The world is changing — faster than our governance frameworks often allow.
Geopolitical volatility, economic fragmentation, climate disruption and societal
inequities are converging in ways that demand a different kind of boardroom: one
that is future-fit, purpose-led and nimble enough to successfully navigate uncertainty.
Against this backdrop, the Canadian Purpose Economy Project (CPEP)’s new
TSX 60 Social Purpose Report
Card
— for which I contributed the foreword — provides timely insight into how
Canada's largest companies are approaching purpose at the board level. It
invites us — as directors, chairs and governance professionals — to step back
and ask: What is the purpose of the board — not just the business, but the
board itself?
Are we just here to oversee quarterly performance? Or are we here to help
companies shape the conditions for long-term, sustainable success?
Are we just here to minimize risk or to enable responsible, courageous
decision-making in service of society?
The CPEP report reflects a growing recognition that purpose is not a PR
exercise; it is — or should be — a company’s North Star. It answers the
essential “why” that should guide a company’s every strategic,
financial
and cultural decision.
And it reveals an encouraging shift in Canada’s largest companies. With 40
percent of the TSX
60 now
publicly declaring a social purpose, we see progress. But we also see how much
further we must go — not only in defining purpose, but also in governing it.
As CPEP’s report shows, only nine of the companies assessed assign explicit
board oversight to purpose. That matters — because without purpose
governance,
purpose will remain fragile: It will stay in the marketing
silo;
it will be vulnerable to
short-termism.
It will not shape culture, compensation or capital allocation in the way it must
if we are to meet the expectations of all of our stakeholders — not just our
shareholders.
In my book, The Future
Boardroom,
I describe this moment as a crisis of strategic clarity. Board papers are too
often backward-looking. Agendas are too often operational. Boardroom culture too
often rewards comfort over
courage.
But board directors cannot afford to operate in “review mode” anymore — they
must be sense-makers, signal-spotters and system stewards.
Purpose-driven boards must ask deeper questions:
-
Does our board understand the societal
value
our company creates — and the harm it might cause?
-
Is purpose discussed when we set strategy, approve budgets and assess risk?
-
Does our board
composition
reflect the future we are preparing for — or the past we are clinging to?
-
Do we challenge management to report not only on profits, but also on
progress toward purpose?
The CPEP report asserts that purpose without implementation is
“purpose-washing.” But I would go one step further: Purpose without board
ownership is a governance
gap.
And in some cases, it may even be a fiduciary risk.
CPEP’s rigorous analysis offers valuable insights — a tool every board member can
use not only as a benchmark, but also as a mirror. Complementing the report,
guidance on Purpose
Governance
— developed by CPEP and endorsed by my organization, Competent
Boards — offers a practical starting point for
boards looking to close this gap.
If your company’s purpose is absent, ambiguous or only loosely connected to
governance, this is your invitation to change that. Because what we do in the
boardroom doesn’t just guide the company; it signals what we value as leaders
and what we are willing to be held accountable for.
As one of the contributors to my book said: “Leadership is not about being
right. It’s about doing what is right — especially when the path is uncertain.”
That insight leads to a question I often ask directors around the world: Why
are you here? Not just on this board — but in this moment, in this role, in
this time?
The answer to that question may be the most important governance decision you
make.
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Helle Bank Jørgensen is Global Managing Director of Board Development at Board Intelligence and founder of Competent Boards - creator of online ESG and Climate education programs for board directors and business leaders. She is the author of "Stewards of the Future: A Guide for Competent Boards" (2022) and "The Future Boardroom" (2025).
Published Jul 30, 2025 8am EDT / 5am PDT / 1pm BST / 2pm CEST