Governance & Policy
Purpose-Driven Business
Definition
A purpose-driven business articulates a corporate purpose beyond profit — a reason for existing that anchors strategy in creating value for stakeholders, society and the environment — and seeks to embed that purpose in governance, incentives and operations. The concept ranges from benefit corporations and mission-locked ownership structures to conventional companies adopting stakeholder-oriented purpose statements.
References
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This reference provides supporting context for how “Purpose-Driven Business” is defined and used.
Overview
How it is used
The concept is used in corporate strategy, stewardship codes, benefit-corporation legislation and investor assessment of long-term value creation.
Why it matters
Corporate purpose is the upstream question of all sustainability governance: what the firm is for determines what its environmental and social policies can achieve.