*{USA MEETING 2002 PRIVATE WORKSHOP: CHALLENGES OF LEADERSHIP [http://www.weforum.org/pdf/Initiatives/WLI_session_summary_USA02.pdf] WASHINGTON DC, USA 21-22 MAY This private workshop was designed to build on the theme of the World Economic Forum’s Annual Meeting 2002, Leadership in Fragile Times: A Vision for a Shared Future. Elaine L. Chao, US Secretary of Labor, and Christine Todd Whitman, Administrator of the Environmental Protection Agency, moderated the workshop and began by introducing the leadership issues in their respective areas and related them to corporate responsibilities. The workshop was interactive.} *partie=titre Labour: *partie=nil For the last two decades, corporations have focused on diversity in the workforce. Participants considered the latest trends of demographics such as an increase in ageing workers, women postponing childbirth to focus on their careers as many feel the difficulties in reconciling work with child rearing. What are the foremost challenges faced by international business leaders as they manage the current workforce? How can business best address these demographic issues and create the appropriate environment to foster the composition of this new workforce? *partie=titre Environment: *partie=nil Increased attention on environmental issues has placed new demands on government and business. What is the best way for business leaders to take on these challenges? Should business leaders ensure that their companies act responsibly? How do we reconcile the demands on prioritizing issues today – security and economics – with those of social corporate responsibility. The Aspen Institute contributed by tying together the preface of Secretary Chao and Governor Whitman and proposed solutions indicating how effective education at the executive and school levels can be. "Can a coordinated curriculum designed for educating current leaders and the next generation be a constructive way forward?" *{Secretary Elaine L. Chao:} The US labour market is undergoing a great deal of change and many of these changes will continue into the future. As we all know, the past is prelude to the future. Secretary Chao spoke briefly about some of the most important ongoing trends from recent decades, such as the unprecedented expansion of women in the workforce, and then about some aspects of how we think the labour market will develop during the first decade of the 21st century, particularly the anticipated demand for a well-educated, technically-savvy workforce. More women are working today than in the past. About 60% of all women are in the labour force, compared to nearly 75% of all men. The long-term increase in the female labour force largely reflects the greater frequency of paid work among mothers, while the slow, long-term decline in work activity among men reflects, in part, the trend to earlier retirement. As more women enter the labour force, the proportion that work year-round, full-time has risen fairly steadily. Women have increasingly opted to work these schedules, partly due to economic necessity, but also due to movement into occupations that are typified by year-round, full-time work. While many women are still clustered into “traditional” women’s occupations, women are also working today in virtually every occupation. They have made significant inroads, for instance, into management. Between 1972 and 2001, the proportion of managerial jobs held by women more than doubled, increasing from 20% to 46%. Growing proportions of women are working for their current employer for ten years or longer, in contrast to the trend among men. The average length of time women have spent with an employer has risen in nearly every age group. Flexibility, in fact, is a key characteristic of today’s workplace. As we look ahead over the remainder of this decade, three major aspects of the US labour force are clear: the labour force will continue to grow, the median age of the labour force will rise and the labour force will become more diverse. Women’s labour force growth will outpace men’s. The number of both men and women in the labour force is expected to grow, but the number of women will increase faster, thereby continuing to increase the share of women in the workforce. One of the most predominant trends in America is the ageing of the labour force. In summary, the US labour market has long been characterized by growth, flexibility and innovation, and the long-term outlook is bright. *{Governor Christine Todd Whitman:} There is ample evidence that attention to environmental and social consequences is part and parcel of farsighted corporate management. Why then is it typically so difficult to interest corporate leaders in these long-term side effects of their business operations?" "One reason," suggested a business participant, "is that the average CEO’s job is too complicated – the range of skills and areas over which CEOs are supposed to make decisions doesn’t leave time for social or environmental concerns." Corporate fixation on short-term profits and share price is another major barrier. Many communities who have decided that recycling is too expensive have found that further analysis of all the associated costs and benefits show that recycling more than paid off over time. At the moment, however, the only business sector willing to undertake such analysis of environmental risks is the reinsurance industry – since those firms recognize that their survival depends on accurate projections of future contingencies. Developing the needed metrics to make the case for environmental protection is still more complicated in the developing world, although the pay-offs may be even greater. What is needed are mechanisms to develop incentives – ideally market incentives – to promote corporate transparency, better measurement and analysis of risks and returns, and to internalize environmental and social costs into corporate decision making. Corporations, it was noted, react to three major stimuli: pain, gain and vision. Such stimuli can be provided or enhanced by various players: Government can affect both pain and gain through tax and regulatory policy. However, it is important that initiatives do not come “packaged” in red tape. Rewards and acknowledgement of good performance can be as effective, or even more effective, in promoting environmentally conscious corporate actions. Universities and graduate schools can work to produce future corporate executives with a commitment to changing corporate culture. Specifically, graduate business schools now experiencing some fall-off in applications could broaden their appeal, especially to women, by expanding their curricula to focus more on the environmental and social implications of business decisions. NGOs have certainly demonstrated their ability to inflict pain, but in recent years many environmental groups and foundations have shifted gears and now work harmoniously and helpfully with business. NGOs can also help drive public opinion which can be a highly important determinant of corporate behaviour. Strong leadership – and patience – are, however, necessities. A CEO can sell only one idea within his/her company every couple of years, whether it’s Six-Sigma or Total Quality Control. Nonetheless, as one participant noted, “CEOs exist for stories,” and government and outside groups can help by providing rewards and incentives for making those stories supportive of larger societal goals. “If all the money wasted on the latest corporate fad had been spent on the environment," he added, "the problem would be solved.”