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
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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.