Share value is being impacted by a corporation’s social purpose, however, the degree of impact is directly related to the alignment of business – synonymous herein to “corporate purpose” – and social purpose.
The realm of possibility
We’ve noticed that many of our clients treat social purpose and share value separately. For instance, some of our oil and gas clients are gaining understanding that they are more than a petroleum and product company but they have less understanding that energy derived from their products literally provides the fuel for the possibilities of individual and collective well being. Without this fuel, human possibility would be limited to a marginal industrial existence.
Why alignment of social purpose and business purpose?
One consequence of enabling possibility is the growing social inequity in the world. If corporate strategy does not integrate social purpose and business purpose then it doesn’t serve the interests of stakeholders, partners, employees and shareholders. Investors are increasingly looking for good citizenship from their investments. For a better understanding of how the investment industry treats purpose, you may find this article of interest.
Sustainability is a leadership skillset
Social purpose is one of the pillars of sustainability which is an essential leadership skill, not a separate bolt on program or initiative. Nations across the globe are advocating the adoption of the UN Sustainable Development Goals. Regulation and government oversight will not be far behind. Soon these concepts will increasingly be a requirement for the license to operate. How does your company integrate sustainability into your business? Are your leaders and employees on board?
If your company seeks to better align corporate purpose with social purpose we can help.
Read the full article at: www.forbes.com