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.

Stop Whining. Start Winning.

When a bodybuilder-turned-movie-star-turned-Governor of California tells the world to “stop whining,” it’s tempting to laugh. But in his recent BBC interview with the formidable Laura Kuenssberg, Arnold Schwarzenegger offered something rare in today’s climate discourse: Clarity.

“Pollution kills people. So let’s terminate pollution.”

And crucially: Stop waiting for permission. Stop making excuses. Get on with it.

It’s a message I — and many others — have echoed often. This week, I spoke at London Climate Action Week, in a session hosted by my friends at PURE360. The focus was purpose and leadership — and the need to move from fluffy brand-led statements of intent (greenwashing) to purpose-led systems of actual, real delivery. It’s the same message I delivered at COP26 in 2021 and at New York Climate Week the year before, where I’ll never forget one of the world’s most renowned economists, Jeffrey Sachs , standing up in front of a small invited audience and saying bluntly, “We need to ****ing get on with it.”

He’s right. As Sachs made clear: We have the tools. We have the technology. We have the know-how — today, right now.

Schwarzenegger’s point is just as blunt: Don’t wait for political consensus. Don’t complain about the government. As Governor, when the federal government tried to block California’s environmental policies, he took them to the Supreme Court — and won.

“Instead of whining… you go to work. Here’s the job. Here’s my responsibility.”

And here’s the clincher: California didn’t just cut pollution — it grew its economy. Today, it ranks as the world’s fourth-largest economy, ahead of Germany and Japan. At the same time, it enforces some of the most progressive and stringent environmental standards anywhere. In other words, taking care of people and the planet isn’t a sacrifice — it’s a winning investment in the here and now — and the future.

Across the Atlantic, the EU is closing in on its 2030 climate target — on track for a 54% emissions reduction, nearly meeting its legally binding 55% goal. The lesson is clear: Economic growth and climate action go hand in hand.

Here in New Zealand, when our largest and most successful business — Fonterra — acts decisively on climate to meet the expectations of its stakeholders, despite its government’s stance on climate change, that’s a signal worth paying attention to. Yet too many business leaders still look to government as the first mover. But short-term political agendas mean they could be waiting a long time — and while they wait, others are seizing the opportunity.

It’s business — with all its enterprise-driving facets, aligned with invested stakeholders, customers, employees, and market forces — that has both the power and the incentive to act. Not just to make a difference, but to benefit from doing exactly that. So let’s get on with it.

It’s time to celebrate

It’s time to celebrate who we are, what we do, what we stand for.

We need to find a way of lifting ourselves up as a country, as cities and as regions. We all know its tough out there, we’ve seen the statistics, read the reports, seen the news. We also see it first hand in our daily lives, how life can be tough on our families, friends and colleagues.
But we have so much to also be thankful for and to celebrate. Positively builds energy, energy builds momentum, momentum builds success. So let’s focus on what’s good and make it great. Let’s focus on coming together and lifting each other up so we can all succeed regardless of who we are and what we do.

I recall back in the 1990’s when Wellington was one of the least attractive places in the country. Known as windy, cold and simply dreary…full of government bureaucrats.

But many knew there was more to Wellington and wanted more for it too. That’s when Absolutely Positively Wellington was born, backed by business leaders and the public office. This marked a turning point in Wellington’s identity, confidence, and direction. Five years later it was the coolest place to live, visit and do business, attracting cool people ……it (almost) lost its windy status.

So this is what Auckland now needs too. It is our biggest city and its impact on the rest of New Zealand is undeniable. But it needs its mojo back, people need to be proud to be Aucklanders, and the rest of the country need to be fond of its bigger sibling.

So let’s lift Auckland up, it’s got great people doing great stuff, there is much to celebrate. Yes there’s challenges to address, like everywhere else.

It’s time for Auckland to come together, amplify its greatness, celebrate its success, and embrace the opportunities ahead. This is the only pathway to putting the broken bits of the jigsaw back together, and part of a bigger, ambitious, and positive picture that enables Auckland to once again shine brightly.

And, if Auckland can rise up and do it, then so can the rest of us too.

Reimagining governance: If the future had a board, purpose would be the chair

There’s growing recognition that our governance systems — in business, government and civil society — are not built for the complexity, urgency or interconnectedness of today’s world. But recognition isn’t enough. If we want economies that are more innovative, inclusive and sustainable, we must rewire how value is created — and how it’s governed.

Governance isn’t just a Boardroom issue

Governance has long been framed as risk management and regulatory hygiene. But in a world reshaped by climate shocks, AI disruption, geopolitical volatility and public distrust, that framing is obsolete. Governance must evolve — from control to contribution.

Here in Aotearoa New Zealand, we often speak of our agility, transparency and fairness. Yet many of our institutions still operate with static, siloed systems. Boards focused narrowly on short-term returns. Public agencies locked into linear planning cycles. Stakeholder engagement that’s more performative than participatory. What if we designed our organisations — companies, councils, ministries, co-ops — around a core purpose? A clear, actionable Single Organizing Idea (SOI) that unites decision-making, strategy and culture across silos. A shared north star that governs for long-term contribution, beyond quarterly compliance and political cycles.

This isn’t a utopian vision — it’s a governance design challenge. One that’s gaining traction globally, with new frameworks, metrics and standards reframing how organisations define success and legitimacy in a world that demands more.

Innovation is structural, not just technological

True innovation isn’t just about product breakthroughs or digital tools — it’s about rethinking the systems that allow innovation to flourish. That includes how boards function, how decisions are made, and how responsibility is shared.

Spencer Stuart’s Closing the Confidence Gap report makes this clear: Fewer than 1 in 4 CEOs believe their boards are providing the support they need to lead through rapid change. And while Directors believe they are offering the right mix of oversight and expertise, CEOs disagree — citing a lack of strategic partnership, contextual knowledge and space for honest, forward-looking dialogue.

In short: We have a perception gap. And it’s undermining innovation.

Give purpose a seat at the table

If we want governance to shape better futures, it must move beyond generic ESG rhetoric and into the real levers of power — charters, KPIs and reporting.

1. Board charters with purpose clauses
Purpose belongs in the board charter, alongside fiduciary and financial responsibilities. A simple clause can shift mindsets:



“The Board is responsible for ensuring that the company’s purpose acts as the guiding principle for all strategic and operational decision-making. The Board must also ensure that performance is evaluated not solely on financial outcomes, but on the company’s societal, environmental and stakeholder impact as aligned with this purpose.”

This turns purpose from a campaign into a commitment — and invites directors to steward it, not just sign it off.

2. Executive KPIs that reflect purpose
Boards have the power to reshape executive performance metrics. Tying bonuses and reviews to purpose-aligned outcomes sends a powerful signal that impact matters. It shifts incentives from short-termism to long-term contribution — exactly what our times demand.

3. Annual reporting that builds trust
Annual reports are often dense with data, yet light on meaning. Including a “Purpose in Action” section — with impact metrics, narrative context and even third-party assurance — builds stakeholder confidence and avoids purpose-washing.

In each case, the goal is the same: Turn purpose from positioning into practice.

Governance is where the future gets shaped

Yes, transforming governance is difficult. But the momentum is real. International standards are evolving, and across sectors, a new generation of leaders is demanding purpose — not as a slogan, but as a benchmark of legitimacy and progress.

New Zealand has a generational opportunity to lead here. To move from “clean and green” slogans to meaningful governance that shapes a regenerative, inclusive economy.

Because the future doesn’t just arrive. It’s governed into being.

Why vision alone no longer cuts it

We’ve all heard it before: “What this organisation needs is a bold vision.” But in 2025, that’s no longer enough. Vision might inspire a moment. Purpose sustains a movement.

This week, John Wadsworth and I have published a new NG&A white paper — Leading with Purpose: Why today’s leaders need more than vision. It’s a practical response to a question we’re hearing more and more often: What does leadership look like in a world where complexity, uncertainty and scrutiny are all on the rise?

The short answer? It looks very different from the leadership of old.

Today, leaders are not judged solely by their ability to deliver results. They are judged by how they deliver them — with what intent, what impact and who they bring along the way. What matters is clarity of purpose, adaptability and trust.

That’s the through-line of the paper: Leadership is evolving. And so must we.

In it, we argue that the best leaders today aren’t those with all the answers. They’re the ones who ask the right questions, empower others to act and create the conditions where purpose becomes more than words on a wall. They don’t simply lead for results — they lead for relevance.

We draw on examples from Aotearoa— from Kiwibank to Fisher & Paykel Healthcare — to show what this looks like in practice. These are organisations where purpose isn’t performative. It’s structural. It shapes governance, strategy and decision-making, giving people a clear direction and the confidence to act.

Importantly, the paper also explores how the Single Organizing Idea (SOI®) framework — developed over two decades and applied in dozens of boardrooms — enables leaders to embed purpose deeply and durably. It’s not a branding exercise. It’s a governance shift.

In an era where employee engagement, stakeholder trust and strategic clarity can no longer be taken for granted, this matters. Purpose is no longer a ‘nice-to-have’. It’s the clearest competitive advantage there is.

If you’re a leader wondering how to navigate ambiguity, align your people, or lead change that lasts — this paper is for you.

Read the full white paper here: https://neilgaught.com/leading-with-purpose-why-todays-leaders-need-more-than-vision/

A new dawn for NZ business? Now’s the time to lead with purpose

It’s encouraging to see that optimism is returning to the New Zealand business community. According to 2degrees’ latest Shaping Business Study — featured in New Zealand Management last week — business confidence is at its highest since 2021, with productivity up and a growing appetite for innovation and growth.

This isn’t just a mood shift—it’s a moment of opportunity.

The report highlights a number of positive trends:

• Nearly half of NZ business leaders feel more optimistic about the future than they did a year ago
• AI is beginning to deliver real value in productivity and efficiency gains
• More businesses are prioritising growth over maintenance.

It’s clear that leaders are readying themselves to move beyond survival mode. But optimism alone won’t deliver impact. What’s needed now is direction — and that’s where purpose becomes critical.

Because the world’s most progressive and competitive businesses aren’t just embracing purpose — they’re being driven by it. Not as a brand veneer or a box-ticking exercise in sustainability messaging, but as a strategic, unifying idea that benefits all stakeholders: customers, employees, communities and shareholders alike.

Purpose, when properly embedded, is not about lofty words or feel-good campaigns. It’s about capitalising on the direction of travel. It’s about resisting the headline-chasing clickbait that says people have stopped caring—because they haven’t. The demand for meaningful, values-aligned action is real and growing.

In this new era of productivity and growth, purpose gives New Zealand businesses a competitive advantage. It brings coherence to decision-making, energy to teams and credibility to markets increasingly shaped by transparency, trust and accountability.

So while business confidence is on the rise, let’s not waste this window.

Let’s use it to make sharper decisions—ones grounded in common sense, not just commentary. Because the businesses that succeed in the years ahead will be those that understand what their customers, employees, and communities actually expect—and then deliver on it.

Not just returns. Not just pay checks. But value that’s meaningful, visible and enduring.

Purpose is how you meet — and exceed — those expectations. It’s how you stay competitive in a world that’s watching more closely, choosing more carefully and rewarding those who lead with a thoughtful and principled approach.

Let’s make sure New Zealand businesses don’t just catch up — they get ahead.

Because the future belongs to those who know why they’re in business — and who act on it.

Part Two: Leading through the storm: Five traits of successful business leadership in an era of radical change

In Part One, I explored why the climate of business leadership is shifting — and why courage, clarity and a deep commitment to long-term value are no longer optional. In this second part, I want to focus on what that leadership actually looks like. Here are five traits that I believe will define the most effective — and trusted — leaders in the years ahead.”

1. The best leaders don’t have all the answers — but they ask better questions.

Running a business of any size against today’s backdrop of climate, sustainability and social challenges is anything but simple. It’s certainly not business as usual — and hasn’t been for some time. But rather than burying their heads in the sand, smart leaders are leaning into the complexity. They’re recognising the opportunities it presents, embracing new thinking, building diverse ‘teams of teams’ — unified by a common purpose — that challenge outdated business models and unlock exciting new ways forward.

2. Values are your compass. Purpose is your North Star.

Embedding purpose into governance and operations is crucial. The Single Organizing Idea (SOI®) framework I developed helps organisations align ambition with action. When a business knows what it stands for — not just what it sells — decisions become clearer and more consistent, even amid uncertainty.

3. Diversity isn’t just good practice — it’s good leadership.

Leadership in many organisations still lacks true diversity — of background, experience, age and worldview. When the same voices stay around the table for too long, even with the best intentions, blind spots form and innovation stalls. Embracing fresh perspectives and lived experiences leads to better decisions, stronger cultures and renewed trust. It also signals a serious commitment to equity and inclusion — values that research shows matter more than ever to employees, investors and society at large.

4. Courage and care go hand in hand.

Leading with care — for people, communities and the planet — requires courage. It means prioritising long-term impact over short-term gains and making difficult decisions that align with core values.

5. In the age of AI, human leadership matters more than ever.

While AI can optimise processes, it cannot replace human judgment, empathy, and ethical decision-making. Leaders must integrate technology thoughtfully, ensuring it serves the organisation’s purpose and enhances human capabilities.

Join the Conversation

I’ll be sharing more on these themes in a special online session hosted by my friends at PURE during London Climate Action Week. If you’re a business leader, strategist, or change-maker looking to put purpose at the centre of climate action, I hope to see you there.

Let’s reimagine the climate of business leadership — before the forecast gets worse.

Date: Tuesday 24 June
Time: 9:00am BST
Topic: Climate Action: The Role of Business Leadership
Where: Online, hosted by PURE Value 360
[Link to follow]

Part One: The changing climate of leadership: Why courage, clarity and purpose matter more than ever

“Management is doing things right;
leadership is doing the right things.”
— Peter Drucker

Doing the right things has never felt more urgent — or more complex. As we confront a worsening climate crisis, exponential technological change and growing distrust in institutions, the kind of leadership we need isn’t defined by title or charisma. It’s defined by courage, clarity and a deep commitment to long-term value — not just for shareholders, but for society. That kind of leadership can no longer be defined as unusual — it’s now essential.

Around the world, we’re witnessing a rise in short-termism — often fuelled by political polarisation, populist rhetoric and power plays dressed up as strategy. Too many leaders are pursuing near-term advantage at the expense of long-term resilience. The consequences are already evident: Eroded trust, divided societies and a lack of coordinated action on undeniable issues set out in the Sustainable Development Goals (SDGs) that demand global cooperation.

Against this backdrop, business leaders can — and must — step up. According to GlobeScan’s 2025 report, 71% of Americans believe CEOs should speak out about the importance of addressing climate change, and 67% say CEOs should publicly defend diversity, equity and inclusion (DEI) initiatives. This support spans political and generational lines — a clear signal that society increasingly expects business to lead where others are falling short.

There’s a competitive dimension too: The most admired and resilient businesses today are those that are actively engaging — not just through CSR or branding, but through their core purpose. They’re embedding sustainability and social impact into how they govern, operate and grow their businesses — and they’re reaping the rewards in talent attraction, customer loyalty, innovation and long-term performance.

Business leadership today requires more than operational excellence; it demands a steadfast commitment to values that endure beyond election cycles and quarterly earnings. Over the past two decades, I’ve seen that the most successful — the most effective and most admired leaders — are those who align their organisation’s purpose not only with their commercial objectives but also with the needs of the societies they serve and are a critical part of.

In next week’s follow-up, I’ll explore what courageous, purpose-led business leadership actually looks like in practice — from building diverse ‘teams of teams’ to navigating the ethical use of AI. These are the principles I’ll also be unpacking during London Climate Action Week, where I’ll be speaking at a live online session arranged and hosted by my friends at PURE Value 360.

Date: Tuesday 24 June
Time: 9:00am BST
Topic: Climate Action: The Role of Business Leadership
Where: Online, hosted by PURE Value 360
[Link to follow]