Corporate purpose is rapidly moving from a concept evangelized by thought leaders to a mainstream business imperative, as highlighted by the recent global purpose leaders’ gathering convened by the Canadian Purpose Economy Project (CPEP). Momentum highlights the need for purpose-led enterprises as society grapples with the interconnected crises of the climate emergency, biodiversity loss, societal polarization, and social inequities and inequality.
The Rise of Corporate Purpose
At the simplest level, the social purpose company is a business whose reason for being is to create a better world. The British Academy took this a step further, defining the social purpose business as one that profitably solves the problems of people and planet without at the same time profiting from creating them. And significant momentum is building through current consultations on ISO 37011, a new global standard on purpose-driven organizations that defines them as those that make an optimal, strategic contribution to the long-term wellbeing of all people and the environment. By optimal, they mean optimized for the scale of the organization. By strategic, they mean toward a meaningful end for the company and its impacts, overseen by the company’s highest governing authority. And in service of the ultimate definition of sustainability—collective, comprehensive, long-term wellbeing.
The ‘purpose economy’ is the idea that companies and entire markets are reorienting themselves around societal goals—moving beyond profit to drive positive change on issues like equity, climate, and community well-being. The Canadian Purpose Economy Project defines a purpose economy as one “powered by the pursuit of long-term well-being for all in which business and regulatory and financial systems foster an equitable, flourishing, resilient future.” It’s a definition aligned to leading thinkers’ work in Wellbeing Economics, Doughnut Economics, and other leading frameworks and models. Globally, movements and legal frameworks are increasingly orienting around similar principles and ideals.
The Evidence – Purpose Produces Real Results
Data from Project ROI—a meta-analysis of over 640 studies—was shared during the call, including findings that companies with genuine purpose outperform their peers reducing turnover by 57%, increasing financial performance by up to 36%, lifting shareholder returns by 6%, and reducing the cost of equity by 14%. ‘Genuine purpose’ refers to leading companies’ practices of truly embedding purpose throughout their operations and mobilizing all their capacity and capitals in pursuit of that purpose.
Additional research by CPEP reinforces Project ROI. As Coro Strandberg, Chair and Co-Founder of CPEP likes to say, “Social purpose companies experience double the engagement, triple the growth, and quadruple the likelihood their customers will buy and recommend them. Leading with purpose isn’t just the right thing—it’s smart business.”
However, many corporate leaders remain unconvinced. Moving the ‘unconverted’ might require shifting from an opportunity mindset or frame of reference to talking about risk exposure and management. Leading companies are starting to report formally on both the risks to their purpose and the risks from their purpose. Canada’s Coast Capital is setting an international benchmark for their groundbreaking reporting.
Accelerating Purpose – Key Insights from Global Leaders
1. Embedding Purpose Across Operations
Moving from theory to practice is critical. Purpose must be woven into decision-making, from board oversight to corporate strategy, and authentically embedded across all operations.
2. Community and Collaboration
Stronger networks and storytelling help disseminate successful social purpose business models and approaches, driving a network effect such that as more companies embrace social purpose, all are better off as a result.
Associations offer significant—and significantly untapped—leverage points. Every nation, region, and sector has its own association infrastructure, which are often connected through apex international associations. Sharing resources, toolkits, and case studies through these networks can help mainstream social purpose—and fast. The BC Chamber of Commerce in western Canada offers a free virtual course, toolkits, and a model case study for replication.
3. The Power of Narrative
A recurring theme among global leaders’ dialogues continues to be storytelling. One idea that emerged from the recent leaders’ call was a commitment to develop an international repository of these cases to highlight practical journeys, mistakes, and triumphs of purpose-led companies worldwide.
4. The Role of Policy and Regulation
Action at the ecosystem level is also essential. France has passed legislation allowing companies to charter themselves as “social mission companies.” In the UK, the Corporate Governance Code requires premium-listed companies to declare and disclose their purpose. India requires large companies to spend 2% of profits on social good. Singapore’s approach integrates purpose into the framework for rewarding corporate excellence. So policy and regulatory momentum is building.
Calls to Action
The group articulated eight distinct calls to action for readers—actions each of us can take to advance the uptake of social purpose practices in business, and to move toward an economics of purpose.
- Move Beyond Rhetoric and Operationalize Purpose: Integrate purpose from board oversight to product development, employee incentives, and disclosure practices.
- Leverage Open Resources: Tap into the rich library of open-source guidance and case studies, including those in the resources library.
- Tell Better, Bolder Stories: Develop, collect, and share case studies—especially short, emotive video stories—to amplify both business impacts and human results.
- Build a Stronger Movement: Join or initiate communities of practice locally and globally; participate in awards, podcasts, and working groups—to learn and to lead.
- Make Purpose Accountable—Disclose and Report: Transparency attracts partners and investors and builds long-term trust. Purpose disclosure guidelines exist to help issuers include progress against their purpose alongside updates on sustainability and financial performance.
- Expand the Circle—Reach the Change-Ready: Move beyond the echo chamber. The purpose-inclined are randomly distributed everywhere! Leverage technology, social media and networks, and more to disseminate the work.
- Shift Language to Risk—Reach the Unconverted: When opportunity isn’t compelling, talk about the risks of inaction: to directors, investors, and customers alike. If directors aren’t paying attention to purpose, then they’re not holding up their fiduciary responsibility—which is itself a significant risk!
- Advocate for Policy Change: Engage in government and sector-level dialogues to build enabling regulation (like the UK’s or France’s models) to create a supportive legal and financial environment for purpose-led businesses. Use the logic of both risk and opportunity.
Inspiration for the Future
Transforming the global economy toward positive social purpose is both a marathon and a team sport. In the face of all that ails society today, the time has come to make purpose mainstream. The good news is that every business and every leader can contribute. As the movement’s champions say: “Start extending the invitations. Include people and leaders in our events, publications, and networks. Because when we get this work in front of the right eyes, they’ll be moved to embark on the work ahead… and as they deepen the work, social purpose will become the new normal.
For full toolkits, case studies, podcasts, and up-to-date resources, visit purposeeconomy.ca and the Canadian Purpose Economy Project’s resource hub. Start your journey, amplify the stories, and move with purpose—together.