With the release of the “Davos Manifesto 2020,” the World Economic Forum (WEF) challenges the notion that a corporation’s sole purpose is to serve shareholders and maximize profits. WEF founder and executive chairman Karl Schwab maintains that the shareholder-centric model no longer fits early 21st-century realities, including climate change, globalization and digital transformation. His manifesto calls upon every organization to “engage all its stakeholders” and create value that benefits everyone. The manifesto is thought-provoking and worth a read, regardless of whether it remains merely a statement of principle or a guide to a new era of responsible corporate governance.
About the Author
Klaus Schwab is the founder and executive chairman of the World Economic Forum.