Profit and purpose are converging. Over 80% of millennials report that making a positive difference in the world is more important to them than professional recognition. They no longer believe the primary purpose of business should be to make profit, but rather to create social value. On the investor side, more and more shareholders demand tracking and reporting of both positive and negative externalities, compelling some of the largest corporations on earth into action. Customers overwhelmingly prefer products tied to a social cause. A significant majority of citizens want changes to how society governs itself—and therefore how problems get solved—and also changes to the corporate status quo. Not surprisingly, more and more businesses are becoming certified for their social responsibility practices.
How Companies, Governments, and Nonprofits Can Create Social Change Together
Profit and purpose are converging, and capital markets as a whole are moving in this direction. When the authors talk with corporate executives around the country, they almost always ask the same question: Can managers and CEOs really accomplish their business goals while also advancing society’s goals? The authors believe the answer is yes. In fact, they argue, this sort of thinking is something of a return to the norm. The pressing question isn’t whether managers and CEOs should care about advancing society’s goals, but how they do so most effectively. For businesses to survive and succeed in today’s globalized, hyper-connected world, business leaders must be willing to embrace collaboration as a guiding principle, more so than competition. Five principles dictate what successful collaboration for social value looks like.