Not too many years ago, the prevailing wisdom was that profit and corporate social responsibility were mutually exclusive pursuits. The idea that a company could improve its bottom line by decreasing greenhouse gas emissions or reducing income inequality had little chance of gaining traction among executives.
“We firmly believe that companies motivated by a greater societal purpose will be stronger, more successful businesses for the long term,” says Deloitte Global CEO Punit Renjen. He’s not alone; Renjen, alongside the CEOs of nearly 200 major U.S. corporations, signed the Business Roundtable’s recent statement saying corporations must go beyond advancing shareholder interests.
Sarah Kennedy, vice president, global marketing at Adobe Experience Cloud, agrees that a broader social mission is now inextricably linked to corporate health and growth. “The companies that will excel long-term are the ones that know it’s not just about shareholder value,” she says. “It’s also about focusing on the customer and employee experience, and how those, in turn, contribute to society.
There is no doubt that no matter how much purpose executives bake into their organizations, profit seeking will remain the primary driver of business decision making. Yet there are now plenty of financial and ethical reasons for leaders to strike a balance between corporate profit and social purpose.
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