The phrase ‘purpose-driven’ is thrown around in business parlance, but what does it mean and can it go hand-in-hand with growth and profitability?
The two may sound mutually exclusive, with ‘profit’ in moral conflict with ‘purpose’. But they can, in fact, make a lucrative combination. A profitable business will be able to do more to support a movement or cause and in turn, such commitment can drive profitability.
Patagonia, the highly successful outdoor gear and clothing retailer, is often held up as a prime example of this, having had a social and environmental commitment since it was founded in the 1970s, propelling its ‘purpose-driven profitability’.
Rewiring business for good
We are all operating within a capitalist system, and we can harness the positives from this and use the business-customer relationship for the greater good. The first step could be as simple as a charity partnership.
For example, in reward schemes, online retailers often offer discounts at checkout to encourage customer loyalty. Instead, giving customers the option to donate the value of their discount to a chosen charity, or offering to round up to the nearest full pound with the round-up going to charity, provides immediate wins for the charity at no cost to the business.
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