Corporate purpose

Embedding your corporate purpose into your governing structure is not just about articulating your mission. It’s about delivering it.

An embedded purpose can sustain a founding vision as your company grows and expands. It can reduce the risk of mission drift and culture shift as the company encompasses new voices and moves in new directions. It can provide an anchor for strategic decision making, safeguarding the mission in the face of challenges and opportunities.

If you’re setting up a new entity with a purposeful focus, we’ll help you to find the right legal form to support your vision.  If you’re part of an established business looking to embed your purposeful or ESG commitments, our team of experts will advise on the best governance structures to cement your corporate purpose and take into account the needs of your stakeholder groups.

How we help

Our team includes some of the country’s leading specialists in legal structures that deliver purpose, from traditional social enterprise-style models through to new, innovative approaches that will transform your ideas into a structure to suit your needs.

Options that we frequently advise on include:

  • Becoming a certified B Corp, including the advising on the legal requirement and what this means for directors’ duties.
  • Mission-locked forms like community interest companies (CICs) / social enterprises. We’ve been advising social enterprises since the earliest days and we originated the CIC model in a proposal to government.
  • Adding a golden shareholder, who is not entitled to a financial return, but can have a veto right over strategic decisions that could compromise the corporate purpose.
  • A steward-owned structure, where voting rights are limited to those close to the mission rather than to third party investors.
  • The legal aspects of employee-owned structures.

We’re a proud partner in Purposely, a free online tool that provides guidance and template documents for new organisations looking to embed purpose.

Explore

Creating a ‘Speak Up’ culture in purpose-driven businesses: The benefits of an effective whistleblowing framework

Bates Wells convenes the Impact Counsels’ Forum, a space for senior counsel working within impact investors, B Corps, and other purpose-driven businesses. The forum discusses the ‘impact angles’ on legal and practical issues faced by in-house legal teams. Recently, the forum explored the benefits an effective whistleblowing framework and how that can support an open …
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Using the law to create change – a new guide for charities and campaigning groups

In partnership with NEON, this new guide explains how your organisation can use the law to create meaningful change. Legal action is rarely enough to drive systemic change on its own, but the law can be a powerful tool for purpose-driven organisations, especially when combined with other tactics within a broader campaign strategy. The guide …
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Purpose & Impact: your roundup | June

Welcome to your roundup – a monthly selection of news hand-picked to keep you up to date with what’s going on for businesses and investors working to create positive impact. In this roundup you can find out what’s new in the B Corp, social enterprise, and impact investing spaces, amongst others, collated under helpful headings. …
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New company guide empowers UK company directors to embed sustainability information in financial reporting

Bates Wells has contributed to a new guide, issued by the True & Fair Project, to support UK company directors who have decided that information relating to sustainability issues is necessary for their accounts to give a true and fair view. ‘Are Your Financial Statements True and Fair?’ underscores directors’ legal obligation to consider sustainability …
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What’s next for UK environmental protection?

On 24 January, the Climate and Nature (CAN) Bill was ‘adjourned’ to 11 July after politicians were denied the opportunity for a ‘free vote’ to advance the Bill to its next stage. Instead, the government has promised that next steps will include binding commitments to advance the CAN Bill’s objectives, including for legislation. We considered …
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