Chief Executives for Corporate Purpose and the value of going beyond profit: Ticker 127

Oct 20, 2021
Jeff Cossette talks to Nandika Madgavkar of Chief Executives for Corporate Purpose about the boost a company gets when it goes beyond the push for profit

The way companies are valued in capital markets appears to be undergoing a fundamental shift. There’s growing consensus that business should focus on a wider range of constituents than just shareholders. That they should see beyond merely the next quarter. That they should present a sustainable value creation model.

Listen to the podcast recording below >

 

Nandika Madgavkar is head of the CEO Investor Forum at Chief Executives for Corporate Purpose (CECP), a CEO-led organization dedicated to helping companies embed these ideas into corporate practice and communications strategy. Along with Fortuna Advisors, CECP has published research that shows companies with a brand purpose other than maximizing profit far outperform so-called ‘low-purpose’ firms on a range of key metrics – a gap that has widened during the pandemic.

Key findings for ‘high purpose’ companies in 2020 include:

  • 14.1 percent greater revenue growth
  • 7.7 percent higher operating profitability
  • 5.8 percent better return on capital.
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