The Power of Purpose-Driven Business

Having a clear purpose in life can help you live a more fulfilled and happier life — so says Google with nearly 2 billion search results on the subject. 

But what about being purpose-driven in business? Using business as a force for good can make it thrive, but how? And, why bother?

What is a ‘purpose-driven’ business?

Firstly, it’s probably worth exploring what a ‘purpose-driven business’ actually is. 

Arguably, all businesses have a ‘purpose’, which is growing and making a healthy profit. Back in 1970, economist Milton Friedman argued that “the sole purpose of a business is to generate profits for its shareholders”. Things have moved on, Milton.

Fast-forward 50 years, being ‘purpose-driven’ or ‘mission-led’ is about using business as a force for good. These businesses, generally are recognised as having a purpose beyond profit. 

They are applying the principles of the triple bottom line; People, Planet and Profit. They are brands and organisations who care deeply about their impact on the environment, their communities and have their team and customers at the heart of what they do. 

It is not about preventing businesses from making money. If we didn’t have profitable, growing companies, our economies would suffer as would the welfare of everyone reliant on jobs and taxes which financially support so many areas of society. 

In Colin Meyer’s book, ‘Prosperity: Better Business Makes the Greater Good’ he states that as much as companies provide economic prosperity, the growth of nations, the creation of jobs and drive innovation, it can also be the source of tremendous inequality, deprivation and environmental degradation. 

Some businesses can be so blindsided by profits alone that they may neglect the impact they are having on people and the planet. Other companies simply don’t realise the potential of doing more than they already are.

Many CEOs fear heading down the rabbit hole by going near anything vaguely labelled ‘sustainable’ or ‘better for the environment’. And in many cases, you can understand why there is a reluctance even if there is genuine intent. 

It could be opening up a massive can of worms. I know that feeling! It’s a daunting thought that your business will come under scrutiny to validate your mission-led approach and in some areas may need a significant overhaul. 

A lot of businesses are struggling; especially now we’re heading into lockdown 2.0. The last thing they probably need is an audit of their carbon footprint, the dissection of their HR policies or have the bandwidth even to consider offering their team’s time to help financially or volunteer for good causes and other in-kind donations. All of this sounds a bit much when we’re facing a double-dip recession?

You don’t need to climb mountains to be purpose-driven, the small steps all add up. Businesses who are embracing this way of operating are doing so at their own pace while still setting ambitious growth targets. They can keep shareholders smiling ear to ear whilst at the same time, do more to reduce their impact on the environment and make a more positive impact in many other areas. 

OK, OK — this all sounds very ‘woke’, but why bother? Indeed most business owners have no intention of deliberately harming the environment and already have many systems and accreditations in place.

This isn’t about picking on anyone who is or isn’t ‘mission-led’. What it’s about is being open to seeing if more can be done and the benefits of running a profit with purpose business, can be. 

But there are critical areas where businesses and governments should be held accountable and measuring what really matters, these include:

• Climate
• Food
• Land
• Pollution
• Water 
• Wildlife
• Decent work and economic growth

There are plenty who should be held accountable. Those who pollute our seas, emit harmful chemicals into the air we breathe, cause unnecessary suffering to animals and many who treat their workforce poorly and can cause devastating damage to people and the planet.

Why is change necessary?

The only constant is change; businesses can stagnate without evolving their core values and striving for more than just profit alone. If you don’t develop, you’re in decline. If you close off from new viewpoints, you’ll struggle to diversify your offering and keep up with customers who want to work for or buy from brands with purpose. 

Consider a Bayesian approach, which is where you regularly update your views based upon new findings. As we learn new things, we revise how we think about it — constant updating of beliefs when new data comes in. Sometimes this can have a revolutionary result in business practices.

Go in with an open mind, learn new things, and it will diversify your thinking and pivot direction in which you head. 

Now, more than ever our actions as business owners have more far-reaching impacts on just our bottom line. Knowing and not doing is the same as not knowing.

Are there benefits to being a profit with purpose business?

It’s difficult, if not impossible, to measure the financial benefits of being purpose-driven and mission-aligned. While there is nothing wrong with making money and having a commercial mindset, remember it’s about profit with purpose! 

There are many benefits to being mission-led. Here are just six of them:

1. You’ll hire even better teams because they care about working for a company who cares for the world. 
2. You’ll open the doors to new opportunities with brands who think and act responsibly, like you.
3. You’re committed to something bigger. It’s a signal to investors that you’re more than just the numbers.
4. Credibility and reputation — your brand affinity goes up, as will the trust factor.
5. You and your team are given a new lease of life, thinking beyond just the numbers but reducing the impact you have on the environment and investing in sustainability. 
6. It’s hard to differentiate in a commoditised world. By being purpose-driven, you’ll stand out! Customers will love your proposition. 

You don’t need to be an NGO to make a positive impact in the world; you can thrive and sustain growth in an age when the workforce cares more about the environment, their consumer choices and standing by a brand they believe in.

Fundamentally, if businesses don’t start thinking about the journey to becoming a force for good, they may be left behind by competitors and their workforce of the future who may choose a brand they believe in more. Mission-aligned business doesn’t mean that focusing on positive change should impact profits. 

Having a purpose or being mission-led does and should go way beyond profits, we, as business owners, need to smarten up our acts. It isn’t merely about donating a few quid to the next fun run or sponsoring the local under-10s football team. These are great things to do, but we could and should do more.

Even if your business isn’t ready to become a Certified B Corporation, a member of 1% for the Planet or Carbon Neutral, you, like I did, have to start somewhere. 

These accreditations are not easy to come by, and they’re not meant to be. Even if you’re not ready to dive in straight away, read about what’s involved, become inspired by what they stand for and the difference you can make. 

Spend twenty-minutes being inspired by other brands in your space, see what other brands are doing and get enthused. As Austin Kleon put it “Embrace influence, rather than run away from it”.

My business, Selesti, has only just become a B Corp — a year-long process of which I didn’t think we were going to be able to do. But before that, I set up the foundations to make the leap easier, and a much more joined-up approach. 

If we can do it, everyone can. We didn’t rush it. Small steps like becoming a Living Wage Employer, Slave-Free Alliance members, 1% for the Planet, becoming carbon neutral all add up. Each was a job in itself, but its a hugely proud moment when we completed the process! 

Celebrate the small wins, because they do add up. Most people have heard about marginal gains and the success of the Team Sky cycling team under Sir Dave Brailsford. 

On their own, each small, iterative improvement to the team had very little difference. A pair of heated cycling shorts alone wasn’t going to win the Tour de France! But lots of small changes, which add up to hundreds of improvements gave them the competitive edge. 

You may not think you’re making a difference, but even a 1% change in the right direction helps. The more of these small, iterative steps that you make, the bigger they become, the more they are noticed, and the more people begin to pay attention, the more they inspire and encourage others. You want more of a competitive advantage, right?

Your workforce and customers expect more from brands

Some interesting stats from 1% for the Planet:

1. 65% of consumers will pay more for brands committed to positive environmental change.
2. 90% of millennials say they want to use their skills for good.
3. 50% of millennials say they would take a pay cut to find work that matches their values.
4. 70% of employees say that giving back and being civically engaged are their highest priorities.
5. 80% of millennials say their job is more fulfilling when they can make a positive impact on social and environmental issues.

It may be 8–10 years away, but Gen Alpha children are growing up fast — especially those born in 2010. They will be even more in tune with how their actions affect the world around them, influenced by more media and information than we’ve had in previous generations. 

Conscious consumerism isn’t a virtue-signalling fad. If you leave it too late, you’ll be out of sync with your future market and struggling to play catch up.

It’s not and should never be a box-ticking exercise. But knowing you’ve followed an ethical framework to help drive your mission-led business makes you even more authentic. It also doesn’t matter what industry you’re in, using your business as a force for good applies to all sectors!

Despite becoming a B Corp, we are still only at the very start of the journey. 

I’m inspired by many brands who are also part of this movement such as Patagonia, Ben and Jerry’s, Jamie Oliver and Danone. For these large corporations to become B Corp is incredible in itself, they employ teams of talented people to ensure they meet the highest standards required. 

Don’t let that put you off. There are plenty of SMEs who are proud B Corps with much smaller teams and far fewer resources at their disposal who are pushing for change! 

We love working with like-minded businesses and encouraging those who are only just beginning. Now is an excellent time to CTRL-ALT-DEL your purpose as a business and make an even more significant positive impact.