Profits with Purpose for Businesses
My personal observation is that there has been a greater focus on Purpose by employees arising from the Covid pandemic. Most if not all of us have witnessed death of a friend, family member, acquaintance or a community member from Covid. Even Michelle in her live webinar today started her session by asking us, who has not contracted Covid yet!
Employees today place more emphasis on time spent with aged parents/family, doing work that has more meaning, making a difference in the lives of others, spending quality time etc.
It has become harder to retain people and recruit people. I am facing such challenges today and I do acknowledge that salaries alone no longer make people stay in an organization, they want to work in organizations that has a Purpose which they can align to, Leadership that has empathy/a heart beyond financials and a Culture based on trust.
Employees today place more emphasis on time spent with aged parents/family, doing work that has more meaning, making a difference in the lives of others, spending quality time etc.
It has become harder to retain people and recruit people. I am facing such challenges today and I do acknowledge that salaries alone no longer make people stay in an organization, they want to work in organizations that has a Purpose which they can align to, Leadership that has empathy/a heart beyond financials and a Culture based on trust.
This topic really deserves a bit more drilling down. I recently same across a Simon Sinek talk on the great resignation. I think it was on FB, but cannot find it now. Found this, which is too brief. But his concept of the unknown, becoming less of an unknown is interesting.
https://www.tiktok.com/@simonsinek/video/7021237541592419590
You also made a very good point on employees wanting to spend time more meaningfully, which is one of the great benefits of remote work. I find most of the talk on remote too negative, focussing on stress and mental health. Genashtim has been a 100% remote work company since 2008, and we think that implemented well, remote work de-stresses, and enables quality personal time and time with loved ones. We also have very good interpersonal relationship amongst our colleagues, rather than feeling isolation which most people talk about when referring to remote work.
Being part of the company creating profit with purpose empowers and motivate employees. Employees are satisfied with their work and more likely to put in their best to achieve mission of the company.
I agree with you Marium. Indeed, employees, especially the ones from Gen Z are more dawn to companies that have a meaningful social impact. By having this approach, the organization will attract and retain for longer periods of time top talents.
Yes, agreed. We are moving towards a generation where we can no longer tolerate the China man mentality, which only focuses on the business and profits. Nowadays, people are drawn to companies that have a good culture, where there's no hierarchy and everyone is allowed to contribute their ideas and ways of doing things. And of course, if the company is working towards a greater cause that aligns with the values of the employee, it is more sought-after and preferred compared to the traditional profit-oriented institutions.
Financial performance should no longer be the sole pursuit of the corporation. Companies are being pushed to consider the interests of all their stakeholders—including employees, customers, and the community—not just those of their shareholders. Of course, some leaders have long embraced the idea of doing well by doing good. But making that idea a reality has proved challenging. During good times, organizations often refer to people as being “our most valuable resource. However, when the profit dip, recently we are seeing companies including big MNC do some layoff ( involuntary) as one of the easier options. There are many ways to avoid this action, like salary rollback, pay cuts, salary freeze,job sharing, temporary layoff or voluntary layoff. Is there accountability and caring employees companies Like Fred mentioned in reality ?
I firmly believed that business sustainability should start from sustaining the business, i.e. ensuring the company could run for another year or beyond. Otherwise, there will be no impact that can be created at all. But on the other hand, those companies that focus on ESG has proven to be more resilience during the Pandemic. An article could be found at https://bursasustain.bursamalaysia.com/droplet-details/news/companies-with-good-esg-practices-more-resilient-during-covid-19-pandemic-says-bursa-ceo
I would think looking after all our stakeholders will ensure the longevity and survival of the business, and this can only be demonstrated more clearly in the decades to come as ESG becoming mainstream.
I would think looking after all our stakeholders will ensure the longevity and survival of the business, and this can only be demonstrated more clearly in the decades to come as ESG becoming mainstream.
the concept of "Profit with purpose" in the quest for sustainability, empathy and a green working environment.
Sustainability takes center stage when a company recognizes its role as steward of the earth's resources. circular economies, conscious consumption of resources and preservation of the environment are important features in this quest for balance between monetary gain and the health of our society and our earth.
Empathy, a trait often associated with the human heart, finds its resplendent abode in these enterprises, where companies see themselves not just as profit-making entities, but as catalysts for positive change. Empathy navigates the complex terrain of stakeholder relations, extending a warm embrace to customers, employees and communities alike. In this way, profit transcends mere monetary value and becomes a harbinger of social well-being.
I consider employee expectations post-pandemic, a visionary organization has emerged, redefining the way companies engage with their workforce. This innovative concept, named "ElevateU," represents an Empathy-Driven Work Alliance that brings together businesses, employees, and community in a harmonious ecosystem.
By addressing societal and environmental challenges, companies can contribute to a more sustainable future witch adds purpose and brings profit in return. This can lead to long-term business viability by ensuring that the resources and ecosystems on which the business depends remain healthy.
it’s a competitive advantage, actually. Businesses that align their financial goals with environmental, social, and governance principles are better equipped to navigate challenges, seize opportunities, and build lasting value for stakeholders. Ultimately, these companies prove that doing good and doing well can go hand in hand.
Businesses don’t have to choose between making money and making a positive impact on society—they can do both. B Corporations are a great example of companies that combine profit with purpose by addressing social and environmental issues. Fred Keller, founder of Cascade Engineering, shared how his company declared itself an anti-racist organization, showing how businesses can stand for important values. This approach not only helps the community but also builds trust and boosts employee morale. It proves that focusing on purpose can make a company stronger and more respected.