The Institute of Directors has launched a new Commission to examine the role of business in society and assess the extent to which it is acting as a force for good in today’s world.
It comes at a time of, what the IoD describes as heightened public scrutiny of corporate behaviour.
The Commission will look at how businesses create economic, social and environmental value, as well as the factors, behaviours and incentives that have limited or undermined positive impacts. Its work will also explore where business is falling short, and the conditions under which it can best contribute to long‑term prosperity and wellbeing.
Chaired by Lord Rees of Easton, it will bring together senior representatives from across business, professional bodies, unions and civil society to provide a detailed assessment of how business contributes to society and conclude with practical recommendations for directors, boards and policymakers on how businesses can support long‑term economic success, social progress and sustainable development.
Jonathan Geldart, Director General of the IoD, said: “At a time of economic, social and environmental pressure, it is right to ask a serious question: is business truly a force for good?
“This IoD Commission will move this debate beyond slogans and binaries, undertaking a rigorous, evidence‑based assessment of how businesses create economic, social and environmental value, and where outcomes have fallen short.
“It will examine the incentives, behaviours and governance structures that shape real‑world decisions, recognising that enterprise is complex, trade‑offs are real and leadership is often exercised under significant constraint.”
In previous years, the IoD has convened Commissions to examine the role and contribution of non-executive directors, develop a Code of Conduct for Directors and harness diverse talent
Lord Rees said the Commission comes at an important moment at a time when society represents “a collective act, shaped by the choices we make across politics, economics, civic life and personal responsibility”.
He added: “Business is central to that story. It creates jobs, wealth, innovation and opportunity, and it shapes communities, life chances and public trust.
“But building a good society is not simply an act of altruism. It is enlightened self-interest. Healthy populations make for resilient workforces. Stable societies are good for investment. Business leaders and workforces live in, and are shaped by, the world business helps create. And these are determinants of business success.
“This work is timely. Many people are losing faith in the institutions that have held our society and economy together. Too many feel left behind by an economy that no longer offers the security, dignity and opportunity it once promised.”
Further details on the Commission are available here.
