XL highlights Shared Value at Davos
XL Group’s CEO Mike McGavick has called for integration of societal needs into business models in a talk at the World Economic Forum (WEF). McGavick addressed CEOS gathered in Davos on the benefits of Shared Value, the concept that focusing on the connection between societal and economic progress will help unleash a wave of global innovation and growth.
Shared Value, introduced by Michael Porter and Mark Kramer in 2006, is back on the agenda at the WEF as corporations seek success in a post financial crisis world.
McGavick says: “how we respond to potential clients and employees who ask not ‘What can you do for me?’ but rather ‘What are you doing for society?’ in many ways defines the success of our companies.”
The XL CEO’s comments are supported by the results of Deloitte’s third annual “Millenial Survey”, which found that 50 percent of millenials want to work for a business with ethical practices. In addition, the survey found that “millenials believe the success of a business should be measured in terms of more than just its financial performance, with a focus on improving society among the most important things it should seek to achieve.”
Discussing the role insurers must play in a world where Shared Value is a driving force, McGavick says: “as companies look to move forward and develop strategies that respond to the 21st century realities—like their customers’ changing needs, new technologies and the fight for talent—insurers must be ready with new solutions and products that cover these risks. But that’s not all; we also need to look at our own operations and industry.”
He concludes: “Shared Value presents opportunities to advance our business and the economic and social conditions in communities. Big questions need to be asked, there are huge challenges, but also massive opportunities.”
XL Group, Mike McGavick, Shared Value, World Economic Forum