· 5 min read
In today’s rapidly changing world, the demand for transformative business leadership has never been greater. As we face unprecedented global challenges - from environmental degradation and systemic inequality, to the changing dynamics of the workforce -, our definition of success is shifting. No longer is it enough or indeed sustainable to merely focus on profits, business must embrace an approach that prioritises the wellbeing of all people and planet. This is at the heart of the emerging Wellbeing Economy.
Indeed, the outdated Business-as-Usual (BAU) model has been operating as though business exists in a vacuum, externalising the costs of its impacts to society and the environment on which it depends. By contrast, the emerging economy understands that a healthy economy is dependent on a healthy society, itself reliant on thriving ecosystems - and it internalises those dependencies. For humanity and business to thrive in the long term, we must undergo a fundamental shift - one that calls for purpose-driven leadership, bold decision-making, and a deep understanding of the interconnectedness between economic, social, and environmental systems.
Defining Purpose and Governance in the wellbeing economy
Purpose isn’t a buzzword - it is the anchor and core of good Governance, one that is now clearly defined by standards like PAS808 and the upcoming ISO 37011 (a global consensus on Purpose), both of which will be playing a key role in guiding organisations towards building long term success and resilience to the coming shocks.
Purpose is an organisation’s core Why/reason for being. It encapsulates a broader sense of direction that integrates social, environmental, and economic considerations, and contributes to solving existing problems for society. Profit must still exist of course as financial viability is key - but redefined as what it is meant to be: a derivative of an organisation’s real purpose to align with a sustainable future.
And of course, Governance plays a critical role. According to flagship standard ISO 37000, governance must be understood as a system that places purpose as its central guiding force. This ensures transparency, accountability, and ethical decision-making—key to surviving the polycrisis and to thriving in an interconnected world.
This shift is already underway. With growing evidence that Purpose-Driven organisations are best positioned to navigate the polycrisis and thrive in the emerging economy, a recent survey by Capgemini Research Institute found that over 62% of businesses plan to increase their sustainability budgets in 2025. The same survey revealed that three in four businesses now recognise that the benefits of taking action far outweigh the costs of inaction.
The role of purpose-driven organisations
Beyond making profit which is just one of many parameters to long-term success, Purpose-Driven organisations essentially exist to solve problems for society.
According to PAS808:2021 – “Purpose-driven organisations – Framework for the design and implementation of purpose”, a Purpose is:
“The reason for an organisation’s existence that provides a unifying and enduring sense of direction, aligning the organisation’s strategy, culture, and decision-making with societal value and long-term sustainability.”
Rather than value destruction, the emphasis is on value creation for all stakeholders: from employees to customers, society and the environment they depend on for success. These organisations are connected to the ecosystem within which they operate, solutions-oriented and innovative - thereby attracting talent, clients and investors who share similar values, co-creating solutions to our most pressing challenges.
These organisations understand the importance of collaboration. Climate change, nature and biodiversity loss, and social inequalities are too wicked for any one entity to solve alone. That’s why collaboration across the landscape and across sectors - including competitors - is at the heart of their approach. Indeed, our future is created collectively.
As we consider the organisations that are leading the way toward a Wellbeing Economy through their mindsets and practices, many share several common traits including problem-solving, innovation, courage and collaboration. Notable examples include Patagonia revolutionising the fashion industry with its commitment to sustainability, and Tony’s Chocolonely transforming the cocoa sector to eradicate systemic issues of modern slavery and unfair practices in cocoa supply chains. Fairphone is a leader in sustainable electronics, focusing on reducing waste, using conflict-free materials and designing products with durability and repairability in mind. And Natura is championing regenerative practices that restore natural ecosystems and uplift local communities.
And the movement is growing. “Transforming global trade to benefit farmers and workers in developing countries”, Fairtrade International are striving to create a fairer trading system by certifying products that meet strict social, environmental, and economic standards - thus empowering local communities and improving the livelihoods of small-scale farmers. Triodos Bank also stands as a powerful example of ethical finance, investing in nature restoration projects and community-driven initiatives while actively avoiding harmful sectors like fossil fuels.
Building the new economy
The future of business lies not in short-term profit maximisation, but indeed in long-term success rooted in purpose and good governance. No matter the geopolitical context, the just transition is well underway as Sustainability is now a core driver of both strategic planning and investment decisions. This was one of the key takeaways of this year’s World Economic Forum - a trend confirmed by a joint study from PwC UK and the London Business School, with over 75% of companies now linking Executive remuneration to at least one sustainability-related KPI.
This journey requires organisations to embrace systems change, build capacity at leadership levels, and collaborate to solve complex challenges. Leadership can come from anywhere. And as leaders, we must ask: Where do we stand? Are we ahead of the curve, shaping the future? Or are we scrambling to catch up - or are we fighting crises and falling behind?
In the years to come, those who embrace purpose-driven leadership, backed by the robust frameworks offered by PAS808, ISO 37011, and ISO 37000, will be the ones leading the charge. They will be the ones who not only adapt but thrive in the paradigm shift. And they will be the ones who leave a lasting, positive legacy to the world.
illuminem Voices is a democratic space presenting the thoughts and opinions of leading Sustainability & Energy writers, their opinions do not necessarily represent those of illuminem.
