In order for businesses to succeed, the pursuit of profit alone is not enough.
Profit is important of course. However, in order to create a business that enjoys sustainable success, managers and business leaders must look beyond profit and focus on the purpose of the business.
More satisfied customers
It is a competitive world. Having a business with purpose allows you to stand out from the competition. Not only does having a purpose attract customers, it also tends to make them more loyal. Tesla is a good example of a business with a strong purpose.
Tesla enjoys a famously loyal following, yet the firm wasn’t created to sell more cars to people who probably already owned a car. Their mission is to accelerate the world’s transition to sustainable energy. Who wouldn’t want to play a part in that?
If you can create a firm where employees derive meaning from their work, they tend to become more engaged and energized.
Various studies have shown that employees who believe in the purpose of their organisation enjoy greater levels of job satisfaction and they are more likely to stay with their firm in the long term.
Better business outcomes
Given that companies with purpose enjoy more motivated, loyal employees and satisfied customers, it is not surprising that these businesses enjoy a higher rate of success. Time and again, purpose driven businesses like Google, TOMS or Airbnb outperform their key competitors.
Profit isn’t a purpose. It is a result. Purpose driven businesses attract the best people, with the best minds, the most passionate customers and the result of all this is a healthy profit.