Navigating Corporate Responsibility: Unveiling the ‘Purpose’ as the Fourth P in Elkington’s 3Ps Model

Abstract

Abstract In today’s business world, there is a growing recognition of the need for companies to be conscious of their social and environmental impact, aligning with the European Union’s goal of becoming a zero-impact continent by 2050. Businesses are now seen as key players in this transformation, moving away from traditional economic models. The contemporary framework underscores ignoring societal and environmental impacts is no longer viable. In this transformative era, a notable paradigm shift is evident as businesses shift from solely maximizing profits to optimizing them, balancing financial success with societal and environmental benefits. This change marks a departure from the traditional focus on just the bottom line, highlighting the dual role of companies as both profit-oriented and key drivers of positive societal change. This paradigm underscores a symbiotic relationship between profitability and positive societal impact, echoing the EU’s sustainable and responsible business paradigm vision. This narrative posits the EU as a trailblazer, spearheading a collective effort to harness the transformative potential of the business sector in realizing a zero-impact future by 2050. The paper aims to expand Elkington’s 3Ps model (People, Planet, Profit) and stakeholder theory by introducing ‘Purpose’ as a crucial fourth dimension, emphasizing the importance of a company’s underlying motives and values in shaping sustainable and responsible business practices. This paper reveals that integrating ‘Puropse’ into business models aligns with contemporary environmental and social governance standards and significantly enhances stakeholder engagement, fostering a more resilient corporate ecosystem.