EDITOR’S COMMENT: I was pointed to Blackrock chief executive Larry Fink’s letter to chief executives this week. I’m sure you’ve all read it. The one about purpose and profit, and how the two are inextricably linked.
In the letter Fink says that purpose is a company’s “fundamental reason for being”. It is what it does, every single day, to create value for its stakeholders.
“Purpose,” he writes, “unifies management, employees and communities. It drives ethical behaviour and creates an essential check on actions that go against the best interests of stakeholders.
“Purpose guides culture, provides a framework for consistent decision-making and, ultimately, helps sustain long-term financial returns for the shareholders of your company.”
It’s a sensible letter. One that takes this idea of what a business (and us as individuals) should be doing and translates it into why that matters financially. And, let’s face it, until we completely rethink the way we approach, teach and enact economics (read Doughnut Economics if you want to find out how to do that), the financials will always matter.
It contrasts sharply with the circus that is the race to be the next Tory leader. Most candidates have backgrounds in housing, yet, dishearteningly, each can talk about little but Brexit. We’ve tried to figure out who might be good (or not) for property from the growing list of contenders. Yet we were left with no clear view on what each candidate’s purpose was. All are career politicians, not guardians of the people.
How much more heartening would it be to hear one or more emulate the New Zealand prime minister and seek to set out a new vision for the country? Jacinda Ardern wants all new government spending to support one of five priorities: improving mental health, reducing child poverty, addressing inequalities, thriving in a digital age and transitioning to a low-emission, sustainable economy. It’s more purposeful than being for or against a no-deal Brexit, isn’t it?
Today (1 June) marks my third month in post as editor of EG, and while I hope that I’ve been reasonably clear on what I believe both my and EG’s purpose to be through the few lines I get here each week, I’ve not done a Larry Fink or a Jacinda Ardern and set it in stone.
So, at EG our “fundamental reason for being” is to be your essential source of real estate information. In its most simple sense that means delivering you timely, accurate and useful data through our Radius Data Exchange, and keeping you up to date on deals, people moves and the latest legal cases and requirements. But it means so much more than that. Our purpose is to help, guide, and hold to account the industry as it goes through its own discovery of what its fundamental reason for being is. That reason is no longer just about creating places for people to live or work in – it is about creating places where people can communicate freely and without boundaries.
And talking of creating communication, this week EG is launching a new Future Female Leaders programme with Ginger Public Speaking. It is an amazing opportunity for 12 women from across the spectrum of the built environment to learn how to communicate excellently. I for one am very excited about it, as it allows us to deliver on part of our purpose, part of our fundamental reason for being.
It allows us to help real estate communicate, tell its story, diversify and evolve.
To send feedback, e-mail samantha.mcclary@egi.co.uk or tweet @samanthamcclary or @estatesgazette
