There are many different definitions of purpose but, in its simplest form, purpose states WHY an organisation exists.
Since we were established in 2014, we have witnessed the development of an impressive body of academic work on purpose. Our interest is in how the academic work can be put to use – how can purpose help boards frame long-term strategy, and investors identify and support the creation of sustainable long-term value.
Done well, purpose provides a touchstone for all stakeholders and a guide to how you might expect a company to behave – whether you are an employee, a customer, a citizen, a regulator or a shareholder.
We believe that now is the time to find practical ways to implement these ideas:
- The UK Corporate Governance Code 2018 states that “The board should establish the company’s purpose, values and strategy, and satisfy itself that these and its culture are aligned.”
- The Covid-19 crisis has demonstrated the value of resilience and the importance of trust.
Corporate purpose has come of age. We believe that the focus should be on long-term sustainable value, as the one goal that unites all stakeholders and the entire investment chain. The company model is the best model that we have for evaluating competing needs, allocating resources and shifting priorities, but this requires that investors and stakeholders have confidence in the boards and executives of companies to make good choices that can create sustainable returns.
Investor Forum Annual Webinar – January 2021
We held a panel discussion – “The Trillion Dollar question: How does Purpose help Companies and Investors create Sustainable Long-Term Value?” (here). Keynote speakers included Helge Lund, Chairman of bp, Anne Richards, CEO of Fidelity International and Professor John Kay. ( Event replay available here)
Four O’clock Forum – October 2020
We hosted a Webinar with Blueprint for Better Business (here).