34 Transforming business to unlock action Getting into the Doughnut calls for nothing less than a transformation in the dynamics of the global economy. This need for transformation of our economies is now recognised by the business leaders too, with almost half of CEOs thinking that their business cannot continue to exist unless they reinvent their businesses (according to a survey dating back to January 2024 and conducted by PwC on over 4,700 CEOs). Climate change is a big driver of this, but not the only issue. Using Doughnut Economics to drive this transformation means looking at the core of the design of business and finance. It means moving away from the current design of business around the question: How much value can we extract through this enterprise? Many of today’s sustainability initiatives, concepts and models try to remain aligned to this question, thereby driving actions that generate both high returns and high positive impacts. Some of the transitions and actions needed from the world of business do satisfy this pursuit of win-win solutions. But many don’t, and businesses are failing to unlock this broader set of actions. Many of the actions now needed could be commercially viable, delivering lower and slower returns, while achieving great benefits for society and the planet. And to unlock such ambitious action, and enable the transition that is needed, businesses and finance needs to be designed around the question: How many benefits can we generate through this enterprise? Redesigning business To look into the design of business is to unpack the essence and structure of any business. The work of author Marjorie Kelly helps to frame this journey, guiding us to explore a business’: 01 Purpose _ asking why it exists and the fundamentals of its model of doing business. 02. Networks _ assessing the nature of its relationships with suppliers and customers, workers and communities, governments and broader industry, to determine if these are long-term committed partnership, or are commodified, short-term and transactional. 03. Governance _ identifying who has power and accountability, and who makes decisions and how these are shaped. 04. Ownership _ questioning the power, priority and expectations of its owners, and how this shapes what the business can do and be. 05. Finance _ determining the nature of its relationship with finance, including the parameters, limitations and possibilities created by margin, dividend and exit expectations.
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