Purpose-driven business rules

Many businesses donate a part of their profit to good causes. Also, it is common advice amongst business and wealth coaches to build a profitable business so you become rich, and then donate to a charity of your choice. But why the detour? I don’t get it…. The smarter way is to build a business that makes the impact you want and use it to make the profit you want. I call that business with impact.

Purpose-driven businesses, or companies that have a clear sense of purpose beyond profit, have been shown in multiple studies to outperform traditional businesses.

A study by Deloitte found that purpose-driven companies have a stronger brand value and are more likely to be considered for long-term investments. Another study by the Boston Consulting Group found that companies with a strong sense of purpose had higher levels of innovation and were better able to attract and retain top talent.

In addition, a study by Accenture found that purpose-driven companies had higher levels of employee engagement and motivation, leading to improved performance in the workplace. This is because it creates a sense of purpose and meaning for employees. When a company’s mission is aligned with the values and beliefs of its employees, it leads to higher levels of engagement, satisfaction, and retention. This can often lead to a more productive and motivated workforce, which in turn can lead to better financial performance.

Furthermore, a study by PwC found that companies with a clear sense of purpose had lower production costs and higher sales. I find that this increase in sales is often the case because a purpose-driven business can attract and retain customers who share the same values and beliefs. Consumers are increasingly looking to support companies that align with their personal values and often they are even willing to pay a premium for products and services that align with their beliefs. A loyal customer base is more likely to remain loyal and refer others to the business.

Let’s look at a well-known brand to make it specific what I mean by a purpose-driven company. Patagonia that makes outdoor clothing. It is a company that from the start has focused on environmental and social responsibility. Patagonia has been consistently recognized as a leader in sustainability and corporate responsibility and has been able to attract and retain customers who are loyal to the brand’s values. This has turned Patagonia into a very profitable business. If you look at the Net Promoter Score (NPS) they rand on top of their competitors.

In contrast, traditional businesses often focus solely on financial success, with little regard for social and environmental impact. This can lead to a lack of motivation and engagement among employees, and a lack of loyalty among customers. Additionally, traditional businesses may not be as well-positioned to adapt to changing consumer demands and societal expectations.

Overall, the research indicates that having a clear sense of purpose beyond profit can lead to a variety of benefits for a company, including increased brand value, innovation, attraction and retention of talent, higher performance in the workplace, lower production costs, and increased sales.

It is important to note that there is no one-size-fits-all solution when it comes to implementing a sense of purpose in a business. Different companies will have different opportunities, priorities, goals, and target audiences, thus, it is important for businesses to establish a sense of purpose that is authentic and aligns with their values and objectives.

If you would like to get at structured process and model for how to work with sustainability so you become a impact creating company in a profitable way, then join me in one of my workshops I run over the next month. It is free, takes a hour and you will walk away with clarity on model for how to make sustainability profitable.

Click here and sign up now: www.bwimpact.com/introduction