How Profit and Purpose Relate
Updated: Jul 14, 2021
Purpose and Profit.
Those two words combined inspire some pretty passionate opinions.
Here’s one that I hear expressed fairly frequently.
“Businesses should do good but should not expect to get anything from it. They should do it simply because it is the right thing to do. If good results follow, that should be a bonus for them.”
Okay, let me put my position on this clearly.
I disagree. In no uncertain terms.
I would love to see us get to a point where doing good is simply seen as the right thing to do. But we’re not even close to that point in time yet. In the context of the world we inhabit today, this expectation simply isn’t realistic. Making a stand on this will only stall the progress we need to make.
To be clear, that future is one I absolutely believe in and strive for: A world where business is a force for good. But we have to chart a path to that future. We can’t just magically make it happen.
This very thinking is what inspires my own purpose and that of my business, The Cause Effect…
We believe in a future where business is a force for good and brands drive profit through purpose. This drives our mission to make Social Purpose vital in business; to put it at the heart of a business strategy.
I believe that people who believe business should do good without expecting to do well from it, simply aren’t thinking big enough.
For Purpose to be scalable it has to be sustainable.
What I mean by that is, if Purpose is not the driver of, or a strong contributor to financial performance, then it is never going to be seen as a vital business strategy. That puts it at constant risk of being cut back or cut off altogether, if and when a business hits uncertain or tough times.
If a business’ success is driven by its Purpose, that is when Purpose becomes sustainable within the business.
The more profitable the business is as a result, the more sustainable the Purpose and the more it drives business success. The more successful the business, the more scalable the impact.
It’s a pretty simple equation when you break it down.
If you want to find out how you can build a profit with purpose, head over to our website today.