Business thrives when it creates value for society, says new IoD Commission

Business is most likely to be a force for good when it is guided by a clear purpose, supported by long-term investment and governed with a focus on culture, accountability and stewardship, according to a major new report published today by the Institute of Directors.

The report, Business: A Force for Good?, is the culmination of an independent Commission chaired by Lord Rees of Easton OBE, the former Mayor of Bristol, and brings together contributions from leaders in business, finance, governance, professional bodies and civil society.

The Commission explored the conditions under which businesses are most likely to contribute positively to society while supporting sustainable economic growth. It concludes that long-term business success and wider societal benefit are not competing objectives. Instead, businesses generate the greatest value when purpose, governance, ownership, incentives and accountability are aligned around long-term value creation.

The report introduces a practical seven-dimension framework covering purpose, power and accountability, ownership and value distribution, incentives and time horizons, impact and externalities, interdependencies and customers. The framework is designed to help boards, investors and policymakers assess whether the conditions are in place for businesses to create sustainable value, contribute to good growth and strengthen trust in the economy.

The Commission’s three headline recommendations are:

• For business leaders and boards: Set clear, board-backed long-term goals that define what the business aims to become and achieve, beyond delivering the next financial return. These goals should be embedded in decision-making, board agendas and executive mandates, not just stated in annual reports.
• For investors and capital markets: Favour capital with realistic timescales that supports long term investment as well as meeting shorter term goals, while treating human and social capital as material components of valuation and stewardship.
• For policymakers and regulators: Design tax treatment, regulation, listing requirements and reporting standards so that responsible business practice is the commercially rewarded choice, not a cost that responsible firms absorb while others avoid it and do so without adding regulatory burden that does not improve outcomes.

Commenting on the publication of the report, Jonathan Geldart, Director General of the Institute of Directors, said:

“Britain’s prosperity depends on successful, productive and innovative businesses. But the question is not simply whether business creates value. It is how that value is created, who benefits from it and whether the conditions are in place for businesses to contribute to long-term economic and social progress.

“This Commission rejects the false choice between business success and societal benefit. The two are deeply connected. Businesses thrive when they operate in a healthy economy, draw on a skilled workforce and maintain the trust of customers, employees and communities.

“Our report is intended to be practical rather than ideological. It provides directors, investors and policymakers with a framework for understanding the conditions that make sustainable value creation, responsible stewardship and good growth more likely.”

Commission Chair, Lord Rees of Easton, added:

“Business already makes an indispensable contribution to society. It creates jobs, develops skills, generates wealth and helps fund the public services and infrastructure on which we all depend.

“But business does not succeed in isolation. Thriving businesses depend on strong communities, effective institutions, public trust and a stable operating environment. Business and society are fundamentally interconnected.

“The Commission’s central conclusion is that long-term business success and wider societal benefit are mutually reinforcing. When purpose, governance, capital, culture and accountability are aligned, businesses are more likely to achieve both.”

Julian Richer, Founder of Richer Sounds and the Good Business Charter, added:

“This is a very important piece of work, which the Good Business Charter is proud to support. My experience over many years in business is that treating people well is not at odds with commercial success. Quite the opposite. Businesses with engaged employees, loyal customers, trusted suppliers and strong values are more productive, more resilient and better able to prosper over the long term.

“This report makes an important contribution by showing that long-term success depends on the quality of a company’s relationships and the decisions it makes about governance, investment and stewardship. If we want a stronger economy, we should encourage more businesses to take this long-term approach.”

Key findings

The report finds that:

• Business and society are fundamentally interdependent.
• Good governance is about more than compliance and should include culture and ethical judgement.
• Ownership structures, incentives and sources of capital have a significant influence on business behaviour and long-term outcomes.
• Regulation is most effective when it rewards responsible business conduct without displacing judgement. AI presents major opportunities for growth and productivity, but the benefits will depend on how organisations govern its deployment, manage workforce impacts and share its gains.

The Commission also highlights evidence that public expectations of business continue to evolve. Research cited in the report found that 88% of IoD members and 78% of non-members believe businesses have a responsibility to contribute positively to society beyond delivering profits.

Notes to editors

• The report Business: A Force for Good? was commissioned by the Institute of Directors and chaired by Lord Marvin Rees OBE.
• The report was authored by Professor Irene-marié Esser, Sir Alexander Stone Chair of Commercial Law, University of Glasgow, and Karl West.
• The Commission met four times between April and September 2026 and included representatives from governance, finance, professional bodies, labour relations, social enterprise and purpose-led business.
• The report’s central recommendation is that boards and owner-managers should use the Commission’s seven-dimension framework to identify risks, gaps and trade-offs and determine appropriate action.