Sarah Kaplan is quoted in the Director Journal about what it means for companies to pursue “purpose.”
Companies will face their own learning curves through the transition. For example, some may need to develop funding models that take into account a growing number of stakeholders, says Sarah Kaplan, a professor of strategic management and distinguished professor of gender and the economy at the University of Toronto’s Rotman School of Management.
“Many companies do not have good systems or processes for engaging meaningfully with stakeholders and need to learn how. Instead of just thinking about supporting a cause like cancer research through some charity or gala event, there are going to be many more opportunities for creative ways of partnerships,” she says.
However, there is a potential downside to corporations seizing too much of the initiative, Kaplan adds.
“If we only focus on companies adopting social purpose, we risk abdicating social responsibility to corporations. at means that corporations might choose social priorities that only align with other more profit-seeking goals. at might result in many important issues being sidelined because we are letting corporations define what it means to be ‘good for stakeholders.’
“We should still expect governments and civil society to be focusing on priorities that corporations would otherwise choose to neglect.”
See the full article from the Institute for Corporate Directors here.
