CEO MONTHLY / ISSUE 6 2022 16 Corporate Purpose & ESG – New Business Essentials. THE EMERGING FRONTIER FOR CORPORATE SUSTAINABILITY A global shift is redefining the contract between businesses and their communities from simply “being responsible” to creating real social value. Consumers, investors and employees increasingly expect firms to leverage corporate DNA – and address complex societal issues through the adoption of Environmental-Social-Governance (ESG) & Corporate Purpose frameworks. Governments and society are urging firms to consider a wider lens – believing that firms can and must create both shareholder & societal value. Despite the heightened politicization of ESG, societal forces shaping the future of business are not moving backwards; the pandemic illuminated examples of the positive role firms can play in addressing societal issues while concurrently delivering shareholder value. As such, firms who fail to adapt to the new reality will risk losing the global race for brand trust, talent, relevance and long-term competitiveness. Defining and owning your Corporate Social Purpose is the most critical competitive advantage of our time. Shareholders & Society will benefit. Dare to make the leap. The Goodman Sustainability Group and affiliated entities are focused on catapulting global action on Corporate Purpose. This means brands of all sizes, clarifying why they exist beyond a ‘profit-only model’ and establishing their imperative to deliver on both shareholder and societal value. We are Canadian based with a globally focused mandate, underpinned by an ethos of inclusive growth, a transformative leadership mindset and undaunted resolve to encourage corporate action on societal issues. We consult with firms of all sizes – demystifying and enabling their corporate sustainability strategies. We hold the view that the new frontier for competitiveness and sustainability fundamentally includes bold action on Corporate Social Purpose; this is the over-arching strategic framework for momentum on Net Zero & Environment, Social, Governance (ESG). Net Zero and ESG strategies untethered from Corporate Purpose, will struggle to be successful in the long-term. Notwithstanding the current uncharted context of geo-political risk, market risk & stakeholder complexity, we are nonetheless observing a historic corporate shift underway; society compelling firms of all sizes to step up and take bold action on sustainability. The race for talent, relevance and competitive advantage runs through Corporate Social Purpose. This new reality means adapt or be left behind. Corporate history has examples of iconic brands that ignored the “signs of the times” and are no longer here. Failure to heed the current signals has the potential to impact competitiveness and survivability. So, what does this mean? As corporations define their strategy in an uncertain global context, it will important to consider the implications of the following top 10 Sustainability Emerging Themes: 1. C-Suite Transformative Leadership Mindset (linked to competitiveness): In establishing a sustained ability to deliver on both shareholder and societal value, a transformational leadership mindset will be essential. This means organizing the firm for long-term competitiveness by imagining a sustainable future that currently does not exist and innovating to make that future a reality. The hallmark of progress will include heightened transparency, along with ‘courage & trust’ as compelling currencies for success. 2. No firm left behind: Small & medium enterprises/ entrepreneurs (SMEs) in the developing and developed world will increasingly join the corporate sustainability agenda. The most recent World Bank report on SME’s indicates that this segment makes up about 90% of businesses, they contribute more than 50% of employment worldwide and 40% of GDP in emerging economies. SMEs are vital to the global corporate sustainability transformation and in many cases, they are the back bone of critical supply chains. Of interest, large firms are not only tackling Apr22176 T
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