In a short term world, it is difficult to find value in becoming a purpose driven company, but as sustainability and good governance evolve, it has become increasingly relevant to put purpose first.
Our world, society, and the market have for long prioritized short term value and profit. But as we begin to understand the importance of looking further beyond, the question now is whether companies are actually aiming to become purpose oriented.
Finding investors that align with such purpose driven organization might not always be easy, nor is it to prioritize stakeholders as much as any shareholder.
However, its level of difficulty does not take away the fact that it is necessary for companies to look beyond balance sheets and short term profit, to actually focus on their mission and its value to the world, people, and sustainability.
What is a purpose driven company?
First of all we need to understand what purpose really means, only then can companies work towards it truthfully. Long are the days when the purpose of a company was nothing else but making the most profit.
Purpose today has little to do with such idea; instead, it means a company’s mission is to help society and the planet address current challenges, and to do so in every level of the organization.
To sum it up, a purpose driven company is that which first chooses how to help and benefit society and its challenges, and embeds this idea into all of it activities, practices, services and/or products.
Engage employees in the sustainability strategy
How to become a purpose oriented company
As we stated previously, we need to embed purpose at all levels of the company for it to actually become a reality and not just another form of ‘greenwashing’.
And this is precisely the question we want to help answer, how can companies embed purpose in all of their practices and across the entire organization? Here are a few tips on where to start.
Engage employees
First and foremost, it is important to make sure employees are aligned with the defined purpose; and what better way to do so than to count them on board the strategy and plan to make the latter work?
Often times embedding purpose into daily activities can feel fairly abstract, that is why we suggest finding practical ways and concrete actions that enable behaviors that align with the established purpose.
Furthermore, these actions work best when they are rewarded; that being financially or in terms of recognition, individuals want to feel that their behavior and values are indeed useful and important.
Measure your ESG and sustainability progress
Purpose today is inevitably linked to sustainability and ESG issues and challenges. That being the planet, society, or the organization’s governance, a purpose driven company is aligned with making these a priority.
In this regard, measuring and reporting on sustainability practices and progress can help drive the company is the best and most purposeful direction. Being transparent and accountable is a crucial aspect of becoming a purpose driven company.
Build a strong long term sustainability narrative
In order to attract the right investors and stakeholders there needs to be a clear and strong long term sustainability narrative that fits the purpose of the organization.
This is, before rejecting short term value and investors, companies need to draw a long term plan that allows for a sustainability transition and strategy that will eventually attract another kind of investment, one that is more aligned with the purpose proposition.
What inconsistencies do companies detect in their sustainability strategy?
Engage employees in the company's sustainable purpose
We believe that employees are far from being indifferent from participation in sustainable efforts, and actually look for the opportunity to be actively engaged and find purpose in having a positive impact through their jobs.
That is why through our technology we work to activate and track employees’ impact, creating engagement that translates into improved ESG metrics, reputational value and an overall positive impact for the environment and society.
Because the workplace can in fact become the perfect environment to find that collective eagerness to make a difference, both for the sustainability and purpose of the company and a more sustainable way of being for all.
