Professional Documents
Culture Documents
M
ilton Friedman famously said have meaning in their lives. A higher the programs come alive for the target
that the “social responsibility purpose can address these needs and segment. This is not easy because of the
of business is to increase represent an energizing common goal tendency to view such programs as self-
profits.” To many observers that is the that leads to more productive and serving, without substance and with
accepted paradigm. committed employees. claims too similar to other firms.
With few exceptions, most businesses Many millennials, in particular, are
throughout the world take a different
view. Just look at the missions and
value statements in annual reports.
looking for meaning in their working
world as well as their personal life.
They are interested in working for an
3 There can be a tangible positive
effect on profits from a higher-
purpose program.
In most cases, firms have a social or organization that will leave society and One profit kick can come from
environmental purpose alongside their the environment better off because of its energy savings. Walmart decided to
mission of creating and marketing a policies and programs. It is not hard to undertake its ambitious environmental
functional offering and increasing sales imagine that by 2020, when millennials program around 2005, which affected
and profits. become 51% of the workforce, a higher the stores, products carried and
Walmart, for example, has an offering- purpose will become an even greater logistics. One early finding was a
driven purpose to “Save people money imperative. surprise: the “do-gooder” energy
so they can live better.” The firm also programs actually saved money.
has a second purpose: “to use Walmart’s
strengths to support and improve the
social and environmental systems to
2 Customers want to have a
relationship with brands that
share the values reflected in an
Expanding markets present another
opportunity. Unilever points out that
increasing the health and economic
increase economic opportunity, enhance organizational higher purpose. status from developing nations creates
sustainability and strengthen local Even if that group is relatively small, it meaningful markets for their products.
communities.” Toward that end, Walmart can still mean the difference between Businesses have enormous advantages
has dozens of programs that aim to make struggling and financial success. In over government-led solutions with
its operation run on renewable energy, addition, a small committed group can insights in local conditions, assets and
influence suppliers to make products have an effect well beyond its numbers their ability to manage programs and
and packaging more sustainable and by reaching out to others to tell the implement quickly.
encourage 2.6 million associates to organizational story and reaffirm Social and environmental programs can
directly help communities. the value proposition. Further, those create energy and visibility not otherwise
Why have higher-purpose objectives customers who voice support for a achievable to brands. Consider the Always
and programs gotten so much traction? brand’s higher purpose but do not #LikeAGirl video where the image of
There are five reasons. change their short-term buying choices running or throwing like a girl was shown
may still be influenced in the long to be very unlike the self-image of 11-year-
Higher-purpose programs can reduce CEO Paul Polman notes that, because embrace of a social and environmental
the risk of catastrophic damage to the of the limits of capitalism, we have purpose for all its brands. Its vision
environmental, social and economic partly created an unsustainable set was launched in 2010 under the
framework in which we live. Objectively, of problems, which include global umbrella USLP (Unilever Sustainable
such an achievement should be a plus warming, resource depletion and an Living Plan). The firm has specific
for long-term business profitability. increasing gap between the rich and environmental goals, such as cutting
poor. The Unilever business model calls its environmental footprint in half,