The Economics of Purpose

Let’s start with the facts:  

• The economic costs of the lack of purpose exceeds £130bn a year

• Purpose improves financial performance by diminishing moral hazard, decreasing the cost of labour and increasing capital inputs

• Purpose-led companies deliver positive risk-adjusted stock returns of up to 7.6% annually

• High sustainability firms also outperform on accounting-based measures, such as return-on-equity (ROE) and return-on-assets (ROA)

• The level of systematic risk is statistically and economically significantly lower for firms with higher purpose

• High purpose firms have crisis-period stock returns that are 4 – 5% higher

• Purpose drives more and better innovation

 Quite simply, the economic benefits of purpose are significant, measurable and desirable.So how can you get some of this secret sauce? Let’s talk