Purpose Over Profit: Why ESG is the Future of Business

In her presentation, Dr. Roberta Lepre made a compelling case for integrating purpose and ESG (Environmental, Social, Governance) strategies into the heart of business operations, starting from the differentiation between stakeholders and shareholders.

For decades, Milton Friedman’s shareholder theory dominated business thinking, and the priority was profit maximisation. However, more recently, the stakeholder theory, pioneered by R. Edward Freeman, called on businesses to consider the interests of all those affected by their actions: employees, customers, communities, and the planet. This shift isn’t just philosophical, it’s practical. Companies that prioritise a broader purpose are showing stronger innovation, greater employee satisfaction, and more sustainable growth.

Several landmark studies — including reports from Harvard Business Review, EY, Deloitte, and the Stengel 50 — all point to a striking trend: purpose-driven companies consistently outperform their peers. Whether it's through greater customer loyalty, higher employee engagement, or increased market share, having a clear reason why you do what you do gives you a serious edge.

How is ESG linked to purpose?

While“purpose” speaks to your business’s heart, ESG is the engine that brings it to life.

• Environmental (E): Align operations with sustainability goals — think climate action, resource conservation, and responsible sourcing.‍
• Social (S): Build strong, ethical relationships with employees, suppliers, and communities. Promote diversity, support worker rights, and engage meaningfully with society.
• ‍Governance (G): Ensure transparent, accountable leadership. Embed ethical decision-making into your corporate DNA.

When ESG aligns with purpose, companies create real value — not just for shareholders, but for the world. Dr. Lepre lays out a practical roadmap for embedding purpose into your business model:

1. Define Your Purpose: Go beyond profit and ask “why do we exist as a business?”‍
2. Align with your core values: Ensure your purpose aligns with your personal values.
3. Involve Your People: Engage employees and customers in shaping your mission.
4. Embed It Operationally: Align products, services, and supply chains with your purpose.
5. Tell Your Story: Communicate openly and authentically.
6. Measure & Report: Track your impact and be transparent.
7. Lead and Adapt: Be the change from the top —  and evolve as needed.

In the second part of her presentation, Dr Lepre tackled the more technical side of ESG — the reporting frameworks and assessments that support transparency and accountability. From the Corporate Sustainability Reporting Directive (CSRD) to Double Materiality assessments, which look both at how the world affects your business and how your business affects the world. Afterwards, Dr.Lepre encouraged participants to identify two simple, actionable changes they could make immediately — the so-called "low-hanging fruit" — to start their ESG journey.

Purpose and ESG are more than trends — they are the foundation of a future-ready, resilient business. Download the presentation to learn more.