The global economy faces a historical turning point: due to digitization both business models and job profiles disappear and emerge. International trade conflicts and protectionism hamper international trade and force global companies to change their structures. Increasing regulation and state interference spread across countries and industries. As a result of the zero interest-rate policy of the federal reserve banks, the indebtedness of companies has significantly increased and the number of stakeholders keeps growing due to the capital markets.
In parallel, the demographic change in most of the advanced countries is already leading to a shortfall in qualified employees, while the growth of the global population and increased urbanization create new opportunities and risks for companies. In addition, the climate change puts pressure especially on industries whose products and services are based on or related to fossil fuels.
In light of big changes, fundamental questions arise: what is the overall purpose of a company and which interests should drive decision-making? How can the company’s success be measured beyond key figures?
In an essay series “Global Economy at Turning Point”, the INSTFEA sheds light on these questions.