The Future of the Corporation

The report argues that for corporations to maintain their 'licence to operate' and achieve long-term success, they must transition from a focus on short-term shareholder returns to 'stakeholder capitalism.' It provides a framework for implementing stakeholder governance, including identifying material stakeholders, redefining corporate purpose, and integrating ESG KPIs into executive incentives. The document includes a legal analysis of director duties across 14 jurisdictions and case studies from bp, Ørsted, and Fidelity International, highlighting the role of the COVID-19 pandemic as a catalyst for this shift.

• Sustainable value creation requires companies to identify and engage with 'material stakeholders'—those significantly affected by the company's activities and those capable of affecting the company's ability to achieve its objectives.
• The COVID-19 pandemic accelerated the shift toward stakeholder capitalism by highlighting systemic frailties and increasing public and investor demand for companies to contribute as much to society and the planet as they extract.
• Effective stakeholder governance involves a journey starting with evaluating current engagement, undertaking risk and opportunity value assessments to identify material stakeholders, and identifying necessary internal and external expertise.
• Corporate purpose is evolving from a simple 'raison d’être' (solving a problem) toward commitments to avoid negative societal impacts or actively creating public benefit and sustainable value.
• There is a global trend of companies entrenching stakeholder ambitions in legal structures, such as the 'entreprise à mission' model in France or registering as a Delaware Public Benefit Corporation in the US.
• Director fiduciary duties vary by jurisdiction: in the US, the duty is primarily to the company and shareholders, while in the UK, it is to the company for the benefit of shareholders but requires regard for stakeholders, the environment, and the community.
• Ørsted demonstrates a successful sustainable transformation by shifting from fossil fuels to renewables, reducing carbon emissions by 86% since 2006 and targeting net-zero emissions in scope 1 and 2 by 2025.
• bp has integrated the 'planet' into its core strategy by aiming for net-zero emissions by 2050 or sooner and linking greenhouse gas emission reductions to bonus scorecards for approximately 37,000 employees.
• Fidelity International found that companies with strong ESG scores generally showed greater resilience during the market volatility caused by the pandemic.
• ESG reporting is transitioning from voluntary to mandatory, with the UK intending to make TCFD-aligned disclosures fully mandatory across the economy by 2025.

APA

World Economic Forum (2021). The Future of the Corporation. http://www3.weforum.org/docs/WEF_The_Future_of_the_Corporation_2021.pdf

Chicago

World Economic Forum. The Future of the Corporation. 2021. http://www3.weforum.org/docs/WEF_The_Future_of_the_Corporation_2021.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=The Future of the Corporation |date=January 2021 |url=http://www3.weforum.org/docs/WEF_The_Future_of_the_Corporation_2021.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2021future, author = {{World Economic Forum}}, title = {{The Future of the Corporation}}, institution = {World Economic Forum}, year = {2021}, month = jan, url = {http://www3.weforum.org/docs/WEF_The_Future_of_the_Corporation_2021.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }