From Purpose to Action
As a follow-up to the recent Business Roundtable Statement on the Purpose of a Corporation recognizes that companies have responsibility to a broad range of stakeholders – such as customers, employees, suppliers and the environment – on par with their responsibility to shareholders. WBCSD welcomes the commitments laid out in the statement aimed at making society more inclusive and resilient. However – as with all such statements – the challenge is making them actionable.
The time has come to accelerate the transition to a sustainable world where business and the capital markets contribute to a flourishing society and managing a company within the boundaries of the planet is the norm.
According to WBCSD President Peter Bakker, ‘for the statement of purpose to come alive, companies will need to do three things:
1) Adopt an integrated approach to performance management,
2) Move to an integrated enterprise risk management system,
3) Review and adapt their board governance.’
From my perspective, we are truly in a period of ACTION at all levels. Still the challenge for all commitments is turning them into actions and improved performance. As we advance the use of life cycle information into policy and decision making, actions will be key to success.