Purpose for PLCs - time for Boards to focus
Charles Wookey
Helping business leaders to navigate the journey of creating a purpose-led organisation, in a high trust, fun and curious environment. Leadership consulting, teaching & speaking.
The gathering momentum encouraging businesses to become “purpose-led” has been given added impetus by the Covid-19 pandemic. Society will expect a payback from business as the private sector has been substantially helped to weather the crisis. Businesses need to recover in a way that actively contributes to addressing endemic problems of societal inequality and climate change, in coming years bringing not only jobs and income but also a better society.
But for this to lead to an enduring transformation in mainstream business practice - demands a crucial change in how corporate Boards see their role. Boards must become the collective trustees of the purpose, seeing their primary role as ensuring the successful pursuit of the purpose through which the company makes its profits. This needs to shape Board behaviour and decision taking - including succession planning – to keep the company true to its purpose over time.
The 2018 FRC corporate governance code sets a very clear path in this direction but offers less guidance on what it means in practice. Recognising the needs of the moment, and the opportunity with both regulators and many investors pushing companies in this direction, Blueprint convened a working group all of whom are convinced that now is the time for plc Boards to act to make this shift an enduring reality.
The group included two FTSE Chairs, Sir Ian Powell (Chair, Capita); Mike Rogers (Chair, Experian and NED, NatWest Group) together with Clare Chapman (Chair of ACAS and NED, Weir Group and G4S); Maaike de Bie (General Counsel and company secretary at easyJet and Trustee of A Blueprint for Better Business); Oliver Holbourn (Director of Strategy, NatWest Group); Quintin Price (former global head of Alpha Strategies, Blackrock) and Christopher Saul (former senior partner, Slaughter and May).
We are very grateful to them and to others including LBS’s Alex Edmans and Margaret Heffernan from our Advisory Council for their insights.
The paper is designed to stimulate discussion and reflection by plc Boards. It briefly explores why Boards should bother with purpose, what it means in practice (including in relation to ESG), what behaviour is implied, and how to assess and measure progress. It ends with a short set of questions. Our suggestion is that if Boards have an initial conversation using this paper as a provocation, they also commit to a follow up in 6 or 12 months to review what progress they have made.
Charles Wookey, Monday 27th July 2020
Download the paper here - https://www.blueprintforbusiness.org/wp-content/uploads/2020/07/Purpose-for-PLCs_Blueprint.pdf
Chair of businesses in energy technologies.
4 年Now is a great opportunity to re-think the purpose and aims of business. Good example: BP this week. We need more, and faster, like that.
20+ Years In Purpose Work | Help professionals who want to find work that is not only about a paycheck | Work with leaders who care about having a positive impact as much as making profit
4 年This is so needed and so crucial for the future of our planet. I have given more than 2 decades of my life to creating Purposeful Organizations. At first nobody was even willing to talk about it. Now we need frameworks like yours to be used. Board level is even better. Thank you for creating this very important document. Would love to chat more.
Founder | Serial Investor | Remote Talent & Community Executive | Connecting Global Workforces | Remote.com Top 50 Influencer | Chief Well-Being Officer
4 年Thank you Charles Wookey for sharing this insightful paper. Nuria Rojo & Ozlem Brooke Erol you’ll enjoy reading this.
Advisor | Stewardship | Governance | Stakeholder Engagement | Strategic Comms | Best Practice | ESG | Sustainability
4 年Really great paper Charles Wookey with a super set of questions to stimulate discussion and debate. I’m also glad you made the strong connection between ESG and purpose!
International speaker, Chartered Psychologist, Author 'Now We're Talking', 'Powered by Purpose' and 'How to Have Meaningful Conversations', Leadership & Dialogue Coach, Podcast host | Former Street Circus Performer |
4 年Thanks so much for this paper, Charles. It's great that you've included a set of questions for boards to grapple with. Bringing purpose alive through robust dialogue and real reflection is the way to go.