It takes time for a big idea to make its way into business practice. Six years ago, Harvard’s Michael Porter and FSG’s Mark Kramer made the bold statement that shared value — the idea that the purpose of a company is to achieve both shareholder profit and social purpose — would “reinvent capitalism.” They encouraged companies to go beyond CSR (corporate social responsibility) and integrate social impact into companies’ competitive strategy. And in 2011, Nathaniel Foote and Russ Eisenstat proposed a “better way to manage in the 21st century.” They found “higher-ambition” leaders achieved superior performance by doing well and doing good.
How Marketers Can Connect Profit and Purpose
According to interviews with over 20 CMOs and CEOs.
June 18, 2018
Summary.
Having great products and services and being a “good corporate citizen” are table stakes in a world of empowered citizens and consumers. In interviews with over 20 CMOs and CEOs, a remarkably similar pattern emerges about how marketers are connecting profit and purpose across a highly diverse set of companies. Purpose today goes well beyond corporate social responsibility. It’s similar to the evolution of digital, which has moved from a separate group into the fabric of the organization. Purpose is not just philanthropy; it is a source of competitive advantage by helping to align and energize the organization and by attracting and empowering employees.