Article by Kent Gregoire at Forbes
Image by Frantzou Fleurine on Unsplash
Companies now understand that generating a profit cannot be their sole purpose. After all, 7 in 10 Americans believe that businesses have an obligation to improve societal and environmental issues. Additionally, capitalism is one of the most powerful engines for scalable, sustainable change.
Either driven by a strong belief in the conscious capitalism movement or by necessity to adapt to the changing marketplace, companies are increasingly making the shift from traditional corporate social responsibility toward purpose. In this scenario, profit fuels the larger mission but is not an end in and of itself.
However, many companies that are eager to align profit with people and the planet struggle with implementation beyond the definition of their purpose. They understand the why but struggle with the how.
My advice: Focus on stakeholder management.
Conscious companies operate with their entire business ecosystems in mind. They reject trade-offs and concentrate on optimizing value for all of their stakeholders: customers, employees, suppliers, shareholders, leaders, and the environment and society at large.