Three acts of purpose-driven business
A perspective on the evolution towards uniting business and social impact.
As a mission-driven creative studio, we have the benefit of meeting a lot of entrepreneurs and senior people within businesses. Of course, many of our conversations turn towards perspectives on mission-driven work. Over the past few years, we’ve noticed a distinct shift in how people working in larger corporations think about purpose.
In the first act, companies responded to the threat posed by activists and fringe consumers that noisily demanded better behavior (whether working practices, product standards, sustainability plans etc.). Companies responded by creating corporate social responsibility (CSR) teams, sustainability teams, corporate foundations etc. Some of these efforts were well intentioned and effective; many were sideshows to the main event of a brand’s core business.
In the second act, companies responded to the stimulus of mainstream consumers demanding more purposeful business. Lots of research started to indicate a consumer preference for brands that did something other than just generate shareholder returns, with relevance to millennials being a particular concern. This made purpose a marketing priority, and companies responded to this stimulus by creating ‘cause marketing’ initiatives that more publicly demonstrated a commitment to some purpose. Again, some of these initiatives were laudable and effective, and many looked like cynical attempts at brand association with a cause.
In the third act, the stimulus comes from inside rather than outside. Increasingly, management teams are the ones driving a desire for impact (‘Here’s what I want to achieve in the world’; ‘I have ten years left in my career, and I want to look back at something of real value’), and it’s becoming clear that the best talent sees purpose as a pre-requisite to joining (and staying) at a company.
This shift from extrinsic motivation in Acts 1 & 2 (activist or consumer pressure), to intrinsic motivation in Act 3 (leadership intention), is the most exciting. Intrinsic motivation makes purpose a total business priority, rather than just a CSR or marketing priority. The opportunity for transformation and progress is much greater in Act 3. When truly inspired towards purpose, rather than compelled towards it, companies act with much greater courage. There’s a profound difference between questions like:
‘what’s the (easiest) path to consumers giving us credit for being a good company?’
and
‘what’s the best path for us to add value to the world?’
Act 1: Response to activist threat. Creation of CSR teams and corporate foundations.
Act 2: Response to consumer demand. Creation of cause marketing programs.
Act 3: Response to internal desire. Creation of new ways of doing business.
We’re excited to be having more and more conversations with companies in the Act 3 mindset. It gives us optimism that the world’s most powerful force for progress—business—is authentically turning towards what matters. This is a good thing for all of us, shareholders included. Creating world value is a good way to create shareholder value.
enso is a creative impact agency.
We work with innovative companies and organizations to create positive impact at scale through shared missions. Learn more at enso.co.
