Our regular round up of the latest findings across
talent, diversity and technology in business
SOCIAL MOBILITY IN CRISIS?
Most economies are failing to provide the conditions in which their citizens can thrive, according
to the World Economic Forum’s global social mobility index.
#15
#45
As a result, an individual’s opportunities in life
remain tethered to their socio-economic
status at birth, entrenching historical
inequalities. This is a major problem not only
for the individual, but also society and
the economy.
With human capital as the driving force of
economic growth, anything that undermines
the best allocation of talent and impedes the
accumulation of human capital may
significantly hamper growth. Poor social
mobility, coupled with inequality of opportunity,
underpin these frictions, suggesting that if
the level of social mobility were increased, it
could act as a lever to economic growth.
Most economies need to bridge their social
mobility gap. Overall however, the Nordic
countries are the best performers. Denmark
tops the rankings with a social mobility score
of 85.2, closely followed by Finland (83.6),
Norway (83.6), Sweden (83.5) and Iceland
(82.7). These nations combine access, quality
and equity in education, while also providing
work opportunities and good working
conditions, alongside quality social protection
and inclusive institutions.
Among the G7 economies, Germany is
the most socially mobile, ranking 11th with 78
points, followed by France in 12th position.
Canada ranks 14th followed by Japan (15th),
the UK (21st), the US (27th) and Italy (34th).
Among the world’s large emerging
economies, the Russian Federation is the most
socially mobile of the BRICS grouping, ranking
39th with a score of 64 points. Next is China,
which ranks 45th, followed by Brazil (60th),
India (76th) and South Africa (77th).
Evidence suggests that companies that
place purpose over profits perform better in
the long term. Looking purely at a business
case, companies increasingly realise that they
face equal risks from system challenges,
including inequality. By helping to make
societies more equitable, consumer bases
grow, operating environments become more
stable and there is greater trust between
customers and stakeholders. Paying fair
wages and eliminating the gender pay gap
will also be crucial to boost social mobility.
The report suggests that business:
Takes the lead: by promoting a culture of
meritocracy in hiring, providing vocational
education, reskilling and upskilling as well as
by paying fair wages.
Creates action plans specific to each industry:
required to address shifts in inequality taking
into account each industry’s circumstances.
WOMEN STILL SCARCE IN
THE BOARDROOM
16.9
%
Women hold just 16.9% of board seats globally, and just
4.4% of CEO positions, according to Deloitte Global’s
latest Women In The Boardroom report
February – May 2020 // 17