While business has been good in some sectors of the economy recently, many corporations are currently facing problems that may stand in the way of robust growth in the near future.
In this article, we will briefly describe some of the challenges that need to be tackled head-on by courageous CEO’s so we can all get back to the prosperous times that we all wish to enjoy.
Ever since the Enron scandal hit in 2001, corporate corruption has been on the minds of investors. Reaching a boiling point after the global financial crisis of 2008, wrongdoing within Corporate America and on Wall Street has severely damaged the positive perception of many companies, even if they have done nothing wrong.
By taking a leadership role on this issue, companies that take a stand against corporate dishonesty will be looked upon favorably by consumers and investors. They will also stand to gain financially in the long run, as those two classes will reward authentic companies with their capital.
If you want to learn more about corporate corruption and how it affects the average American, we recommend checking out some Steve Sorensen embezzlement reports. As a knowledgeable financial blogger that has had a long career in Corporate America, Steve has seen it all through his work as a Financial Consultant and as a CPA, giving him a unique perspective on this topic.
Backed up by a degree in finance from the University of Colorado at Boulder, his perspective is one that can be trusted in a sea of voices that often seek to mislead the average person.
This issue dovetails perfectly with the issue of corruption. Everything that has gone on in the past 15 years has eroded the sense of trust of retail investors. As a result, many Millennials hold authenticity as one of their core values.
Companies that demonstrate that they are truly transparent will earn the trust of a cohort that doesn’t give it out easily. The financial rewards in the long run are great, as Millennials are a generation that is larger in population than the Boomers were at their peak.
3) Income inequality
Globalization has made the world a smaller place. This is a good thing, as it has enriched all our lives with a greater sense of connection to places on the other side of the world.
This trend has had definite downsides however, as developed economies are now grappling with varying levels of income inequality due to increased outsourcing and the movement of jobs to cheaper developing economies.
While this has caused corporate profits to skyrocket over the past few decades, the hollowing out of the middle class in America has begun to act like a parachute to future growth.
Almost 70% of American GDP is generated by consumer spending, and with wages and salaries stagnating or declining in real terms over the past 30 years, average Americans are running out of the money that they need to help companies increase their profits.
The answers to this issue won’t come easily, but with suggestions emerging that include an increase in the federal minimum wage, to the implementation of universal basic income, there is much corporations can do to promote solutions that will help get growth back on the right track.