Next-Generation Executives' Top Concern 'Growth'... 71% Support "Climate Change Responsible Management"

[Asia Economy Reporter Ji Yeon-jin] The top concern of next-generation business leaders worldwide has been identified as 'corporate growth.'

On the 30th, PwC, the global network of Samil Accounting Corporation, conducted a survey targeting over 1,000 successors to corporate leadership across 68 regions worldwide. 65% of next-generation business leaders responded that 'growth' is the most important management issue.

In particular, this survey was conducted targeting next-generation leaders of family businesses where management is led by family members centered around the founder. Companies managed primarily by family members require an approach from the perspective of the business owner that encompasses not only business strategy, growth, and governance but also governance and asset management among family members, as well as succession planning.

As a result, it was confirmed that next-generation leaders have different views on Environmental, Social, and Governance (ESG) management compared to the current generation of leaders. While 71% of next-generation leaders believe that companies should operate with responsibility for climate change and its consequences, only 50% of current leaders agreed that responsibility for climate change and its consequences is necessary in corporate management. Regarding social contribution, 75% of next-generation leaders and 54% of current leaders responded that corporate contributions to local communities are necessary.

Although solidarity among family executives has strengthened amid the uncertainties caused by COVID-19, succession by next-generation leaders has rather been delayed. Among respondents, 56% said that communication among family executives has become more active, strengthening solidarity; however, this solidarity did not necessarily lead to succession of management rights. In the 2019 survey, 48% responded that next-generation leaders had gained important opportunities and roles to lead internal management, whereas in this survey, only 28% responded that they had gained such opportunities.

Min Jun-seon, partner at Samil PwC, emphasized, “This report, conducted with next-generation leaders from 68 regions worldwide, holds significant implications for Korean family business owners and their successors as well. As second to fourth-generation successions are taking place in Korea recently, a more systematic and comprehensive approach is necessary for companies to achieve sustainable growth and to solidly pass on the businesses established by the founders to the next generation.”

This content was produced with the assistance of AI translation services.