A business’s purpose was once typically focused on maximizing shareholder value, but in recent years, a new ideal of successful business has emerged: that of purpose-led business. More and more CEOs are taking a stand to say that their company is about more than profit – it’s about striving to fulfill a long-term purpose that benefits employees, customers, society and the planet – as well as shareholders.
But how do you truly embed purpose throughout the organization? How do you make it authentic? And does purpose translate into commercial success?
In this episode of The Better Question podcast series, host Juliette Foster is joined by three passionate proponents of purpose-led business at the EY World Entrepreneur of the Year™ 2018 Forum in Monaco.
Tijn van Elderen is CEO of Brabantia, a family-owned household products business. Tijn is the EY 2018 Entrepreneur Of The Year™ in the Netherlands.
Simon Rogerson is co-founder of Octopus Group, a fund management business focused on financial services, energy and healthcare. Simon is the EY 2018 Entrepreneur Of The Year in the UK and Ireland.
And Valerie Keller is EY global leader of the EY Beacon Institute, which aims to inspire, equip and advocate for purpose-led businesses around the world.
Topics discussed include:
- What is driving many CEOs to rethink the fundamental purpose of their organization
- The conditions in which an organization’s purpose can create commercial value
- The importance of aligning what you say with what you do authentically
- The risks to organizations whose leaders dismiss purpose as rhetoric or a fad
- Disruption is driving business leaders to rethink the purpose of corporations, and to focus on a more human-centric, societal-serving Purpose.
- In this era of increased customer-power, boards that do not focus on creating a positive impact on a wide set of stakeholders – beyond shareholders – are in danger of losing their customers to more socially minded competitors.
- Purpose can provide both company leaders and employees with a north star to navigate through this time of accelerated change.
- Authenticity is key. It’s no longer enough to simply talk about purpose. It must be integral to all business activity.
For your convenience, full text transcript of this podcast is also available. Read the transcript.
Juliette FosterBusiness journalist
Duration 16m 48s
In this seriesSeries overview
EY Global Markets Digital and Business Disruption Leader