What’s the Purpose of a Company?
Ian Stewart, Deloitte’s Chief Economist in the UK, talks about the changing expectations of business over time. The tax and regulatory environment shift with the political cycle. Society’s expectations change too, and in recent years they have risen. Business has taken note. The Financial Times summed up the emerging consensus: “when business takes a broad perspective, it can leave everyone more prosperous, including shareholders. Rejecting the dogma of shareholder primacy is not a question of bleeding hearts, it is a matter of enlightened self-interest.”
Firms face a more challenging environment. Non-financial factors will increasingly need to be incorporated into core business strategies. This will involve new measurement frameworks, greater scrutiny, and careful consideration of the balance between profits and purpose.
Ethical business is good business and, in the view of lawyer and businessman Peter McMullin, good business is “not optional, it’s basically imperative that if you only want to attract the best people to your business, you’re going to have to have some attractive social purpose in your business. I think that’s a given from now. And if it wasn’t clear before COVID-19, it’s pretty clear now.” Ethical considerations can no longer be add-ons. Strong ethical practices should be embedded in every organisation. “Businesses that aren’t doing it are not going to be successful, in my opinion.”
Read the full article here.
via Reaction, 25 November 2019
Cranlana Centre for Ethical Leadership draws on more than two millennia of philosophical thinking to foster in-depth, practical discussions that sharpen critical reasoning and strengthen moral courage. Since our formation more than 25 years ago, we’ve seen thousands of senior-level people across business, community and government benefit from our rigorous programs. Cranlana’s programs include the 2 day Executive Ethics, 6 day Executive Colloquium and year-long Vincent Fairfax Fellowship. We also deliver online and tailored corporate programs. Annual scholarships are offered to not-for-profits, start-ups and individuals.