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2 - Boards of Directors and Purpose
Jordi Canals, IESE Business School, Barcelona
Book:

Boards of Directors in Disruptive Times

Published online:

16 November 2022

Print publication:

03 November 2022, pp 68-111
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Summary

In Chapter 2 I discuss how boards can work on the company’s purpose and shift their attention from profit maximization alone to become a purpose-driven organization. A corporate purpose offers a concise explanation of why a company exists and what it intends to do for customers, employees and society in a sustainable way. It provides a frame for shareholder and stakeholder expectations. With the growing emphasis on sustainability and ESG dimensions, firms need to develop an overall purpose-driven framework to ensure these pieces fit together and are well integrated into the firm’s strategy. Boards should learn how to work with the firm’s purpose, make it consistent with the firm’s strategy and understand how their work can reinforce or erode corporate purpose.

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2 - Boards of Directors and Purpose

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