Good Business: A New Model Driving Socio-economic Transformation
Updated: Sep 11, 2019
The world is craving for a new socio-economic model. One that works for the many, not the few.
One that treats the only ecosystem we have with respect & dignity. One that leverages our resources and talents for a higher purpose - one beyond shareholder value and the accumulation of wealth.
The world needs a new model of businesses, and while most feel the need for change, few can define it. Social Entrepreneurship lacks some core business aspect of sustainable profitability. Corporate Social Responsibility is outdated and does not go far enough. Purpose is a start but often gets lost in our daily doing. Therefore promoting a holistic approach through socio-economic transformation into a “Good Business” is our suggested way forward.
The components of this new model leverage core-principles of newest academic findings, shared experiences of some of the most forward thinking companies and the high potential of a new generation of entrepreneurs to drive growth & prosperity under the umbrella of the United Nations Sustainable Development Goals for all.
Bringing us to the question then what makes a good business?
A Good Business would be built on a core foundation of clear purpose, that drives creation of a shared vision and ability to generate shared value, with sustainability embedded across it’s practice in an end to end manner.
We believe that “Businesses Who Do Good Do Better” while change is never easy and even scary sometimes, socio-economic transformation creates holistic and long-lasting success worth every effort.
This isn’t just an ambition as recent studies show improved results in vital KPIs for any business that adopts such an approach.
1)Good Businesses grow faster
Socially driven businesses have outperformed S&P 500 by more than 10 folds between 1996 & 2011.
2) Good Businesses are stronger brands
88% of CEOs believe integrating a clear core purpose enables their companies to generate better value for customers, and higher customer loyalty.
3) Good Businesses acquire better talent
72% of Top executives believe infusing a clear shared vision, and core purpose enabled their companies to stand out as an employer brand capable of attracting top talent.
4) Good Businesses’ Employees are more engaged
When surveyed - millennials, who highlighted they believe they are working for purposeful companies - are 5.3 folds more likely to stay versus those who don’t feel a clear company purpose.
5) Good Businesses attract the next customer segments
79% of surveyed business leaders see a clear correlation between purpose and business success, in addition to 75% that clearly believe that infusing purpose enables both short term and long term value creation.
6) Good Businesses’ are more innovative
Companies with a strong sense of purpose innovate better according to 53% of top executives who prioritized purpose, said their companies are doing great with innovation. While 63.5% of CEOs believe an integrated purpose can clearly inspire innovation.
The key to the success of this solution lies in equally empowering business leaders of today and tomorrow into adopting this transformation, which could be done through:
- Working with current business leader to inject social innovation into their corporate bloodstream
- Working with future business leaders to build a critical mass, and transform the current economic paradigm
- Creating a movement advocating, sharing knowledge and enabling action
Imagine a private sector generating human centered integrated value through purpose, sustainable practices, and embracing social innovation. We believe this could be done through evolution into what we call a “Good Business” - businesses with a strong purpose, a humanized brand and steady, innovative and sustainable growth. That requires embracing:
1) Profit, sustainability & purpose as interlinked concepts:
Meeting business objectives using an environmentally, socially and economically sustainable approach. For us economic growth and sustainability are two sides of the same coin.
2) Business Model Innovation (Infusing a culture of innovation):
Infusing innovation into the corporate bloodstream through mainstreaming innovation practices on an organisational wide level.
3) Social innovation as a tool to create solutions (Think like social entrepreneurs):
Knowledge sharing and experimentation labs, continuously creating support to build and accelerate ideas that solve tomorrow’s challenges by capitalising on emerging opportunities and catalysing innovation throughout their portfolio.
Disrupting the current socio economic paradigm cannot be done through one initiative, or by a company on it’s own. With that mentioned, on the contrary an alliance of forward thinking creative and collaborative business leaders, united under the conviction and common vision that it is time for the private sector to step up and embrace its responsibility to drive growth & prosperity for all and tackle the biggest socio-economic challenges of our time.
Our bottom line is contributing to building that Good Businesses alliance, reach out to us to learn more.