The Win-Wins Blog

Join the inaugural "Purpose Connections" this Purpose in Business Week (#PiBW)!

Posted October 25, 2024

Purpose in Business Week is an annual celebration designed to generate national conversation and global awareness of the social purpose business movement. Held in November of each year, social purpose champions from all industries share their commitments to a new business ethic, inspiring a cultural shift towards a purpose-led economy.

This year's Purpose in Business Week, November 18 to 22, 2024, kicks off with the launch of "Purpose Connections" a quarterly, free online gathering of social purpose leaders, professionals and advocates, coming together to connect, learn and share on topics related to the purpose economy and integration of purpose into core business strategy. Each session will offer a 30 minute presentation, followed by 30 minutes of open discussion and breakout sessions.

Our inaugural session kicks off November 19th during Purpose in Business Week, with special guests Dr. Victoria Hurth, Dr. Lorenzo Fioramonti and Ben Renshaw, presenting their upcoming book Beyond Profit: Purpose-Driven Leadership for a Wellbeing Economy.

Click here to join this session November 19th 9:00 am Pacific!

Why Social Purpose is Essential to a Company's Success

June 24, 2024

In today's business world, terms like ESG (Environmental, Social, Governance), CSR (Corporate Social Responsibility), and sustainability often dominate discussions about a company’s impact on society and the environment. However, there's a fundamental concept that goes beyond these frameworks: Social Purpose. Understanding Social Purpose is crucial for any organization aiming to make a meaningful and lasting contribution to the world, while creating a competitive advantage and growing for good.

Defining Social Purpose

At its core, Social Purpose is an organization’s reason to exist, reflecting its optimal contribution to the long-term well-being of all people and the planet (credit: Dr. Victoria Hurth). This isn't about what the organization does, how it measures success, or even how well it performs. Instead, it’s the existential "why" of the organization—the fundamental reason it exists in the first place.

The Difference Between Social Purpose and Other Concepts

To truly grasp the unique value of Social Purpose, it’s essential to distinguish it from other related concepts:

CSR (Corporate Social Responsibility): This involves a company’s efforts to have a positive impact on society through initiatives that go beyond profit-making, such as philanthropy and volunteering.
ESG (Environmental, Social, Governance): This framework helps companies measure and report their sustainability and ethical practices, focusing on their environmental, social, and governance impacts.
Sustainability: This refers to meeting the needs of the present without compromising the ability of future generations to meet their own needs, often through eco-friendly practices and resource management.

While CSR, ESG, and sustainability are critical for framing, measuring, and reporting a company's effects on the world, they are not the same as Social Purpose. Social Purpose is about aligning these efforts with the fundamental reason your company exists, bringing everything into sharper focus to serve an ultimate end.

Optimizing Contribution Through Social Purpose

So how does Social Purpose optimize a company’s contribution? It serves as a decision-making lens for every aspect of the business:

Procurement: Ensuring that sourcing practices align with the company’s overarching Purpose.
Hiring: Attracting and retaining talent that shares the company's Purpose.
Policies and Procedures: Developing guidelines that reinforce the company’s Purpose.
Financial Resources: Thoughtfully allocating funds in ways that support achieving why the company exists.
People and Culture: Fostering a work environment that aligns with the company’s higher Purpose.
Products and Services: Innovate offerings that contribute positively toward solving the problem your Purpose company aims to change.
Customer and Client Relations: Building relationships based on shared Purpose and goals.

When a company uses its "why"—its highest purpose—as a decision lens, the impact it can have becomes all-encompassing. It’s not about randomly doing good things like reducing waste or ensuring an ethical supply chain. These actions are necessary, but they don't optimize the company’s contribution. Instead, when driven by a clear Social Purpose, these actions become part of a cohesive strategy to fulfill the company's fundamental reason for being.

The Aspirational Nature of Social Purpose

A Social Purpose aimed at the long-term well-being of all people and the planet is inherently aspirational and, in many ways, unattainable. So why pursue such a lofty goal?

Because setting an ambitious Social Purpose drives innovation, inspires broader thinking, and challenges the status quo. It encourages companies to leverage all their resources and capabilities toward achieving a profound societal impact. This kind of forward-thinking approach can transform not only the company itself but also the broader community and environment in which it operates.

The Unique Value of Social Purpose

Social Purpose cannot be confused or conflated with CSR, ESG, sustainability, or other related concepts. While these frameworks are beneficial and drive some impact, they don't encapsulate the existential "why" that can truly optimize an organization’s contribution to the world. To achieve the most significant impact, companies need to start with their reason for existing and integrate a Social Purpose lens into everything they do.

By understanding and embracing Social Purpose, companies can not only enhance their success but also contribute to the long-term well-being of people and the planet—a beautiful and worthwhile endeavor.

Solving Corporate Culture Challenges

Purpose + People & Culture Blog series, 5

There are numerous benefits of having a Social Purpose for a Company. This series will explore how Purpose benefits your internal People and Culture to help make your company an employer of choice, in addition to being a force for good in the world (or are those the same thing?)!

The 5th of the Top Five Reasons how getting a Social Purpose for a company helps solve people and culture challenges, while doing good, is:

It unlocks Collaboration.

In today's interconnected world, fostering collaboration isn't just a buzzword – it's necessary for success and optimizing impact.

And one of the most powerful drivers of collaboration? Social Purpose.

Social Purpose – integrated throughout your whole business – inherently requires cross-departmental collaboration. Whether it's innovating purpose focused products, championing diversity and inclusion, or finding new ways to reduce environmental impact and become a regenerative company – these demand input and expertise from all corners of the company.

As a result, silos are broken down, communication barriers dissolve, and a spirit of aligned and inspired teamwork permeates every aspect of your company culture.

Internal collaboration like that benefits employee engagement, motivation, satisfaction, and retention.

The advantages extend beyond internal teams.

Embracing a Social Purpose also opens doors to exciting collaborations with external stakeholders and partners.

A new perspective on your relationships – suppliers, vendors, retailers, charities, even customers – helps you see ways to amplify your impact in collaboration, which strengthens those partnerships and increases resilience.

See the win-win (win x 3 – your partners win as well!)?

Solving Corporate Culture Challenges

Purpose + People & Culture Blog series, 4

The 4th of the Top Five Reasons how getting a Social Purpose for a company helps solve people and culture challenges, while doing good, is:

It attracts and retains a diverse workforce (DEI)

In today's competitive job market, attracting and retaining top talent is a challenge – and diversity and inclusion is a priority for companies.

Good news!

The landscape of talent acquisition has shifted, with an increasing number of job seekers prioritizing organizations that are committed to making a positive impact on society.

Why is that good news?

Well – companies with a strong Social Purpose have a distinct advantage as they appeal to diverse talent who seek meaningful work that aligns with their values and aspirations. And companies with a strong Social Purpose tend to foster inclusive and diverse workplaces.

They know that diverse teams bring a variety of perspectives, experiences, and ideas to the table, leading to innovation, creativity, and better decision-making – which, btw, are also benefits of a Purpose (it is all so beautifully intertwined!)

As a result, diverse talent feels welcomed, valued, and respected in these environments, making them more likely to choose these companies as their employers.

Look at Salesforce, a leading cloud-based software company known for its commitment to what they call “stakeholder capitalism” (that is, doing profitable business with Social Purpose).

Salesforce not only prioritizes diversity and inclusion within its own workforce but also advocates for social justice and equality on a broader scale. As they say, “We're working with employees, partners, Trailblazers, and customers to move closer to equality for all.”

Now that is a great example of how to integrate Purpose into all you do – inside and out.

And here it is, your next purpose win-win:

By prioritizing purpose alongside profit, Salesforce has not only built a highly engaged and motivated workforce – but also strengthened its position as a leader in the tech industry.

Solving Corporate Culture Challenges

Purpose + People & Culture Blog series, 3

The 3rd of the Top Five Reasons how getting a Social Purpose for a company helps solve people and culture challenges, while doing good, is:

Elevates Employee Morale

For the past 40+ years, the pursuit of profit has been the primary objective for many companies. As we know, a paradigm shift is underway as more businesses recognize the importance of addressing societal issues beyond their bottom line. This shift towards social purpose initiatives not only benefits communities and the environment but also profoundly impacts employee morale.

How does social purpose boost employee morale?

When values align – both between the company and employee, and also among peers/co-workers who choose that company – everyone feels part of something larger than themselves that contributes to the greater good.

Not only that, but involvement in advancing social purpose within their company provides employees with opportunities for personal growth and development. Under the parameters of a higher Purpose, employees can flex their creativity and ingenuity and contribute to both company and society’s success! This brings a strong sense of personal fulfillment and growth and contributes to overall morale.

Optimizing your company’s impact by addressing a specific and related societal issue through social purpose inspires and empowers employees to become agents of change, daily. Businesses that prioritize purpose alongside profit are not only more successful but also contribute to a more just, sustainable, and fulfilling world, for all.

What’s that you say? Let’s hear it again for the win-win!!!

Solving Corporate Culture Challenges

Purpose + People & Culture Blog series, 2

The 2nd of the Top Five Reasons how getting a Social Purpose for a company helps solve people and culture challenges, while doing good, is:

Employee Engagement: A clear social purpose gives employees a sense of meaning and fulfillment in their work, leading to higher levels of engagement and motivation.

When employees feel that their work contributes to a greater good, they experience a profound sense of meaning and fulfillment. This sense of purpose can be a powerful motivator, inspiring them to go the extra mile and become truly invested in the company's reason for being – beyond making profits!

For example, consider Sodexo, a food services, hospitality, and facilities management company.

“At Sodexo our purpose is to create a better everyday for everyone to build a better life for all.”

Look here to read their amazing manifesto that uses powerful, transformational phrases like: “by focusing on the concrete, on the tangible, on the everyday, that we make a real difference not only to a person’s day but, in the long run, to the lives of all and the planet.”

You can imagine that employees at Sodexo, no matter what their job is, not only perform their day-to-day tasks but also take pride in the positive impact their work has on the world – every day! This Social Purpose gives them a deeper sense of meaning, leading to higher levels of engagement, productivity, and job satisfaction.

Fostering a Culture of Engagement

To harness the power of Social Purpose, organizations must cultivate a culture that supports employee engagement with its Purpose. This can involve:

1. Clearly Communicating the Company's Social Purpose: Ensure that all employees understand how their work contributes to the greater good, and how the company's purpose aligns with their own.

2. Providing Opportunities for Involvement: Encourage employees to consider how they individually, as a team member and as part of a functional department can contribute more to the Purpose – and allow some freedom and resourcing for new ideas they may come up with – that are good for society and good for the business.

3. Recognizing and Rewarding Purpose Engagement: Celebrate employees who demonstrate a strong commitment to the company's Social Purpose and provide incentives and rewards that reinforce this behaviour.

By embedding a clear Social Purpose into the fabric of your organization, you can unlock a powerful source of employee engagement and motivation, ultimately driving long-term success and positive change.

Solving Corporate Culture Challenges

Purpose + People & Culture Blog series, 1

The 1st of the Top Five Reasons how getting a Social Purpose for a company helps solve people and culture challenges, while doing good, is:

1. Alignment of Values: Adopting and integrating a Social Purpose helps align the values of the company with those of its employees, fostering a stronger sense of belonging and commitment among the workforce.

Why does this matter? Well, when there is a misalignment, companies begin to see:

Decreased Morale and Motivation: Employees may feel disconnected or disillusioned if they perceive that the company's Purpose does not align with their own, or if that Purpose is not evident in action. This can lead to lower morale, decreased motivation, and a lack of commitment to the organization.
Increased Turnover: Employees who feel that their values are not aligned with the Purpose of the company are more likely to seek employment elsewhere. High turnover rates can be costly for the company in terms of recruitment, training, and lost productivity.
Reputation Damage: Misalignment of values can tarnish the company's reputation both internally and externally. Negative perceptions of the company's culture and values can deter customers, investors, and potential business partners, if they do not see authentic activation of your Purpose.
Loss of Trust and Loyalty: Employees who feel that their values are not respected or reflected by the company's Purpose may lose trust in leadership and become less loyal to the organization. This can erode employee-employer relationships and lead to increased conflict and dissatisfaction.
Difficulty Implementing Change: Companies may struggle to implement strategic changes or initiatives if employees do not believe in or support the underlying Purpose driving those changes. Resistance to change can hinder progress and innovation within the organization.

Don't get trapped in a poor company culture that is bringing your organization down.

While the lack of alignment of values between a company and its employees can have far-reaching negative impacts on employee morale, retention, productivity, culture, and ultimately, the company's bottom line - the solution is to authentically define and integrate a best-fit Social Purpose into your company. I'd be willing to bet it will not only positively impact your employees - enhancing your ability to recruit and retain the best - but you as well.

You can turn your company into an engine for good in the world - through Purpose. How great would that make you - as a visionary business leader - feel?

Get in touch - we can help you discover and integrate a Social Purpose that suits your company best!

maryellen@purposepathways.ca

A small team, rowing together with a shared Purpose in Zimbabwe (personal photo).