Truth Be Told

Businesses must demonstrate “informed empathy.”

Informed empathy means understanding the circumstances of the world beyond your own business. It also entails appreciating how other people see and experience the world. Informed empathy has emerged as a business imperative because companies today must build wider relationships – to engage with their entire ecosystem – and grasp how the world engages with or could affect their business. They must recognize and show genuine empathy for societal concerns, such as Black Lives Matter16 or stakeholders’ ethical expectations.

The world has reached new levels of volatility, uncertainty, complexity and ambiguity – VUCA 2.0 – due to the global pandemic, among other shifts in economies, geopolitics and individuals. Companies must create solutions that promote human-centric purposes.

Purpose represents a new business rationale and strategy – not a marketing approach.

The notion that a business exists to create shareholder value has given way to the concept of purpose. Corporate social responsibility, sustainability and socially responsible investing represent steps toward transforming...