How can purpose-led business help in addressing these challenges?
The only way we will solve the problems that we face is if we can find a way to balance the power of the market with the power of inclusive institutions, and purpose-driven businesses committed to the health of the society could play an important role in making this happen.
Rebecca Henderson, ‘Reimagining Capitalism in a World on Fire’
There is a growing recognition of the urgent need for global change in the economy to meet the challenge of climate change and rising inequality – to move from an economic system optimised for growth and profit to one optimised for human well-being and a sustainable eco-system.
One view is that these problems are essentially the responsibility of government and regulation: they are environmental and social externalities and the role of business is just to comply with the rules and make money. There is of course a place for regulation, but if we are to address these challenges, we need business to contribute to rather than impede this system shift. Some of the larger businesses are bigger than countries – the changes needed cannot be achieved through changes in law and regulation alone and the power and influence of the large multinational companies in particular have the opportunity to lead a transformation of business to be a force for good to the benefit of both business and wider society.
There’s a limit to what you can achieve by regulation. Minimum wage laws can’t ensure meaningful work or training. Companies must be committed to serve society, rather than just complying with the law.
Alex Edmans, Grow the Pie in 28 tweets
A major UN report in 2017 on the role of business in meeting the SDGs identified $12 trillion of business opportunities and 380m jobs – but said these will not be realised by business as usual. . In this way of thinking the purpose of business is “to produce profitable solutions to the problems of people and planet, and not to profit from producing problems for people or planet” as Colin Meyer describes in his book ‘Prosperity’.
What is also needed is to find better ways of characterising the value for society beyond the financial value that businesses create, especially in a knowledge economy where so much of the value created lies in intangible assets. This is a challenge for both business thinking and reporting.
We won’t get to net-zero without innovation, investment and profit. Continued growth isn’t a fairy tale, it’s a necessity. But not just any growth, the power of the market must be directed to achieving what society wants, that requires measures of income and welfare that reflect our values, we need a world where we’re no longer solely guided by measures like GDP, that were devised a century ago when the earth seemed immortal, and the social norms of the market felt immutable.
Mark Carney, Reith Lectures 2020
There are companies that are acting but we need more to act. The World Benchmarking Alliance assesses the progress made by 2000 of the largest global businesses. This presentation which shared progress in early 2026 shows that if what is already proven to be possible is scaled up, it would be transformative.
This report by EY Beyond sustainability as usual explores how business transformation can unlock the new economy and shares some case studies.
There are a number of companies seeking to ‘solve the world’s problems’ here are a few examples.
Example: Allbirds
Allbirds address their climate impact through a three-part approach: measuring emissions, reducing their footprint, and supporting the removal of carbon from the atmosphere. This work spans five key focus areas – materials, manufacturing, transportation, product use, and end of life.
In addition, Allbirds maintain B Corp certification and position sustainability as an ongoing, measurable responsibility rather than a one-time achievement.
For more information refer to the company website here.
Example: Fairphone
Fairphone’s sustainability agenda focuses on creating smartphones that are fairer and more sustainable by design. Fairphone prioritise long-lasting, repairable products, responsible material sourcing, improved working conditions across the supply chain, and a circular approach that reduces electronic waste while driving systemic change in the electronics industry.
For more information refer to the company website here.
Example: Patagonia
Patagonia’s sustainability agenda puts environmental protection at the center of business. The company focuses on making durable, repairable products, reducing environmental impact across the supply chain, and using its business to support environmental action and long-term planetary health rather than short-term profit.
For more information refer to the company website here.
Example: Legal & General
In partnership with Croydon council, Legal & General bought 250 houses, renovated them and leased them back to the council to use to house homeless families. The scheme provided homes and much-needed stability for some of the most vulnerable people in society whilst at the same time supporting Legal & General’s long term pension commitments through creating long term annuity income and helping to create further savings for the council to reinvest.
For more information refer to the company website here.