Why purpose-driven business is good business

Brightly is proud to be a certified B Corporation. This means we have a purpose greater than profit and want to be held accountable for our promise to have a positive impact on the world.

For us, the old way of doing business is untenable. We can’t accept continual exploitation of our environment or the growing inequalities in our society. If we’re to be in business at all, it must be to change things for the better.

We understand, however, that not every business starts with this in mind and growing your business is challenging enough at times. If you’re looking for ways to influence your current organisation, it might help to know that B Corp CEOs believe this way of doing business combats short-termism and allows businesses to balance profit and purpose.

Without clear goals, it can be hard to steer through unexpected disruptions like a new competitor or a global health crisis. So whether you’re navigating smooth or choppy waters as a business, having a clear orientation and a team of people rowing in the same direction helps. A stable vision is one of many advantages of running a purpose-driven business.

Oxford University professor Colin Mayer says the goal of purposeful business is to, “produce profitable solutions to the problems of people and planet, and not to profit from producing problems for people or planet.”

Being an impact-led B Corp isn’t a feel-good marketing exercise. Purpose and profit are no longer rivals; the appetite for socially responsible services and products is proven among consumers and workers. Like the benefits of digital transformation, having a well-defined, transparent and measurable purpose will soon be essential to survival. Learn more about the global B Corp movement.

Businesses that do good are doing good business. Let’s dive into the numbers:

Good for your customers

Surveys of global consumers indicate growing demand from customers for brands and businesses to show a purpose beyond profit. A 2017 Ipsos survey showed 67% of people think it’s become more important that, “brands they choose make a positive contribution to society.” And they’re not afraid to show it with their wallet and influence. Social media means businesses must honour their promises or face the consequences.

Good for your employees

Employees, especially those in Generation Z (born 1995–2015), emphasise social concerns as an important feature of companies they choose to work for. If you want to attract the best job applicants, then having a clear purpose will help you recruit and keep great employees. Purpose-driven companies report 40% higher levels of employee retention, according to a Deloitte Insights 2020 Global Marketing Trends Report.

Good for your bottom line

Purpose-driven businesses outperform the stock market by 134%, according to Havas Media Group. A Yale Center for Business and the Environment guide to B Corps reported B Corporations even saw 51% revenue growth during the 2008 financial crisis. Growing shareholder profit is no longer the top priority of good business; a new world of stakeholder capitalism has arrived. Measuring positive impact can be difficult, but specialist expertise will grow in this area as more take on the challenge of purpose-driven business.

Good for the future

As businesses combat short-term thinking and work to improve the world now, future generations will benefit. In a survey by Wunderman Thompson Commerce, 63% of Generation Alpha (born early 2010s) expressed a desire to work somewhere that was helping to save the planet. Businesses can start making that mission even easier today.

The Brightly purpose is to help like-minded businesses make a positive impact on the world. If you’d like to connect with local B Corps, we’re always happy to catch up over a coffee or let you know about local B Corp events. Just send us a message.