YPO 2019 GLOBAL LEADERSHIP SURVEY 2,283 1,871
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1 YPO 2019 GLOBAL LEADERSHIP SURVEY Key findings on whether the purpose of business is to have an impact on society beyond profits and wealth. 4,154 total respondents 2,283 chief executives 110 countries 1,871 ypo.org global young generation respondents ages 18-31
2 2 A massive cultural shift about the role of business leadership is in progress. Business leaders, and society in general, are moving from considering a business s interest completely focused on its traditional shareholders to having a significant impact on more stakeholders, including society as a whole. Of chief executives surveyed, 74 percent note they have changed perspective on the role of their leadership in the past five years. In ranking stakeholders, chief executives rank employees and customers as the most important stakeholders, with family next and then shareholders. Both CEOs and the younger generation are aligned with a view that business should have a positive impact on society beyond pursuing profits and wealth. More than 92 percent of each group share this perspective. Both chief executive leaders and the younger generation are aligned on the top four areas of concern Top UN SDG* areas of concern among chief executives Climate change (37 percent) Lack of quality education (37 percent) Peace, justice and global institutions (30 percent) Availability of work opportunities and economic growth (28 percent) Top UN SDG* areas of concern among the younger generation Climate change (37 percent) Lack of quality education (27 percent) Availability of work opportunities and economic growth (24 percent) Peace, justice and global institutions (22 percent) * United Nations Sustainable Development Goals
3 3 Business leaders are working to ensure their businesses make a positive impact. To address these concerns, chief executives are working to ensure their businesses make a positive impact, creating jobs and prosperity for people and teaching/ mentoring others. Younger generation respondents, who are more likely not to lead businesses yet, are more focused on their efforts to have a positive difference in their actions overall and to reduce wasteful consumption of the environment. Further, chief executives are focusing their efforts on business and not politics. Political action ranked 10th in a list of efforts. The views of chief executives and younger generation respondents differ on what is holding back positive impact. regulations on business. There is a large opportunity for leaders to better communicate their intentions and actions to the younger generation. Just one percent of chief executives say they are not interested in seeking greater impact through business, while 32 percent of younger generation respondents believe business leaders are not interested in doing more. They also perceive corruption as a larger problem than those leading businesses today. There remains a great opportunity for public and private collaboration. All countries desire greater economic growth and more jobs, and business leaders seek greater positive impact through their businesses. The alignment in intention can realize greater outcomes with more communication and collaboration regarding government regulations, taxation and education. Chief executives cite government regulations and taxation along with shortages of capital funding and labor as the most important obstacles. Younger generation respondents cite corruption as the leading obstacle and believe chief executives are not interested in doing more to have positive impact. For them, these obstacles precede the effects of adverse government
4 4 KEY FINDINGS Nine out of 10 business leaders agree that the purpose of business is to have an impact on society, beyond pursuing profits and wealth. THE PURPOSE OF BUSINESS IS TO HAVE AN IMPACT ON SOCIETY, BEYOND PURSUING PROFITS AND WEALTH. (2,283 YPO members) This result, when compared to future business leaders, is identical. Perspectives toward the role of business in society have largely changed in the past five years. HAS YOUR PERSPECTIVE ABOUT YOUR LEADERSHIP ROLE SERVING BUSINESS AND SOCIETY CHANGED IN THE PAST 5 YEARS? (2,283 YPO members) The age range where business leaders are more likely to have reported a change in perspective is 36-50, as 82 percent of members in this age range report a change in perspective.
5 5 KEY FINDINGS Beyond YPO, employees, business colleagues and children are the largest drivers of chief executives changing perspectives. Employees and business colleagues tend to be more important influencers for the youngest YPO members (those under age 36) 56 percent and 45 percent, respectively. WHO OR WHAT HAS HAD THE GREATEST INFLUENCE ON HOW YOU VIEW THE ROLE OF BUSINESS LEADERSHIP IN SOCIETY? (1,699 YPO members who say that their perspective about their leadership role has changed in the past five years) Employees and customers are the most important stakeholders to business leaders organizations, with societal stakeholders trailing. AS A BUSINESS LEADER, HOW DO YOU RATE THE IMPORTANCE OF THESE STAKEHOLDERS? (Percentage of 2,283 YPO members who rate the Importance as very or extremely important) Age is a factor in determining the importance of stakeholders. As members age, external stakeholders such as the local community, society as a whole, and the planet grow in importance.
6 6 KEY FINDINGS Lack of quality education, climate change and the overall stability of countries were cited as the top three concerns for future generations among all respondents. Among the 1,871 future business leaders, a number of issues concern them more so than today s business leaders, including poverty (21 percent vs. 17 percent); affordable and clean energy (17 percent vs. 12 percent); sustainability of life on land (17 percent vs. 13 percent); aess to clean water and sanitation (16 percent vs. 13 percent); and gender inequality (13 percent vs. 6 percent). As is the case with the question pertaining to the importance of stakeholders, business leaders have greater concern for such societal issues as peace, justice and global issues, and income inequalities as they age. WHAT AREAS CONCERN YOU MOST FOR OUR FUTURE? (2,283 YPO members )
7 7 KEY FINDINGS The primary way that business leaders address these concerns is through their businesses. WHAT ACTION(S) ARE YOU TAKING TO ADDRESS THESE CONCERNS? (2,283 YPO members ) The two biggest areas where business leaders are taking action are by ensuring their businesses are making a positive difference and by creating jobs and prosperity for people. For the younger generation, reducing waste/environmental impact is where they differ significantly from current business leaders. Of these future leaders, 55 percent partake in this activity, compared to 37 percent of current business leaders. The biggest obstacle, aording to YPO members, in their efforts to create a greater impact through their business, is government regulations, with taxation cited as a distant second. WHAT ARE THE THREE BIGGEST OBSTACLES THAT STOP YOU FROM MAKING A GREATER IMPACT THROUGH YOUR BUSINESS? (2,283 YPO members ) Older members are more likely to consider government regulations and taxation the biggest obstacles. Government regulations are cited by 56 percent of YPO members age 56 and older, with taxation cited by 31 percent in this same age group. Younger members particularly those under age 36 tend to view shortage of labor (31 percent) and corruption (28 percent) as bigger obstacles. Future leaders are much more likely to view corruption as a larger obstacle than current business leaders (42 percent vs. 23 percent). A significant percentage of younger generation respondents (32 percent) believe that business leaders are not really interested in doing more.
8 8 About the Survey In early January 2019, YPO completed a Global Leadership Survey to share chief executive priorities and compare them with younger generation perspectives with a total of 4,154 respondents. The CEO survey was conducted by YPO with member CEOs from 110 countries from 23 December 4 January via an online questionnaire with a representative probability sample. The margin of sampling error is plus or minus 1.97 percentage points at the 95 percent confidence level. The companion survey of younger generation people (future business leaders) was conducted by YPO from 23 December 4 January. A total of 1,871 global respondents, ages with at least some college education participated in the survey. The margin of sampling error is plus or minus 2.3 percentage points at the 95 percent confidence level. CEO Survey Respondents Detail Age Distribution Younger than 36 4% % % % % % % Older than 65 8% Business Type Entrepreneurs 38% Family Business Leaders 28% Professional Managers 20% Non-categorized CEOs 14% Regional Distribution Africa 5% Asia 14% Australia/New Zealand 2% Canada 7% Europe 21% Latin America 10% Middle East/North Africa 5% United States 36% About YPO Since 1950, YPO has been a growing organization committed to developing better leaders and through learning and idea exchange. Membership is limited to leaders who achieved suess at an early age. YPO now includes more than 27,000 chief executives across 130 countries. YPO-related companies represent USD9 trillion in annual turnover and employ 22 million people. YPO members are creating a world of impact. See more here:
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