Why purpose-driven companies thrive during challenging times

Many businesses are struggling in the face of challenges posed by the COVID-19 pandemic, but some are also thriving. Although each has unique secrets to their success, one common thread is that most companies seeing growth right now have a purpose larger than profitability.

This isn’t a new trend. In the last recession, certified B Corps were 63 percent more likely to survive than other businesses of similar size. When we look at why these purpose-driven companies do better than their profit-oriented peers, four main themes emerge. 

First, purpose-driven companies effectively innovate under pressure. They are accustomed to using creativity to solve some of the world’s biggest challenges while producing a marketable product. Joey Bergstein, CEO of Seventh Generation, says that the COVID-19 pandemic pushed the company to boost production of their non-toxic cleaning supplies so that people could stay healthy without exposing themselves to unnecessary chemicals. 

Next, purpose-driven companies have flattened hierarchies and more flexible roles for workers. The drive to boost social good in business motivates workers to take on new roles in times of crisis. Transparent communication across teams also allows newer members to take on responsibility and facilitates group cohesion. 

During a crisis, people scrutinize how companies are responding. Socially conscious companies feel the pressure to deliver the same quality product in a way that accounts for the additional struggles their consumers are facing. During COVID-19, consumers have become especially aware of companies who are truly making a positive impact with actions. Martin Whittaker of JUST Capital, one of our Optimist Daily partners, suggests that the pandemic will put shareholder primacy and profit-maximization to rest for good.

Lastly, times of crisis call attention to the role of humans in work. COVID-19 has highlighted the fragility of human life, which extends into the workplace. At a time when we are focused on caring for others in our communities and the world at large, we are also paying attention to companies that take care of their employees and their customers. If we are going to risk going back to work, it better be for something we truly stand behind. 

All industries are struggling at the moment, but companies with a larger purpose than just profit are the ones best motivating their employees to get up and be productive each day for a cause larger than themselves. As we make economic decisions moving forward, we’re focused on companies that are focused on us and our world. 

Solution News Source

Why purpose-driven companies thrive during challenging times

Many businesses are struggling in the face of challenges posed by the COVID-19 pandemic, but some are also thriving. Although each has unique secrets to their success, one common thread is that most companies seeing growth right now have a purpose larger than profitability.

This isn’t a new trend. In the last recession, certified B Corps were 63 percent more likely to survive than other businesses of similar size. When we look at why these purpose-driven companies do better than their profit-oriented peers, four main themes emerge. 

First, purpose-driven companies effectively innovate under pressure. They are accustomed to using creativity to solve some of the world’s biggest challenges while producing a marketable product. Joey Bergstein, CEO of Seventh Generation, says that the COVID-19 pandemic pushed the company to boost production of their non-toxic cleaning supplies so that people could stay healthy without exposing themselves to unnecessary chemicals. 

Next, purpose-driven companies have flattened hierarchies and more flexible roles for workers. The drive to boost social good in business motivates workers to take on new roles in times of crisis. Transparent communication across teams also allows newer members to take on responsibility and facilitates group cohesion. 

During a crisis, people scrutinize how companies are responding. Socially conscious companies feel the pressure to deliver the same quality product in a way that accounts for the additional struggles their consumers are facing. During COVID-19, consumers have become especially aware of companies who are truly making a positive impact with actions. Martin Whittaker of JUST Capital, one of our Optimist Daily partners, suggests that the pandemic will put shareholder primacy and profit-maximization to rest for good.

Lastly, times of crisis call attention to the role of humans in work. COVID-19 has highlighted the fragility of human life, which extends into the workplace. At a time when we are focused on caring for others in our communities and the world at large, we are also paying attention to companies that take care of their employees and their customers. If we are going to risk going back to work, it better be for something we truly stand behind. 

All industries are struggling at the moment, but companies with a larger purpose than just profit are the ones best motivating their employees to get up and be productive each day for a cause larger than themselves. As we make economic decisions moving forward, we’re focused on companies that are focused on us and our world. 

Solution News Source

SIGN UP

TO GET A Free DAILY DOSE OF OPTIMISM


We respect your privacy and take protecting it seriously. Privacy Policy