Nowadays, Purpose driven companies are not growing with the idea of profits and customer satisfaction. They are doing many things to create and change the society and environment for the greater good. People are making their companies with an idea of a purpose that will be used for society and the environment and not for the company’s profit. This method of doing business with a greater purpose helps today’s business to grow exponentially.
In this article, you will be able to understand what a purpose-driven company is, how it affects the society and environment, and how to make a company a purpose-driven company.
A company that is doing a business means that it has a purpose with which they are providing the customers with products and services. A purpose is the starting point or the meaning of a company. A company cannot run without a purpose. Just like a canvas is important for an artist, a foundation is for a house or building, and the main purpose is important for a company. But, nowadays there is a different meaning for the company. A purpose-driven company is a company that is not only making profits and satisfying the customers, but they are also doing things for the betterment of society, community, and the environment.
A purpose-driven company has many options of things that they could do for the environment and the society like planting trees for a certain amount of purchases, donating an amount of money to a charity, and many other things. There are many ways to start a purpose-driven company. A company should keep in mind that the product or service they are providing is related to the purpose that they want to pursue, they should have an enthusiastic team working with them, and other ways. There are many things that a company should do and also many things that they should avoid.
To understand the concept of purpose-driven companies, their working methods, tips for creating these types of companies, and other information that these companies use and do, read this article completely. As it will contain every aspect of a purpose-driven company.
What Is A Purpose Driven Company?
Normally, a company is seen as an organization that is providing consumers with products and services. There are a lot of entrepreneurs and consumers that are growing and thinking that companies can be a lot more than just a provider. Companies could go beyond their common goals of providing products and services and become a purpose-driven company. A purpose-driven company not only provides its consumers with products and services but does a lot of other work for society and the environment. Many companies are using this approach for the development of their company and also for the betterment of society.
A company with a purpose that is exceeding the goals of earning profits and satisfying the consumers, gives a company an entirely different meaning. A purpose-driven company will not be like the common corporate giants just printing money, they will be the future of the world with their doings. These companies could easily help society and also expand their business. With a purpose-driven model, companies could help the community, society, environment, and many other things that they are affecting indirectly.
Deloitte Core Beliefs & Culture Survey
According to the survey conducted by Deloitte, namely Deloitte Core Beliefs & Culture Survey. The results were in favor of the purpose-driven companies. The survey clearly states the following points.
1. 91 percent of the responders admit that their companies are purpose-driven and have observed a strong financial year. Their businesses were reported more successful with the purpose-driven model.
2. 82 percent of the responders who were working for the companies with purpose-driven models said that they believe that the company or organization will grow and develop more in the coming years.
3. 79 percent of the responders working at purpose-driven companies as employees and executives are positive that their companies could exceed in the competition.
These results clearly show that the companies driven by a good purpose could easily develop and also help society in many successful ways.
How to Create a Purpose-Driven Company?
If you want to know how to create a company or organization which is purpose-driven, then you should read and understand the following points. For a company or organization, changing its methods of doing business could mean that they are in a situation of emergency or just trying new methods. But changing its way in a purpose-driven model is very much safe and sound. There are some points with which a company could become purpose-driven. They are as follows:-
- Finding the Purpose– For making a company purpose-driven, you first need to find the purpose to pursue. It is not an easy task to find the purpose for a company, as there are many types of companies with different types of work styles. The most simple and effective way to find out the purpose is to do a survey inside the company and outside the company. Inside of the company means to ask questions to the employees, workers, executives, and other members about the purpose. Outside means asking the question to the public, consumers, community, partnerships, and other means. This method would help the company to find the purpose that they need to pursue easily. Also, keep in mind that the purpose should be something relatable to the products and services that a company provides.
- Inspired Employees Or Workforce- For a purpose-driven company, the first thing you need is an inspired group of people who are ready to cooperate with the company. The employees and the workforce of the company should be in a positive and trustful relationship. Every company is dependent on their employees for the work, so the employees should be the ones that take pride in their work and are ready to do the work for the company and themselves. This is important because of the Principal-Agent problem. In this case, the principal is the employer and the agent is the employee. The issue is that an employee is working with a company for a certain amount of money for the work and they often underperform. They would perform extra with extra incentives. This would be a problem for many companies.
- Trustworthiness and Reliability- In a company, there is always a big part of politics and hypocrisy. The employees work to show off the seniors for promotions and many employees give up because they don’t want to do work like this. So, in a company, there should be authenticity with the work and employees. There should be no politics and hypocrisy. This is possible when every one of the employees and the seniors work as a team and understands and does the work together and not in a fake manner. Workers don’t need to be in a situation where the purpose is great but the leadership of the seniors is not even trying to do anything. Everyone should be on the same page and with the same motivation and integrity.
- Keeping up with the Purpose- The difficult part for a company that needs to do business with a purpose-driven model is to run the business with it and not forget about it. A company that just adapted a purpose to pursue needs to always remind the workforce about the purpose that they are pursuing, without being reminded of the purpose the company would be the same in only a few months. When a company announces the new purpose that they will start pursuing, the employees just get the information about it and there is no change in their work for at least a few weeks. Without mentioning and reminding about the company’s new purpose, there would be no change whatsoever. The owners, executives, employees, and other members are required to keep up with the purpose.
- Giving New Learning Opportunities- For a new purpose-driven company, there are many new tasks and work that need to be done, and many of the tasks would be there for the long run. The employees need to be assigned new work to know more about the purpose and learn new things. The company needs to be specialized in selecting the employees for doing the work and also giving the employees to work in different departments or new tasks constantly to give them a chance to get experience in all the fields of the purpose. This will develop a strong sense in the employees and executives of doing the greater thing for the company, environment, society, and for themselves. This will make them more adaptive and proactive which would be better for the company’s future.
- Search for Future Leaders- There are many types of managers and group leaders that are working in a company. The company needs to search for the brightest one of them and try to make them the future leaders for the purpose. These managers and group leaders are one of the most hard-working and knowledgeable employees in the company. They should be the best assets to be made the leaders leading the employees for the purpose. They have a great experience working in the company and know all the internal ups and downs of the company. They should be given proper training about the work and the purpose, they are the ones that are trusted by the employees and the upper seniors and executives. This also motivates the other employees.
- Connecting the Company- CEO, owners, executives, managers of different departments are all connected now with the purpose. Now is the time to connect the employees working in the frontline of the company. A company needs to connect all the workers and employees from the upper management to the lower management. They need to motivate the employees with programs and projects that benefit the company and the employees as well. This will help the company to reshape the interior of the company as required for the purpose they need to pursue. There should not be any top to bottom management, the employees need to make the decisions for the purpose. This would increase the engagement of the workforce and they will take pride in their work. This will help the company to pursue its purpose effectively.
- The Outer World- All the issues and steps inside the company are now taken care of. Now a company needs to check the outside of the company. The first thing to check is whether the customers are satisfied with the purpose or not. If the main group of customers of your company’s products and services is not happy with the purpose then it would be a major problem, so try to choose a proper purpose for your company at the start. A company also needs to consider the partners of the company, their views on the purpose carry weight. They also need to make sure if the community is positive with your purpose approach and the idea behind the purpose. A company also needs to promote the purpose they are pursuing in the market and the world. It will give the company a boost.
The Features of a Purpose Driven Company
There are many things that a purpose-driven company does, and they could be used by many companies. Some of them are listed below. They are as follows:-
- The main thing that a Purpose-driven company does is maximize the benefits of the customers, community, society, and the environment rather than profits.
- They tend to make the company’s working environment a better place to work and encourage the employees to do better for the environment.
- They tend to do work for the better of the environment for a larger market and also show their beliefs with the work.
- They commonly use the employees of the company to find the best purpose for the company and it also helps to increase the motivation of the employees and improves transparency.
- These companies are known for doing more than expected and it is their main way to grow the trust of the consumers.
Some Examples Of Purpose-Driven Companies
With the increasing number of purpose-driven companies, it would be difficult to find companies of small scale size that need more recognition than the big companies. There are some examples of small-scale companies that are doing very nice things for society and they are listed below.
1. Pela Case- This is a company that was founded in 2011 by Jimmy Lang and this company sells phone cases and other accessories that are made eco-friendly and with biodegradable materials like plant material and flax straw. The products are renewable and also compostable. Their 5 percent of the revenue goes to the companies that are cleaning the beaches and coastlines.
2. Beekeeper’s Naturals- This company uses beeswax to make health-related products and also makes sure to increase the bee population. This company was founded by Carly Stein in 2016. They also give 10 percent of their profits to organizations that are working to increase the bee population.
3. The Honest Bison- This Company was founded in 2012 by Sean Lenihan. This company sells bison meat that has been fed on grass and lives a natural life. They also have different animals like deer and elk which live in fields and live life as normal animals. This company was started because of the cruelty to the animals in the meat industry. They do not use hormones and feedlots.
4. ALOHA- This company was founded in 2013, and sells vegan protein bars, shakes, and other snacks. The products are made entirely vegan and the ingredients used are from certified farms. The products are vegan, organic, and non-GMO. They are of high quality and it was founded for the betterment of the world by providing delicious and healthy products.
5. ABLE- This Company was founded in 2008 by Barrett Ward. This company sells stylish bags and clothes designed by and made for women. They work and employ in the underdeveloped nations and pay a decent amount of wages to the women working with them. They are empowering women’s power in many places.
Purpose-driven companies are the future of the world because they are doing the work that is benefiting a larger number of people and it also benefits nature. They know that companies affect the environment and society directly or indirectly so they are working to make that effect positive.
Frequently Asked Questions
1. What are purpose-driven companies?
Answer-These are the companies that do more than earn profits and make the customers satisfied.
2. Which companies are purpose-driven?
Answer-There are many purpose-driven companies. Some are Tesla, Microsoft, etc.
3. What is a purpose?
Answer-There is a common purpose with every company of earning money and satisfying the customers, but here it is something extra that a company is doing for the betterment of society and the environment.
4. What is the example of purpose?
Answer-Some is planting trees, donating to charities, and eco-friendly products.
5. Why are purpose-driven companies important?
Answer-Purpose-driven companies are important as they help in many ways to protect nature and developing society and take care of the environment. These companies are the future of the planet.