Helping purpose-driven business thrive
The report outlines a three-point plan to empower purpose-driven businesses, providing actionable recommendations for global impact measurement leadership, creating a clear legal framework, and enhancing support for companies addressing societal challenges. Emphasizing the benefits of purpose-driven approaches, the report underscores the need for timely action.
The report contends that businesses, if purpose-driven, not only benefit society but also demonstrate increased success, resilience, and sustainability. Recognising the current difficulties companies face in reporting their impact, protecting their purpose, and accessing support, the report emphasizes the crucial role of businesses in the UK's recovery from the pandemic and pursuit of ambitious environmental goals.
It articulates a comprehensive three-point plan aimed at facilitating the success of purpose-driven businesses.
Firstly, the focus is on impact measurement leadership, advocating for a global standard to simplify reporting and enhance stakeholder understanding of a company's social and environmental impact.
Secondly, the report calls for a clear legal framework tailored for purpose-driven companies, addressing the convoluted incorporation options that hinder businesses from fully integrating their purpose into their legal foundations. The recommendation suggests introducing purpose-driven model articles of association and refining existing legislation to ensure a seamless and accessible incorporation process.
The third component of the plan aims to turbo-charge support for companies committed to addressing contemporary challenges, such as post-Covid recovery, achieving net zero, and promoting social equity in the UK.
The urgency for action is highlighted, considering the UK's role in hosting COP26 and holding the G7 Presidency, presenting an opportune moment to lead by example and inspire global collaboration. The report concludes by urging the government, businesses, and the purpose ecosystem to work collectively in implementing the outlined recommendations, envisioning a future where purpose-driven business practices are not only widely adopted but also contribute significantly to addressing pressing societal and environmental challenges.
Lead author(s): Mary Pizzy, Ed Boyd, Harry Brown
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Testamonials
“There is a common misconception that business leaders just think about profits. In my experience, this simply isn't true. Timpson was set up to benefit society, as I know so many other companies were. ReGenerate's report is as timely as it is needed. The reforms it contains - to create a clear legal form for purpose-driven businesses, to make sure they are well supported and to turbo-charge efforts to understand the impact a business has on the world - will help ensure businesses make their full contribution towards the big social and environmental challenges we face.” - James Timpson, Timpson, Chief Executive
“If you look at the scale of problems the world faces, whether it's climate change or the widening inequalities in society, it is clear that more is needed from business. Businesses have such a huge power to innovate and deliver at scale, and we need this power focused on the big challenges we face. This excellent report from ReGenerate contains some great ideas on how to re-shape the economy to unlock the power of business to do more good.” - Chris Hulatt, Octopus, Co-founder
“This report is very welcome. Businesses need to step up and help tackle the climate emergency. We’ve been doing this for 16 years; we rescue and transform wastes, donate 50% of our profits to charity, and run on renewables. Is this easy? No. If the reforms in this paper are implemented it will be easier for businesses to operate in a way that benefits society, and will increase transparency around those that don’t.” - Kresse Wesling MBE, Elvis & Kresse, Co-founder
“The world needs more purpose-driven companies which are dedicated to driving profits whilst benefiting society, because profit, people and planet are completely interwoven. We are a purpose-driven organisation which looks beyond profit to deliver positive investment impact in addition to strong financial returns. This report by ReGenerate offers constructive proposals on how to further help purpose-driven companies thrive, and is a welcome addition to the debate." - Peter Harrison, Schroders, Group Chief Executive
“There is now no doubt: we need the innovative power of business to help us recover from covid‘s social challenges and to tackle climate change. This ReGenerate paper is a welcome contribution and its reforms would help make the impacts of businesses far more transparent and drive support of businesses that seek to have a more positive effect on society.” - Sir Ronald Cohen, Global Steering Group for Impact Investment, Chair and Author of Impact
