Why businesses need to embrace purpose over profit
Embracing Purpose-Driven Business: How Purpose Over Profit Builds Resilient and Impactful Companies
By Simon Doble
In today’s landscape, successful businesses are those that align purpose with profit. Gone are the days when profit was the sole focus—today, stakeholders expect companies to drive positive social and environmental impact. Embracing a purpose-driven business model not only meets these expectations but builds resilience, attracts top talent, and enhances brand loyalty. As employees, customers, and investors increasingly seek companies with strong ESG practices, the shift from profit-centric to purpose-oriented leadership becomes essential for long-term growth and relevance. Discover how purpose-driven strategies can reshape business, foster social good, and drive sustainable success.
© Simon Doble
A quiet revolution is underway, and businesses must adapt to stay relevant.
In the face of growing societal, environmental, and political crises, silence is not an option. Customers, shareholders, and employees demand more. The era of focusing solely on profit is no longer an option.
The traditional, profit-centric model is losing its allure.
A purpose-driven approach is taking its place, with businesses expected to contribute positively to society. The data supports this shift.
Aligning customers, employees, executives, and shareholders around a higher purpose isn’t just the right thing to do—it builds stronger, more resilient companies.
Here’s how.
A talent crisis that is here to stay
Despite fears that AI will replace jobs and the ongoing trend of (not so) quiet quitting, the talent shortage is real—and it’s not going away.
Around 55% of CEOs expect to increase hiring next year with only a small percentage considering downsizing. According to Forbes, complex labor market dynamics mean most businesses worldwide will face a talent shortage that will be significant and long-lasting.
My brother often says, "You can lead a horse to water, but you can’t make it drink." The same applies to purpose-driven business.
Moreover, if the experience with robotisation and automation in the past decades is any indication, the adoption of AI might very well create more jobs than it will destroy.
Meanwhile, a new generation is coming. By 2025, it is expected that Millennials will make up 75% of the global workforce, with Gen Z now beginning their careers.
How do the young think about work?
The attitudes of Gen Z and Millenials should be clearly on the companies’ radar.
According to Deloitte’s 2024 Gen Z and Millennial Survey, nearly nine in 10 Gen Zs and millennials consider purpose crucial to job satisfaction. They are increasingly likely to turn down work or employers that don’t align with their values.
Nearly 90 % of respondents say purpose is key to workplace satisfaction and well-being, with about half having turned down assignments or employers due to personal ethics or beliefs.
As their reasons for rejecting an employer, they state:
Negative environmental impact,
Non-inclusive practices that contribute to inequality,
Lack of support for mental well-being and work/life balance.
In short, to attract top talent—or any talent at all—companies must prioritise purpose.
Consumer behaviour is changing, too
This generational shift extends to consumer behaviour.
PwC’s Global Consumer Insights Pulse Survey reveals that a significant number of consumers are increasingly interested in companies that demonstrate a strong commitment to environmental, social, and governance (ESG) practices.
2019 survey by Morgan Stanley’s Institute for Sustainable Investing found that 85% of individual investors are interested in sustainable investing.
Nielsen’s 2023 Consumer Survey emphasises a rising trend of conscious consumerism and highlights that “consumers are more informed and deliberate in their purchasing decisions, often seeking out information about a brand’s social impact before making a purchase.”
Even as the cost of living rises, consumers continue to prioritise brands that align with their values—a trend consistent with the findings from Gen Z and Millennial surveys on consumption priorities.
Purpose-Driven CEOs are Happier and Lead Resilient Companies
On the other side of the equation are the C-Suites and leaders who set the direction.
A University of Washington study found that CEOs who adopt socially responsible policies, or are leading social impact businesses, tend to build stronger stakeholder relationships, resulting in higher customer satisfaction and reduced risks during downturns.
Moreover, these leaders often experience greater satisfaction due to the positive impact they have on their communities.
Now is the time to lead by example and embody the principles of responsible, purpose-driven business. To offer an alternative and invite as many stakeholders as possible to join this journey.
A Harvard Business School publication Purpose + Profit: How Business Can Lift Up the World, notes that companies aligning their strategies with social and environmental goals not only attract more loyal customers but also provide their leaders with a more fulfilling and impactful life.
A Brandpie report, which surveyed 1000 CEOs, reached similar conclusions.
Shareholders Seeking Impact Are Better Shareholders
Understanding these insights is just the beginning; driving a business for social impact—while trusting that profit will follow—requires a shift in mindset.
As a leader, convincing boards or shareholders that this approach is viable is no small feat. It demands education, inspiration, and a clear vision of what’s possible.
In today’s reality, business isn’t just about shareholder profit; it’s about shareholder impact as well as shareholder profit.
When you create shareholder impact, you build culture. You take shareholders on a journey where they become invested not just financially, but emotionally. This dual investment becomes a powerful force that propels your purpose forward.
Studies Support This Trend
Research by Harvard Business School indicates that B Corps—benefit corporations that integrate positive social and environmental impact into their legally defined goals—attract a unique type of investor interested in both financial returns and social impact.
McKinsey & Company finds that companies with a purpose-driven strategy often experience a "long-termism" effect, where investors are willing to wait longer for returns because they believe in the company’s mission.
Additionally, a 2019 survey by Morgan Stanley’s Institute for Sustainable Investing found that 85% of individual investors are interested in sustainable investing.
Achieving B Corporation status signifies a company’s commitment to transparency, social impact, and environmental responsibility.
You can lead a horse to water…
My brother often says, "You can lead a horse to water, but you can’t make it drink." The same applies to purpose-driven business. As outlined above, the conditions for this shift in mindset are ripe, but participation cannot be forced.
There will still be employees who will choose higher pay over meaningful work, customers who prioritise saving a penny over responsible production, shareholders focused solely on profit, and CEOs willing to do whatever it takes to maximise that profit.
But now is the time to lead by example and embody the principles of responsible, purpose-driven business. To offer an alternative and invite as many stakeholders as possible to join this journey.
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The path we have chosen at @BarefootCitizens, a collective of businesses striving to enact positive change in our world, reflects our commitment to being a business-for-good. What makes us different is our smart way of doing business—we care about profit, but we care just as much about people and the planet.
The key is collaboration and creative problem-solving.
If you want to join our journey or need help starting your own, reach out to me here or at barefootcitizens.com/contact-barefoot-citizens.
Simon