In the latest installment of the Salzburg Questions for Corporate Governance, Isabella D. Bunn, a research fellow at Regent's Park College, Oxford, explores how to contribute to the ongoing process of analysis, engagement, and transformative action to give purpose to the corporation of the future
This article is part of the Salzburg Questions for Corporate Governance series by the Salzburg Global Corporate Governance Forum
Two forward-thinking events captivated audiences last month. The Back to the Future musical made its London debut, while the Future of the Corporation program held its final summit. Propelled by a time-traveling DeLorean, the show zoomed - literally - across the West End stage. Supported by innovative research materials, the summit was Zoomed - virtually - from the British Academy. Granted, no set of interdisciplinary reports can match the dazzle of this re-engineered sports car. Still, the findings do point to a significant re-engineering of the role of business in society, driven by the concept of purpose.
Launched by the British Academy in 2017, the Future of the Corporation is an ambitious research and public engagement effort that “aims to contribute to bringing about a paradigm shift that redefines business in the 21st century and builds trust between business and society.” Led by Professor Colin Mayer, CBE, FBA, of the Saïd Business School at the University of Oxford, it has been informed by extensive collaboration and consultation across sectors.
The initiative is framed around a central understanding of the purpose of business: “to profitably solve the problems of people and planet, and not profit from creating problems.” This objective was first explored within the Future of the Corporation Research Summaries. The final report, published in September, offers far-reaching analysis along with pathways for change: Policy and Practice for Purposeful Business. We are presented with a compelling question: How can purpose be put into practice?
Three themes can serve as focal points:
Supportive Frameworks
Purposeful business is embedded within a wider social, economic, and normative ecosystem. Its realization depends on supportive legal, regulatory, governance, and reporting frameworks. Given jurisdictional distinctions in policies and practices, the scope spans from the local to the global level. How can diverse frameworks, which are essential to both accountability and implementation, help deliver needed reforms?
Principles-Based Implementation
The Future of the Corporation identifies eight “Principles for Purposeful Business” on company law, regulation, ownership, governance, measurement, performance, finance, and investment. Each is accompanied by a series of proposed actions related to policy and practice. The Enacting Purpose Initiative (EPI), a complementary effort based at the Saïd Business School, draws on the principles in addressing practical challenges. EPI has developed a range of expert reports, including on topics such as board responsibility and integrated measurement. Can these principles advance an overall vision “through which people harness the potential of markets to deliver profitable solutions which benefit customers, the workforce, investors, communities, society, and the environment?”
Innovative Business Leadership
The project has showcased many examples of innovative business leadership, notably through a series of high-level Purpose Summits and various international outreach efforts. Related initiatives, such as the Economics of Mutuality, also provide valuable insights on management strategy and stakeholder inclusion. Of note is a recent book entitled Putting Purpose into Practice: The Economics of Mutuality.
The final report of the Future of the Corporation program considers how purposeful business can help solve global challenges such as net-zero and biodiversity; post-pandemic economic and social recovery; inequality, social exclusion, and regional disparities, along with the impact of technology on the future of work. How might the quest for purpose meet this moment, guiding a “reset” in the relationship between business, government, and society?
What role will you play in the future of the corporation? On stage, a rock anthem on the “Power of Love” brought the musical to a rousing finale. Within the global community, the “Power of Purpose” continues as a work in progress. Take this as your cue to step in and contribute to the ongoing process of analysis, engagement, and transformative action.
Back to the Future echoes a message from the underlying film version: “It means your future hasn’t been written yet. No one’s has! Your future is whatever you make it. So make it a good one.” The exhortation resonates with the task ahead for all of us: “The future of the corporation is whatever we make it. So let’s make it a good one.”
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Isabella D. Bunn is a research fellow in governance and global ethics at Regent’s Park College, University of Oxford. She has transatlantic experience as corporate counsel, trade and investment director, and endowed professor of business ethics. Her current projects examine developments in corporate values and governance, business and human rights, sustainable investment, and systemic integrity. She serves on the International Advisory Council of Oxford Analytica, a geopolitical consulting firm, and as senior advisor to its Foundation. Isabella is the distinguished fellow for corporate social responsibility at the Washington Institute for Business, Government & Society and a Fellow of the Caux Round Table for Moral Capitalism. She is also a member of the British Academy’s Corporate Advisory Group for the Future of the Corporation. Throughout her career, Isabella has held leadership appointments within the global legal profession, notably in international economic law, human rights, rule of law, and United Nations affairs. Her academic background includes BSFS, MA, JD, MPhil, and PhD degrees.
The Salzburg Questions for Corporate Governance is an online discussion series introduced and led by Fellows of the Salzburg Global Corporate Governance Forum. The articles and comments represent opinions of the authors and commenters and do not necessarily represent the views of their corporations or institutions, nor of Salzburg Global Seminar. Readers are welcome to address any questions about this series to Forum Director Charles E. Ehrlich: cehrlich@salzburgglobal.org. To receive a notification of when the next article is published, follow Salzburg Global Seminar on LinkedIn or sign up for email notifications here: www.salzburgglobal.org/go/corpgov/newsletter
