Businesses With A Bigger Purpose

“A business that makes nothing but money is a poor business”

said Henry Ford, the founder of the Ford Motor Corporation, almost a century ago. Businesses with a bigger purpose, like Ford’s, thrive by living up to their reputations and prioritizing societal impact. Ford didn’t just focus on producing cars or making money; he aimed to transform lives. By acting thoughtfully and considering the societal effects of his actions, he revolutionized the automotive industry in the early 20th century.

Today, we often reflect on Mr. Ford and his philosophy of efficiency, innovation, and social responsibility. He measured his success by improving work and life quality as an entrepreneur.

In my work as a business mentor and consultant to companies from various sectors, I have come to realize that people have all sorts of reasons for starting a business. I suppose most start businesses to pursue financial independence, while others do it to aspire for a different lifestyle and freedom. Then, some refuse to work for others and start businesses out of vanity.

Statistics tell us that businesses do not always turn out to be good. In Ireland, as in other countries around the world, more than 50% of start-up companies fail within the first 5 years. Sometimes, the entrepreneur lacks the knowledge or skills, and other times, they make poor plans. However, most of the time, a lack of genuine passion for what the business does causes the failure.

Yes, not always do businesses turn out great. But great businesses are always the ones with a vision that is driven by a mission.

We’ve all heard the success story behind Apple and how Steve Jobs was dreaming of a world where everybody would have a personal computer. Today Apple is a billion-dollar business and Steve Jobs’ dream has, to a large extent, come true. Henry Ford’s mission was to make cars affordable for everyone. He believed even his factory workers should be able to own one.

Today, people aim to contribute to a better, fairer, more equal world on a larger, more altruistic scale. It is no longer enough for companies to produce and distribute good enough products or services. The truly great and successful companies are those driven by a bigger purpose, a bigger mission. They play their small part in adding to a greater good and exist for this very purpose, not alongside it.

Here are a few examples of businesses inspired by their vision:

Xerox.

The printing giant has several programs aimed at improving the lives of various communities and they get their employees directly engaged in those. Xerox’s social engagement dates far, far back before CSR became a marketing function of companies. Xerox’s Community Involvement Program has been around since 1974 and since then more than half a million Xerox employees have participated in community-focused causes. The company spends millions on facilitating employees to do so. What they get in return – recognition by both various communities and employees.

Pedigree.

The million-dollar company built its brand by calling people to adopt homeless dogs. By caring for and supporting these animals and sponsoring a national adoption drive, they have donated huge amounts of money to shelters and breed rescues. Not only that, but Pedigree donates one bowl of food to animal shelters every time someone becomes a fan on Facebook.

Faucet Face.

Faucet Face is a bottled water company that is also built around a mission – the mission to give access to clean water to those who need it the most. The company donates 2.5% of proceeds from its products to the clean drinking water charity Third Millennium Awakening (TMA). For every five bottles sold, it also donates a complete filter. TMA uses these contributions to employ locals in India to produce and distribute filters to families in need.

Twice as Warm.

The company sells winter wear such as hats, scarves, gloves, etc. and is based on, as its slogan says, the ‘give one, wear one’ philosophy. Its mission is “to spread warmth to people and communities around the world.” And it seems like they live by it – every time somebody buys an item, the company donates an item to a homeless person from a local shelter. 

Panda.

Panda is a sunglass company that sells bamboo frame sunglasses. For each pair of sunglasses sold, the company donates an eye exam and prescription glasses for school-aged children through the Optometry Giving Sight organisation. The company is an excellent example of how a great mission can be tied in with its core business, products, and business goals.

Patagonia.

The outdoor apparel company is probably among the most exemplary organisations when it comes to genuine CSR. They prove that when CSR is at the heart of the business and is coordinated and aligned with the business goals, as opposed to just being a marketing function, it can catapult you to the top. The company donates 1% of its sales to environmental organisations and grassroots charities.

It has also founded the  Sustainable Apparel Coalition, which is an alliance of 30 companies, measuring their environmental impact against each other and working together to improve it. Patagonia has, through its mission and vision for environmental sustainability, created a strong follower base, a community of people who hold the same values and beliefs. The company encourages its customers to refrain from buying more than what they need through campaigns under slogans such as ‘Don’t buy our jackets’. Patagonia also invites customers to bring their old items back to the stores, where the company fixes and recycles them.

This multi-million dollar company takes responsibility for its environmental impact. It also actively engages and motivates people to act responsibly. Theirs is the phrase that “the greenest product is one that already exists”.

Some of these companies are more popular than others but they are all successful, thriving businesses. The list of companies such as these, that are genuinely devoted to a mission, is slowly growing. Some were founded with a specific cause or mission, like helping a particular community. Others took on a social role aligned with their core business as they grew.

Many businesses have a CSR section on their website but lack a clear strategy. They often give money to various causes without measuring the results. This uncoordinated approach is all too common. For those businesses, social responsibility is just another PR opportunity. At best, it’s a way to check off a “good deed” for the day.

Without alignment with core corporate values, their efforts lack purpose. Without follow-through, they remain ineffective. Ultimately, they become just random acts of kindness.

This is both wasteful and sad. By embedding our larger purpose into our corporate strategy, we could make a tremendous impact. It would help grow our business, create jobs, and boost the economy. Social responsibility also provides a significant advantage. It benefits both our company and the community on multiple levels.

In Michael Porter’s report “Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility” for Harvard Business School he says:

The fact is, the prevailing approaches to CSR are so disconnected from strategy as to obscure many great opportunities for companies to benefit society. What a terrible waste. Corporations can analyze social responsibility opportunities using the same frameworks as their core business decisions. Companies like Whole Foods Market, Toyota, and Volvo have found that CSR is more than a cost or charitable act. It can drive innovation and provide a competitive advantage.

The companies mentioned here, along with the ones listed above, demonstrate the power of social engagement. It may not always make you a leader in your field, but it can position you among the most successful players. That being said I genuinely believe that “a business that makes nothing but money is a poor business“. Do you?

If you want to make a meaningful difference and leave a lasting legacy, get in touch. It’s not just about the products or services you provide but about contributing to a greater good. We’d love to hear from you. I’d be happy to discuss the possibilities with you. We can explore how your mission aligns with your strategy in a healthy, fulfilling, and profitable way.