The Fortune Change The World List: Celebrating Business with Impact
It is no stretch of the imagination, nor wishful thinking on my part, to claim that purpose in business has gone mainstream. At Edelman Business + Social Purpose, we’ve been tracking this evolution for years, as purpose has moved from how companies spend their money to how they earn it. The evolution of business purpose as a revenue generator has been driven by the growing expectations of customers. According to data from the Edelman Trust Barometer 2016, 80 percent of people expect a company to take actions that both impact society and generate business results; this is an increase of 6 percent from 2015.
While more companies have undertaken purposeful business strategies and more people have begun to reward companies for generating value for society while generating value for the business, we have seen new rankings of these purposeful businesses emerge; in 2015 Fortune released their inaugural Change the World list, a ranking of “50 Companies Changing the World.” The second annual Fortune Change the World list came out in August 2016.
That Fortune, as opposed to any other outlet, has released this list feels significant. Yes, it brings corporate purpose even further into the mainstream, but it does another thing that is hugely significant; while validating the idea that companies can change the world by illustrating examples of companies that have placed purpose at the center of their business, this list provides inspiration for other companies to do the same. So how do you get your company on the list?
Fortune states that “The Change the World list recognizes companies that have had a positive social impact through activities that are part of their core business strategy. We prioritize companies with annual revenues of $1 billion or more, and we strive to present a global and well-rounded list.” [Italics are mine] To be more specific, the stated criteria are that a company must demonstrate the following:
· Measurable contribution to societal impact
· Scale of business results
· Degree of innovation relative to the industry
Simply put, in order be one of the lauded 50 next year, your company must be changing the world with your business. This list does not celebrate powerful corporate philanthropy programs, no matter the amount donated or the outcomes achieved. This list does not recognize inclusive hiring practices and purposeful employee engagement, no matter the effect that engagement has on company culture and business results. Fortune highlights companies with sustainable, measureable social impact built into your company’s products, services and experiences. For example:
GlaxoSmithKline* earned their NO. 1 spot with their patient access strategy, which has seen them relaxing patents for lifesaving drugs in developing countries, a major shift in operating mode for a pharmaceutical company, impacting health outcomes and the company’s bottom line.
Fortune also gave a nod to GE*, to mark more than a decade of innovation in green technology through the company’s Ecomagination initiative, a groundbreaking commitment at the time to generate $20 billion in annual revenue from green products.
Fibria, a Brazilian wood pulp producer, is changing the way forestry works in South America. The company exclusively grows fast-growing eucalyptus to speed reforestation, and its Forestry Savings Program helps local workers get the training they need to excel in this new world.
And finally, PayPal* was awarded a much-coveted spot as their core business reimagines financial services while improving the financial health of individuals and businesses around the world, at the same time as they execute on their belief in charitable giving and inclusion across the communities in which they live and work.
Placing purpose at the center of your business pays. Our data show that purpose increases employee engagement and generates business returns. And we now know that it may even garner widespread recognition by the likes of Fortune. But, to get there, your business really has to be changing the world.
Alex Heath, senior vice president, Business + Social Purpose.
*Edelman client
