The Purpose Pledge is grounded in ten commitments that define what it means to be purpose-led in practice. Together, they provide a measurable framework for aligning business operations with the wellbeing of stakeholders and the resilience of natural systems. The commitments shape how a company governs, compensates, sources, invests, measures success, and creates value.

Conventional business models often externalize social and environmental costs onto workers, communities, future generations, and the planet. The ten commitments offer a practical blueprint for a more regenerative, equitable, and resilient economy by requiring businesses to internalize these impacts and account for the true costs of doing business rather than shifting them onto society.

10 Commitments:
Internalizing Externalities

Ensure majority control stewarded by purpose-led Board of Directors with formal oversight of Purpose Pledge signing and adoption of Commitment Plans

Purpose-Led Governance

This Commitment centers on aligning company decisions with its values and purpose alongside healthy financial performance. It requires that a majority of the Board of Directors approve both the Purpose Pledge and the associated achievement plans-signaling the Board's responsibility to uphold the company's long-term purpose and serve all stakeholders.

  • Embedding purpose drives measurable business performance: companies with a clearly integrated purpose generate 58% higher revenues (CECP, 2025), strengthen employee engagement amid a $10 trillion global productivity gap (Gallup, 2026), and build resilience, trust, and long-term value creation (ACCP, 2026).

Product Quality & Transparency

Develop and market products that prioritize consumer well-being, safety, efficacy, and clear, transparent communication

Companies pledging to the Purpose Pledge commit to rigorous product integrity standards, grounded in what is in products, how products are made and how they are represented. In an environment where misleading claims and profit-driven marketing dominate, Purpose Pledge companies are responsible for ensuring that their products do not contain banned or forbidden ingredients, are manufactured to high standards and that all claims made about them are truthful, non-deceptive, and backed by reliable evidence.

  • Verifiable product claims strengthen pricing power, customer loyalty, and operational resilience while reducing exposure to recalls, reputational damage, and tightening regulations. With 60% of consumers suspecting greenwashing, credible transparency has become a competitive necessity (Capgemini, 2025).

Certify products against credible environmental and social standards, ensuring accountability across supply chains

Supply Web Integrity

Products must adhere to rigorous, holistic eco-social standards encompassing regenerative organic agriculture, fair labor practices, and animal welfare (where applicable). The preferred benchmark is Regenerative Organic Certified® (ROC™). Alternatively, a combination of high-bar certifications across soil health, fair labor, and animal welfare—alongside USDA Organic—may be accepted. Companies are responsible for proposing their certification strategy, subject to review and validation by Purpose Pledge.

  • Supply-chain mapping and verification reduce Scope 3 exposure, identify climate and sourcing vulnerabilities, and protect against growing regulatory risks. As laws such as the EUDR and California SB 253 make disclosure mandatory, proactive oversight helps avoid penalties, market restrictions, and reputational harm.

Fair & Balanced Compensation

Maintain a CEO-to-median employee pay ratio of no more than 25:1 in the country where the company is headquartered

To meet this commitment, the company must ensure that the CEO's total annual compensation does not exceed 25 times the median total annual compensation of all other employees in the headquarter country. Total compensation follows the standardized Dodd-Frank definition-salary, bonuses, non-equity incentives, and equity awards-with one modification. For equity awards, only the vested value actually received in a given year is counted. This adjustment ensures that the ratio reflects actual realized compensation, and future awards will be counted if and when they are received.

  • More balanced pay structures support retention, productivity, and organizational cohesion while reducing recruitment costs and preserving institutional knowledge. They also position companies ahead of expanding pay-equity disclosure requirements and ESG reporting expectations in multiple jurisdictions.

Ensure all employees earn a living wage, as defined by the International Labour Organization (ILO) and calculated by Living Wage for US

Living Wage & Decent Livelihoods

The Purpose Pledge utilizes the Living Wage For US calculator as a benchmark, guaranteeing employees can afford a decent standard of living in their communities. Per emergent global consensus, a living wage is defined to be the "all-in" hourly wage inclusive of bonus and benefits, that enables a family of 1.75 working adults with two kids, to cover expenses in the lowest cost of living (COL) commuting county within a one hour commute of work.

  • Living wages can reduce employee turnover by up to 80% while improving productivity by addressing financial stress, a factor affecting more than 70% of Gen Z and Millennial workers (Gallup, 2026). They also support compliance with emerging wage-equity reporting requirements, including the EU CSRD.

Cultivate a workplace culture that promotes well-being, inclusion, and respect for all employees

Well-Being & Inclusion

Cultivating a workplace culture that promotes well-being, inclusion, and respect for all employees includes fostering psychological safety, belonging, and fair treatment, minimizing stress and burnout, and supporting long-term mental, social, and emotional health. Leadership fosters trust, recognition, and empowerment, while equitable practices and wellness-centered initiatives ensure employees feel valued and supported. Employee engagement surveys and ongoing dialogue provide insights to guide actionable steps that enhance inclusion, engagement, and overall well-being.

  • Inclusive, high-well-being workplaces outperform on both people and performance metrics. Diverse teams are 35% more likely to outperform peers financially, while strong well-being programs can reduce sick leave by up to 40%, lowering absenteeism and strengthening talent retention (McKinsey; Gallup, 2026).

Dedicate a minimum of 1% of net revenues or 10% of net profits to philanthropic initiatives, including financial contributions, in-kind donations, and volunteer efforts

Community Engagement

The Purpose Pledge calls for a minimum of 1% of net revenue or 10% of net profits to be allocated to philanthropic initiatives. Contributions can take the form of financial donations, in-kind product contributions, and employee volunteer efforts. These can include contributions to charitable, political, greenhouse gas emissions reduction, and fair trade initiatives or investments, as well as costs associated with Purpose Pledge-related certification and achievement.

  • Purposeful community investment strengthens consumer trust, brand loyalty, and employee retention. Research shows customers increasingly favor companies aligned with social and environmental values, while employee giving and volunteering programs are associated with higher engagement and workforce commitment (Edelman Trust Barometer; Galluep).

Take verified climate action, by funding climate projects at a level proportionate to emissions, and achieve science-aligned Greenhouse Gas (GHG) emissions reductions

Climate Action

Companies measure and reduce greenhouse gas (GHG) emissions in line with the Greenhouse Gas Protocol, taking responsibility across their value chain. They invest in regenerative ecosystems, support suppliers and communities, and fund high-integrity climate projects, with annual validation to ensure transparency, credible reporting, and measurable environmental impact.

  • Climate action protects long-term business value by reducing exposure to resource volatility, supply-chain disruption, and regulatory risk. Credible emissions-reduction and regenerative strategies improve operational efficiency, support compliance with evolving disclosure requirements, and are associated with stronger long-term financial performance (IPCC; World Bank).

Circularity for Zero Waste

Achieve TRUE certification, an average 90% or greater diversion rate, and prioritize circular packaging solutions

This commitment requires companies to achieve TRUE (Total Resource Use and Efficiency) certification for their production facilities or through their co-manufacturing partners, demonstrating and maintaining an average diversion rate of 90% or greater from landfill, incineration, and the broader environment. This involves a whole-systems approach, meticulously scrutinizing every stage of the value chain, from product design to packaging, to reduce waste, foster innovation, and implement responsible resource management.

  • Reducing waste improves operational efficiency and profitability. Zero-waste programs have been associated with 15–20% lower waste-management costs while reducing exposure to raw-material volatility and expanding Extended Producer Responsibility requirements. Circular systems also strengthen supply-chain resilience and align with growing consumer preferences.

Share knowledge, collaborate, and strengthen organizational capabilities to advance all Purpose Pledge Commitments

Capability Building

The Purpose Pledge is a collective journey. Our learning community brings leaders and companies together to exchange knowledge, build capabilities, and translate commitments into measurable impact. Guided by Community Agreements, this collaborative space fosters alignment, shared learning, and integration of the Pledge into strategy, culture, and operations.

  • Cross-sector collaboration and workforce development accelerate innovation, lower R&D costs, and improve employee retention. Participation in industry partnerships and learning initiatives helps organizations anticipate regulatory change, share knowledge, and respond more effectively to emerging market opportunities and risks.