On Purpose
Image by Charles Etoroma via Unsplash
How is the world a better place through my work?
And how does my company represent a positive force for good in the world?
Am I running, or working for, a business on purpose - or by accident?
These are three simple questions that far too many people and businesses find very difficult to answer.
Our work defines us whether we like it or not. Nobody wants to work for a business that isn’t making the world a better place. So whilst our customers, regulators and shareholders might be very interested in our purpose, for ourselves, our employees and co-workers it’s existential!
So what can and should we do about this, if we are also struggling to answer these questions and facing our own existential crisis?
Firstly, it’s important to recognise the purpose-led business is not a zero sum game. In the book Grow the Pie, Alex Edmans makes the case that purpose is often seen as zero sum yet when we try to grow different types of value then it grows the whole pie and often subsequently results in more financial growth (with the caveat you still need to spend sensibly and have a clear strategy).
For example we all know about the likes of Tesla - who are on a mission to accelerate the world's transition to sustainable energy and doing incredibly well as a result. Less well known are companies like Interface - a carpet company who achieved net-zero a few years ago and are on a mission to reverse global warming and restore our planet. And as a fan of Indian food, I was excited to recently discover DabbaDrop who produce zero food waste, 100% plant-based menus, reusable packaging, and zero-emission deliveries so you can enjoy your food guilt-free. In addition, we have been working with a diverse range of large and medium companies as part of the Climate Action Initiative to accelerate their progress towards net-zero through cross sector collaboration.
“If I invest in social causes, then I'm wasting money I could be spending pursuing financial growth, yet the exact opposite is true.” Alex Edmans
Secondly it’s useful to be aware of the fact that the rise of purpose-led businesses is being spearheaded and supported by new business models such as Community Interest Companies and B-Corporations who are proving that businesses flourish when they are committed to aligning the interests of all stakeholders: society, the environment, and their shareholders. In addition, organisations like Ecologi, Future Fit Business and the Ellen MacArthur Foundation are creating incredibly useful frameworks, tools and communities for defining the purpose and deepening the impact of many businesses, so are well worth collaborating with.
Lastly, it’s worth recognising that purpose-led businesses can take many forms. For example, we have been working recently with Pooldata who are looking to re-distribute the control and value of data and thereby completely reconstitute power relationships in the political economy of the 21st century e.g. a browser, a phone and a bank that pays you for your data.
In summary, according to RethinkX, we are currently going through a once in a century transformation in Energy, Food and Transport through a series of rapid and exponential disruptions over the next decade. Greenwashing is of course rampant. But at the same time, Kara Swisher from the excellent Pivot podcast has often said that the worlds first trillionaire will be the person who meaningfully tackles the climate emergency - appealing to greed as well as their conscience.
“Austerity cannot solve climate change even in principle, let alone in practice. Prosperity has always been a necessary precondition for solving big problems, both personal and collective, and so it is the only real path to sustainability as well.” Adam Dorr
We live in a rapidly changing world, and on a fragile planet. Life is short so let’s make it count. We believe that businesses should be a positive force for good in the world, but most aren’t there yet. Please get in touch if you’d like to have a conversation about how to connect people and ideas to really make a difference.
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This blog post was inspired by a recent conversation with Matt Ballantine and Chris Weston for the WB40 Podcast recently about purpose-led businesses. If that sounds of interest then have a listen here.
