The Scottish Government has launched a new commission focused on enabling more Scottish businesses to be successful by meeting the needs of society, as well as those of investors, staff, suppliers, customers and communities.
The Business Purpose Commission for Scotland is a group of leaders from businesses of all sizes, social enterprises, the voluntary sector, academia and government.
It has been set up to recommend how Scotland can become known at home and internationally for nurturing purposeful businesses. The joint initiative between the Scottish Government and Scottish Council for Development and Industry (SCDI) will oversee a short-life programme of work, reporting next spring.
The commission was launched by Richard Lochhead, Minister for Just Transition, Employment and Fair Work during SCDI’s Forum this afternoon.
Lochhead said: “The commission places Scotland at the forefront of an exciting agenda to ensure business maximises its contribution to meeting the great economic, social and environmental challenges of our time.
“The evidence confirms that businesses with a guiding purpose deliver improved performance – we are confident that increasing the number of purposeful companies will make a positive impact on Scotland’s economic prosperity, social wellbeing and environmental sustainability.
“We are firmly focused on creating the right economic conditions and fair work practices to drive a greener, fairer and more prosperous economy.”
Amanda Young, global head of responsible investment at abrdn, who is co-chairing the commission, commented: “Businesses which put purpose at the centre of their business strategy are more likely to achieve better long-term performance.
“The investment landscape has changed, which makes business purpose an even more important issue for Scottish businesses, particularly those seeking to attract investment.”
A new Fraser of Allander Institute survey of Scottish firms found that more than half of them think that finding profitable solutions to the problems of people and the planet best reflects the role that businesses have in society.
More than half of the 475 firms in Scotland who answered the institute’s latest Business Monitor (53%) think that the purpose of business is to find profitable solutions to the problems of people and the planet and not to profit from creating problems for either.
This compared to one in four businesses which think that the purpose of business is to maximise returns for shareholders/owners within the confines of the law. A further 22% of businesses thought neither of these statements best describes the role of business in society.
How purposeful are businesses in Scotland?
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