how this concept differentiates from charitable giving or corporate social responsibility. This is the key distinction between charitable giving and social purpose. With social purpose, the growth of the business itself is inherently meant to lead to greater social good.” A challenge regarding a business utilizing a CSR and/or a philanthropic model numerous Survey Participants note is that the efforts to do ‘good’ are often on the side and not a part of the core of the organization. This model and mindset can essentially lead to a business producing profits in whichever way best suits the shareholders, owners, or investors - even if it has an overall negative impact on society - as long as a percentage of its profits are donated to a philanthropic cause. Furthermore, this model and mindset mean that strategic decisions of the business can be made without consideration to the organization’s efforts to do ‘good’. It is noted by some Survey Participants that the influence of those working on CSR and/or philanthropy can exercise within large organizations is limited. Kate White provides a helpful reminder that they are not the ones “bringing in the revenue for the business.” Allyson Hewitt, Vice President of Impact at MaRS Discovery District is of the view that the mindset that says the role of business is “to make money and then give back through philanthropy” is the old mentality. The new approach is realizing and capitalizing on the fact that people - through the work they do and the businesses they work for - want to live their values. There is no doubt that business leaders are proud to donate to causes valued by them and their organizations. To the same effect, the organizations and causes who receive this financial support are certainly thankful. That said, times are changing, and businesses are being asked to help - more so than ever before - to secure a sustainable and inclusive future on top of a prosperous one. Creating this alternative future is no small feat which is yet another reason why businesses are being drafted to assist in this collective project. The significance and complexities of the challenges of the day call for a concerted effort from all leaders, including business leaders. During the response to the COVID-19 pandemic, when the world voiced a need for help to overcome a massive global challenge, a remarkable number of businesses stepped up in more and different ways. It was certainly noted by many that they had an immense positive societal impact in doing so.12
2) The Evolution of the Purpose of the Corporation “I don’t think a corporation’s purpose is about making profit. It’s about changing people’s lives for the better with what you deliver and how you go about delivering that.” – Upkar Arora, CEO of Rally Assets As of late, the ‘purpose of the corporation’ seems to be the prevailing topic within the larger discussion of what is the purpose of business. The dynamics and elements of the conversation with respect to the ‘purpose of the corporation’ are very relevant to the larger discussion concerning the evolving role of business in society. In fact, the clarification of the legal responsibilities and fiduciary duties of corporate leaders is an evident subset of the larger movement to have businesses of all legal structures more positively contribute to society. Consequently, exploring the history and state of the legal framework influencing the decisions of corporate leaders helps determine the systemic challenges facing the transition from the status quo to a world in which all businesses’ core purpose is to link profit with the creation and sharing of value with stakeholders.
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