Where business and societal purpose meet

I wrote here in April why having a clear purpose beyond profit is important to me personally and to my business, but can be a difficult line to tread. Our Purpose at PwC is to build trust in society and solve important problems, and I said we need to do more to explain how we are trying to live it day to day.

A couple of current issues underscore the bearing that we have on society, which I mean very much in the broadest sense — all the people and communities that make up the UK.

For one, my profession is being reviewed on issues of auditor choice, quality and independence.

When you care deeply about your business and profession, hearing criticism is never easy and it’s hard not to respond defensively. But I know we can’t build trust in society unless we build trust in ourselves. And this means embracing change. It’s also about knowing when to lead and when collaboration is in the best wider interest.

This is a case for the latter, working together with professional bodies, peers, companies, regulators, investors and our other stakeholders to do what it takes to restore confidence in audit. We’ve initiated a public debate to share thinking and ask those who have a stake in the future of audit debate to engage with us digitally and in person.

Our stakeholders include our employees and the communities in which we operate, which brings me to the second issue which underscores our role in society: social mobility.

New PwC research published today highlights the wasted opportunity of having too many young people not in education, employment or training (NEETs).

The UK NEET rate has been falling in recent years but still sits stubbornly above many other OECD countries, at around 15% for 20–24 year olds. If we could push this figure down to match Germany’s (9% — one of the best EU performers), our analysis suggests UK GDP could rise by around £40bn in the long run, and in doing so open the door to opportunity for many young people.

This is a massive challenge, but one where business can play a critical role. Research shows that young people who have four or more encounters with employers while at school are 86% less likely to end up a NEET.

You don’t need to be an accountant to realise this equates to a sky-high number of total encounters when multiplied across the population that needs the help.

Take Bradford, the 6th largest city in the UK, and one of the Government’s priority areas for raising education standards and promoting social mobility for young people.

Over the next three years, the intention is that each 11–18 year old in Bradford’s schools will have at least four employer encounters, so that’s over 150,000 encounters in total. Our work there alongside local government and other businesses in the region will make it a reality and help break the cycle which currently means a third of the adult population are out of work altogether.

This isn’t just about corporate social responsibility, although supporting our communities and environment is something I feel strongly about. It’s about accessing talented potential recruits and improving diversity of our workforce, with which comes broader perspectives and better ideas. It’s why we introduced our tech degree apprenticeships and no longer use UCAS points for the majority of graduate opportunities.

But back to Bradford. Our work with schools as a Cornerstone Employer includes mentoring, skills development and workplace experiences. It’s about showing pupils the opportunities out there, giving them the appetite and confidence to succeed.

What I hope will really increase our impact is the opening of a PwC office there in January. We have one in nearby Leeds, but the interns we speak to from Bradford say the distance can feel insurmountable when you feel part of a very different community.

So alongside our work with schools there, it will hopefully help bridge the gap to work. The office will focus on a range of audit tasks, developing skills and boosting employability irrespective of background. Recruits with the aptitude and inclination will have the opportunity to pursue professional qualifications, but the idea is to challenge the assumption you have to follow a particular route to work here.

I know many businesses are doing fantastic work around social mobility, and the more we work together and share best practice the better. Scaling up, and seeing what more we can do across the UK is important to me personally.

We’re in a good position to make a difference because we’re such a big employer, but that in turn is dependent on people wanting and being proud to work for us.

So it’s not going to stop scrutiny and criticism of business, nor should it. But if we work together on positive, tangible action aligned with our business objectives we’ll not only have more impact, our role in society might be better understood.