What every CEO’s priority should be now

October 22, 2008

It has often been stated that any company that is thought to be making its profits at the cost of its stakeholders or society at large is set up to fail. The current financial crisis and the potential fall out in the real economy is likely to generate a debate on what companies are all about. Lots of taxpayers, pensioners, people with a savings account, employees may indeed be thinking that the economy has left them down. They are paying the price for failing financial institutions and they are worrying about what is going to hit them next. Meanwhile politicians, regulators and supranational bodies are positioning themselves as the “bay watch team”; ready to save many (not all) who are drowning. But is regulation the life vest that will provide a sound basis for recovery? Or will more regulation proof to be stifling and unproductive?

What I would expect every CEO to be doing now (now!) is to reassess the companies’ values and its links to society. What are we as a business all about? What can clients, stakeholders and society at large expect from us? How do we not only make money, but also contribute to social progress and environmental quality? What is our contribution to the future? These are not the type of questions that any CEO can answer by himself. Employees and external stakeholders should be involved in an intensive dialogue. This should result in a new roadmap for the company, which reflects a modern view on doing business: sound, inclusive, responsible and meaningful.
Business people should not shy away and wait until the crisis is over. They should stand up, show leadership and take the initiative to design business roadmap for the future.

So my question to my loyal audience of CEO's is: "What are you waiting for?"

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