Purpose-driven organisations fundamentally ask “what are we really doing here?” and aim to align their decisions with the goal of collective long-term well-being for all people and the planet. Unlike traditional organisations often focused on short-term financial self-interest or survival, purpose-driven organisations consciously set their direction based on their optimal strategic contribution to long-term well-being and operate within parameters designed to protect specified value, particularly the social and environmental systems that underpin well-being. While traditional organisations might adopt enlightened self-interest, focusing on some aspects of value protection beyond just financial, purpose-driven organisations aim for a broader, more comprehensive approach that reflects the complexities of real reality and the systemic consequences of actions.

ISO 37000 defines governance as direction, oversight, and accountability. This framework is central to purpose-driven organisations as it provides the structure for setting the value generation intent (purpose) and the value protection parameters within which decisions are made. The developing ISO 3711 standard is intended to provide specific guidance for the governance system of purpose-driven organisations, allowing for a collective understanding of what “good” looks like in terms of contributing to long-term well-being. This standard will help organisations specify their purpose and parameters, which then inform strategy and allow for evaluation of whether that strategy aligns with the overall goal of collective long-term well-being.

Ethics is crucial for purpose-driven organisations, building on the foundation of an embedded ethical organisational culture. This involves leadership commitment to ethical conduct, fair treatment of employees, and accountability for transgressions. Holding organisations accountable, even to a higher purpose, requires creating an environment where people feel safe to speak up and report unethical behaviour or misconduct, often through whistleblowing mechanisms. While the Ethics Institute assists organisations in building ethical cultures, they don’t directly hold them accountable. However, effective whistleblowing systems, guided by standards like ISO 37002, are vital for ensuring reports are investigated and acted upon, thereby helping organisations stay on track towards sustainable development and social/environmental well-being. The lack of accountability when things go wrong is a significant issue, and the shift towards purpose-driven models suggests that accountability for long-term well-being extends beyond just governments to every organisation and individual.

Innovative technology can be a valuable tool for purpose-driven organisations, especially for collecting and analysing the extensive data required to inform decisions aligned with a broader set of goals and parameters, including multi-capitals. Technology can help track impacts, provide transparency through disclosure, and manage risks. However, simply introducing new technology isn’t enough; successful implementation requires focusing on people (communication, training), processes (amending ways of working), and data (readiness, quality, and governance). The responsible use of technology, ensuring compliance, security, and appropriate data handling (like in the context of GDPR), is fundamental to achieving positive outcomes and avoiding the destruction of value.

One major pitfall is the issue of “dirty data” – incomplete, inaccurate, or out-of-date information. If technology, such as AI or machine learning, relies on poor-quality data, it can lead to flawed insights and decisions that are not in the best interest of the organisation or its purpose. There’s also the risk of “laziness” in data management and governance, particularly with vast data stores becoming easily accessible through cloud technology. This can lead to inappropriate data usage, holding data longer than necessary, and inadequate disposal. Over-reliance on technology without proper human oversight and critical thinking can also lead to a decline in thoughtful decision-making and potentially drive an organisation away from its intended purpose if the underlying data or algorithmic biases are misaligned.

These technologies, while powerful, need careful consideration within a purpose-driven framework. Generative AI can fast-track tasks like proposal or contract drafting, but its effectiveness depends heavily on the quality of the source data it’s trained on. LLMs can provide smart search capabilities, but access needs to be restricted to appropriate data sets to avoid privacy or security breaches. Machine learning and data analytics can identify trends and anomalies, but again, require clean and reliable data to provide meaningful insights. The core message is that while these technologies offer significant potential, their application must be guided by the organisation’s purpose and parameters, ensuring the data they use and the outcomes they produce are aligned with contributing to long-term well-being and not simply amplifying existing biases or harmful practices.

The question of accountability in technology-driven decision-making is complex. It involves not only the developers of the technology but also the governing body responsible for setting the organisation’s direction and parameters, and the people who make decisions based on the technology’s output. Ultimately, within a purpose-driven framework, leadership accountability is paramount. Leaders are responsible for ensuring the technology is implemented responsibly, that data is managed effectively, and that decisions made with technological assistance align with the organisation’s purpose and contribute to well-being. Failures in this regard are often seen as leadership failures rather than solely technical or individual ones. The broader implication is that society as a whole pays the price for irresponsible behaviour, regardless of who is formally held accountable.

Purpose-driven organisations directly challenge the traditional economic assumption that individual or corporate self-interest, guided by market dynamics, will automatically result in optimised collective long-term well-being. The existence of sustainability issues and widespread degradation of social and environmental systems demonstrates that this assumption is not working. Purpose-driven organisations correct this by explicitly setting their goal as contributing to well-being and innovating towards that end, rather than solely focusing on profit and hoping for a positive outcome. This approach short-circuits the traditional “cognitive pathways” of business and aims for a more efficient and effective economy by consciously directing resources and efforts towards demonstrably beneficial outcomes for people and the planet.