10 Commitments: A structured approach to align practices with purpose.
The 10 Commitments define what it means to be purpose-driven and establish a clear framework for measuring progress. By setting clear, achievable, measurable, and meaningful criteria for purpose-led practices, we aim to elevate the standards for businesses adopting and redefining stakeholder capitalism.
1.
Product Quality & Transparency
Develop and market products that prioritize consumer wellbeing and transparency
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.
2.
Purpose Led Governance
Ensure majority control stewarded by purpose-led Board of Directors
This pledge 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.
3.
Supply Web Integrity
Certify products to meet high standards for environmental and social responsibility through credible benchmarks
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.
4.
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.
5.
Living Wage
Ensure all employees earn a living wage, as defined by the International Labour Organization (ILO) and calculated by Living Wage for US
A living wage shouldn't be a privilege but a right. 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.
6.
Well-Being & Inclusion
Cultivate a workplace culture that promotes well-being, inclusion, and respect for all employees
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.
7.
Community Engagement
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
True purpose extends beyond company walls. 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.
8.
Climate Action
Take verified climate action, by funding climate projects at a level proportionate to emissions, and achieve Greenhouse Gas (GHG) emissions reductions in line with science
The Purpose Pledge is committed to accelerating a just and regenerative transition to a climate-stable future, actively working towards ecosystem health and biodiversity. This commitment requires companies to measure their greenhouse gas (GHG) emissions, adhering to the globally recognized Greenhouse Gas Protocol (GHGP) for carbon inventories. The commitment also requires companies to demonstrate that they are actively working to address their emissions in their value chain and elsewhere around the world. The commitment is an opportunity for companies to invest in regenerative ecosystems, help suppliers with the climate transition, and support high-integrity carbon projects beyond the value chain. Annual validation helps ensure that companies make their climate work transparent, consistent, and credible, and avoid misleading climate claims.
9.
Circularity for Zero Waste
Achieve TRUE certification, an average 90% or greater diversion rate, and prioritize circular packaging solutions
The Purpose Pledge is dedicated to advancing a circular economy and the elimination of waste throughout its members' operations. 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.
10.
Capability Building
Share knowledge, collaborate, and strengthen organizational capabilities to advance all Purpose Pledge Commitments
The Purpose Pledge is a collective journey. Our Community of Practice 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.