Building a Purpose-Driven Business: Why having a mission matters.
You have probably noticed it by now: purpose-driven companies have taken center stage in today’s business landscape. They strive to make a positive impact on people, planet and profit, reaching beyond the traditional focus on profit and embracing social and environmental responsibility. Consumers have noticed it too: their preference has visibly shifted towards purpose-driven companies, showing more and more recognition of the value these businesses offer. In this blog, we embark on a journey to uncover the transformative power of a purpose-driven approach and explore how it is shaping the future of business. Welcome to the world imagined by purpose-driven companies.
SPICE’ing up businesses.
Businesses are no longer just profit-driven entities. They have become catalysts for positive change. By acknowledging the impact on key stakeholders and aligning business practices to support their objectives, a purpose-driven company can increase its value and profitability, all while having a positive impact on people and planet. How? By adding SPICE to our recipe for doing business, meaning our 5 main stakeholders: Society, Partners, Investors, Customers and Employees.
Society: Showing commitment to our society by caring for the community, engaging in charitable activities, and volunteering efforts… Brambles, for instance, provides millions of meals to those in need in the United States.
- Partners: Working together with the right partners is crucial for creating a maximum positive impact, as demonstrated by Patagonia’s meticulous selection process for production partners.
- Investors: Attracting better investors more easily by integrating Environmental, Social and Governance (ESG) goals in your long-term vision.
- Customers: Creating unique value for customers, coupled with a positive impact, is pivotal in fostering customer loyalty and driving business sustainability. Companies like Nike Grind and Patagonia have demonstrated this through their focus on recycling waste and their mission to ‘save our home planet’.
- Employees: An employee-centered approach plays a fundamental role in driving positive impact, innovation, and success within organizations and ultimately contributes to a more positive and productive world.
Dive into our Impact playbook and get to the bottom of what SPICE can mean for your business.
Decision-making with purpose.
Choosing a strategic approach that takes the interests of stakeholders to heart is a must for sustained business success. The growing emphasis on corporate sustainability reporting, as demonstrated by the European Commission’s directives, underscores the importance of integrating purpose-driven practices into our business strategies. This shift shows a fundamental change, emphasizing that purpose-driven initiatives can no longer be an afterthought but should be embedded in every level of the organization and at every stage.
Purpose defines a company’s identity.
The impact of a purpose-driven approach extends to various aspects of business performance, including employee productivity, growth rates, and employee satisfaction. For instance, Unilever’s focus on environmental sustainability within its portfolio, including brands like Dove, Vaseline, and Lipton, resulted in a remarkable 69% faster growth on average. These companies stood out from the crowd by promoting a sustainable way of life and leaving a positive impact on their customers’ lives.
Embracing purpose throughout every facet of the business, from product development to customer engagement, enables companies to distinguish themselves and drive value creation. Understanding that ‘purpose’ comes in different shapes and sizes can simplify the next step for any business to take, and focusing on authenticity, transparency, and responsibility, will ensure smooth sailing on the journey to obtain purpose-driven success.
Ready to embrace purpose?
Authenticity, Transparency, Responsibility.
Have you noticed how not just bad things, but many good things as well come in threes? Primary colors, good jokes, and the keys to purpose-driven success: being authentic, transparent, and responsible in your operations across the board. Let’s dive into what that means, and what value it delivers to you and your stakeholders.
Authenticity, transparency, and responsibility are fundamental principles that underpin the success of purpose-driven businesses. These principles involve staying true to established plans, sticking to your goals and openly communicating about them to your stakeholders. Additionally, assuming responsibility for business actions, such as offsetting carbon footprint, reflects a commitment to accountability. When upheld, these principles enhance the credibility of purpose-driven companies, attracting and retaining customers and employees while fostering innovation and collaboration.
“Profits are in no way inconsistent with purpose — in fact, profits and purpose are inextricably linked.” — Alan Jope, CEO of Unilever
Summing it up.
The journey towards becoming a purpose-driven business encompasses a diverse approach that prioritizes social responsibility, environmental stewardship, and stakeholder engagement. By embracing authenticity, transparency, and responsibility, companies can effectively navigate this path, driving meaningful impact and sustainable growth. Ultimately, the transition to a purpose-driven business model represents an opportunity to not only create value for the business but also contribute positively to society, the environment, and the overall well-being of its stakeholders.
Design, create, utilize.
Your time is now. Let’s trace it back to 3 actionable insights that will leave you with a clear path toward a purpose-driven future.
- Define your purpose and mission: Reflect on values: identify impact areas and craft a clear mission statement.
- Immerse the company culture with purpose: Communicate and educate, integrate purpose in processes, empower employees.
- Engage with stakeholders and communicate impact: Build authentic, measure and communicate adapt and evolve.
Your time is now, but you’re not on your own. Download our playbook and find your purpose.
Ready to further build your purpose-driven business?
Meet Rick, he is our driver for purpose.
Originally published at https://www.businessmodelsinc.com.
