Coro’s Blog: On Purpose
Closing the purpose governance gap
Published on May 23, 2023
Is your board stewarding your company’s purpose? Probably not.
Research by Corporate Knights shows that board mandates as reflected in their charters fail to set out the board’s role in oversight of the company’s purpose. While there are exceptions, this purpose governance gap creates risk for companies and society alike. It intimates that companies are rudderless, and that society will be put off its ambition for a sustainable future.
Last year, I collaborated with Corporate Knights in the world’s first rating of social purpose companies, “The Social Purpose Transition Pathway: Helping Companies Move from ‘Say’ to ‘Do.’” The study found most board mandates described the board’s oversight of strategy, culture, risk and financial performance but not the company’s purpose — the meaningful reason it exists.
Investors already are beginning to demand information on the companies they invest in.