADE TO DELIVERLEADING FOR VALUE + VALUESTHE FIVE ELEMENTS MODEL OF RESPONSIBLE LEADERSHIP VALUING THE FIVE ELEMENTSYOUNG GLOBAL LEADERS AND GLOBAL SHAPERS STAND OUT RESPONSIBLE LEADERSHIP IN ACTION GEARING UPACKNOWLEDGEMENTS a stakeholder mindset anchored in compassion; a technology vision reinforced by creativity; generous humility; and listening to intuition. We classify these and others into Five Elements, qualities that leadership teams will need to navigate the decade ahead:StStakeholder Inclusion. Safeguarding trust and positive impact for all by standing in the shoes of diverse stakeholders when making decisions, and fostering an inclusive environment where diverse individuals have a voice and feel they belong. EmEmotion Accenture Responsible Business survey of stakeholders, July 2019. Sample size: 2,971.in the communities where they work and live. Accenture research reveals that in 2017-19, organizations investments in emerging technologies like AI doubled, while only 18% of organizations planned to significantly increase spending to reskill their peopletheir most important source of competitive advantage. As essential is a culture of equality: when people feel they belong, their ability to innovate soars. The stakes associated with these issues are formidable. And the new way in which leaders are being held accountable for them poses a fresh challenge in and of itself. The balance of power is shifting. Stakeholders are speaking out and taking action to drive better outcomes. A tweet from Greta Thunberg, the climate activist, has the potential to move stock prices. Generations Y and Z are on the front lines, influencing the debate on climate change, the rise of brands that take stands, and a new wave of investor activism. A recent Global Shapers survey of 30,000 young people revealed that their most important criterion when considering new jobs, after salary, is an employers sense of purpose or impact on society; this was cited by more than 40% of respondents.3Leaders are beginning to acknowledge the need for change. The U.S. Business Roundtables Statement of the Purpose of a Corporation, signed in August 2019 by 181 CEOs, emphasizes corporate Americas commitment to create value for all stakeholders, not just shareholders. And, to coincide with its 50th anniversary, the World Economic Forum has launched a new Davos Manifesto. A set of ethical principles to guide companies, the Manifesto builds on its 1973 predecessor, declaring that “The purpose of a company is to engage all its stakeholders in shared and sustained value creation A company is more than an economic unit generating wealth Corporate global citizenship requires a company to harness its core competencies, its entrepreneurship, skills and relevant resources in collaborative efforts with other companies and stakeholders to improve the state of the world.”“Emerging technologies require companies to rethink what it means to be a responsible business because they create new opportunities to address some of our most pressing societal problems.”“Emerging technologies require companies to rethink what it means to be a responsible business because they can have negative side-effects.”The Decade to Deliver8 | Seeking New Leadership Seeking New Leadership | 9These corporate statements and commitments demonstrate a new level of intent. But now leaders need to turn intent into action at a scale great enough to make a material and sustained difference for a broader set of stakeholders. For those at the helm of large organizations, navigating these diverse challenges ultimately comes down to delivering on three fronts: organizational performance, measured most often by short-term earnings or their equivalent; continuous innovation, the seedbed for longer-term growth, often propelled by emerging technology; and sustainability they also represent a disproportionately large share of profitable and trusted innovators. We therefore ran the analysis again with technology companies excluded; on this basis, extra mentions of Technology as leaders, we must drive that choice.”CAMILLA STELITANO, SECRETARIAT ASSOCIATE, ASIAN INFRASTRUCTURE INVESTMENT BANK (AIIB), BEIJING, AND WORLD ECONOMIC FORUM GLOBAL SHAPERSTAKEHOLDERINCLUSIONINTELLECT Accenture Responsible Business survey of stakeholders, July 2019. Sample size: 2,971.Question: “Which personal qualities / characteristics are most important for executives in charge of ensuring their companies behave responsibly?” The frequency of cited qualities increases towards the edge of the chart. StakeholdersCompany executives (all companies)Level of importance given to leadership qualities increases from 1 to 9Company executives (companies with low financial performance)Company executives (all companies)Company executives (companies with high financial performance)Level of importance given to leadership qualities increases from 1 to 9StStakeholder InclusionEmEmotion this proportion was rebased on a linear scale from 1 to 9 where 1 = 0% and 9 = 100%.Figure 6: Qualities needed for responsible leadershipthe views of the Forum of Young Global Leaders and the Global Shapers CommunityYoung Global Leaders and Global Shapers place greatest emphasis on Stakeholder Inclusion (St). This mirrors their conviction that social and environmental progress should be non-negotiable parts of any acceptable business model; such progress earns a “licence to prosper.” More than three in five (61%) of those we surveyed said that business leaders should only pursue business models that generate profitable growth and improve societal outcomes at the same time. Young Global Leaders and Global ShapersStakeholdersCompany executives (all companies)Level of importance given to leadership qualities increases from 1 to 9StStakeholder InclusionEmEmotion & IntuitionMiMission & PurposeTeTechnology& InnovationInIntellect& InsightIMPORTANCE OF LEADERSHIP QUALITIES87654321918 | Seeking New Leadership Seeking New Leadership | 19