We recently wrote about our 5 key learnings from sitting down with Purpose Expert, Phil Preston. We had a detailed discussion surrounding the first indicator in the World Economic Forum’s Stakeholder Capitalism ESG framework: Setting Purpose.
But what if you don’t yet have a clear purpose statement? What effects does this have on your organization?
a) you might miss societal trends
For instance, a fossil fuel company without a clean energy transition strategy. Not keeping up with societal trends puts you at major risk of being labelled by stakeholders as environmentally, socially and financially irresponsible.
b) You might miss out on employing top talent
Today’s talent demands more from their employers. For example, Gen Z (born between 1997 and 2012) often puts aside its differences and rallies around causes that will benefit the greater good,” research by Facebook explains. “Gen Z expects brands to do the same—to live their own values and to offer value. In fact, 68% of GenZers expect brands to contribute to society.”
c) You risk missing out on funding and investment opportunities
Investors are no longer just looking at a company’s financial stability, they’re looking at their environmental and social sustainability too. Meanwhile, funders are directing trillions of dollars to companies that can prove they are operating transparently, ethically and responsibly.
You can view our full conversation with Phil on our YouTube channel.