Business had to begin accepting that the milieu in which it operated had changed and that it was facing more than just an economic crisis, King Committee on Corporate Governance chairperson Professor Mervyn King said on Monday.

He told delegates at a 2010 economic outlook conference, hosted by the University of Pretoria's Gordon Institute for Business Science, that the world was facing a financial, a climate-change and an ecosystem and biodiversity crisis.

While the world would emerge from the global economic crisis in the not too distant future, the climate-change and biodiversity threats would linger, King asserted, adding that while banks could be bailed-out, no such remedy existed for "Mother Earth".

Therefore, sustainability was the social and economic imperative of the 21st century, with a burgeoning world population having created a planetary crisis.

AGENTS OF CHANGE

There were more companies and corporations than governments in the world, making business the greatest potential agents of change. However, there had to be a mindset change to ensure that the world did more while using fewer natural resources.

King hoped that such a change in thinking would gain traction at the upcoming Davos economic summit, which would take place in Switzerland, this week.

Herman Singh, CEO of Beyond Payments, a subsidiary of Standard Bank, noted that individuals also had great influence on business and could influence businesses into adopting greater energy efficiency and environmental practices.

South Africa's parastatals, too, had to start thinking planning over a longer horizon, with King arguing that power producer Eskom, in particular, needed to come up with a long-term strategic plan for delivering power that would involve more than building new coal-fired power stations.

OTHER OPPORTUNITIES

Meanwhile, Southern African Venture Capital and Private Equity Association executive officer JP Fourie told delegates at the conference that a big business imperative for growing post the economic meltdown, would be effective capital allocation and management of capital.

Singh added that it was important for businesses to cut costs, manage risks, but also to build a platform for future growth. If possible, businesses should invest in better assets while equity prices are low.

Tax and advisory firm Deloitte & Touche M&A advisory leader Mark Casey argued that the 2010 FIFA World Cup could be a significant opportunity for South Africa and local businesses.

However, he emphasised that South Africa and the African continent had to improve they way it marketed itself.

While investors in other regions had money to invest, few were aware of the opportunities in South Africa and Africa, Casey said, adding that businesses did not promote South Africa enough.