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Monday, February 6, 2023

Your Corporate Purpose Changed. Has Your Strategy Kept Up? | HBR

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Corporate mission – the reason a corporation exists over the long term

Statement on the Purpose of a Corporation released by the U.S. Business Roundtable and signed by 181 CEOs from Apple to Walmart. It states that a company exists to serve all “stakeholders,” including “customers, workers, suppliers, communities, and shareholders.” In 2021, the Roundtable reaffirmed its view that a business’s fundamental objective is to serve its shareholders’ demands. The tone of BHP’s most recent annual report is considerably broader and more sophisticated, highlighting the company’s contribution to “social value.” In 2017, the company focused on financial performance and risk management, consistent with its shareholder-centric orientation.

The new mission statement for Woolworths is “to create better experiences together for a brighter tomorrow.” This effect on the company’s strategic planning is illustrated by the expanded set of KPIs it now delivers to all stakeholder groups. KPMG has introduced a unique position within the C-suite: Chief Purpose Officer. This individual “is entrusted with questioning the board and partnership on the decisions taken, and ensuring they are consistent with our purpose and values.”

Source: https://hbr.org/2022/07/your-corporate-purpose-changed-has-your-strategy-kept-up

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