With consumers expecting more transparency from companies and an increasing number of investors evaluating a company’s potential via its Environmental, Social, & Governance (ESG) scores, business leaders are acknowledging the importance of looking beyond just profits. However, most of them struggle with actually implementing the necessary changes. Despite the challenges of the pandemic, LIFe has continued to grow at an unprecedented rate, while balancing profit with purpose. So, how do you grow a purpose-driven company during one of the most challenging times for small businesses worldwide? This has been a topic I have reflected on quite a bit, and have some takeaways for other businesses looking to balance growth with meaningful impact in the world. I believe you can be accountable to your stakeholders (not just the shareholders)while contributing meaningfully to changing the world.
First, acknowledge that KPIs need to be beyond just shareholder value.
As consumers expect more transparency from companies and as an increasing number of investors evaluate a company’s potential via an ESG score, business leaders across industries must acknowledge the importance of looking beyond just profits. Having your company maintain accountability to all stakeholders (not just the shareholders) should no longer be part of a CSR or PR strategy, but a core part of executive decision making.
Foster a company culture where people’s ideas are encouraged.
During the initial stages of the COVID-19 global pandemic when LIFe shifted to fully working remotely, we instituted daily morning calls and periodic virtual socials where the entire team could communicate openly on anything from ongoing projects to company-wide goals and strategies. Keeping open lines of communication, with the senior team providing clarity on viability of proposed ideas, helped our team feel even more connected to our organization’s goals and mission during a challenging time.
Assert your “North Star” in your decisions and communications.
Having every single member of the team know the overarching purpose of the organization, ie. your North Star, is an incredibly important tool in providing meaning to the work being done – especially during periods of adversity and competing priorities. In our case at Lucky Iron Fish, our “North Star” is to help improve global health using innovation and socially-conscious business practices. Having the North Star entrenched into the company culture serves as one of the factors in making critical go/no-go decisions. It also plays an important role in helping both internal and external stakeholders envision the company’s future potential.
In all three of these takeaways, you’ll notice that people are at the center of every practice. I truly believe that my company’s success and strength is a sum of the people. When an empowered, talented group of people transforms into a motivated team driven to pursue a collective vision, your company’s vision and purpose become more attainable. This is how I’ve managed to grow a purpose-driven organization in 2022.
