Royal Dutch Shell Searches for a Purpose Beyond Oil

This article summarises an original piece from the Financial Times, part of an FT series exploring the risks and trade-offs businesses encounter when defining a broader purpose.

Navigating an Uncertain Future

In May 2017, Ben van Beurden, CEO of Royal Dutch Shell, convened a meeting with top executives in The Hague to discuss the company’s long-term future. The company was facing numerous challenges, including falling oil prices, a $53 billion takeover of natural gas giant BG Group, and scrutiny over a controversial Nigerian deal.

At the heart of the discussions was a pressing dilemma: how should Shell, one of the world’s largest oil and gas companies, navigate a future where political and public sentiment is turning against fossil fuels?

Reevaluating Purpose

As companies across industries reassess their role in society, Shell executives debated the implications of the Paris Climate Agreement, the impact of reducing oil and gas production, and whether the company should take responsibility for customer emissions.

The outcome of these discussions was a strategy that embraces low-carbon energy while still relying heavily on oil and gas, which remains Shell’s primary source of profit.

Shell’s Energy Transition Strategy

Shell has pledged to cut the carbon intensity of its products by 50% by 2050, taking inspiration from corporate sustainability efforts at companies like Mars. The company has invested in:

• Natural gas (as a lower-carbon alternative to oil)
• Renewable energy (wind, solar, and hydrogen fuel projects)
• Electric vehicle infrastructure
• Home energy storage solutions

Despite these initiatives, two-thirds of Shell’s cash flow still comes from oil. While CEO van Beurden hopes to eventually balance oil, gas, and renewables, there is no clear timeline.

Balancing Profit and Sustainability

Shell faces criticism from multiple sides:

• Investors expect high returns, making an aggressive transition to renewables risky.
• Environmental activists accuse Shell of greenwashing.
• Industry peers question whether Shell truly wants to move beyond fossil fuels.

According to Adam Matthews of the Church of England Pensions Board, Shell’s investment in renewables remains disproportionately small compared to its continued focus on oil and gas.

The Challenges of Change

Shell executives acknowledge that the transition away from oil will take time. Van Beurden himself has stated that the company cannot afford to abandon fossil fuels prematurely, emphasizing that the profitability of low-carbon businesses must improve before significant capital shifts can occur.

The article notes that Shell is not alone—many energy giants face similar dilemmas as they attempt to balance financial sustainability with increasing pressure to embrace a low-carbon future.

Looking Ahead

Shell’s ability to maintain shareholder value while transitioning toward sustainability will be a test of its leadership and strategy. As van Beurden puts it:

“We have to find a way to preserve our dividend-paying capacity while growing the value of the company and changing its makeup.”

Whether Shell can successfully reposition itself as a clean energy leader while maintaining profitability remains to be seen.

Further Reading

• Full article: Financial Times (Subscription Required)
• Shell’s Official Sustainability Page
• Paris Climate Agreement

Raising the Purpose Banner (Again) Is Only the Start

Bringing communications and CSR (Corporate Social Responsibility) teams together under a shared purpose is a step forward.

But to deliver sustainable success for all, it is critical that Executive Teams and their Boards grasp the initiative and hot-wire purpose into the core of their business strategy. When that happens, purpose is elevated and given the status it requires to affect real change. It subsumes old-school generic mission/vision statements and becomes THE Single Organizing Idea (SOI) of the business and the ecosystem it both influences and relies upon.

The Measurable Impact of an SOI

A Single Organizing Idea (SOI) is a methodology that ensures a business is fully aligned with its purpose, embedding that purpose at the core of its strategy and operations. The impact of an SOI is both tangible and, in some areas, almost immediate:

• Internally: Employees feel connected to a meaningful movement that enhances both the success of the business and their own personal fulfillment.

• Externally: ESG (Environmental, Social, and Governance) initiatives aligned with an SOI designed for sustainable value creation attract attention from long-term institutional investors.

• Talent Attraction: A well-defined SOI resonates with purpose-driven professionals, drawing top talent eager to contribute to a meaningful mission.

• Innovation & Partnerships: Transformative innovations emerge through dynamic new partnerships and strengthened collaboration across supply chains and beyond, all driven by the SOI.

Where Are the ‘Activist CEOs’?

It’s all very positive and, of course, all very possible. But to make any of this happen, we need the ‘activist CEOs’ touted by Edelman @Davos in January and referenced in various publications like Harvard Business Review and CEO Magazine to show up, get involved, and start delivering.

This does NOT mean speaking out or standing up for ‘cherry-picked’ causes. That is just cynical, short-term brand management dressed up as CSR or Shared Value, with an eye on the perceived ‘brand preferences’ of Millennials.

Realignment, Not Greenwashing

No. This is about radical realignment and organizational development that will deliver practical outcomes. It’s about fundamentally redirecting the businesses they lead to deliver actions at scale that will save both the planet and people.

About the Author

Neil Gaught is the author of CORE: How a Single Organizing Idea Can Change Business for Good, published by Routledge.

Find CORE here:

• Paperback (UK)
• Paperback (USA)
• Kindle (USA)
• Audiobook (USA)

CORE was a finalist at the 2018 Business Book Awards.

Purpose Without Total Commitment Is Meaningless

Can Companies Do Well by Doing Good?

Prof. Ioannou’s latest article on sustainability and strategy in the Harvard Business Review confirms that companies can do well by doing good:

“Our exploratory results confirm that the adoption of strategic sustainability practices is significantly and positively associated with both return on capital and market valuation multiples, even after accounting for the focal firm’s past financial performance.”

This is good news, but how should companies react to it?

The article suggests that companies considering the adoption of sustainability practices are arriving at a crossroads that questions their motivation: “Are we doing this to survive or compete?”

Of course, it is both. But there is a third and more important factor to consider that makes adopting sustainable practices in the hope of achieving either objective a fool’s errand. That factor is commitment.

The Problem With Half-Hearted Sustainability

Unless a business is totally committed and motivated by a genuine human desire to contribute to a future that benefits all its stakeholders, any actions it takes will be seen as little more than a branding makeover. A company that simply adopts sustainability to gain competitive advantage or to appear to care is bound to fail in the long run.

There are many examples of this, but ExxonMobil is a case in point, as highlighted by the #ExxonKnew campaign and The Economist’s recent article on the oil industry and climate change.

Only by defining or redefining the core purpose of the business and putting ‘doing good’ front and center of its strategy—ensuring every single function of its operation actively aligns with a cause that matters beyond making money—can a business truly demonstrate that it is worthy of the support and essential resources (money, time, ideas) of its stakeholders.

Commitment: The Key to Sustainable Business

In the final chapter of my book CORE, I tackled the need for commitment. To introduce the subject, I quoted the acclaimed economist and strategist Pankaj Ghemawat, whose 1991 book Commitment: The Dynamic of Strategy helped shape my early thinking about the potential of Single Organizing Idea (SOI). He wrote:

“Commitment is the only general explanation for sustained differences in the performance of organizations… What needs to be emphasized is that the degree of commitment in regard to choices ensures that they can lead to sustained differences rather than merely transient ones.”

For further reading, David Grayson, Chris Coulter, and Mark Lee underline the need for total commitment in their aptly titled 2017 book All In. It’s time businesses and business leaders made that commitment.

Making Purpose Real With SOI

Single Organizing Idea (SOI) is a proven methodology conceived by Neil Gaught that enables businesses to integrate purpose at the core of their strategy, operations and decision-making. It aligns commercial success with positive social and environmental impact by ensuring that a company’s purpose is embedded in every aspect of its business model. Rather than being an add-on or marketing tool, an SOI serves as a guiding principle that shapes how a business operates, competes and delivers value to all stakeholders.

About the Author

Neil Gaught is the author of CORE: How a Single Organizing Idea Can Change Business for Good, published by Routledge.

Find CORE here:

• Paperback (UK)
• Paperback (USA)
• Kindle (USA)
• Audiobook (USA)

CORE was a finalist at the 2018 Business Book Awards.

People Don’t Get It – But Business Can Help

A Problem and a Solution

Here’s a problem: People don’t get sustainable development. Thankfully, there’s a solution.

Last week, it was my great pleasure to be in Oslo to host the second CORE Dinner Debate with my friends and colleagues from Pure Consulting, Norway’s leading sustainability consultancy, and Ipsos’ Sustainable Development Research Centre.

As with the London debate a month earlier, the specially selected group of public and private sector leaders, investors, media, and academics gathered around the table were quick to engage and share their opinions, expertise, and experiences.

Chaired by Pure’s Founder Stine L. Hattestad Bratsberg, the debate focused on the key question:

“What stands in the way of businesses pursuing a core strategy (Single Organizing Idea) that is good for people, planet, and profit?”

At the end of this article, you can see a list of the main remarks and conclusions the group reached, but what stood out most for me was the lack of knowledge.

Findings from Board Members

Prior to the debate, Stine and her team had conducted a set of interviews with 13 board members representing 160 Norwegian companies to gauge their understanding of sustainability. As in many other countries, a small group of people appear on a lot of boards! The main findings were:

• Large variation in knowledge about sustainable development at board level—and little systematic approach to gaining or growing this knowledge.
• Large variation in understanding the terminology of sustainability.
• Few see having a sustainable strategy at the core as a competitive advantage, even though most state sustainability is a part of their business strategy.
• Sustainability is rarely on the agenda at board meetings, yet they state they have a proactive attitude towards it.
• Little knowledge of the Sustainable Development Goals (SDGs).

Consumer Attitudes in the UK

Back across the North Sea, the London debate was aided by the results of a specially commissioned survey undertaken by Ipsos into the attitudes of UK consumers toward sustainability-related questions. Key findings included:

• 49% of people in the UK would not take a job with a business they believe behaves unethically.
• 37% of consumers believe businesses should put social purpose ahead of making profits.
• 47% of consumers believe that ethically run businesses are better for the economy.
• 48% of consumers prefer to use or purchase from businesses that act ethically.
• 70% of consumers are more likely to purchase products or services from businesses paying employees a fair wage.
• 18% of consumers agree that the current economic system is working well for them, and less than a third believe it is working well for business.

A Need for a Practical Strategy

What was interesting was Jonathan Glennie’s reaction to the results. The Director of Ipsos’ Sustainable Development Centre asked:

“Why is it that only 37% of consumers think businesses should put the needs of society ahead of making profits?”

It’s the kind of comment that makes you stop and think. It’s the kind of comment that makes you want to join the dots.

Taken together, the ignorance of boards and consumers is alarming. Especially if you consider the combined effect these two groups have on executive decision-making, which always finds it easier to think about the short rather than the long term.

In the face of such challenges, declarations of social purpose based on the ideals of an informed few stand little chance of changing anything. What is required is the defining and rigorous implementation of a practical strategy that informs and influences decision-making—one that consistently and constantly asks questions of decision-makers, whoever and whatever their role may be.

Set at the core of a business, a Single Organizing Idea (SOI) provides the opportunity to realize that ideal.

Oslo Debate: Key Remarks and Conclusions

• The pursuit of a sustainability agenda cannot compromise businesses’ ability to make profit.
• Companies will only ever focus on what they can measure.
• Intangible value is hard to measure; like brand value, the value of sustainability is not completely clear.
• Price is the main driver of consumer behavior—this is the number one challenge.
• People are the key. More change-makers are needed in key positions in companies, and Boards need to be rejuvenated with younger people.
• Complexity stands in the way—multiple drivers of change need to be addressed.
• Investors have an enormous role to play and, with one eye on the future, they are beginning to exert their influence. In general, investors want long-term stability.
• Companies need to speak up about the good they are doing—but not in a promotional, self-serving manner; it’s not about selling more stuff—it’s about leading change for good.
• Companies need time and space to change and evolve.
• CSR is low-hanging fruit; changing the core purpose of a business is tough, but entirely possible.
• Courageous politicians are required to change policy and systems.

About the Author

Neil Gaught is a strategic advisor and author of CORE: How a Single Organizing Idea Can Change Business for Good, published by Routledge.

Find CORE here:

• Paperback (USA)
• Paperback (UK)
• Kindle (USA)

Not All Systems Are Bad – Just the Ones That Dehumanise Us

If you were to ask most Facebook employees about their company’s core purpose, they likely wouldn’t say it’s about making money at any cost. Yet, for many of us, it increasingly feels like that has become its primary focus. To me, this shift represents another example of a human-created system that, instead of enhancing our lives, dehumanises us. Facebook has transformed connection, emotion, and community into mere digital data to be exploited, mirroring the way financial markets prioritize profit over everything else.

The System Problem

When I researched a chapter on capitalism for my book CORE, I sought out the thoughts of Colin Mayer, the Peter Moores Professor of Management Studies at the Säid Business School, Oxford and author of Firm Commitment.

Mayer’s thesis is that while corporations have brought us many good things—including extraordinary innovation, prosperity, and employment—they’re also responsible for much that’s very bad, including poverty, pollution, and a succession of financial crises. But he actually doesn’t blame the corporations; he blames the system they are slaves to for these failures. As he puts it:

“…unless there’s a fundamental root-and-branch change to the way shares in companies are held, boards and directors of corporations simply can’t change and will continue to fail us.”

He argues that our dependence on the current system won’t get us where we need to be because the system only promotes good conduct in relation to what it values, and it values only one thing: profit.

Mayer goes on to ask: “If the market values profit above all, do we share the same values?” Of course, we don’t, and neither does Mark Zuckerberg or anyone else working in his company. So why has Facebook seemingly fallen into the profit-obsession trap?

Humanizing Business

I recently collaborated on projects for Lacoste and Danone with Innate Motion, whose sole (or soul) purpose is ‘humanising business.’ It’s a simple, obvious, but compelling idea that is attracting corporations from around the world that want to change for good.

Christophe Fauconnier, Founder and CEO of Innate Motion, business humaniser, soul engineer, and gutsy disruptor, thinks:

“Mark is good, his system was good, but like all systems that are homo-deus made, they become bigger than us and they bring out the worst in us, not the best. Blaming Mark is wrong, we are all part of the problem and we can all be part of the solution. What Mark needs to re-humanise his system is not more technology, but more shared vulnerability that makes us better.”

This is a uniquely human and empathetic point of view. Leaders in business circles may feel uncomfortable with it, but it’s true.

Fellow ‘business humaniser’ Yasmin Kathoria responded to my request for comments on the Facebook crisis by saying:

“Personally, I feel sad that a space which is about making the world more open and connected is making me feel more isolated.”

In the end, the problem isn’t the systems themselves, but how they have evolved to prioritize profit over people. While systems like Facebook were created with the potential to connect and empower us, they’ve instead become tools that dehumanise. As Colin Mayer suggests, the failure lies not with the corporations themselves but with the systems they are bound to. To shift the narrative, we need to humanise business—aligning it with shared values, empathy, and a focus on what truly matters. If we can do that, we not only transform companies like Facebook but also ensure that the systems we create going forward serve humanity, not the other way around.

About the Author

Neil Gaught is the author of CORE: How a Single Organizing Idea Can Change Business for Good, published by Routledge.

Find CORE here:

• Paperback (UK)
• Paperback (USA)
• Kindle (USA)

Millennial Minds: Lean In and Listen

I am embarrassed to admit that at the conclusion of my environmental science class in high school, my thoughts were consumed by how to suppress the devastating facts I’d just learned. I had been taught about how our consumption of greenhouse gases was destroying entire ecosystems, causing the mass extinction of animals, disproportionately harming poorer nations and communities, and I had been fed grim predictions for the future of our planet. What I had not been taught, however, was how to prevent this dismal destiny.

I had not been taught about the companies bringing solar energy to remote villages, or the advances in plant-based food production, or the resiliency species displayed when hunting regulations afforded them the chance to repopulate.

This is not to say that we should coddle students, plucking out examples of advances in sustainability to paint a rosy picture of the planet’s future, yet we also must not be scaring them into resignation. I spent the first part of my college career believing that since my interest was not in science, I could not be a part of the climate solution. It did not become evident to me for some time that it would be a fool’s errand to address any of the issues I am interested in—whether it be inequality, public policy, human rights, or development—without simultaneously confronting the climate crisis. It is not a noble or ethical decision to incorporate sustainability into any field of work – it is a logical one.

Climate Change: A Logical Business Decision

The film Our Planet, Our Business makes that point abundantly clear. Two interviews in the film really resonated with me—one with a Canadian fisherman and one with a Texan mayor, who both explain protecting the planet as a purely logical business decision.

In America, climate change has been branded as an issue point of the far left, a point of contention on par with abortion or welfare that the left and right squabble over. Images of icecaps the size of Manhattan skyscrapers crashing into the ocean or sloths clinging onto a lone tree amid the wasteland of a former forest are used to appeal to our pathos. Yet this strategy has failed to mobilize the majority of people, and it will continue to fail.

Climate change is not a moral issue nor an issue that can be relegated to a certain field. Rather, it is a reality that will permeate every aspect of the business world and as such, it is purely a logical decision to confront it. While businesses have long been the enemies of sustainability, they have the power to be its champions. As Our Planet, Our Business explains, the same innovation and speed that the business sector infused into the Industrial, Technological, and Digital Revolutions can be harnessed into the Green Revolution.

This requires a complete shift in the way we approach the purpose and actions of businesses—it’s not enough to just tack on a CSR team or adopt a trendy sustainability motto and call it a day. What, then, is enough?

Millennials Expect More from Businesses

This transition is not only a demand of our planet, it is one of customers too. Millennials expect more from businesses—our generation represents a fundamental shift in seeing businesses’ sole imperative as wealth creation to expecting businesses to deliver some form of social impact.

The prevalent misconception is that pursuing the latter requires abandoning the former. Single OrganiZing Idea is chipping away at that belief, proving that operating at the intersection of growth and social impact provides benefits to all. There does not have to be a trade-off.

A Call to Action

There are countless inspiring young people—the Greta Thunbergs of the world—who see and feel climate change at a visceral level; they are fighting to save our dying planet with a level of tenacity and vehemence many could only fight for a loved one with. While their efforts are significant, we cannot rely on them. They will not be enough.

A crisis of this magnitude requires the innovation, speed, resources, and creativity of the entire business sector. As Our Planet, Our Business explains, humans are the greatest problem solvers this world has ever known. Our job is simply to provide them with the direction and tools to solve our greatest problem.

About the Author

Larkin Dennison is an SOI Ltd research intern. She is currently reading Political Economy at the University of California, Berkeley.

Looking Back, I Predict a Riot

December is a time when many of us reflect on the past year and look ahead with predictions for the future. Here’s mine.

In the second half of 2017, I traveled the world promoting my book CORE while simultaneously seeking to understand what holds businesses back from identifying, defining, and embedding a core strategy that would allow them to become forces for good.

I wanted to know why companies can do good “some of the time” (i.e., when it suits them), but struggle to do good all of the time. While some videos from my tour show me in an evangelical light, the journey itself was less about pushing and provoking, and more about probing, listening, and learning. Ultimately, I came away with two key insights:

1. Business Leaders Don’t Know How to Make Change for Good

In response to the UN’s 2015 Sustainable Development Goals (SDGs) and the growing buzz around “purpose” in 2017, many business leaders have begun to think more about their company’s role in society. But the truth is, there’s no clear, “approved” method for changing a business at its core to make it a force for good.

By “approved,” I mean that there’s no formal business school curriculum (to my knowledge) teaching leaders how to reorient a business’s core purpose for societal benefit. Sure, CSR programs are widespread, and ideas like Harvard’s Shared Value Initiative have introduced new thinking, but these concepts tend to be cautious and limited. Big ideas that come from large institutions and consultancies are often tied to corporate interests and rarely challenge the status quo beyond the “when it suits you” mentality.

But here’s the truth: I do know how businesses can make lasting change for good. Enter the Single Organizing Idea (SOI). Throughout my travels, I’ve seen firsthand how this practical methodology has helped businesses move beyond the rhetoric of purpose to create real, transformative change.

2. Evidence Alone Doesn’t Make Business Leaders Want to Change for Good

For decades, pioneers in sustainability have championed the social and economic benefits of a business becoming a force for good while increasing profitability. However, the impact has often been “underwhelming,” as one pioneer described it to me.

Despite the growth of CSR, sustainability, and community-focused roles within companies, the conversation hasn’t shifted enough to make doing good a core part of business strategy. And more evidence, at this point, won’t necessarily help.

But here’s the kicker: fear can.

Fear of being left behind is driving a growing need to understand and adapt among forward-thinking business leaders. While the existential threat to our planet isn’t enough to spark action in corporate boardrooms, the fear of a company’s survival being at risk is. When the future of a business’s revenue and success is at stake, that’s the real motivator.

We may not yet be on the brink of a riot where businesses are violently challenged, but the tide of discontent is swelling. According to motivational speaker Simon Sinek, it will take 15% to 18% of businesses to create a tipping point. And that tipping point? It’s coming.

Bring on 2018.

*Cities visited to date: London, Oslo, Boston, Toronto, Montreal, New York, Washington DC, Copenhagen, Beirut, Sydney, and Auckland.

About the Author

Neil Gaught is the author of CORE: How a Single Organizing Idea Can Change Business for Good, published by Routledge.

Find CORE here:

• Paperback (UK)
• Paperback (USA)
• Kindle (USA)

Learning Lessons in Lebanon

Photo by Fares Jammal

As with technology, businesses in emerging economies have the opportunity to leapfrog the bolt-on CSR efforts and ad-hoc philanthropy of the developed world and put sustainability at the core of their enterprises straight away.

On an airplane climbing out of Beirut’s milky early morning sunshine, it was hard not to contrast my experiences there with the Core Dinner Debates held two weeks earlier in New York and DC.

Accompanied by my friend and Associate, Dalia Farouki, the Middle Eastern leg of my book tour started with a meeting with the head of CSR at one of Lebanon’s best-known banks and ended, via several other meetings, at the Suliman S. Olayan School of Business in the pristine grounds of the American University of Beirut (AUB).

Purpose: Not Quite in the Lexicon Yet

The first thing to note is that ‘purpose’ is not yet a common term in Beirut’s business lexicon—but there are murmurs. Whereas in the West I spend much of my time fielding questions on the meaning of purpose and the ‘purpose of purpose,’ in Beirut, there was no need to hack through the ‘purpose thicket’ to get to the point. We got to the practicality and benefits of a Single Organizing Idea (SOI) straight away.

Its role as a strategic management tool, a wealth creator, and a catalyst for businesses determined to change for good was immediately grasped. This was refreshing.

CSR in Lebanon: A Different Perspective

The second thing to note is that CSR is only practiced by a handful of Lebanese businesses. My discussions with the bank and others quickly led me to understand that CSR is neither standard practice nor seen as a necessary ‘license to operate’ there. There’s no need for it to be.

Like elsewhere in the world’s emerging economies, while there’s a growing middle class and increasingly vocal millennials who care about the actions of businesses, they remain a relatively small constituency. Add in lackluster government policymaking in this area, and it’s not hard to understand why the CSR that is being practiced is done for other reasons, among them:

• A real sense of responsibility
• The need to take a lead
• A genuine concern for the future

CSR may well help positively position businesses among peers and underscore a progressive reputation (I’m not naive), but I believe it when I’m told that’s not what is driving it in Lebanon on the whole. This is an opportunity.

No Cynicism—Just Action

It’s an opportunity that I was keen to share with the convener of the AUB Core Debate, Dr. Dima Jamali, and the guests that her fantastic team had invited to the event. Dima’s experience and enthusiasm for the subject ensured probing questions and a lively exchange. The whole point of the Core Debates is not to preach but to invite challenges and learn.

What I saw and heard topped up my glass-half-full optimism. Three things have stayed with me:

1. Immediate Engagement

I was struck by the eagerness and immediacy with which people engaged with my explanation of SOI. There was no cynicism, nobody made comparisons to other concepts, or wasted time dwelling on ‘why.’ What they wanted to know, pure and simple, was ‘how.’ How SOI works, and what and where were the examples?

2. Keenness to Act

I was thrilled by some people’s determination to act quickly. One attendee enthused about the need to introduce SOI to economic development agencies with urgency.

“Most businesses don’t have a strategy here at all,” she said. “It’s day-to-day survival. We need to look carefully at what you’re suggesting.”

3. Values Over Investment

I was deeply impressed by the comments of Samer Sfeir, a young social entrepreneur and founder of ShareQ NGO and M Social Catering. Both initiatives aim to integrate socially, physically, and financially challenged people into jobs so they can overcome their challenges, be productive, and live in dignity.

He explained how one of his enterprises had attracted the attention of investors. But there was a catch. His would-be investors liked the business but not the social cause—it was a waste of time in Beirut, they said, and an unnecessary distraction from commercial success.

He turned their money down.

I was humbled when he said:

“Listening to you and this discussion has confirmed I did the right thing and has redoubled my ambition to build a great social enterprise in Beirut and attract impact investors on board of my enterprise.”

Looking Ahead

It’s been a privilege to have my view of the world shaped by many such exchanges. I continue to listen, learn, and grow my understanding of what’s possible. Despite the enormous challenges, I’m convinced SOI is a solution. But perhaps businesses in the developing world are better placed to realise it first?

About the Author

Neil Gaught is a strategic advisor and author of CORE: How a Single Organizing Idea Can Change Business for Good, published by Routledge.

Find CORE here:

• Paperback (UK)
• Paperback (USA)
• Kindle (USA)

To Boldly Go Where We’ve Not Been Before Doesn’t Need to Be a Leap of Faith

Sometimes the future is not hard to predict—it’s totally logical. Widely cited, Star Trek’s Chief of Logic (COL), Spock, nailed it when he said:

“The needs of the many outweigh the needs of the few.”

If we are bold and if we act now to change our organizations and our systems, we will help ensure that future generations do that other thing the pointy-eared one said and “Live long and prosper.” Some people who hold the key to realizing that future seem to be finally getting the message.

The Investment Shift

A survey of fund managers responsible for a whopping $10 trillion (£7.7 trillion) says that oil companies will not remain an attractive investment unless they change. This was the headline that came out of the second report published by the UK Sustainable Investment and Finance Association (UKSIF) and its partner Climate Change Collaboration at the end of April.

Contributors to the survey included some of the biggest names in the investment field such as Legal & General, Insight, Schroders, Aviva, and HSBC Global Management. Just under a third of those who took part in the survey do not “see IOC’s (integrated oil companies) as an attractive investment on any time horizon.”

A Shift in Business Thinking

At the launch of my book CORE in the summer of 2017, I stated on film:

“…businesses that are single-mindedly focused on shareholder returns are history.”

I was told by some that it was a bold thing to say, and I even received a Shakespearean quote about the futility of my quest to challenge the status quo from one ex-colleague. But I believed it then, and almost two years later, having engaged with leading businesses, NGOs, activists, and government representatives all around the world, I believe it even more so now.

Mindset Change Is Just the Beginning

There is hope, and while many businesses will indeed choose failure over change, the conversion of some fund managers is an indication of real progress. But right now, it’s only a change of mindset and still restricted to a minority, albeit a seemingly growing one.

Reading the report carefully, what is suggested is that while fund managers are acutely aware of the changing attitudes of investors, consumers, and employees—like the rest of us, they are hearing the increasingly alarming findings of surveys and seeing the resulting activism—they are being frustrated in two ways:

• By the short-term greenwashing tactics of oil companies who are seeking to deny, delay, or disrupt change.
• Through their own lack of knowledge about what change actually looks like for themselves.

According to the report:

• Only 39% of fund managers have a public commitment to achieving the targets laid out in the Paris Agreement.
• 13% have a private commitment.
• 47% have no commitment at all.

Beyond Climate: A Broken System

The fossil fuel sector is not the only one facing challenges, and unfortunately, climate change is not the only negative outcome of the systems we have created, as the Sustainable Development Goals clearly set out.

Leaders need to be bold to bring about the kind of radical changes required to overcome these challenges, but it doesn’t need to be a leap of faith. What is required to translate mindset change into the kind of action stakeholders are demanding is an inspiring but overwhelmingly practical solution that can be implemented, monitored, and measured.

The Single Organizing Idea (SOI)

SOI is a proven, values-led approach to business management that challenges the norms and overturns the business practices we have developed that are killing our planet and the prospects of future generations. Crucially, it unites and equips people with the tools and belief necessary to turn words and feelings of concern into proactive, tangible outcomes.

There is hope, and change is entirely possible. But the systems and rules we will need to live by to ensure that all stakeholders (human and otherwise) live long and prosper now and into the future cannot be the same ones we abide by today.

Upcoming SOI SparkLab Events

If you are serious about championing change in your business and want to learn more about how to identify, define, and align your business from the core with a Single Organizing Idea that goes beyond greenwashing, mere compliance, or brand management-inspired purpose promises, we are running short 90-minute introductions to our SOI SparkLab program at the following events:

• Sustainable Brands Detroit 2019: 3-6 June, COBO Center, Detroit, MI (Event Link)
• Business Fights Poverty Oxford 2019: 11 July, Said Business School, University of Oxford (Event Link)

Neil Gaught is the author of CORE: How a Single Organizing Idea Can Change Business for Good, published by Routledge.

Find CORE here:

• Paperback (UK)
• Paperback (USA)
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Peddling the Purpose Paddle

So, Larry Fink has posted his annual letter, rightly called into question by the ever-alert Economist. Greta Thunberg has again castigated the great and the good at the annual bash in Davos, and Donald, the leading defender of the status quo, is carrying on being, well, Donald.

Welcome to 2020.

Beyond Petroleum – A Missed Opportunity

Exactly two decades ago, BP declared it was going ‘Beyond Petroleum’. Imagine if it really had. Imagine if its rivals and policymakers hadn’t abandoned Lord Browne to the vagaries of the marketplace but instead put competition aside, embraced his vision, stepped up, and supported the leadership being shown with immediate, radical action—emergency style. Today, we would likely be facing a somewhat less challenging era.

On its website, at the time BP declared ‘Beyond Petroleum’ as:

“A powerful way to unite 100,000 people under a single brand with a unified sense of purpose.”

It spectacularly failed. It failed us then, just as any ‘unified sense of purpose’ is going to fail us again. The reasons are plain to see in the thoughts of one employee who shared them in October 2006 with Fortune magazine following the life-ending explosion at BP’s Texas City Refinery, five years after the journey beyond petroleum began.

“Constant turnover only worsened matters, as new bosses would seek to beat the previous manager’s numbers. The values are real, but they haven’t been aligned with our business practices in the field.”

The Profit Card Still Trumps the Purpose One

Big corporations like BP are hostages to growth and wealth creation. There is no getting away from the fact that they are hooked, addict-like, on feeding on numbers. Despite all the evidence, despite all the talk of a new corporate consciousness being awakened by the monumental challenges humanity faces, the profit card continues to trump the purpose one. Money and the pursuit of it were still at the core of BP five years after the Texas catastrophe when Deepwater Horizon added another eleven people to the death toll, and it is still at the core of BP today.

The conclusion I have reached is that it’s not that big businesses can’t have a purpose—they can. The issue is that they are simply not ever going to be fit enough to deliver a purpose. They are simply the wrong kind of beast. Meat-eating wolves don’t become grass-eating sheep, though they can do a pretty good job of dressing up like them—some of the time.

Just as going ‘Beyond Petroleum’ was beyond, and some would say still is beyond, the big oil companies, so going ‘Beyond Purpose’ as being anything other than an aspiration is beyond them too.

Professor Colin Mayer’s Vision

Professor Colin Mayer, whom I interviewed for my book CORE and for whom I have the greatest admiration and respect, recently discussed the Principles of Purposeful Business that he and The British Academy have been busy defining over the past two years in a Business Fights Poverty podcast. Published in November 2019, what lies behind the eight principles is a determination to “reconceive the notion of business over the coming years.”

The ambition of the project is wide-ranging and simultaneously both exciting and sobering. Amongst the recommendations is that purpose, by law, be placed at the core of all corporations. That leaders of corporations be measured and made accountable for performance against a purpose, and that a set of values necessary to deliver purpose be embedded in their corporate culture.

The Reality of Change

I say yes to all these new ideas (they fit very nicely with my Single Organizing Idea – SOI), but here’s the sobering part. I know from first-hand experience just how difficult it is to even introduce, let alone implement, the kind of radical changes being proposed. Resistance, passive or active, is not just embedded at every level of top-down silo cultures but often also permeates the servile, self-serving, short-term-driven agencies (public and private) that surround them.

It will take years and years of the very limited time we are told we have left by scientists to change these businesses. So why bother? Why bother saving them at all when our first and foremost concerns are about achieving the Sustainable Development Goals (SDGs) and making our world a safer, more caring, and sustainable place?

The Purpose Illusion

It’s not new ideas like Professor Mayer’s that scare me. It’s the old ones that do. Purpose is a tarnished old idea that is being promoted by out-of-date, noisy, attention-seeking, and lobbying-reliant big businesses that are themselves no longer fit for purpose.

Businesses possess an array of unique attributes and the potential to make a huge contribution to all our futures. But it’s time to set old big businesses—and the purpose life-raft they are clinging to—adrift, and instead back and fast-track legislation for new businesses that are being founded upon and organized around a single, simple idea that makes things better.

Time for a New Model?

We don’t need to peddle the purpose paddle any longer. What we need is a completely new way of structuring business for the future. A way that ensures business is actively making the world better—not just claiming to.

Neil Gaught is the author of CORE: How a Single Organizing Idea Can Change Business for Good, published by Routledge.

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