Are you clear on the impact you want to make in the world? Do you know the purpose of your business? These are questions I have pondering on over the last few months as I look at how to reset and re-ignite my business.
The world is changing, business models are changing and the old approaches to business are no longer working. Customers are seeking something more impactful, as are team members. Research by Neilsen has identified that in 2013 54% of consumers opted to purchase products with an environmental and social benefit, up from 20% in 1993.
Furthermore, according to Cone Communications, millennials who are the largest living segment of our economy, represent $2.45 trillion in spending power are 60% more likely to engage with brands that discuss and act on social causes. Combine this with the fact that 53% of millennials say they work harder when they feel the organization is making a difference. Surely it’s time for you to consider what impact and legacy you want your business to leave?
Here are some examples of companies that are making a real environmental and social difference. They have been called Evolved Enterprises:
Toms Shoes: they give a pair of shoes away to a child in need for every pair purchased. To date they have given away 35,000,000 pairs of shoes, which also means that they have sold 35,000.000 pairs of shoes.
Bombas: after learning that socks were the most requested item of clothing at homeless shelters, they set about re-inventing the sock and donate one pair of socks to the homeless shelter for every pair purchased. And in just 18 months they have donated 1,000,000 pairs of socks to the homeless shelters
Warby Parker: have partnered with VisionSpring and now distribute one pair of glasses to someone in need for every pair purchased. By circumventing traditional channels, bypassing retail, designing glasses in house, and engaging with customers directly, they are able to provide eyewear at a fraction of the going price whilst combining that with making an incredible social impact. After just a few years the company is valued at over $1 billion according to the Wall Street Journal
And here’s the really interesting part research continues to show that this is not just a trend but a serious seismic shift. It confirms what you might have felt in your heart already but now the data is backing it up. It is VERY possible to do good in the world and do well for yourself and your company all at the same time.
Research by Raj Sisodia in his book Terms of Endearment reveals that between 1998 – 2013 the cumulative returns of Evolved Enterprises eclipsed the S&P500 by 1400%. That’s a 14 to 1 difference. So it is possible to make a profit whilst also doing good in the world. This is why purpose trumps profit everytime.
However, let’s be clear your reason and purpose to make a difference has to come from a genuine, authentic desire to make a greater impact in the world. Over the last two decades we have seen many companies embrace Corporate Social Responsibility (CSR) initiatives, however, many of these have failed to have real impact because the intention behind them has been flawed. Companies have engaged in CSR activities because they felt they should rather than they really wanted to and really valued the impact they could make. In today’s economy where trust and transparency are paramount applying the Evolved Enterprise framework for the wrong reasons will only fast forward your demise. You have been warned.
I’m really curious to hear about what impact you and your business are making, so please drop me an email and share that with me. And if you’d like to learn more about how you can create a purpose-driven, impactful business then please connect with me and let’s explore what’s possible
Julia Felton (aka The Business Wrangler) is the founder of Business HorsePower. Business leaders, entrepreneurs and executives hire her to accelerate their business performance by harnessing the energy of their people to work more collaboratively together. By aligning purpose with actions the team achieves exponential results as everyone starts pulling in the same direction.
Julia believes that business is a force for good and through designing purpose-driven businesses that leverage the laws of nature, and the herd, you can create businesses founded on the principles of connection, collaboration and community that make a significant impact in the world.
