Corporate purpose as a moral compass in the crisis

Helping a company's employees to work from home safely and securely. Managing drone traffic for deliveries of medical equipment. Keeping transport systems running across cities and countries so that healthcare professionals can get to work and patients can be transferred to other facilities. Manufacturing ventilators for hospitals. Developing contactless payment and access control solutions…

These are just a few examples of how a company's expertise can benefit society, and there are many more. I list them here not out of self-satisfaction but to show what technology companies such as Thales and others can do to serve the interests of society in a crisis like the one we are experiencing today. And to make the case that the role of a company truly goes beyond the pursuit of profit.

A company needs to play a material role in society and make commitments to its stakeholders (employees, customers, suppliers, shareholders, governments, etc.). Its leaders and employees have a duty to give meaning to what that company does.

“A company cannot achieve long-term profits without embracing purpose and considering the needs of a broad range of stakeholders,” said Larry Fink, Chairman and Chief Executive Officer of BlackRock, the world's largest asset manager, in January. “A strong sense of purpose and a commitment to stakeholders helps a company connect more deeply to its customers and adjust to the changing demands of society. Ultimately, purpose is the engine of long-term profitability,” he wrote in his annual letter to CEOs published at the beginning of the year.

The mission of a company states what the entreprise does. A corporate purpose goes beyond. It has the power to mobilise and to transform by explaining why the company exists and how it ultimately creates value for its customers and society at large. Having a clear purpose undoubtedly also has the potential to attract young talent, who are extremely sensitive to the meaning of their work and the role of business in society.

Thales has defined its purpose as "building a future we can all trust". It is a statement that took six months to write, six months of consultations with almost 50% of the Group's 83,000 employees about our deepest motivations and about the needs of society, today and tomorrow, that Thales can meaningfully address. It's the exact transcription of the DNA that has shaped the Group ever since it was founded more than a century ago.

 "It is crucial for our customers — the people behind the infrastructure that forms the nervous system of our societies — to share and support this vision."

It is crucial for our customers — the people behind the infrastructure that forms the nervous system of our societies — to share and support this vision. We only succeed if our customers succeed. Is our purpose ambitious? Yes. It's tremendously ambitious. And we need to show a level of humility, because Thales does not claim to be the be-all and end-all of trust.

Indeed, other companies have also defined their purpose around the notion of trust. It shows just how big an issue trust has become in our societies, a challenge so fundamental that we are all going to have to do our part to overcome it.

The extraordinary period we are going through is, I believe, an opportunity for businesses to prove the validity and authenticity of their corporate purpose, particularly in terms of responsibility. After so much talk about corporate responsibility, so many years of reports and declarations, the current period is time to check our facts and transform our words into deeds. As such, it marks the beginning of a new era.

Today, failing to take sides on societal issues is no longer seen as just being neutral. Not speaking out in support of something is now the same as being against it. This is a real change from earlier decades.

For instance, sports equipment manufacturer Adidas recently shared an anti-racism message posted on social media by its main competitor, Nike. That's not something competitors are in the habit of doing. I see it as a sign that businesses have come to realise the sheer scale of the challenges facing our complex world, and as material evidence of their responsibility to society.

"The Covid-19 crisis is a chance for every company to reality-check its corporate purpose and put it to the test. The exercise can be revelatory."

The Covid-19 crisis is a chance for every company to reality-check its corporate purpose and put it to the test. The exercise can be revelatory.

In Thales's case, we believe our corporate purpose revolves around three components of a future we can all trust: autonomy, resilience and sustainability. And reality shows that all three factors are indeed critical.

At the height of the storm, we were working alongside our customers every day to help them carry out their vital operations — in other words, to help them retain their autonomy, stay in control and perform their roles while everything around them was grinding to a halt. Our staff have supported our customers throughout these difficult times, for example by securing their telecommunications, keeping national and city transport services running and making ventilators to help hospitals care for Covid patients.

Another key topic today is resilience, which is the ability to not only bounce back but to help one's partners, customers and suppliers to overcome this crisis and return to growth.

Tomorrow, technology providers like Thales will need to show material evidence that their resources and capabilities effectively address society's demands for social and environmental responsibility. We are already on the case, working on concrete ways to reduce our own carbon footprint and limit the environmental impact of our customers and partners. For example, through our commitments, in making air transport more environmentally responsible, with a target date of 2023, or in manufacturing a payment card containing 70% recycled ocean plastics for a leading payment card issuer.

Our corporate purpose is our moral compass in this crisis. It is helping us to identify the issues that are most crucial to our customers and employees, and to determine how our tangible actions and solutions can help them most effectively while preserving their safety and security. Our purpose lets us look ahead with those who share our vision so that, together, we can build a future we can all trust.