In Defence of Purpose

Attacks on corporate purpose show its growing strength, not its weakness

By Lewis Iwu, Founding Partner, Purpose Union

James Baldwin famously argued, "Not everything that is faced can be changed, but nothing can be changed until it is faced,". This quote is as poignant today as it was in the sixties. Currently, society must confront challenges such as health inequity and the very visible threat of a heating planet. We must challenge a financial system that still excludes too many and build an education system where demography does not shape destiny. Over the past year, however, a new type of resistance has emerged: a vocal and powerful minority of individuals undermining the fight to make our world better and the businesses attempting to be part of that effort.

Our central thesis is that businesses that stand for something are more likely to create financial value. Rather than diverting from core functions, such businesses align their goals with societal agendas. This has led to business leaders referencing their company's purpose when announcing significant business decisions. It has encouraged them to focus on how to make their workplaces, products, and services more diverse, equitable, and inclusive. Above all, it has aided their employees in understanding the social impact of their work.

This movement was always going to generate a reaction. A deadly global pandemic forced many of us to ask, "What are we here to do and why does it matter?" This collective introspection ushered in a new pace, new paradigms, a new lexicon that was bound to produce dissent.

Pushback has ranged from weaponising the term "woke" to dismantling inclusive programs and ousting purpose-oriented CEOs. Worse still, it has manifested in the use of executive power to block or remove the rights and protections of marginalised groups - minimising structural racism in the UK Government's 2021 Race Report, erasing the work of minorities from schools, the pushback against affirmative action and attacking the freedoms of the LGBTQ+ community.

It's time to face up to this specific challenge. With polarising elections next year in the US and the UK organisations must be more context-aware in this evolving environment. Over the years I have had the pleasure of working with changemakers, leaders, activists, and responsible investors worldwide. I've also spoken to sceptics. Those relationships and conversations have helped me to evolve my thinking, and led me to question what must happen next?

Purpose Resilience

First, we need more companies to step up to publicly make the case for why this agenda matters. This not only makes a difference but reassures employees that their colleagues care. We needed more leaders to back Natwest’s purpose-driven approach. While not all employees may agree with their company's social engagement, the ability to justify a stance based on a stated social purpose eases standing up for marginalised communities. 

The companies thinking ahead on this are co-creating criteria for how they respond to social issues rooted in their purpose. This allows them space to anticipate the issues and develop thoughtful responses ahead of time. Crucially, it can help build resilience when faced with vocal opposition. 

Giving Leaders Space

Leaders of organisations are yearning for the space to explore these issues and collect their thoughts on how these challenges affect their people and customers. CEOs must learn the art of debating social and environmental issues as a core competency of their role. Leaders who have the language and tools to engage are more likely to use their voices to drive change. A European company I work with regularly sets aside time for senior leaders to hone their public speaking and media skills on social justice and environmental issues, and it's made a substantial difference to the company's willingness to stand up for the issues and the purpose agenda in a positive way.

A successful defence of purpose in the face of the current backlash requires corporate leadership to be in the best possible shape to confront these arguments and win.

Winning Hearts and Minds of Skeptics

Finally, we must get better at making the case for purpose and all it entails to groups outside of the true believers. We need to craft a compelling narrative that can win over those who harbour scepticism or sit undecided on the fence about businesses playing an active role in solving society’s problems.

The methods of communication also need to adapt. It’s difficult to win hearts and minds on this agenda through PowerPoint decks and emails. This agenda is all about people and our lives. How can we use personal storytelling to inspire? How can we help those who are sceptical connect this agenda to their own values and personal purpose in life? Businesses must strive to connect the purpose agenda with individual values, making it tangible and worth supporting.

A world where companies are guided by a clear social mission is not perfect. It is a world where leaders will err and where corporate scandals will still happen. It is a world where it will be difficult to come up with a common set of measurements and one where companies can still make suboptimal decisions, even when they believe their purpose is guiding them. The ultimate choice lies between a world where companies are integral players in societal progress and one where they remain bystanders. I know which world most people would prefer to live in so it's now time to defend it…

This is an adapted version of Lewis Iwu’s letter ‘In Defence of Purpose’ which can be read in full by downloading this PDF.

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