Driving profit and doing good: The transformational power of purpose

Abstract

There is now ample evidence that organisational purpose can drive profits. It is therefore no surprise that businesses are increasingly seeing purpose transformation as a powerful way to improve their bottom line. But can purpose act as a business driver and do good at the same time? This paper explores the relationship between purpose and profit, the changing nature of competitive advantage and how purpose can act as a catalyst to sustainable market differentiation and growth. By taking a close look at the link between profit and societal good, the paper contrasts purpose-driven companies with a sector that is undergoing transformation. It argues that a purpose-driven culture can shape the very tissue that creates genuine and meaningful differentiation. A simple model offers a starting point for any company looking to more closely align purpose and profit.