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MAY | JUNE 2015 BizEd 15 Purposeful Business MORE GLOBAL COMPANIES ARE transforming themselves into purpose-driven orga- nizations geared toward achieving innovation and growth, according to research conducted by EY and the Saïd Business School at the University of Oxford in the U.K. The research findings were discussed at the World Economic Forum in Davos Switzerland earlier this year by a group of distinguished panelists: Richard Branson of the Virgin Group; Arianna Hu–ngton of Hu–ngton Post Media; Antony Jenkins of Barclays; Paul Polman of Unilever; Irene Rosenfeld of Mondelez Inter- national; and Mark Weinberger of EY. The report includes a review of relevant literature and case studies from global firms, as well as interviews with senior executives across industries worldwide. These findings show that more corporate leaders think it's important to define the purpose of their companies—engaging a wider set of stakeholders as they do so—and to understand the company's role within the community. While leaders recognize the importance of building strategy and business models around their core purpose, they realize there is a gap between recognition and implementation. Andrew White, associate dean of executive education at Saïd Business School, says, "As companies acknowledge a broader set of stakeholders, ignoring this will be not just an ethical issue, but one that has a deep impact on innovation." The Davos event also featured the o–cial launch of the EY Beacon Institute, which will be dedicated to transforming business through the science of purpose, and the unveiling of EY global research conducted with Harvard Business Review (HBR) Analytic Services. The survey was conducted among 474 business execu- tives who are clients of EY or readers of HBR. The EY/HBR survey shows that 87 percent of respondents believe companies perform best if their purpose goes beyond profit; 84 percent believe their transfor- mation e©orts will be more successful if they're integrated with purpose; but only 37 percent believe their business models are well-aligned with their purpose. For more information, visit www.ey.com/purposeinstitute. A TALENT CRISIS Half of those responding to a survey of finance and HR professionals report that they are taking longer to fill positions, while one-third are hiring candidates they consider less-qualified. Why? They're finding that applicants to entry-level positions lack skills in leadership, change management, and technical knowledge. These gaps in critical abilities come just as organizations are expanding the skill requirements they have for entry-level roles in general and for finance positions in particular. "The Skills Gap in Entry-Level Management Accounting and Finance" was written by the American Productivity and Quality Center and the Institute of Management Accountants. Find it at competencycrisis.org/apqc-research/. LATINO SNAPSHOT Excelencia in Education has unveiled its 2015 Factbook about current Latino stu- dent educational achievement. Between 2004 and 2013, the number of U.S. Lati- nos earning associate degrees or higher increased 71 percent, from 3.8 million to 6.5 million. In 2011, 91 percent of Latino parents said they expected their children to obtain some level of higher education. These numbers are significant be- cause in 2012, Latinos were the second largest racial/ethnic group in the U.S. at 17 percent. By 2060, that number is projected to reach 31 percent. For more information, visit www. EdExcelencia.org. DEGREES OF ROI In a phone survey of 2,023 U.S. col- lege graduates of all ages, 50 percent believe that the return on investment (ROI) for a college degree today is lower than it was ten to 15 years ago. Wealthier college graduates are the most pessi- mistic—69 percent of those with annual incomes of more than US$100,000 believe today's grads will see a lower ROI on their degrees, compared to 47 percent of those making less than $35,000. The top two reasons for their pessimism? High student debt and low starting salaries. Other reasons include insu¢cient career placement services and longer times to degree completion. The 2015 College Degree Investment Survey was conducted by Nielsen (for- merly Harris Interactive) for Greenwood Hall Inc., an education management solutions firm.