Purpose Drives Profit, In Partnership with VRF and AICPA
On 28th June 2021, we launched the 4th edition of Purpose Drives Profit, a research project done in partnership with the Value Reporting Foundation and the Association of International Certified Professional Accountants, the unified voice of AIPCA & CIMA. The research surveys global business executives to analyse the link between corporate purpose and profit, and how they can be effectively combined to create long-term value for the business’ key stakeholders.
This report, the fourth in a series designed to provide boards with insights into how businesses are shaping their narrative on how they create, preserve and erode value, is the outcome of a survey of executives in more than 20 countries around the world. As this report shows, we are witnessing significant changes to what society expects of business and how businesses think about and communicate their purpose.
The research was launched with a globally attended webinar, moderated by Black Sun's Chief Insight and Engagement Officer, Sallie Pilot, who presented the research findings and moderated the discussion with the following pannelists:
- Robert Eccles, Visiting Professor, Said Business School
- Andrew Harding, Chief Executive, Management Accounting, Association of International Certified Professional Accountants
- Robert Herz, Director, Value Reporting Foundation
You can find the event summary and recording here
Corporate purpose critical, although gap exists in action
98% of executives surveyed believe it is important for companies to have a clearly defined purpose. In practice, however, only 51% have clarity of purpose in their organisations.
Better information needed to deliver future success
99% agree that understanding all dimensions of value (beyond just financial) is necessary to make timely and well-informed decisions. Only 11% are currently making extensive use of broader performance metrics in their strategic decision-making process.
Long-term thinking is essential for long-term success
75% believe that company performance would improve if management used longer-term perspective, but only 28% work with a time horizon of more than three years.
Integrated thinking and reporting can help drive behaviour change
76% believe that integrated thinking drives better decision-making and sustainable actions. Similarly, 75% believe that integrated reporting helps communicate wider value creation story.