Responding to the crisis: redefining corporate value

Abstract

PurposeThis submission aims to set out a new conception of value creation. In examining the impact of the downturn on notions of business success, and contemplating potential scenarios for new measures of corporate value, it is proposed to examine the implications for business in adapting to the new economy.Design/methodology/approachThe paper is based on Accenture's unrivalled access to business leaders around the world, both through work with leading multinational companies and a survey of over 800 global CEOs conducted on behalf of the United Nations Global Compact – the largest CEO study on sustainability to date.FindingsIn the wake of the financial crisis, significant implications are seen for conceptions of corporate value creation. In examining four potential scenarios for the development of the new economy, it was found that changing notions of business success will demand new capabilities for companies. New skills will be required in creating, measuring and communicating value, from the mechanics of performance management and complex negotiations with stakeholders, often utilising new technologies (such as social networking).Originality/valueThe paper, based on extensive conversations with an unprecedented set of leading global CEOs, posits a new conception of value creation for business in the new economy. By examining the forces shaping businesses' response to societal demands, there are set out some of the ways in which business could respond – and some of the capabilities that will be required to make the transition to a new era of sustainability.