Together with a group of Chairs, NEDs and advisors, Blueprint for Better Business has produced this short paper which aims to move Board’s understanding and ownership of purpose beyond the framing of the FRC Guidance. We argue that plc Boards must step up now to meet the challenge of societal expectations in the post covid recovery and to do this they need to commit seriously to becoming “purpose-led”
The paper sets out in simple practical terms what this implies in terms of profit, ESG, behaviour and measures, and ends with 6 questions for Boards and Board members individually to ask themselves.
What is Purpose?
As LBS Professor Alex Edmans says, purpose is why an enterprise exists – who it serves, its
reason for being and the role it plays in the world. It’s the answer to the question:
“How is the world a better place by your company being here?”
Purpose is the particular and distinctive way in which an enterprise serves society and
builds a stronger better business. A purpose might be to develop medicines which
transform citizens’ health; to provide an efficient rail network that connects people with
their jobs, family and friends; or to manufacture toys that entertain and educate children.