Dalian 2009 - What Is the Basis of a New Social Compact? | Summary and Q&A

TL;DR

Global leaders discuss the need for a new global social compact that addresses issues such as executive pay, climate change, and economic growth.

Key Insights

• 🌐 A new global social compact is needed to address the changing dynamics between the private sector, government, and civil society in a rapidly evolving world.
• ⚾ Executive compensation should be aligned with value creation and should be based on a balance between incentives for performance and accountability for negative outcomes.
• 💗 Businesses have a growing understanding of the need to integrate social and environmental responsibility into their operations and create shared value.
• ❓ Trust is a crucial element in rebuilding relationships and fostering collaboration between different sectors in the creation of sustainable social contracts.
• 💦 People's values and priorities may differ across cultures, but there is a need to find common ground and work towards global solutions.
• 🤩 Transparency, shared agenda, and accountability are key principles in developing and executing social contracts at a global level.
• 😚 The role of media is critical in promoting responsible reporting, facilitating public discourse, and bringing the world closer together.

Transcript

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Questions & Answers

Q: Should CEOs be compensated based on their performance, and should they be held accountable for the negative impact of their decisions?

The panelists argue that CEOs should be compensated based on their value creation and contribution to the company and society. They should also be held accountable for poor performance and the negative consequences of their actions.

Q: How can businesses be incentivized to contribute to the betterment of society beyond profit?

The panelists suggest that businesses have a growing understanding of the need to align their operations with societal and environmental concerns. They emphasize the importance of creating shared value and leveraging different types of institutions to tackle global challenges.

Q: How can a new social compact address the issue of income inequality and ensure broad-based economic success?

The panelists stress the importance of narrowing the income gap and creating incentives and policies that allow for broad-based success in the marketplace. They highlight the need for a more responsible consumer base, as well as government and business involvement in creating economic opportunities.

Q: What role does the media play in building a new social compact and shaping public discourse?

The panelists acknowledge that the media has a significant role to play in shaping public opinion and facilitating constructive dialogue. They call for a more responsible and comprehensive approach to media coverage, focusing on facts, validation of sources, and promoting public discourse that brings people closer together.

Summary & Key Takeaways

• The panelists discuss the need for a new global social order that addresses the changing dynamics between the private sector, government, and civil society.

• They debate whether executive compensation is a root cause of the financial crisis and argue for the importance of aligning compensation with value creation.

• The panelists emphasize the need for businesses to integrate social and environmental responsibility into their operations, as well as the importance of collaboration between governments, businesses, and civil society in addressing global challenges.

• They highlight the role of trust in rebuilding relationships and creating sustainable social contracts.