How purpose could boost innovation in Industrial Biotechnology

By Clare Reid, Director of Policy & Public Affairs, SCDI

Mission-driven companies have been found to have 30% higher levels of innovation and businesses prioritising purpose were more successful with innovation and transformation efforts (53% compared with 19%) than those that didn’t prioritise purpose. These were some of the research findings uncovered by the recent Business Purpose Commission for Scotland. The employer-led commission reviewed the evidence over a 9-month period publishing its report and recommendations in June 2022 (download here).

We expect the findings will have resonance with IBioIC members. A business is considered purpose-driven if its focus is to ‘find profitable solutions to the problems of people and the planet’. The Commission also found evidence of beneficial effects from this focus on purpose in terms of an organisation’s social license to operate, its recruitment (particularly of younger workers), government relations and regulation, resource efficiency, investment, resilience, business strategy and customer loyalty.

The commission made a dozen recommendations for the finance sector, business, and the Scottish and UK governments. The Scottish Government has responded to the Commissions indicating they will support the recommendations in several ways including by helping spread the message on the benefits of purpose via policymakers, via business support services and networks, and in a review of the Scottish Business Pledge.

Businesses are invited to consider how they can demonstrate their purpose shown in the Business Purpose framework (overleaf). The report also contains a toolkit and guidance for employers and is accompanied by case study videos. Some simple things businesses and employers can do to embed purpose in their organisation include:   

·       Embed purpose in business strategy and decision-making and organising around it

·       Piloting and proving the benefits of business purpose in one part of the business before rolling out the approach to all areas

·       Incentivising and rewarding employees fairly for progress with business purpose

·       Forge ties with stakeholders: workers, communities, suppliers as well as investors

·       Set milestones, track and personally communicate your progress

SCDI are excited to work with all organisations in Scotland who want to work towards the Commission’s vision to make Scotland the home of purposeful business. We’d be happy to collaborate with you on this topic so please get in touch.

Business purpose Framework