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The coronavirus crisis is a devastating and deadly social problem. But, unfortunately, it’s far from the only social problem that the world in 2020 faces. Climate change, income inequality, population growth, resource usage, automation – the list is endless. Who should solve these social problems? We typically look to governments – or perhaps NGOs and foundations established by wealthy philanthropists. All play an important role. But perhaps the most important role can be played by an unlikely source – corporations.
Read MoreCorporate purpose is the buzzword of the day. Last August, the US Business Roundtable radically redefined its statement of the “purpose of a corporation” to include stakeholders, rather than just shareholders. Larry Fink, who leads the world’s largest asset management firm BlackRock, wrote in a 2018 letter to corporate CEOs: “Without a sense of purpose, no company, either public or private, can achieve its full potential.”
Read MoreThe Coronavirus crisis has seen some incredible corporate responses. Google has pledged $800 million in ads and loans to help businesses and crisis response efforts. Unilever is donating €100 million of food and sanitizer, and guaranteeing the jobs of all of its 155,000 workers – including contractors as well as employees.
Read MoreA purpose statement is meaningless unless it translates into action. For that reason, let’s explore five channels through which purpose can be embedded in an enterprise – strategy, operating model, culture, internal reporting and governance.
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