IKEA shows that you can scale globally, serve meatballs and still lead with integrity.

First published in Chapter Zero New Zealand – 18 Nov 2025

In December, IKEA will finally open its first New Zealand store in Auckland. I’m old enough to remember the opening of IKEA’s first UK store in 1987 – but I don’t recall it generating quite this level of excitement. For many, IKEA’s arrival promises affordable Scandinavian design and meatballs. For me, it represents something deeper – the arrival of a company that has demonstrated over decades what can be achieved by challenging the status quo, leading with values and being single-mindedly purpose-driven.

Behind the blue-and-yellow logo stands Ingka Group, the largest IKEA franchisee and the operator of nearly all IKEA stores worldwide. While the IKEA trademark and concept are owned by Inter IKEA Systems B.V., Ingka Group is responsible for global retail operations, investment activities and the company’s world-leading approach to business governance. It’s a governance model that focuses people and sustainability around a widely understood core purpose and combines it with distributed accountability – and it works.

Ingka Group has shown that commercial success and positive societal impact are not opposing forces; its integration lies at the very heart of IKEA’s success. Its stated purpose – to create a better everyday life for the many people – is not a slogan but an organising idea. It shapes everything from how products are designed and priced to how materials are sourced, employees are treated, stores are powered and decisions are made in the boardroom.

Happily, Ingka is prepared to share and foster greater understanding of its success and the potential of being purpose-driven. First published in 2017, Ingka Group released its latest People & Planet Consumer Insights & Trends Report – a global study conducted with Canadian research partner GlobeScan – in October this year. Together their work tracks and captures the pulse of public expectations of business around the world. New Zealand directors should pay attention to the numbers. They might also pause to ask a simple question – why does a company that sells furniture publish such a report?

Despite the divisions fuelled by short-termist populist politicians, the squeeze of rising costs and the chaos of click-bait misinformation, something essential endures: people still care about one another, they fear for the climate, they dislike injustice and they long for a future – and a world – that is fair for everyone.

• 64% worry about climate change and almost half feel personally affected.
• 82% want companies to pay living wages and 36% say they boycott brands that fail to treat workers fairly.
• Seven in 10 consumers want clearer communication from businesses about the environmental and social impact of their products.
• Younger generations are leading, pioneering circular habits such as buying second-hand, renting and repairing.

This is not a consumer-trends report – it’s a governance signal and a wake-up call for boards. New Zealand stands at its own inflection point. Productivity is slipping, inequality is widening and, like elsewhere in the Western world, trust in both business and government is eroding. Yet there is also a deep-seated belief among Kiwis that we can, and should, do better – that values matter and that what unites us is far greater and more powerful than what divides us.

IKEA’s success offers three key lessons in the power of purpose as an organising idea – one that unites an entire enterprise, delivers measurable outcomes and drives long-term sustainable success:

1. Make purpose the organising idea
   Purpose only delivers when it sits at the heart of strategy and operations – not as an add-on or aspiration. From flat-pack logistics to renewable energy and circular design, IKEA has built its entire system around one clear idea. Everything else flows from that core purpose.
2. Align purpose with real-world value
   The Ingka/GlobeScan report shows that saving money remains the top motivator for sustainable behaviour. IKEA’s genius lies in linking purpose with affordability – proving that what’s good for people and planet can also be good for profit. Boards that align purpose with everyday value creation turn ideals into enduring commercial success.
3. Govern for the long term
   IKEA’s purpose endures because its governance model demands it. Ingka Group’s structure – a foundation with a long-term ownership mandate – protects purpose from short-term pressures and political fashion. Boards that design governance around purpose, not quarterly results, create the conditions for consistency, innovation and trust.

When the doors open in December, IKEA will undoubtedly attract large crowds eager to experience its mix of design, efficiency and Scandinavian charm. But the bigger story is what those crowds are recognising and rewarding through spending their hard-earned cash. Simply put, that is an approach to business superbly executed every day at scale, across the world by a company that has embedded purpose into the core of its governance, operations and culture – and prospered as a result.

Why do companies greenwash?

Z Energy’s recent apology for misleading environmental claims poses a question: Why do companies keep greenwashing?

In 2022, Ampol owned Z Energy told New Zealanders it was “in the business of getting out of the petrol business.” It sounded like a radical step for the country’s biggest fuel importer — a bold signal that the company was changing course.

Three years later, after a costly legal dispute with Consumer NZ and environmental groups, Z Energy has admitted the truth: Its much-promoted biofuels plant wasn’t operating, its carbon-reduction claims excluded the emissions from the fuel it sells, and its messaging went “beyond aspirational.”

To its credit, the company has apologised. But the questions remain: Why do smart, well-resourced businesses keep saying one thing and doing another?

Z Energy is not an isolated case. Around the world, major brands have been caught in the same web. In the same sector, a quarter of a century ago, I saw firsthand the results of going “beyond reality” while working for the WPP branding agency that came up with BP’s now-infamous “Beyond Petroleum” rebrand. It’s a landmark example I’ve written and spoken about often over the years — a powerful core purpose and potential single organising idea that could have changed everything at BP and across the entire sector — if only Lord Browne, then CEO, had delivered on it.

Volkswagen’s “Clean Diesel” campaign promised low-emission performance but concealed deliberate manipulation of emissions tests is another case in point. H&M, Nestlé, Shell, HSBC, Kmart and others have all faced scrutiny for sustainability claims that overstated progress or obscured uncomfortable facts.

So why do they do it? Here are some reasons:

• To protect reputation – appearing progressive buys time and goodwill.
• To meet stakeholder pressure – investors, customers and employees expect and are much more vocal about, their expectations of business.
• To retain market relevance – being seen as sustainable, rather than being sustainable, has ironically become a survival strategy.
• To disguise inertia – rhetoric fills the gap where innovation and progress aren’t actually happening.
• To simplify complexity – clever marketing and creative advertising can tell a more compelling and engaging story than reality allows.
• Because of fragmented governance – the left hand (marketing) doesn’t know what the right hand (operations) is doing.
• Because leadership confuses communication with commitment – they believe saying it is the same as doing it.
• Because the system still rewards short-term profit – quarterly earnings trump long-term purpose.
• Because they lack a strategy for the future – senior leaders see change as risky and managing efficiencies as progress, missing out on the innovation that comes from grasping the future and contributing to it in ways that create new ideas, new value and sustained relevance for all stakeholders.
• Because they really don’t understand the power and potential of purpose — as a single organising idea that drives progress from the heart of business.

Most companies don’t set out to deceive. They simply haven’t re-engineered their businesses to deliver what their slogans promise. The result is an obvious credibility gap between what they say and what they do.

The hidden cost of that gap

The Z Energy case highlights the price of that gap.

The company spent hundreds of thousands of dollars in legal fees and lost months of leadership focus defending its own words. Far more damaging, though, is the erosion of trust.

Z’s chief executive, Lindis Jones, has walked a fine line between contrition and justification. He apologised “to the extent we caused any confusion,” but defended the campaign as “aspirational and provocative,” arguing it reflected the company’s intent to transition over time. It was, in effect, an apology for misunderstanding — not misrepresentation.

That distinction matters. Because when leaders stop short of full accountability, they signal that the problem is perception, not practice. The risk is that it entrenches the very behaviour the apology was meant to resolve.

When customers and communities discover that big environmental statements aren’t backed by real action, cynicism grows. The next time a company makes a genuine commitment, the public shrugs.

The collateral damage is borne by everyone — including the businesses trying to do the right thing.

The alternative: Walking the talk

There is another path, and we can see it in companies that have truly embedded purpose — organisations like Patagonia, Interface, Unilever and IKEA.

These businesses don’t just talk about sustainability; they integrate it into how they’re governed, how they invest and how they measure performance. They demonstrate that when purpose is treated strategically as a governance framework, not a slogan, it produces measurable benefits:

• Stronger stakeholder trust
• Greater innovation and resilience
• Higher employee engagement and retention
• Improved long-term performance
• Positive social and environmental impact

The irony is that if most companies actually did what their marketing departments claim, they would perform better — commercially as well as ethically.

The real issue is a failure of vision

Companies don’t greenwash because they’re evil. They greenwash because they lack a vision of the future.

Fixated on managing the status quo through lobbying politicians to protect short-term results, they are closed-minded to the possibilities of tomorrow — to the power and potential of new ideas to transform their businesses and ensure their long-term success.

Businesses such as Z Energy are emperors without clothes. They have jumped on the purpose bandwagon. They are not driven to make a positive difference to people and planet — but they are comfortable talking about it.

And that’s a great shame — and a lost opportunity. Because given their resources and influence, with a little courage these leading companies could do so much more than peddle purpose statements — they could live by them.

And that would benefit them and all of us as well.

New Zealand stands at an inflection point. Once celebrated globally for its integrity, ingenuity and natural beauty, it now faces a complex set of 21st-century challenges: Productivity decline, widening inequality, talent shortages, environmental degradation and an erosion of trust in business and government alike. Yet within these challenges lies an extraordinary opportunity — to rediscover what makes Aotearoa different and to show the world how a small, values-driven nation can 
lead through purpose.

The power of purpose
Around the world, purpose has moved from rhetoric to results. Future focused companies that embed purpose at the core of governance and strategy consistently outperform their peers in growth, innovation and resilience. Purpose-driven organisations attract and retain talent more effectively, inspire loyalty among customers and earn the trust of investors and communities. When purpose becomes a measurable driver of decision-making — as formalised in the emerging ISO 37011 international standard on purpose-driven governance — it unlocks a flywheel of value creation that benefits both business and society.

In a world defined by disruption — from AI and climate transition to demographic and societal shifts — purpose has emerged as both a moral compass and a rational strategy for long-term success. It offers business leaders a clear alternative to short-termism, helping organisations navigate complexity with confidence, integrity 
and impact.

Why this matters to New Zealand
Few nations are better placed than New Zealand to lead in this space. Purpose resonates deeply with Kiwi values — fairness, community, stewardship, ingenuity 
and manaakitanga — a way of being, grounded in respect, generosity and care. These are not abstract ideals; they are the foundations of a uniquely New Zealand approach to enterprise — one that strengthens our integrity and balances commercial success with collective wellbeing.

It was here, in Aotearoa, that the idea of a Single Organizing Idea (SOI®) — a practical method for embedding purpose at the heart of business strategy — first took root. The framework was conceived and inspired by what New Zealand stood for in my heart and mind: A place where integrity, creativity and care for people and planet could coexist naturally in business. Those same values still make this the ideal place 
to show the world how purpose can be made practical — not as a slogan, but as a system that unites people, drives productivity, generates new ideas, streamlines decision making and strengthens New Zealand’s reputation as a forward-thinking, 
purpose-led economy.

And yet, for all this natural alignment, purpose is very poorly understood by most New Zealand business leaders. The irony is that while our culture instinctively reflects purpose — fairness, ingenuity, community and care — our businesses rarely do. Too often purpose is dismissed as ‘fluff’ by poorly informed champions of the status quo, reduced to marketing language by advertising and brand agencies, or confined to the domain of sustainability teams by misguided leadership. In reality, purpose is a dynamic governance and performance driver that delivers competitive advantage in multiple ways — it is literally the missing link between values and value creation.

The economic case
When purpose is properly understood and implemented, it becomes the most powerful form of value creation there is. It aligns culture with performance, turns trust into capital and converts a Single Organising Idea into measurable results.

Global research shows that purpose-driven companies deliver up to 42% higher financial performance and 30% greater innovation output than competitors. A Harvard Business Review meta-analysis found that firms with a clear sense of purpose report stronger employee engagement and outperform the stock market by as much as 5–7% annually over the long term. Likewise, The Financial Times has reported that companies integrating purpose into governance and strategy demonstrate greater resilience during economic downturns and recover faster than peers.

For New Zealand — where small and medium-sized enterprises make up 97% of all businesses — this represents a significant and largely untapped lever for growth.

If we can help Kiwi businesses systematically identify, define and embed their purpose, we can unlock more than productivity gains. We can build stronger brands, attract talent and investment, increase export value and create an economy that competes on both integrity and ingenuity — one that’s genuinely future-fit.

By making purpose central to New Zealand’s business identity, we can help ensure that the next chapter of Aotearoa’s success story is one the world looks to for inspiration — and that, in itself, creates lasting value.

Why purpose-driven business isn’t risky business

If there is one thing business leaders can agree on today, it is that risk is everywhere. Geopolitical shocks, climate disruption, artificial intelligence, shifting social norms — the pace and complexity of change is relentless. In such conditions, the instinct to tighten control and wait for calmer waters is understandable. But it is also perilous. In a world defined by uncertainty, standing still is often the riskiest move of all.

History proves the point. Kodak invented the digital camera but was fixated on protecting its film cash-cow. Blockbuster optimised its stores and late fees while streaming surged. Bookstore chain Borders outsourced online sales to Amazon and lost its customers. Toys ‘R’ Us was too debt-burdened to invest in omnichannel. Nokia clung to legacy software as the smartphone era dawned. Different sectors, same error: These companies didn’t fail because they took bold bets on the future — they failed because they did the opposite. In their inward-looking complacency, they mistook efficiency for strategy and risk aversion for prudence. The result was premature — and entirely avoidable — demise.

The risk of not acting

Here in New Zealand, as economist Cameron Bagrie recently observed in the New Zealand Herald (28 September 2025), too many boards are going/have gone down the same road. Citing the OECD’s 2022 Economic Survey of New Zealand, he pulled no punches in reminding readers that “Management boards in New Zealand’s firms are often more focused on preserving existing value and regulatory compliance than on growth strategies that involve productivity-enhancing investments and international expansion.”

Relying on old-school thinking, New Zealand’s boardrooms remain preoccupied with preservation over progress and efficiency over strategy. They’ve convinced themselves that waiting is wisdom — that the safest move is no move at all. Which, in plain speak, is inertia.

Yet the world outside their boardrooms is anything but inert. It is shifting — technologically, socially, demographically and geopolitically — at speed. Business governance is shifting too. Yesterday’s ‘business-as-usual’ model is being dismantled in real time by future-focused companies that understand risk and opportunity are now two sides of the same coin. Fossil-fuel firms are being overtaken by purpose-driven clean-tech innovators. Artificial intelligence is redrawing industries and redefining value creation. Conscious consumers are demanding transparency and authenticity. Increasing numbers of workers are gravitating towards employers that share their values and have a purpose beyond just making profit. Investors are pricing sustainability and resilience, not just returns.

Purpose as the antidote to risk and uncertainty

In this environment of constant change, evolving, grasping the future and pivoting towards being purpose-driven is anything but risky — it is the opposite. It is a golden opportunity:

• To embed a unifying and future-focused governance framework — a Single Organising Idea (SOI®) — that anchors decision-making and aligns the business behind a shared purpose.
• To shift the focus from protecting the status quo to channelling effort and resources into tangible outcomes that deliver both financial and social value.
• To empower boards and leaders with a north star that reduces ambiguity, sharpens decision-making and builds the confidence to act.
• To attract talent, partners and investors who are increasingly drawn to organisations with clarity of purpose and the courage to lead through change.

Because when a business knows who it is, why it exists and how it creates value for others, risk and uncertainty cease to be threats — they become sources of advantage.

The Māori Queen’s quiet leadership and grounded purpose

Last week, at just 28 years old, Te Arikinui Kuīni Ngā Wai hono i te Pō delivered a speech that resonated like a heartbeat — steady, human, deeply rooted. Crowned only a year ago, she already carries a timeless authority. With a BA and MA in tikanga and reo Māori from the University of Waikato, she blends profound cultural knowledge with modern leadership at a level rarely seen in someone so young.

Her presence in that speech wasn’t just regal — it was real. Attendees commented on her humility, dignity and heartfelt emotion, saying she spoke not from a script, but from the core of her being. Many of the young there saw in her a reflection of themselves; elders were moved to tears by the pride carried in her words.

In her address, she urged her people to redefine what it means to be Māori — not as a posture of resistance but through everyday cultural living: Language, history, care for whenua and enduring unity. That quiet authority, grounded in a clear sense of purpose, isn’t loud — it’s deeply compelling.

“Being Māori is not defined by having an enemy or a challenge to overcome. Being Māori is speaking our language. It is taking care of the environment. It is reading and learning about our history. It is the choice to be called by our Māori name. There are many ways to manifest being Māori, not just in times of protest.”

Her fusion of youthful grace, cultural fluency and leadership is magnetic. Watching her speak — and then reading her words — immediately recalled the deep sense of humanity I felt a month ago when the New Zealand Story Group released its highly evocative video promoting pakihi Māori (Māori business) to international trade audiences. At the time, I wrote in a LinkedIn post:

“This isn’t branding. It’s not spin. It’s a values-led view that puts wellbeing — of people, land and legacy — at the heart of what it means to prosper.”

Similarly, the Queen’s leadership qualities aren’t about optics or rhetoric. She embodies kaitiakitanga — care for people, place, and future — through simple, everyday leadership decisions. In a world where leadership often mistakes noise for strength, she shows us that true courage can be calm, real power grounded in purpose and that resonant leadership begins with respect, not spectacle.

When leadership unifies clear purpose with authentic presence, the result is transformative.

Reflections from the IoD & Chapter Zero Climate Governance Forum

Last week I attended the IoD & Chapter Zero New Zealand Climate Governance Forum in Auckland and joined a room full of board directors, advisors and governance professionals grappling with what climate risk means for the future of business.

The speakers were impressive, the discussion serious. And while I’ve attended and contributed to many such events around the world over the past two decades, it’s always grounding to hear these conversations closer to home. The setting may be different, but as the self-styled ‘Sustainability Champion’ Izzy Fenwick compellingly pointed out, the stakes are just as high.

Reflecting on the day, what struck me most wasn’t what was said — but how I think it is being received.

Climate is a critical issue. But like many others — from AI to inequality — it’s still too often treated as a stand-alone or siloed topic; something for business leaders to be aware of, to be concerned about and maybe even taken into account, but ultimately separate from the core governance of business itself.

In purpose-driven organisations, that separation doesn’t exist. These issues are not peripheral — they are integral to the business’s reason for being, how it is governed and fundamental to long-term relevance and commercial success.

Purpose is not just a soft or symbolic notion, as the IoD’s Judene Edgar eloquently highlights in the autumn issue of the organisation’s Boardroom magazine. Purpose — properly identified, defined and embedded — ensures that complex, interconnected challenges are not treated as trade-offs or compliance burdens that get in the way of business as usual. Instead, it frames them as essential to building a resilient, relevant and competitive organisation in the 21st century.

Just last week, the European Central Bank confirmed it will integrate climate risk into its collateral framework — a clear signal that environmental resilience is no longer a side issue or policy preference. It’s a material governance concern with implications for businesses across the globe. And it’s a timely reminder of how fast expectations are shifting — and how urgently boards must adapt.

A clearly articulated purpose — one that unifies strategy, brand, operations and governance through a strategic framework such as the Single Organizing Idea (SOI®) — isn’t a distraction. It’s a decision-making compass. It empowers boards to lead with integrity, align performance with long-term value and respond to complexity — whether environmental, social, technological or geopolitical — with clarity and confidence.

New Zealand’s businesses have much to offer the world. But first, we must do the work at home — turning purpose from intangible platitudes into tangible, day-to-day business practice and leadership.

The Forum reminded me that understanding may be growing — and that’s encouraging. But there’s still a long way to go. And we don’t have the luxury of time.

Now is the moment to fully inform and empower boards about the power and potential of purpose — not just so they can effectively oversee the future success of their businesses, but so they can help shape the future of the country and the communities their businesses serve and rely on.

That’s not a side conversation. It’s the job.