In business, like in other areas of life, we can get stuck in either/or thinking.
- Example: “We either increase profit or we do good in the world.”
But what if your firm could be highly profitable and pursue a Higher Purpose?
Once strange bedfellows, profit and purpose are becoming a common couple, and they make a one-two punch in the marketplace.
Your purpose-driven organization can actually make more money with a sound, sustainable business model that protects profits now and in the future.
As well, your purposeful actions can help foster a more stable, reliable operating environment – and I don’t have to tell you the magic word for investors is, “certainty”.
Fear and cynicism make a combustible, short-lived match. Choose purpose and prosperity for the long haul.
Bonus Q&A
Q. What about those do-good companies that have gone under or don’t do well?
- Just like their unsuccessful, strictly-for-profit cousins, purpose-driven companies falter for myriad reasons. There is no inherent flaw in being purpose-driven; if anything, those firms motivated solely by profit are intrinsically more problematic and apt to fail, in my view.
Q. How do you expect companies to do any good for anyone without profit?
- Nobody is saying companies shouldn’t profit; they’re saying companies shouldn’t profit at all costs. With purpose, companies can sew social good and reap profit too.
Q. If my firm commits to a Higher Purpose, what happens to our existing governance structure?
- Transforming from profit-driven to purpose-driven is complicated and good governance is key. The right governance structure and expertise needs to be in place to ensure actions align with purpose – a must if you want to retain credibility and stay profitable. A number of organizations can help with the transition.