Insights

The rise of the social enterprise 

2018 Global Human Capital Trends    

The 2018 Deloitte Global Human Capital Trends report showcases a profound shift facing business leaders worldwide: The rapid rise of what we call the social enterprise. This shift reflects the growing importance of social capital in shaping an organisations purpose, guiding its relationships with stakeholders, and influencing its ultimate success or failure.

In 2018, we are witnessing seismic changes in the workforce, the workplace, and the technologies used in the world of work. Based on this year’s global survey of more than 11,000 business and HR leaders, as well as interviews with executives from some of today’s leading organisations, we believe that a fundamental change is underway. Organisations are no longer assessed based only on traditional metrics such as financial performance, or even quality of their products or services. Rather, organisations today are increasingly judged on the basis of their relationships with their workers, their customers, and their communities, as well as their impact on society at large – transforming them from business enterprise into social enterprise.

In many ways, social capital is achieving a new-found status next to financial and physical capital in value. In a recent survey, for instance, 65 percent of CEO’s rated “inclusive growth” as a top-three strategic concern, more than three times greater than the proportion citing “shareholder value.” Today, successful businesses must incorporate external trends, perspectives, and voices by maintaining positive relationships, not just with customers and employees, but also with local communities, regulators, and a variety of other stakeholders. Building these relationships challenges business leaders to listen closely to constituents, act transparently with information, break down silos to enhance collaboration, and build trust, credibility, and consistency through their actions. This is not a matter of altruism: Doing so is critical to maintaining an organisation’s reputation; to attracting, retaining, and engaging critical workers; and to cultivating loyalty among customers.

To learn more about the social enterprise read the full report

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