What would you do to improve the way the global corporate system works?
At Kennox, we see great strength in the current corporate system, which includes the creation, growth and interaction of an enormous range of companies. Whilst there are unquestionably significant problems, these corporates are an essential part of the market-based ecosystem that has steadily increased living standards for so many across the globe for so long.
For this system to continue and to thrive, it is imperative that (enough) investors focus on risks over the long term. Decisions that risk this long-term sustainability should be discouraged, and ones to protect it encouraged. It’s not that every player needs to think in the long term, certainly many won’t. But there needs to be a critical mass of considerate and balanced long-term investors – these are essential to protect the benefits that so many individual companies, and all together the entire corporate and market-based system, bring to society.
What needs changed? Here are a few concrete actions that Kennox would suggest that would encourage this long-term thinking and behaviour:
The corporate system isn’t broken but it could certainly do with improvements. Let’s think ahead and protect it.