How Purpose-Driven Business Leadership is Shaping Societal Impact and Profitability
In light of growing concerns raised by employees, customers, and shareholders, more organizations are expanding their strategic focus to include social responsibility, says Punit Renjen, CEO of Deloitte Global. As one of nearly 200 signatories of the Business Roundtable’s statement on corporate purpose, Renjen identifies a new model of success that integrates societal impact. In this interview, he discusses the vital role business leaders play in addressing societal challenges while fostering growth and profitability.
What changes have you observed since the Business Roundtable released its Purpose of a Corporation statement?
Renjen: There’s been a noticeable shift in how businesses view their role in society. Leaders are increasingly adopting a broader form of capitalism, moving beyond prioritizing shareholder value to creating benefits for society as a whole. Changing societal expectations have made it essential for businesses to embed social responsibility into their strategies. It’s becoming clear that business success is tied to societal well-being.
Recent years have also brought more visible signs of climate change, such as devastating wildfires, record temperatures, and melting glaciers. These events likely influenced the findings of Deloitte’s Industry 4.0 Global Readiness Report, where 90% of business leaders expressed concern about climate change’s potential negative impact on their organizations. Businesses are beginning to realize that financial success and societal impact can go hand in hand. In fact, 62% of executives surveyed highlighted that achieving profitability while contributing positively to society is a top investment priority.
How are businesses addressing societal challenges?
An increasing number of leaders are taking significant steps to tackle complex global issues. This includes launching specific initiatives, enhancing transparency in non-financial performance reporting, committing to engagement, and fostering collaboration across sectors. According to our report, 60% of leaders have initiatives focused on resource scarcity, with 54% also addressing climate change and environmental sustainability.
When it comes to sustainability, over 90% of executives reported implementing or planning initiatives such as reducing travel and eliminating plastic waste. This is a dramatic shift from just two years ago, when only 10% of executives believed their organizations could make a substantial impact on environmental sustainability. Businesses are leveraging their strengths in innovation and scalability to address some of society’s toughest challenges.
What examples demonstrate how organizations are turning these ideas into action, particularly in investing in workers and communities?
Our research highlights numerous examples of companies making meaningful societal contributions. Adobe, for instance, supports lifelong learning through its Learning Fund, offering employees an annual stipend of $1,000 for personal or professional development and up to $10,000 annually for tuition reimbursement.
Similarly, SAP provides internal training in advanced technologies such as machine learning, artificial intelligence, and blockchain, addressing the challenges of recruiting talent with Industry 4.0 skills.
From an environmental perspective, Toshiba has installed 35,000 sensors in its offices to optimize lighting, air conditioning, and elevator use, cutting CO2 emissions by 50%. These examples illustrate how organizations can implement actions that benefit both their business operations and society.
How does corporate purpose support value creation, and how can organizations balance the interests of diverse stakeholders?
Evidence continues to show that purpose-driven businesses perform better across various metrics, including financial outcomes, employee satisfaction, and customer experience. According to our survey, 42% of executives believe focusing on societal issues presents revenue opportunities, demonstrating that companies can succeed by doing good. Furthermore, 80% of executives said they had developed products or services in the past year that positively impacted society or the environment, with 88% reporting revenue generation from these efforts.
Young people, in particular, are drawn to organizations with a strong sense of purpose. They prefer to work for and support companies that prioritize societal good over profits, seeking to be part of something larger than themselves.
The key message for stakeholders is clear: businesses thrive when society thrives, and society benefits most when businesses take the lead in solving critical challenges. Organizations must harness their strengths in areas like innovation, responsiveness, and scalability to drive meaningful change.
What changes have you observed since the Business Roundtable released its Purpose of a Corporation statement?
Renjen: There’s been a noticeable shift in how businesses view their role in society. Leaders are increasingly adopting a broader form of capitalism, moving beyond prioritizing shareholder value to creating benefits for society as a whole. Changing societal expectations have made it essential for businesses to embed social responsibility into their strategies. It’s becoming clear that business success is tied to societal well-being.
Recent years have also brought more visible signs of climate change, such as devastating wildfires, record temperatures, and melting glaciers. These events likely influenced the findings of Deloitte’s Industry 4.0 Global Readiness Report, where 90% of business leaders expressed concern about climate change’s potential negative impact on their organizations. Businesses are beginning to realize that financial success and societal impact can go hand in hand. In fact, 62% of executives surveyed highlighted that achieving profitability while contributing positively to society is a top investment priority.
How are businesses addressing societal challenges?
An increasing number of leaders are taking significant steps to tackle complex global issues. This includes launching specific initiatives, enhancing transparency in non-financial performance reporting, committing to engagement, and fostering collaboration across sectors. According to our report, 60% of leaders have initiatives focused on resource scarcity, with 54% also addressing climate change and environmental sustainability.
When it comes to sustainability, over 90% of executives reported implementing or planning initiatives such as reducing travel and eliminating plastic waste. This is a dramatic shift from just two years ago, when only 10% of executives believed their organizations could make a substantial impact on environmental sustainability. Businesses are leveraging their strengths in innovation and scalability to address some of society’s toughest challenges.
What examples demonstrate how organizations are turning these ideas into action, particularly in investing in workers and communities?
Our research highlights numerous examples of companies making meaningful societal contributions. Adobe, for instance, supports lifelong learning through its Learning Fund, offering employees an annual stipend of $1,000 for personal or professional development and up to $10,000 annually for tuition reimbursement.
Similarly, SAP provides internal training in advanced technologies such as machine learning, artificial intelligence, and blockchain, addressing the challenges of recruiting talent with Industry 4.0 skills.
From an environmental perspective, Toshiba has installed 35,000 sensors in its offices to optimize lighting, air conditioning, and elevator use, cutting CO2 emissions by 50%. These examples illustrate how organizations can implement actions that benefit both their business operations and society.
How does corporate purpose support value creation, and how can organizations balance the interests of diverse stakeholders?
Evidence continues to show that purpose-driven businesses perform better across various metrics, including financial outcomes, employee satisfaction, and customer experience. According to our survey, 42% of executives believe focusing on societal issues presents revenue opportunities, demonstrating that companies can succeed by doing good. Furthermore, 80% of executives said they had developed products or services in the past year that positively impacted society or the environment, with 88% reporting revenue generation from these efforts.
Young people, in particular, are drawn to organizations with a strong sense of purpose. They prefer to work for and support companies that prioritize societal good over profits, seeking to be part of something larger than themselves.
The key message for stakeholders is clear: businesses thrive when society thrives, and society benefits most when businesses take the lead in solving critical challenges. Organizations must harness their strengths in areas like innovation, responsiveness, and scalability to drive meaningful change.
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