A Chance to Change to Purpose 

COVID gives businesses an opportunity

By Tim Orr

There are so many things that this crisis has put into sharp focus. One that appears universal is the call to use this as an opportunity for real economic, social and climate change - millions of people around the world feel that this a seminal moment in global history. However, to slightly misquote Tolstoy “Everyone thinks of changing the world, but no one thinks of changing themselves”.

Some businesses could be accused of this. They have for a long while realised that they need to constantly change and adapt.  Creating a new corporate purpose has become the clarion call one that spreads more societal benefit than simply making a profit and providing a return to shareholders. Yes, they have had to report on environmental, social and governance issues for years but many cynics argued that that many have just paid lip-service to their regulatory requirements.

People who have expounded a purpose driven approach have tried to persuade companies that it is also good for business. And many have - leaders that get people to work in a meaningful and purposeful way out-perform their competitors, people are engaged feel they have worth and are prepare to go the extra-mile.

But are we now beginning to see something more deep-seated - a genuine understanding by business leadership that now is the time to really embrace purpose as a driver for sustainable, positive change? Recently there has been three significant examples of this. 

JPMorgan Chase  CEO Jamie Dimon in a memo to shareholders has stated that the coronavirus crisis should be used to build an economy that offers opportunities for “dramatically more people.”  He went on “An inclusive economy – in which there is widespread access to opportunity – is a stronger, more resilient economy.  This crisis must serve as a wake-up call and a call to action for business and government to think, act and invest for the common good and confront the structural obstacles that have inhibited inclusive economic growth for years.” Pretty powerful words coming from a company leader at the heart of the free-trading, non-regulatory US!

Danone has also just announced they intend to become the first CAC 40 company to adopt the ‘Entreprise à mission’ model (Purpose driven company) created by the French ‘Pacte’ law in May 2019. Specifically, Danone’s mission, ‘dedicated to bringing health through food to as many people as possible’, will be included in the company’s reporting as well as their societal, environmental and social goals.  

Then there is a group of companies worth a combined $2.4 trillion that have added their weight in calling for the economic recovery from COVID-19 to be green.

Adobe Inc., Unilever NV and more than 150 other companies have signed a statement asking governments to ensure their response to the pandemic is “grounded in bold climate action” and to prioritise moving to “a green economy by aligning policies and recovery plans with the latest climate science.”  Maybe this call doesn’t include enough of the ‘big beasts’ of the corporate world but it’s a start.  

Positives at the moment are difficult to come by. The virus is forcing us all to change – much of which was already underway, but the speed and scope of change is unprecedented. We all need to try and embrace it and point it in the right direction. As Mahatma Gandhi said “Be the change that you wish to see in the world” – businesses need to not only be part of the change but also help lead and direct it.