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Making profit with purpose

From religious leaders to business leaders – hear what our panel had to say about business as a force for good at Annual Conference 2019.

18 Nov 2019, 4 min read

Business has a huge role to play in addressing the major challenges society faces today. Whether it’s investing in low carbon innovation, devoting resource to improving the mental and physical health of employees, or embedding equality in the corporate culture, business can and should make a difference to society. 

Our keynote speech and panel discussion at the CBI’s Annual Conference explores how going the extra mile can impact people, prosperity and the planet. The keynote speech was delivered by Peter Lacy, Senior Managing Director of Accenture Strategy, together with panellists: Brian Gilvary, Chief Financial Officer of BP; Denise Wilson, Chief Executive of the Hampton-Alexander Review; The Most Reverend Justin Welby, Archbishop of Canterbury; Ruth Harrison, Managing Director UK of ThoughtWorks. The panel was led by Faisal Islam, Economics Editor, BBC. 

“Business stands at the foothills of what will be a critical decade for us” 

Peter Lacy of Accenture laid out his three key points on how business can balance profit with purpose: 

  1. Many of the actions we’re already taking, and policy statements from the UK government and opposition parties (like net zero) are spot on in terms of the ethical and moral imperative we have as a country and as a group of businesses. If we get this right, it’s a path to competitive advantage both at home and abroad 
  2. There couldn’t be a better time for Britain and British business to stand up and be counted to deliver on sustainable development and climate change 
  3. The circular economy represents a $4.5tn global market opportunity by 2030. 

CEOs understand these issues: 

  • 99% of CEOs think sustainability is important or very important for the future success of business 
  • 76% think rebuilding trust is an absolute business imperative 
  • But many CEOs are suffering from the current political uncertainty – 63% say it’s inhibiting process 
  • 55% say cost consciousness is making it difficult to make long term investment and develop strategies for environmental and governance issues. 

The circular economy opportunity 

The circular economy is not just about recycling – it’s a fundamental shift in the relationship between what we want from the global economy, decoupled from the harmful use of natural resources. Together, we can move the economy from take/make/waste to loops of take/make/take/make. The circular economy can be a chance for the UK to lead the world, and deliver for the many, not the few. 

Solving social inequality – the pace of change is not fast enough 

The Hampton-Alexander review covers FTSE 350 boards and leadership teams, equalling around 23,000 of the ‘biggest’ jobs in the UK. “We set a target for 2020 for 33% of women on boards and in leadership (for the FTSE 350) and 30% (for the FTSE 250)” says Wilson, the Chief Executive of the Hampton-Alexander Review. Boards are doing well, but the leadership level isn’t. “And even if we do meet these targets, we’re still talking about 67% of senior roles being filled by men. We know what’s happening, and the change is positive – but the pace of change isn’t fast enough.” 

Why just making a profit isn’t sufficient 

Society has become broken, argued Justin Welby. Business can help fix it but can’t do it alone. While business has to make a return on investment, profit alone is not enough. If you stop at profit, it creates a grossly unequal society, which will collapse. “No business exists for itself alone, just as no person exists for themselves alone.” Business should be a community of people with a common aim, and any good business has a community aspect, such as Timpsons’ policy on employing ex-offenders. “Business needs to represent the societies where they operate in their fullness” Brian Gilvary adds – gender, ethnicity, and sexual orientation. “You always get a better result with a diverse team that reflects the societies in which you operate.” 

Does the state need to intervene? Or can business step up? 

Many European countries use legislation to intervene. These measures can be effective, but not as effective as winning hearts and minds. To solve the problem, we need to change the way we look at leadership, as leaders can take any form. “I’m cautious about the state taking over the responsibility for this. Rules encourage tokenism and box-ticking, winning hearts and minds drives change” adds Justin Welby. It’s not for government to solve these problems alone, it’s about partnership and both business and government coming together to solve problems. Everyone in the workplace needs to see this as their issue, and everyone needs to take responsibility for creating an inclusive environment. 

Hungry for more? 

How business can deliver on sustainability.

How to build trust in your business. Hear from Dame Carolyn McCall.