Improving Sustainability Through Purpose Ecosystems in Business
Changing Ideas about Organisational Purpose
Sustainability reporting is one of the main techniques the private sector uses to account for its obligations to achieve the United Nations Sustainable Development Goals (UNSDG). New initiatives and organisations have emerged to help improve sustainability outcomes by advising the private sector to broaden the fundamental purpose of business.
This Purpose Ecosystem seeks to create positive incentives, infrastructures and framing for developing purpose-driven businesses. The purpose of business here is integrating social and environmental objectives, connecting people from multiple areas, and educating businesses to be ‘change-makers’, all to improve the governance of earth systems potentially.
Piloting Research
In 2019, Associate Professors Fred Dahlmann and Wendy Stubbs established a pilot project to explore which roles members of the Purpose Ecosystem play in accelerating actions aligned with achieving UNSDGs. They have collected and analysed primary data, visited each other’s Universities to expand their networks, taught on the Alliance Virtual Module and published several research articles.
The Catalyst Fund
The Monash Warwick Alliance Catalyst Fund was an ideal opportunity to prime the research pilot project. The funding allowed them to connect with a much more comprehensive network of researchers at Monash and Warwick universities and strengthen collaboration in sustainability. They also established good connections with industry partners whose work closely aligned with our aims.
Interviews with Business
Based on in-depth interviews with 12 Australian organisations in the purpose ecosystem and six based in the UK, their interviews explored open-ended questions. These interviews considered organisations’ definition of purpose; respective theory of change; interactions among the purpose ecosystem members; barriers and challenges towards achieving progress; and how the organisations address or contribute to the UNSDGs.
Developing Purpose Ecosystems
Findings suggested that members of the purpose ecosystem all use different approaches for changing the purpose of business towards achieving outcomes beyond profit. They often target critical private decision-makers by raising awareness, providing education and individual support, and offering new financial and organisational tools. However, with old habits, lack of resources is a barrier to progress and impact. Recommendations included: • Rigorous mapping of the purpose ecosystem. • Developing a platform of different funding sources. • Creation of a community of practice. • Research into the impact of theories of change.
Next Steps
Given the scale and urgency of many of these complex issues, working with Warwick University researchers provides the ideal launchpad for Monash researchers to achieve global impact. The next step for Fred and Wendy is to build on their initial findings and apply for more significant external grant funding. The aim is to extend their pilot with a more comprehensive research proposal designed to understand better the processes needed to support the development of purpose-driven businesses. Such organisations could play an essential role in helping to achieve the 17 UN Sustainable Development Goals.
Principal Applicants
Associate Professor Wendy Stubbs
Wendy Stubbs is an Associate Professor in the School of Social Sciences at Monash University. Her research seeks to understand how business can more holistically address its environmental, social and economic responsibilities.
Associate Professor Frederik Dahlmann
Frederik Dahlmann joined Warwick Business School as an Assistant Professor of Global Energy in October 2012. He has a BSc from Loughborough University, an MSc and a PhD from the University of Bath. He also gained professional experience in the construction sector and from working as an energy analyst in London.