Why faith and moral leadership in creating sustainable growth

The founding purpose of the first World Economic Forum in Davos, in 1971, was to address “the challenge of the future” through “elaboration of role models and concepts for responsible and successful management”.

Over the years, Davos has worked to achieve its purpose through the exploration of various philosophies, including mindfulness in 2013, the Fourth Industrial Revolution in 2016, and stakeholder capitalism in 2020.

In spite of all the above efforts, we live in days of geopolitical conflict, societal fatigue, economic inequality and public scepticism towards governments and people in power.

As we enter 2025, I hope public and private sector decision-makers can renew an understanding and commitment to faith and a higher sense of purpose, which is why I applaud the Faith in Action initiative of the World Economic Forum.

Voters have sent the clear signal that they do not trust the neoliberal system and instead desire a more inclusive system that fosters lasting economic growth and social healing.

However, the infrastructure needed to rebuild that system, and the courage to lead it, remains as uncertain as the waning trust underpinning our institutions.

This fragility demands a renewed foundation for leadership – one grounded not only in strategy, but also in faith and moral principles capable of transforming the very foundations of our society and economy.

At its inception, capitalism was driven by the invisible hand guided by the common good, as explained by Adam Smith in The Theory of Moral Sentiments. Smith’s economic theories were deeply impacted by the Scottish Enlightenment of the 18th century.

Nearly 100 years later, Alexis de Tocqueville observed the role of faith in the development of the new nation, when he wrote in Democracy in America that: “Not until I went to the Churches of America and heard her pulpits flame with righteousness, did I understand the secret of her genius and power. America is great because she is good and if America ever ceases to be good, she will cease to be great."

At its best, the basis of capitalism is a dual moral and market imperative and this principle is at the heart of the Council for Inclusive Capitalism.

Established in response to Pope Francis’s call for “concrete ideas and decisive action which will benefit all people and … respond to the pressing issues of our day”, the Council has united CEOs, civic leaders and faith leaders with a shared mission: to reform capitalism so that it delivers shared prosperity and sustainable growth.

The members have actively embraced the opportunity to unlock powerful new models of collaboration that forge innovative partnerships and create long-term investor value.

Guided by a global Steering Committee which bridges the financial ecosystem – from asset owners like CalPERS and Temasek to financial institutions like State Street and Bank of America, and corporations like Salesforce and Tata – the Council operates on the belief that capitalism still has immense potential for good. Indeed, it has lifted billions out of poverty and improved access to goods worldwide.

Pope Francis’s words inspired the creation of the Council for Inclusive Capitalism and provided its call to action. When first convening the its Steering Committee in 2019, Pope Francis said to us, as he also wrote in his encyclical the Laudato Si’, that “business is a noble vocation, directed to producing wealth and improving our world”, emphasizing the creation of jobs as a service to the common good.

Across faiths and traditions, this call to care for others echoes in the teachings of all great faith traditions, which hold in common a fundamental commitment to supporting the most vulnerable among us, which is why the Council for Inclusive Capitalism is both ecumenical and secular, with Christian, Jewish, Muslim and Hindu members among others, as well as those of no faith.

With new moral leadership, guided by the enduring principles of faith, tradition and human dignity, I believe capitalism can rise to meet the call for shared prosperity and sustainable growth. This will require challenging investors, businesses and ourselves to lead with integrity and vision.

The hard work begins at events like the World Economic Forum's 2025 Annual Meeting at Davos, and through initiatives like Faith in Action and communities like the Council for Inclusive Capitalism. Here, the business case for moral leadership becomes tangible and accretive, not only as a force for public good, but also a future worth investing in.