“Economic recovery strategies should “catalyse the power” of so-called purpose-first businesses in order to grow this “critical” emerging sector and allow it to assume greater responsibility for tackling the climate emergency and other global challenges, an alliance of CEOs has said today.
An open letter signed by a group of leading CEOs – including the bosses of L’Oréal, Danone, Mastercard, Pearson, and Philips – argues that boosting the “purpose-first economy” would mitigate some of the need for “top-down government interventions” as economies recover from the Covid-19 crisis.
“This is essential, both for ‘Building it Better’ and for achieving the global 2030 agenda in the post Covid-19 world,” the signatories argue. “The time has come to formalise this emerging fourth sector of the economy and take purpose-first business to scale.”
‘Purpose-first’ or ‘for-benefit’ enterprises make up as much as one tenth of GDP in the US and Europe, according to the signatories, and as such already play a “significant role” in addressing global challenges…”