Business Purpose Commission report: Scottish Government response
The Business Purpose Commission for Scotland published its report, “Now is the time for purpose: putting purpose at the heart of Scottish business”, on 28 June 2022. This publication is our response to the recommendations made to the Scottish Government in the Commission's report.
The business benefits of purpose are stated clearly in the Report which opens with a Call to Action to all businesses in Scotland to develop and nurture business purpose. Evidence shows that embedding clear purpose in business will benefit customers, employees, suppliers, communities, the environment and the natural world, and shareholders; and will help steer business through economic challenges. The Report makes a strong case that purposeful businesses benefit from long term profitability, because they generate value for all stakeholders.
The Scottish Government is therefore interested in the ways business and government can, within the prevailing economic, environmental and legislative circumstances, promote the purposeful business agenda and support companies to develop purpose-driven approaches which benefit all stakeholders.
We recognise the purposeful business agenda raises a number of demanding issues particularly around company ownership, corporate governance, finance and investment, legislation and regulation. Therefore, we acknowledge that the Commission's Report is an early milestone in our ambition to progress towards longer-term, transformational change with stakeholders, in support of the Business Purpose Commission's 2030 vision.
Company and employment law are matters reserved to the UK Parliament. Whilst legislative reform for UK Government is included in the Report recommendations, this response will focus on the areas where the Scottish Government can create opportunities for business purpose to thrive within the current legislative and economic landscape.
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