Fernando Napolitano, CEO NEWEST
Preface by Stefano Caselli Dean SDA Bocconi School of Management
Afterword by KC Sullivan, President CNBC
"Many companies no longer utter these three letters: E-S-G.... On earnings calls, many chief executives now employ new approaches ... proposing new terms like “responsible business.”"
(The Wall Street Journal Jan. 9, 2024)
What you get from reading this book.
In democracies now, politics has lost its primacy and media is largely polarized while stakeholders' expectations have increased. This book shows how corporations can adapt and thrive in such rapidly changing societal contexts.
Policymaking is increasingly challenged by complex, technologically intensive, and ethically charged issues. Governments need help, and businesses are equipped to provide deep-skilled knowledge. AI and technology governance, regenerative medicine, energy transition and climate change, genetically modified food, the future of work, labor supply constraints and geopolitical fragmentation are some of the factors requiring careful policy responses.
We live in a world characterized by an imbalance among key democratic constituencies: governments, corporations, media and Non-Government Organizations (NGOs). Among these four pillars, the public impression of competence and influence, and the respect it engenders, has tilted in favor of corporations.
The IRG offers insight into that added complexity, and provides a methodology for corporations to manage it while continuing to generate economic growth and protect shareholder value. This approach aligns the corporation to this new out-of-sync-environment, allowing a corporation to better define the boundaries of its possible effective actions. It avoids being drawn into politics, which should remain the business of elected officials. At the same time, the loss of confidence in governments and media constituents is unfortunate and dangerous. Corporations should step forward, for the sake of stability and prosperity, to ensure the gaps are filled.
This book is divided into five chapters. Chapter I gives two brief overviews of the current state of the West, and the IRG as an effective response. Chapters II and III explain the background and necessity of this approach. Chapter IV analyses the evolution and the limits of ESG (Environmental, Social, and Governance criteria). Chapter V is an anonymised case study of the methodology of the IRG and how it helps shape the Influence, Relevance & Growth of corporations in this rapidly changing world.