I am frequently asked what a purpose-driven business is, and why I have chosen this path for my business. I made this decision so long ago, having people still asking me this question means it’s a business model still misunderstood.
What is a purpose-driven business?
According to Jennifer Moss, author of “Why We are Here” states a purpose-driven business is a company that prioritizes having a positive impact on the world alongside making a profit. The company is focused on more than what they sell — they know what they stand for and they take action on making a bigger impact in the world beyond making profits.
The clear purpose of the organization reflects the company values, its vision and how it aims to make an impact. For example, the purpose statement of Ignite Leadership International® is
“To inspire purpose-driven leaders to build workplaces where people and purpose thrive—so that work becomes a catalyst for well-being, growth, and lasting transformation.”
This statement shares:
- who we work with – purpose-driven leaders,
- what we aim to achieve – to build workplaces where people & purpose thrive
- the ultimate impact – organizations where work is a catalyst for well-being, growth and lasting transformation.
So how does this purpose statement make a difference in the world?
In 2015, the United Nations and its member nations, identified 17 sustainable development goals (SDGs) that need to be addressed in order to achieve peace and profitability for people and the planet.
Ignite Leadership is primarily focused on SDG #8 “decent work and economic growth”. This goal aims to promote inclusive and sustainable economic growth, employment and decent work for all. In addition, we embrace SDG #10 “reduced inequalities”. This goal aims to reduce inequalities within and among countries – and encompasses inequalities based on income, sex, age, disability, sexual orientation, race, class, ethnicity, religion and the opportunity to persist across the world.
We believe that when we help other business leaders to adopt more of a purpose-driven approach to business, they are able to set themselves up as a successful business over the long-term. As such they attract and retain top talent who align with their purpose and values, create a culture where employees are happier, more productive and innovative, healthier and they continue to grow and learn. This continuum sets each person, and the organization on a forward driven trajectory to drive change and be ahead of their competitors. From there the impact ripples outward to customers, suppliers, communities and the world.
Purpose is more than words.
Purpose is a clear statement of what you stand for as a business. However, to reap the benefits, this purpose drives positive change when its woven into all aspects of operations and decision making. As the purpose, values and vision underpin business strategy, the company can also expand its positive impact within its sector, its community and beyond.
Is a purpose-driven business worthwhile?
Research has clearly demonstrated that purpose-driven businesses are more results focused and drive change, however it takes time to achieve these results. Making this decision, if you’re in it for the long-haul will pay dividends over time.
However, there are short-term benefits of being purpose-driven. A study by Hewlett Packard found that “93% of Gen Z and 89% of Millennial knowledge workers are willing to take a salary cut if it results in a better relationship with work”.
The trend of consumers being more conscious in their buying habits have been accentuated since the pandemic and recent global trade issues. Consumers are wanting to support local businesses, and businesses that are clearly taking action toward social and environmental impact.
And, most importantly, purpose-driven businesses have been shown through research to experience higher market share gains and grow faster than competitors. In other words, greater profits over the long-term and less likely to become obsolete.
So, if you want to
- differentiate yourself,
- be a good business citizen
- be a leader for positive change
- attract conscious consumers who are seeking to buy from companies who are working to better the world,
- be a beacon for top talent that care about the impact their work has,
- set yourself up for long-term results, and
- and be profitable…
I recommend you consider adopting a purpose-driven business model. The research and consumer and employee preferences are aligning with you for the long term. I know it’s a decision I have never regretted making.
Book an Ignition Call with Catherine if you are ready to explore how you can be a leader of positive impact and change in your company.
Our social impact program, MoreThanGreen includes the donation of at least 2% of top-line revenues to our designated charities, along with sharing our time, expertise, and resources to our communities. Working with us helps others.
