WHY Creating an impact IS GOOD FOR BUSINESS
November 30, 2020
Herd Leader Of Business HorsePower Ltd
Topicsbusiness purpose, impact, Leadership, Meaningful Organisational Culture, organizational culture, Purpose, purpose before profit
“Never has there been a more exciting time for all of us to explore this next great frontier where the boundaries between work and higher purpose are merging into one, where doing good really is good for business.” – Sir Richard Branson
The world faces some of the most challenging conditions ever seen. COVID has impacted everyone’s lives, both economically and emotionally. The world is going through a massive transformation. A metamorphosis that is seeing the old systems, structures, and ways of working break and be replaced by new norms. How we move forward from this current situation is critical and business can play a key part in this transformation. Now is the time for leaders, just like you, to step up and be the change in the world
The business arena is no longer just seen as a space in which companies compete to attain the highest profits, but one where each company is now conscious of the positive social impacts it can make.
Putting purpose before profits is now becoming commonplace, and whilst profit is important, it is no longer the most important thing. In fact, the evidence is compelling, that businesses that are driven by purpose and making an impact in the world actually outperform their peers.
That is not to say that leaders don’t focus on profit. Purpose is central to the leader’s motivation, and money is part of that equation. There is nothing wrong with this as profit is a marker of success. It shows that you are delivering value and impact in the marketplace – if you weren’t no-one would buy from you!!
So what are some of the benefits of doing good and making an impact?
1. Creating A Lasting Connection With Your Customers
A study in the UK revealed that 82% of customers are positively affected by a company’s engagement in philanthropic actions. Customers feel a deeper connection when they know that their purchases contribute towards making broader impacts in the world. Letting your customers know they are making a difference to someone else’s life not only puts a smile on their face but also keeps them coming back for more.
2. Differentiating Your Business And Growing A Base Of Fans And Advocates
By involving your clients in doing good your role evolves to being an organisation which enables them to play their part in making a difference to the world through a simple transaction or engagement.
A recent study revealed that two-thirds of respondents would be more willing to forgive companies that do good when they make an honest mistake, as well as defend them in the face of public criticism. They would also be more inclined to share positive stories about these companies with their family and friends, enhancing the business’ public image and exposure.
3. Building A Meaningful Organisational Culture
When team members feel that they are making a meaningful impact and doing good it creates pride and connection. Knowing that their work contributes to making the world a better place also imbues a greater purposefulness in their work and heightens their sense of belonging to the company.
Businesses that are committed to making a positive impact attract like-minded individuals who are keen to be part of this effort. Meaning that you are able to attract and retain employees more easily.
4. What The Numbers Say (And Don’t)
There are countless studies that show how doing good improves a business’ key metrics –customers are often willing to pay a price premium which results in an increased valuation. Instead of competing on price, businesses today can in some sense compete on purpose. For example, 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.
When the business purpose becomes imbued into the DNA of the business it influences every decision made and provides clarity and alignment to all activities in the business. And when you start doing good in your business, you will realise that it is not just another additional item on your business’ to-do list. Instead, it shifts the trajectory of your business, transforms the culture of your team, impacts everything you do, and ultimately your own life.