WHAT IS BUSINESS FOR GOOD?
Business for good
WHAT DOES IT MEAN FOR YOUR COMPANY?
- Integrated Impact
- Alignment with business strategy
What is your company for beyond making profit? Your company’s purpose is the value your company works to deliver to society beyond the product or service you sell. It is your ‘why’, the reason your company matters and inspiration for your staff and customers.
Here are some examples of business purpose:
- Unilever – “Make sustainable living commonplace”
- Ella’s Kitchen – “Improve children’s lives through developing healthy relationships with food”
- WeTransfer – “Making creativity easier for everyone”
- Tesla – “Accelerate the world’s transition to sustainable energy”
For these companies, a purpose is not just a statement that looks good on their website. They work hard to deliver it through what they sell and by taking broader action to extend the impact of their purpose to wider society. An effective purpose guides everything you do. Your company’s main aim becomes to profitably deliver your purpose.
Business for good is not a strand of a company’s work. To be authentic and credible it is fully integrated into the organisation. Take consideration of the positive impact you can design into your business for all your stakeholders: your staff, the community, the environment and your clients.
Here are a few examples:
- Staff – Salary/contract considerations, benefits, professional development, engagement and empowerment
- Community – Social impact projects, donations to causes, using local and ethical suppliers
- Environment – Green building standards, product and packaging lifecycle, energy usage, renewable energy, reducing waste
- Clients – Quality control, customer service, ethical marketing, privacy and security, continuous improvement
ALIGNED WITH BUSINESS STRATEGY
Sustainable impact can be achieved by aligning your purpose and impact with your business strategy. And by taking this approach, the better your company performs, the more good you do.
Doing good isn’t just the right thing to do. There is a compelling business case to take action. Unilever’s purpose-led, Sustainable Living Brands are growing 69% faster than the rest of the business and delivering 75% of the company’s growth. There are many potential benefits to your business that can designed into your strategy from the start. These include:
“53% of executives at companies with a strong sense of purpose said their organisation is successful with innovation and transformation efforts” compared with 19% at companies who didn’t (EY Beacon Institute)
62% of customers want companies to take a stand on current and broadly relevant issues like sustainability, transparency or fair employment practices (Accenture Strategy Survey)
“Globally, over half of asset owners are currently implementing or evaluating ESG (Environment, Social and Governance) considerations in their investment strategy” (FTSE Russell)
37% of Millenials and Gen Z “have stopped or lessened a business relationship because of the company’s ethical behavior” and “36% started/deepened a relationship because they believed a company was ethical” (Deloitte Millennial Survey)
Companies with a “purpose strategy generate sustained profitable growth, stay relevant in a rapidly changing world, and deepen ties with their stakeholders” (Business Transformation Initiative)