As businesses around the globe respond to calls to demonstrate their contribution to inclusive long-term value creation for all of society, the Coalition for Inclusive Capitalism and EY announced the collaboration in June 2017 to bring together CEOs from over 20 global companies to work on a proof of concept to encourage and measure long-term value creation.
As Paul Polman, CEO of Unilever and a member of the project, said: “Long-term investment and sustainable growth models go hand in hand. Businesses must operate with purpose embedded in their strategy, serving their shareholders and wider society.”
Indeed, purpose — not profit — has emerged as business leaders’ key to success amid the turbulent global economy.
According to the 2017 EY report, How can purpose reveal a path through disruption? Mapping the journey from rhetoric to reality, the majority (73%) of business leader respondents believed in the value of a strong corporate purpose. By acting on their purpose, companies can create more value for their shareholders and society over the long-term than by pursuing purely financial goals or a narrowly defined self-interest.
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