Wellbeing economy: what it means for business

Introduction

The New Deal for Business Group was set up in spring 2023 to explore how government and businesses could work together better in the design and implementation of policy. The group’s progress report and recommendations (June 2023) contained a recommendation for joint work to create a simple description of what Wellbeing Economy is and how business can contribute.

A Wellbeing Economy sub-group, co-chaired by Nathalie Agnew (Muckle Media), Sara Thiam (Prosper) and Louisa Macdonell (Business in the Community), worked with Scottish Government officials to produce the following description.

Wellbeing economy from a business perspective

The wellbeing economy is a prosperous, resilient and thriving economy driven by a purposeful, diverse, and financially and ecologically sustainable business base. It contributes towards meeting everyone’s basic needs and improves collective health and wellbeing, so that all a nation’s people, places, communities and enterprises can thrive and prosper. It operates in a society where organisations’ strategies and actions prioritise people and planet as well as profit, to strengthen the economy and society by delivering a bigger purpose than profit alone.  

Private enterprises can contribute to a prosperous and growing economy that is fair and green. This means finding ways to be fairer and greener as you grow your business. It means recognising the importance – and value to an organisation’s success and resilience - of promoting the interests of all stakeholders:

• customers
• employees
• suppliers
• investors
• community and society
• the environment

The most suitable way to achieve this balance will depend on the individual enterprise. Businesses have a choice through their operations of whether they contribute to societal wellbeing or risk exacerbating climate breakdown, poverty, poor health and inequality. A good guiding principle is to be purpose-led, in line with the Business Purpose Commission definition: “Businesses which profit from finding solutions for people and planet, not to profit from creating problems for either.”

Why we need a wellbeing economy

A wellbeing economy aims to support people to live happier and healthier lives with higher living standards. High quality, purposeful work contributes to people’s health, and in turn good health supports a vibrant labour market and resilient customer base. The twin crises of climate change and biodiversity loss facing the planet will require businesses to make sometimes difficult choices and navigate trade-offs. However, positive contributions from businesses that take up these challenges will lead to many benefits, both for them and for the wider society in which they operate.

The benefits to business

Increasingly businesses are harnessing the benefits of fairer and greener practices, which can not only improve the bottom line but also drive productivity and growth, and futureproof business models. Greater fairness could come through workplace innovations such as targeted employability programmes, flexible working, employee ownership and four-day weeks. Greener practices can include environmental programmes that transform waste into new products or reduce carbon emissions.