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.

Product Quality

Produce high-quality products that align consumer wellbeing with the wellbeing of planet and people

Pledging companies commit to purposefully create products that benefit the life and wellbeing of their customers/all beings that use or consume them. Aside from (Environmental Working Group) EWG's Skin Deep® database and EWG Verified® program for personal care products, no third-party standard yet exists to objectively measure the quality, usefulness, or benefit of any heterogeneous set of products so the determination of “benefit the wellbeing” of consumers will be the responsibility of Purpose Pledge community.

Independent Governance

Board majority control stewarded by purpose-led owners and management team

This pledge commitment prioritizes aligning company decisions with its values and purpose alongside healthy financial performance. This consent requires both CEO and a majority of the Board of Directors to co-sign the Purpose Pledge, signaling their commitment to the company's long-term purpose and to be in service to all company stakeholders. While purpose-aligned governance may ultimately increase shareholder value, the goal is to embed purpose deeply into company structure using steward ownership principles. If change of Board control takes place, Purpose Pledge and company must revisit pledge commitment achievement.

Supply Web Integrity

Primary products meet or exceed high bar eco/social standards through benchmarking or certification

Primary products must meet rigorous, holistic eco-social standards encompassing regenerative soil health, fair labor, and (where applicable) animal welfare. Regenerative Organic Certified® (ROC) is the preferred standard. Alternatively, a combination of high-bar certifications in soil health, fair labor, and animal welfare with USDA Organic will be considered acceptable. Pledge companies will propose specific certifications for validation by the Purpose Pledge community. Any proposed alternative certifications or auditable social fairness program will be reviewed for credibility and rigor.

Fair & Balanced Compensation

20:1 pay ratio (or better) between highest and lowest paid employees

To achieve this commitment a maximum 20:1 ratio between the highest and lowest-paid employees, including all forms of annual cash compensation (salary, bonuses, commissions, not including expense reimbursement, stock options or other forms of compensation) must be established and maintained by the pledging company for employees in the country where the company’s headquarters resides. This commitment ensures that success is shared, rewarding the collective effort that drives the company forward.

Living Wage

Employees make a living wage as calculated by the MIT Wage benchmark

A living wage shouldn't be a privilege but a right. The Purpose Pledge utilizes the MIT Wage calculator as a benchmark, guaranteeing employees can afford a decent standard of living in their communities. The commitment is achieved when pledging company annual wage data demonstrates that every employee meets or exceeds MIT Wage “2 Adults (Both Working) + 1 Child” benchmark.

Inclusion

Company has instilled a culture of Inclusion and Belonging, where each employee feels valued and respected, regardless of their background, identity, or role within the organization

A Culture of Belonging fosters an environment where diversity is celebrated and everyone is empowered to bring their authentic selves to work without fear of judgment or exclusion. An inclusive culture will be measured by implementing an annual employee engagement survey to evaluate employees’ sense of inclusion within the workplace and Company’s action plan in response to the survey results.

Community Engagement

Minimum of 1% of company net revenues or 10% of net profits allocated to philanthropic giving initiatives

True purpose extends beyond the company walls. The Purpose Pledge calls for a minimum of 1% of pledging company net revenue or 10% of net profits to be allocated to philanthropic initiatives which can include giving to charitable, political, greenhouse gas emissions reductions, and fair trade initiatives or investments, as well as cost of all Purpose Pledge-related certification and achievement costs. Pledging companies will likely have additional community engagement initiatives that extend beyond 1% of net revenue or 10% of net profits annual charitable contributions.

Climate Positive

Emissions reductions tracking to recognized science-aligned targets

Simply neutralizing our carbon footprint isn't enough. The Purpose Pledge calls for companies to actively strive to be climate-positive, exceeding neutrality and becoming agents of positive change to ecosystem health and the atmosphere. To ensure tangible and validated progress, companies must commit to setting timescale-driven strategic plans based on science-aligned targets.

Plan creation will be facilitated and validated by advisors such as Planet FWD, using highly rigorous and transparent methodology guided by the SBTi (Science Based Targets Initiative) for analysis, emissions reductions, and sequestration. Pledging companies will be expected to take action beyond the floor achievement of this commitment to also enhance overall ecosystem health and biodiversity.

Circularity for Zero Waste

Achieve an average diversion rate of 90% or greater from landfill, incineration, and the environment at large from manufacturing

The linear "take-make-waste" model has no place in a purpose-driven world. The Purpose Pledge champions a circular economy, urging companies to achieve TRUE (Total Resource Use and Efficiency) certification. This translates to a minimum 90% diversion rate from landfills and incineration, closing the loop on resources and minimizing environmental impact. From product design to packaging and beyond, every value chain stage is scrutinized for potential waste reduction, fostering innovation, and responsible resource management.

Capability Building

Organizational participation, knowledge sharing, and developmental collaboration with all member companies to support each member’s achievement of all Purpose Pledge commitments

The journey towards purpose isn't a solo trek. The Purpose Pledge recognizes the need for continuous learning and shared experiences of all Purpose Pledge commitments. To this end, it fosters a collaborative developmental community where companies support each other's progress. Pledging companies commit to activating resources to achieve their commitment goals and having operators (beyond the C-suite) participate on Purpose Pledge Commitment Cohorts to advance the impact initiatives of all the Purpose Pledge companies. Openness, transparency, and knowledge sharing become the driving forces, with members readily offering expertise, resources, and guidance to their peers. This culture of mutual support ensures every company is included on the path to achieving its pledges, amplifying the collective impact and paving the way for a network of accountable, thriving, purpose-driven businesses.