Navigating Purpose with Precision: Shadi Bakour Of PATH On Five Critical Mistakes to Avoid When Leading A Purpose-Driven Business

An Interview With Russ McLeod

Cutting Corners on Product Quality: In our early days, there was a moment when we faced intense pressure to meet growing demand. Some advised us to switch to a cheaper, lower-quality bottle material to increase production speed. However, we knew that maintaining the highest quality in our reusable bottles was critical to promoting sustainable consumer habits. Sticking to our standards meant slower growth initially, but it built long-term trust and loyalty with our customers, reinforcing our mission.

Purpose-driven businesses are gaining momentum, as companies increasingly recognize the importance of aligning their operations with a greater mission. However, navigating the complexities of purpose-driven strategies can lead to critical mistakes if not managed with precision. These errors can undermine the very goals the business aims to achieve and impact its success and sustainability. In this interview series, we are talking to business leaders, purpose-driven entrepreneurs and sustainability experts about “Navigating Purpose with Precision: Five Critical Mistakes to Avoid in Purpose-Driven Business.” As a part of this series, I had the pleasure of interviewing Shadi Bakour.

Shadi Bakour is the Co-Founder and CEO of PATH, a leading sustainable bottled water brand. PATH is a fast-growing brand that provides the first-ever water in a refillable and recyclable aluminum bottle. Driven by a passion for conscious capitalism, Shadi is committed to making PATH a household name in sustainability, reshaping consumer habits, and contributing to a greener future.

Thank you so much for doing this with us! Our readers would love to get to know you a bit better. Can you share a bit about your background and what motivated you to lead a purpose-driven business?

My career path has always been guided by a passion for making a positive impact. Prior to founding PATH, I gained diverse experiences across various industries, including working in Private Equity and Consulting and founding several startups. To support my entrepreneurial dream, I took on any jobs I could, such as driving for Uber and Lyft, serving tables at a local Italian restaurant, and delivering for DoorDash.

I felt a strong calling to create something that was simple, scalable, and had a large impact tied to it. As we learned more about single-use plastic bottle pollution, we eventually decided to found PATH.

What experiences in your career have most significantly influenced your approach to business leadership?

Supporting my entrepreneurial journey through various roles, such as driving for Uber and Lyft, working as a server, and delivering for DoorDash, instilled a deep appreciation for hard work and perseverance. These roles provided insights into customer service and the importance of every team member’s role.

Finally, founding PATH has been transformative. Our mission to combat plastic pollution has reinforced my belief in purpose-driven leadership and the importance of aligning business goals with environmental and social impact. All of these experiences have collectively shaped my approach, which emphasizes innovation, resilience, and a strong commitment to sustainability.

Can you share a pivotal moment in your career that inspired you to integrate a sense of purpose into your professional journey?

My two friends and I were passing through the bottled water aisle at a store when we stopped to ask, ‘Why so much single-use plastic? Why isn’t there a better way to drink bottled water?’ this moment of reflection sparked the idea for PATH. Determined to make a difference, we set out to create a business focused on reducing the reliance on single-use plastic water bottles

Can you describe your company’s mission? What societal problems are you solving? What customer problems are you solving?

PATH’s company mission is to provide a sustainable alternative to single-use plastic water bottles by offering a reusable aluminum bottle that can be refilled and recycled. Our goal is to inspire people to make more environmentally conscious choices, reduce plastic waste, and promote a more sustainable future. PATH aims to revolutionize the way people think about bottled water by combining sustainability, innovation, and convenience in their products, all while fostering a culture of environmental awareness and responsibility.

What are some common misconceptions about running a purpose-driven business that you’ve encountered?

One common misconception about running a purpose-driven business is that it limits your ability to partner with other companies. Some people believe that staying true to your mission means fewer opportunities for collaboration. However, at PATH, we’ve found the opposite to be true. Our commitment to sustainability has actually attracted a variety of brands and organizations who want to be more eco-friendly, leading to powerful partnerships that amplify our impact. One way we foster these collaborations is through our cobranding program, #PartneringtoSavethePlanet. This initiative allows us to work closely with other companies for a more sustainable future. Through this program, we co-create branded bottles and campaigns that not only align with our mission but also broaden our reach and deepen our collective impact.

The idea that purpose-driven businesses are limited in their scope is far from reality. By joining forces with partners who want to be more sustainable, we’re able to innovate and drive change on a much larger scale. These collaborations have been instrumental in advancing our mission, showing that when you lead with purpose, you attract the right partners and open up a world of possibilities.

What are the pros of being considered a purpose-driven business? What are the cons?

One of the biggest advantages is the strong connections we build with our partners. People are increasingly looking to support brands that align with their values, and being purpose-driven allows us to foster deep loyalty and trust. Our mission resonates with people who care about sustainability, and this has created a dedicated community around our brand. Another pro is the sense of fulfillment that comes from knowing we’re making a positive impact. Every decision we make, from our product design to our partnerships, is guided by our commitment to reducing single-use plastic waste and promoting sustainability. This gives our team a clear sense of purpose and motivation, driving us to work harder and innovate more. Also, being purpose-driven opens doors to meaningful partnerships. Through initiatives like our Partnering to Save the Planet program, we collaborate with other companies that share our vision. This amplifies our impact and reaches a broader audience.

However, being a purpose-driven business isn’t without its challenges. One of the cons is the added pressure to live up to our mission in everything we do. Consumers hold purpose-driven brands to a higher standard, and any perceived misstep can lead to criticism. We have to be extremely careful and consistent in our messaging and actions. Another challenge is balancing purpose with profitability. While our mission is central to everything we do, we also have to ensure the business remains financially viable. Sometimes, making purpose-driven decisions can be more costly or complex, and finding the right balance between doing good and staying competitive can be tricky.

How does being a purpose-driven business help or hinder finding investors or getting funding from banks?

By focusing on sustainability and social impact, we attract investors who also share our values. Investors recognize purpose-driven brands as long-term investments because they appeal to consumers.
Our mission-driven approach might be perceived as riskier by traditional banks due to our short-term focus on profits. Which makes conventional financing harder.

By remaining true to our purpose, we are able to attract the right investors, those who believe in our vision and are committed to supporting us in the long run.

What are your “5 Critical Mistakes to Avoid When Leading a Purpose-Driven Business”?

1. Cutting Corners on Product Quality: In our early days, there was a moment when we faced intense pressure to meet growing demand. Some advised us to switch to a cheaper, lower-quality bottle material to increase production speed. However, we knew that maintaining the highest quality in our reusable bottles was critical to promoting sustainable consumer habits. Sticking to our standards meant slower growth initially, but it built long-term trust and loyalty with our customers, reinforcing our mission.

2. Focusing Too Much on Expansion Without Impact: At one point, we were eager to expand PATH into new markets too quickly. However, we realized that rapid expansion without a clear plan for maintaining our environmental impact could have the opposite effect on our efforts. We decided it would be best to slow down and focus on deepening our presence in existing markets first. By doing so, we ensured that our expansion was purposeful, maintaining the integrity of our mission while growing our reach.

3. Failing to Innovate: Staying stagnant can be a pitfall for any business, even more so for a purpose-driven one. There was a period when we were so focused on our existing product that we almost missed an opportunity to innovate with new, sustainable designs. After some reflection, we embraced the challenge of creating new products that aligned with our mission. This led to the development of innovative bottle designs that not only reduced environmental impact further but also kept us at the forefront of the industry.

4. Ignoring the Importance of Financial Resilience: Purpose is powerful, but without financial sustainability, even the best intentions can falter. A mistake many make is thinking that the mission alone will attract endless support. At PATH, we’ve always balanced our mission with strong financial practices. Early on, we faced a cash flow challenge that could have jeopardized our growth. By carefully managing our finances and making strategic decisions, we were able to sustain our mission and continue our impact. Never forget that financial health is the fuel that powers your purpose.

5. Underestimating the Power of Your Team: At PATH, our team is vital to our mission. A common mistake in purpose-driven businesses is not fully engaging or empowering your team. I remember when one of our employees proposed a bold campaign of allowing people to customize their own bottles. This initiative, which came from within, became one of our most successful campaigns and is ongoing. By fostering a culture where every team member is encouraged to contribute to our mission, we’ve been able to amplify our impact far beyond what we could have achieved alone.

Purpose-driven companies are faced with 2 priorities — solving a customer’s problems and delivering on its impact goals. How should purpose-driven leaders approach this challenge?

Our business strategy at PATH integrates solving customer problems and delivering on impact goals. Keeping our impact goals in sync with customer needs means ensuring our sustainable products meet high-performance standards and help reduce plastic waste. It’s critical to communicate clearly — showing how our impact goals address customers’ concerns builds trust. By integrating these goals into our operations and decision-making processes, we’ll make sure customers are satisfied and we’re making a difference. By incorporating purpose into every aspect of the business, we can manage these priorities successfully.

How do you measure the impact of your business’s purpose on your customers, employees, and the broader community?

We measure our purpose’s impact by tracking several key areas. For customers, we use their engagement through email, social media, and forums to gauge their satisfaction with our sustainable products and initiatives. For product performance, we use data on usage and effectiveness to ensure our sustainable solutions meet high standards. We assess engagement and satisfaction for employees through regular surveys and retention rates, ensuring they are motivated by our mission. In the broader community, we evaluate the success of our programs, like Partnering to Save the Planet, by monitoring outcomes and community feedback. These measures help us ensure our purpose makes a meaningful difference and guide us in refining our approach.

At PATH, we measure the impact of our purpose in two meaningful ways. First, we closely monitor our carbon footprint to understand and minimize environmental impact. Second, we track the average number of refills per bottle, which stands at around seven. This allows us to estimate how much plastic we’ve effectively kept out of landfills and oceans, highlighting our commitment to sustainability and making a real difference.

What advice would you give to new entrepreneurs about embedding purpose into their business model from the outset?

There are many ways to embed purpose into your business model — it doesn’t have to just be about your core product offering. For example, for many of our LTO products, we donate back to causes including Autism Awareness, Homeless shelters, disaster relief, and many more. Moreover, don’t be afraid to try something new and have your own take on it. Get creative and be bold. Listen to customer feedback, and be willing to make changes.

How can our readers further follow your work or your company online?

Visit our website at www.drinkpath.com for in-depth information about our mission, products, and partnerships. Follow us on Instagram, Facebook, Twitter, and LinkedIn at @pathwater.

You can also follow me on LinkedIn (https://www.linkedin.com/in/shadibakour/) and Instagram at @shadibakour.

This was great. Thanks for taking time for us to learn more about you and your business. We wish you continued success!

About the Interviewer: Russell McLeod is an experienced business leader, social entrepreneur, and mentor. A champion of profit with purpose, the circular economy and of collaboration for positive progress. Russell is the founder of Mightyhum a Toronto-based impact enterprise dedicated to supporting growing organizations. And, while it’s not a requirement, the Mightyhum team has a passion for collaborating with purpose-driven businesses. Mightyhum specializes in providing consulting services and turning hairy audacious concepts into achievable ventures & projects. The Mightyhum team work with C-suite executives and leaders, developing new product offerings, effective go-to-market strategies, building for profitability, and streamlining operations. Before Mightyhum, Russell was involved in the world of social enterprise as the Executive Director of ME to WE, one of Canada’s best known and most awarded social enterprises. While at ME to WE, the team demonstrated that being profitable and impactful was indeed possible. During his tenure, ME to WE delivered $20M in cash and in-kind to WE Charity, helping transform the lives of over 1 million people through access to clean water; the lives of 200,000 children with access to education; and 30,000 women-led businesses launched globally.

Russell’ personal mission is to inspire others that there is ‘a better way to do business,’ ‘that through business we can solve some of the world’s problems at the same time.’ You can follow Russell’s work at https://www.linkedin.com/in/russell-mcleod1/ or www.mightyhum.com.