The business world is at a turning point. Even amid backlash against ESG, expectations for companies to play a broader role in society are not diminishing — they are accelerating. As global risks such as climate disruption, inequality, and geopolitical instability converge, businesses are increasingly called upon to adopt a purpose beyond profit and help tackle society’s pressing challenges.
A new study, the TSX 60 Social Purpose Report Card, shows that this shift is beginning to take root in corporate Canada — though unevenly. The Canadian Purpose Economy Project (CPEP), which works to build the conditions for social purpose business to become the norm, assessed whether companies in the TSX 60 Index, some of Canada’s largest publicly traded firms, have articulated a social purpose as their reason for being.
A Growing but Incomplete Shift
The results are promising: 24 of the 60 companies (40%) were found to have a public-facing social purpose statement on their website or in their annual reports. Collectively, these firms represent nearly half of the TSX 60’s total market capitalization, or about $1.5 trillion. This signals that purpose is no longer confined to niche firms — it is gaining traction in Canada’s corporate mainstream.
At the same time, the majority of companies (60%) either have no publicly declared purpose statement at all or one that falls short of a genuine social purpose. Nearly half had no discernible purpose, while eight had statements that were focused on providing products or serving customers, or were too narrow, vague, or self-referential to qualify as a social purpose.
Sectoral differences are also striking. Energy and financial institutions — two of the index’s most heavily represented sectors — each show 50% adoption rates. All three telecom firms are on board. Yet in mining, none of the six TSX 60 companies articulated a clear social purpose. These gaps highlight both the momentum and the challenges of embedding purpose across Canada’s economy.
Why Purpose Matters
A social purpose business is defined by the Canadian Purpose Economy Project as a company whose core reason for being is to create a better world — a business that exists to profitably solve problems of people and planet, not profit from creating them. By this standard, purpose is not a brand message. It is the foundation for strategy, risk management, culture, and ultimately, license to operate.
Purpose anchors a business in long-term relevance and resilience. It helps companies anticipate and adapt to shifting customer expectations, regulatory changes, and societal challenges. By orienting around solving meaningful problems, a social purpose business attracts and retains talent and partners, strengthens trust with stakeholders, and fosters innovation. In an era where legitimacy and impact are closely scrutinized, purpose is a source of differentiation and a pathway to enduring success.
The Role of Purpose Governance
Perhaps the most sobering finding in the TSX 60 Report Card is the limited role of boards in purpose oversight. Of the 24 companies with a social purpose, only eight (one-third) assign explicit board responsibility for it. Among these, just three stand out for strong practices: WSP, TELUS and Scotiabank, demonstrating a number of best practices highlighted in these Purpose Governance Guidelines.
WSP’s board charter positions purpose at the top of its responsibilities, linking it directly to strategy and culture. TELUS explicitly connects purpose to its strategic plan through a board responsibility for “Strategy Determination and Social Purpose.” Scotiabank, meanwhile, makes purpose oversight the first responsibility listed in its governance policies, with its Corporate Governance Committee tasked with reviewing alignment, execution, and disclosure.
For most other corporate boards, governance documents show that purpose lacks robust formal oversight. It is often treated as one factor among many or bundled with ESG or brand positioning, if addressed at all. Without explicit board oversight, purpose risks being reduced to purpose-washing.
Canada in a Global Context
Canada’s 40% adoption rate mirrors trends elsewhere. A review of the FTSE 350 found 44% of UK companies with purpose statements tied to global challenges, while studies of the ASX 100 and emerging market firms also landed around 40%. The U.S., however, lags far behind, with only about 13% of S&P 500 companies articulating a social purpose.
This convergence suggests that we are seeing the early stages of a global shift toward companies adopting social purpose statements. But the Canadian data also makes clear that articulation alone is not enough: governance and integration must follow.
What Comes Next
The TSX 60 Social Purpose Report Card offers a lens into how leading companies are approaching purpose — and it should serve as a wake-up call for business leaders worldwide. Adoption may be growing, but most companies have yet to publicly declare a purpose to create a better world. And even among those that do, far too few are ensuring purpose is governed at the highest levels.
For purpose-led brands, this represents both a challenge and an opportunity. Companies that authentically embrace social purpose, disclose it clearly, and embed it into governance and strategy are more likely to create meaningful impact, drive revenues, grow, earn stakeholder trust and strengthen resilience in turbulent times. Those that do not risk falling behind.
The next frontier is clear: moving from purpose as words on a website to purpose as a governing principle. Boards must go beyond ensuring the company has articulated a relevant purpose. They must ensure accountability for it — overseeing how purpose informs capital allocation, risk management, and culture, and holding leadership responsible for results.
CPEP’s Purpose Disclosure Guidelines offer practical direction on how companies can disclose and implement purpose credibly. Used alongside the TSX 60 Social Purpose Report Card, they provide both a benchmark and a roadmap.
The rise of social purpose in top companies shows encouraging momentum, but also a reminder: purpose must be more than a statement. It must be owned in the boardroom, embedded in strategy, and measured with the same rigor as profits. Only then can companies truly deliver on their promise to help build a better world.
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Coro Strandberg is President of Strandberg Consulting, which provides strategy advice to companies and industry associations that seek to integrate social and environmental considerations into their purpose, governance, operations and supply chains to create business value and societal benefit.
Published Oct 29, 2025 8am EDT / 5am PDT / 12pm GMT / 1pm CET