What does it mean to lead a business with purpose in today’s world?

Inequality is rising, climate targets are slipping, and capitalism is under pressure. Many sense the need for change — including how we run companies. This article introduces a step-by-step model to help businesses renew themselves and contribute to a better world through reducing the gap between rich and poor, and working towards achieving the global climate goals, while still achieving profitability. We call it capitalism 2.0.

A Model for Renewal

We live in a time of great progress. There are many positive developments in the world, and we should celebrate them.

At the same time, inequality is growing. The eight richest people in the world now own more than the poorest 50%. CO2 emissions are increasing, and we are not reaching key climate goals. Analyses, including from Edelman, show growing skepticism toward capitalism's future in its current form.

The issues of climate and inequality affect us all. They relate to personal choices and how we run our businesses. If companies can renew themselves, they can help renew capitalism itself — a necessary step toward a better world.

Going forward, companies must do two things: create profit and shareholder return while simultaneously contributing to the societies in which they operate.

A New Approach

New ways of thinking often require new tools. The SCG framework presented here helps businesses navigate their renewal in the age of what we call Capitalism 2.0.

This tool is visualized as a house, with a foundation, walls, and a roof. Each part represents key areas that a company must manage during its renewal. We call the model Developing Shared Vision.

The Foundation of Developing Shared Vision

Values:
A company must clearly define the values it lives by. These should be meaningful and relatable for all employees. Values must describe the core of the companies beliefs and guide employees in everyday decisions.

Purpose:
A company’s purepose is more important than ever. Especially for younger generations businesses must demonstrate purpose beyond profit. To a larger and larger extend they and others will demand that. A good sustainable purpose articulates why the company exists and how it helps make the world better place. A clearly re-defined purpose towards a more sustainable business approach, based on a sustainable value creation, is the singel most important thing for business owners to decide moving the world towards Capitalism 2.0.

Leadership:
Great leaders shows competent, are inspiring, sincere, and forward-thinking. It combines clear goals with empathy and recognizes the symbolic power of its actions. A strong leader ensures employees are fairly rewarded for the value they help create. Future leadership is also about going in front and show courage towards a new vision. We think leaders and owners that don´t share the idea of new vision towards Capitalism 2.0 will not succeed.

Social Responsibility:
What real, substantial contribution does the company make to society? This could be linked to one or more UN Sustainable Development Goals (SDGs). Commit to reducing emissions and becoming a zero-emission company and meassure that. A company in Capitalism 2.0 should have a clear plan on how to develop sustainable solutions to all stakeholders, not only the shareholders. Align your purpose with your social responsibility, and make it a lived practice across the organization.

The Walls of Developing Shared Vision

Create Security:
Employees must feel safe. Set realistic expectations and provide a culture that supports balance between work, family, and life. In the end of the day it is the companies employees that provides the revenue and profit.

Celebrate Together:
Companies could improve in celebrating successes. Big or small, wins should be shared and recognized. That builds culture and employees feels they are seen and part of a bigger whole.

Diversity and Inclusion:
As societies become more diverse, businesses must embrace and promote diversity. Share success stories across cultures, departments, and borders.

Recruitment:
Right person, right place. Hire people who align with the company's values and purpose. They must believe in the journey.

The Roof of Developing Shared Vision

Marketing:
The roof represents strong, inspiring, and relevant marketing that highlights the company’s competitive advantages.

Each part of the model connects, forming a framework for how businesses can renew and present themselves in a new area of Capitalism 2.0.

Final Thoughts

The world doesn’t change because people watch others act. It changes when capable people take initiative.

No one can do everything, but everyone can do something. The strongest market positions in the years ahead will belong to companies that dare to stand for something — and who adapt their business models and purpose to the new times.

All parts, foundation, walls, and roof must be strengthened and act together in Capitalism 2.0.

By having boards and the C-suite use Developing Shared Vision framework, we can all take a step closer to a better world.

Exercise and framework to transform your business model:

On a 5-point scale from "very poor" to "very good," rate your company’s status across these nine areas (from foundation to roof). Then, mark where you want to be in 2–3 years. Finally, develop a plan to get there.

Developing Shared Vision - 🇬🇧 English Version