Corporate Purpose Can Help Companies Make Better Strategic Decisions

TORONTO, May 2, 2023 /CNW/ - At a time when public expectations of corporations are rapidly changing and the pressures to emphasize sustainability and purpose grow, a new research report published by the Canadian Centre for the Purpose of the Corporation argues that articulating and adopting a clear corporate purpose helps companies clarify their roles in society and make better governance and strategic decisions

In this latest research report titled Key Concepts and Terms in Corporate Sustainability Strategy, Sustainable Finance, and Sustainability Reporting, Rod Lohin, Executive Director of the Michael Lee-Chin Family Institute for Corporate Citizenship at the University of Toronto's Rotman School of Management, tracks the history of the themes and concepts that inform our current understanding of corporate sustainability. Challenging the "shareholder model" approach to capitalism, Lohin charts the evolution of sustainability in the domains of strategy, finance and reporting.

Noting that the concepts of corporate sustainability and sustainable finance are more mature and better understood than corporate purpose, Lohin argues the concept is nevertheless a promising way for corporate leaders to anchor their strategy. While not yet conclusive, early evidence suggests corporate purpose is an effective way to articulate more clearly a corporation's role in society and to make governance and strategic decisions that better align with its raison d'être.

Ultimately, it is up to each company's leadership team to find the right path, but acting sooner than later in establishing its purpose beyond financial gains may go a long way to ensure a corporation's sustainability. As Lohin puts it, "In this time of uncertainty, environmental, social and political strife, and the spectre of war, it is possible that early adopters of purposefulness will be rewarded for their clarity and commitment beyond economic prosperity."

The full report can be downloaded from the Canadian Centre for the Purpose of the Corporation website here.

ABOUT THE CANADIAN CENTRE FOR THE PURPOSE OF THE CORPORATION

The Canadian Centre for the Purpose of the Corporation is an initiative of Navigator, Canada's leading high-stakes strategic advisory and communications firm. The Centre's mission is to equip Canadian businesses and organizations with insights, tools and support as they work to redefine and strengthen both the scope of their purpose and the contributions they make more broadly to society.

SOURCE Canadian Centre for the Purpose of the Corporation

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