Profit is apparently no longer the goal for corporations. Now, it’s all about ‘purpose’.
This week, the corporate-led World Economic Forum (WEF) proudly published its Davos Manifesto in the Financial Times and Wall Street Journal asserting a vision of ‘the universal purpose of a company’. WEF’s founder Klaus Schwab said the manifesto offers ‘the best response to today’s social and environmental challenges.’ The question that must be asked though is: whose purpose is really served? Will it mean a transformation of the corporation as we know it, or might it instead be a strategy for increased corporate control of policy and politics?
On the surface, the Davos Manifesto looks commendable. It calls for corporations to treat customers with dignity and respect, to respect human rights throughout their supply chains, to act as a steward of the environment for future generations and, most significantly, to measure performance ‘not only on the return to shareholders, but also on how it achieves its environmental, social and good governance objectives.’ In this respect, the Davos Manifesto is an advance on the ‘Statement on the Purpose of a Corporation’ issued in August by 181 CEOs in the US Business Roundtable that made a vaguer commitment to generating ‘long term value’ and acting ethically and sustainably.
