We keep being told that investors value growth in future earnings over short term profits [yes, early], so an article on Corporate Health in an Earnings-Driven Environment is welcome and helpful. It considers the kind of initiatives a company can undertake to balance short- and long-term well-being alike.
It seems that executives worry about global trends [political, economic, social and technological] but mostly don’t act on them because of more important immediate issues, limited resources and skills, or no idea what to do about them. Pity – it’s a rather basic strategic competence for large corporations.
McK Q argues that the value at stake from the business discontinuities threatened by climate change is huge, and that winners will reposition themselves to take advantage of a low-carbon future – no surprise there then! They go on to argue that businesses must act on global warming and other issues to narrow a general trust gap between them and the public. A small problem here is that consumer concern on climate change is low, and few think business has anything much to do with it. They’re wrong of course, but that doesn’t make it easier to justify spending wads of cash with no obvious business case. What the article fails to address is the opportunity to lead, rather than follow, public opinion – a skill that strong companies in many sectors really know how to do.