Being Purposeful & Profitable

There’s a notion that’s been floating around boardrooms and coffee catch-ups for years: that doing good in the world means giving up some of your business profits. Sounds familiar, doesn’t it? Well, it’s time to put that old myth to rest. The idea that being purposeful and profitable are mutually exclusive has never been more outdated. In fact, they go hand in hand. More businesses are realising that embedding purpose into their DNA is not only good for society, it’s great for their bottom line too.

As one brilliant quote reminds us: “You can be purposeful AND profitable. These things aren’t mutually exclusive. In fact, purpose correlates positively with profit. Business as a force for good must become the new normal if we’re to have a planet where all can thrive.”

This isn’t just a fluffy idea. The data is there to back it up. So, how can your business balance purpose with profit? And, more importantly, why should you?

The Purpose-Profit Connection: Why It Matters

Businesses don’t operate in a vacuum. Every decision you make as an entrepreneur affects the world around you – from the people you employ to the communities you serve and the environment you rely on. When companies focus solely on profit, without considering their broader impact, they risk alienating customers, employees, and even investors.

Conversely, businesses that operate with a clear purpose are often better positioned to build lasting success. A study by Harvard Business Review found that companies with a clear, strong sense of purpose outperform the stock market by 42%. That’s a huge difference, right?

Customers today are savvier than ever. They no longer just want a product, they want to know what your company stands for. In fact, 83% of millennials expect companies to align with their values, and they’re willing to pay more for products from businesses that have a positive impact on the world. If you can align your business practices with a broader purpose, you won’t just capture attention – you’ll capture loyalty.

Real-World Examples: Purpose in Action

Let’s take a look at some businesses that are doing this brilliantly. Take Patagonia, for example. From the very beginning, they’ve had a clear purpose: to be a business that benefits the planet. They’ve created environmentally-friendly products, but they’ve gone further, encouraging customers to repair, reuse, and recycle their gear, even at a potential cost to their sales. It’s a bold move – but it works. Patagonia is one of the most successful outdoor clothing companies globally, with annual revenues reaching billions. They’ve proven that when you stay true to your purpose, profit follows.

Another shining example is Ben & Jerry’s. This ice cream giant isn’t just about delicious scoops of frozen happiness. They’ve embedded social justice into their mission, tackling issues like climate change, marriage equality, and racial justice. Their commitment to these causes hasn’t hurt their profits one bit – in fact, it’s done the opposite. People know that when they buy a tub of Ben & Jerry’s, they’re contributing to a greater cause, and that emotional connection translates into brand loyalty.

Integrating Purpose Into Your Business Strategy

It’s all well and good to admire companies like Patagonia and Ben & Jerry’s, but how can you, as a small or medium-sized business owner, follow their lead? The good news is that you don’t need to be a multinational company to make a difference. Here are some practical steps to start integrating purpose into your business model:

1. Find Your Purpose

First things first – what’s your why? Your purpose should align with your core business values and speak to your target audience. Are you passionate about sustainability? Social equity? Education? Find a cause that resonates with you and your customers, and weave it into the very fabric of your company.

2. Embed Purpose in Every Decision

Purpose isn’t a side project or a CSR (Corporate Social Responsibility) checkbox. It needs to be part of every decision you make, from sourcing materials to hiring employees. Think about how your products, services, and even marketing campaigns can reflect your mission.

3. Measure the Impact

Being purposeful is great, but you need to track how your efforts are making a difference. Set clear goals, whether it’s reducing your carbon footprint, contributing to charitable causes, or supporting local communities. Transparency is key here – share your progress with your customers, and they’ll appreciate your honesty.

4. Get Your Team on Board

Purpose-driven businesses thrive when everyone is rowing in the same direction. Make sure your employees understand your company’s mission and are excited about it. A motivated team is a productive one, and their enthusiasm will resonate with your customers.

5. Tell Your Story

People love a good story, and if you’re doing meaningful work, they’ll want to hear about it. Be vocal about your purpose across all your marketing channels. Show how your business is making an impact, whether through behind-the-scenes videos, social media updates, or blog posts. Authenticity goes a long way in building trust.

What Happens When You Don’t Prioritise Purpose?

The risks of not integrating purpose into your business are clear. Without it, you run the risk of appearing out of touch, irrelevant, or worse, exploitative. Look at companies that have been caught greenwashing – claiming to be environmentally responsible without actually making significant changes – or those whose poor labour practices have led to public outrage. Not only do these actions damage a brand’s reputation, but they also hit profits hard.

Customers today are quick to spot when a business isn’t being genuine, and the impact on your bottom line can be swift and severe. So, if you’re only chasing profit and ignoring purpose, you’re playing a dangerous game.

Why Purpose Equals Profit

Still not convinced? Here’s the reality: Purpose-driven businesses are more resilient, better at attracting talent, and more innovative. With a clear mission, companies often find it easier to attract passionate employees who are aligned with their values, reducing turnover and increasing engagement. And happy employees, as we know, lead to happy customers.

Being purposeful also means being more adaptable. Businesses with a strong sense of purpose are often better equipped to weather crises, because they have a deeper connection with their stakeholders – be it customers, employees, or partners.

So, is it possible to be purposeful and profitable? Absolutely. In fact, we’d argue that the two are inseparable. In today’s world, consumers and employees alike are demanding more from businesses. They want to see companies that not only provide value but also stand for something greater. And when you answer that call, profits often follow.

Ready to Make the Shift?

What’s stopping you from embedding purpose into your business strategy? Do you think your customers would respond positively to more purpose-driven decisions? Let’s hear your thoughts – how would you start aligning your business with a bigger mission?

Answer the poll below:

How important is purpose to your business?

• Extremely important – it’s central to everything we do.
• Somewhat important – we’re starting to integrate it into our strategy.
• Not important – we focus more on profits.
• Unsure – we’re still figuring out where we stand.

By thinking purposefully, you won’t just thrive as a business, you’ll help build a world where we can all succeed. And isn’t that what it’s all about?