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In the face of the current global pandemic, just as we as individuals have had to pause and reflect on what is important, corporations have a tremendous opportunity to rethink what is important and to rediscover why they exist, how they can continue to create value, including profit, in ways that are more harmonious with common human aspirations and the natural environment.
Indeed, as a corporate leader standing on the balcony, looking out into the near and distant future, you can sense that there is a need to change. Even if the corporation that you lead is not yet reeling from the global systemic changes underway, you sense that something must give. More of the same is unlikely to get us what we desire most.
The pandemic, the cries for social justice throughout the world, environmental crises, financial crises, the emerging brave new wild west transglobal world order being created by the internet and social media, indeed myriad crises have uncovered an inescapable truth.
It is that our current system of organisations like governments, the nation-state, NGOs and enlightened corporations that have an explicit responsibility to work for the common good, even collectively, cannot fix this. We need a new plan.
In this way, it should be increasingly clear to even the most jaded corporate leader that we are now “all in this together” and that something has to change to realise the possibility of “building back better.” Corporations need to be part of the solution.
We suggest that there is a clear, concise, and repeatable process that corporate leaders and those supporting corporate transformation (consultants, coaches and facilitators) can use to enable both a re-discovery of a corporation’s true intent and a redefinition of its identity. We need to integrate the familiar mission, vision and values elements of corporate life and connect them to the most foundational of notions: organisational “purpose.”
Such a process provides much-needed clarity as to “how” the corporation could update, reinvent, and transform itself in response to these new and changing circumstances.
Rise of the modern corporation
Simply put, organisations, at their core, have always been designed to ultimately make one or more aspects of our lives “better.” Through organisations, we humans have sought to arrange and coordinate our activities in response to the challenges posed by our environment. One of the most successful and impactful forms of organisation is the corporation.
Today, modern corporations have five core features: they are legal persons, liability is limited, contributors of capital have shares and are members of the organisation, shares are transferable, and a governing body holds ultimate accountability and can delegate responsibilities (Kraakman et al, 2009).
Together, these features enable corporations to amass large quantities of financial and other capital, whic
