top of page
Writer's pictureNairenon Consultancy

Purposeful Business: What is it and why we should all strive to be one?

A purposeful business is not about how many employees you have, what products or services you are selling, or how fast the business is growing; it is about the meanings you are looking for in work and life, the values ​​you rely on, the kind of people you surround yourself with, and the kind of culture you cultivate. The working world knows that the time for rigid management is over. The future belongs to a flexible and adaptive management system that is built upon awareness, powerful internal motivations, personal responsibility, trust, and respect. A purposeful business is to bring together people who share these values ​​and who are ready to share their views and ideas with like-minded people. With the drive to make a positive change, a purposeful business puts its vision as its primary focus, leads its people with a “culture comes first” attitude, and creates profits by creating values for the world.



Benefits of Being a Purpose-Driven Business


Now, you understand that a purposeful business is all about purpose, meaning, mission, and vision. Many might think that these are just generic and abstract beliefs, they could not generate high revenue or profit for the business. This is not true! Studies by Harvard Business Review showed that businesses which build purpose and meaning into what they do have a compound average annual growth rate of 30% or more in the past 5 years. Furthermore, purposeful enterprises are more successful in attracting top talents to join the company, and the current employees are more likely to stay for long-term commitment as well. Aside from Gen Z, a majority of millennials are more likely to work for companies which practice strong corporate social responsibility (CSR) and environmental responsibility, they would even take a pay cut to work with these companies.


One key factor in establishing a successful purpose-driven business is to hire the right employees. By hiring employees who believe in your cause and values, they would be self-driven to learn and grow with the company, deliver their best work, and unlock their best potential. Thus, it is not surprising that such businesses would have 30% higher levels of innovation and 40% higher levels of employee retention than their competitors. And as we all know, higher innovation and creativity lead to higher productivity and profitability.



How to Build a Purpose-Driven Business

We have talked a lot about purposeful business and its benefits, but there comes the true question: How to build a purposeful business? Fret not, here are some tips to help you:

  • Define your mission

The most important step in building a purposeful business is to know your mission and define it most comprehensively. Not only should you understand the purpose of your company, but the definition of your purpose also has to be crystal clear, so your employees and target audience will understand it.

  • Be relatable

Your mission has to be relatable to today's problems and be able to tackle a problem or challenge in the world. Plus, each member of your company must understand their role within the mission and be committed to the action plans. Everyone has to understand the meaning behind their work so that everyone can work together and contribute to the company's success.

  • Use your purpose in every decision

It is of utmost importance for a purposeful business to let its mission dictate every decision of the company. Every decision that a company makes has to resonate with its purpose as it will reflect your company’s culture, the way you build relationships with clients, and your brand image that will stay true to your purpose.

  • Motivation

The driving force of your company comes from the purpose that motivates you and your team to better the business every day. Therefore, it is essential to understand what motivates you and your team to succeed. Harness the ability to be aware and understand the people around you to learn how to motivate your team as well as to ensure that your team shares the same goals and purpose.

  • Link the team to the purpose

It is essential to make sure that your team resonates with the company’s purpose. Helping each team member to understand their desires and needs is the first step to understanding your team. And based on this understanding, you could guide your employees to set goals and action plans that are aligned with the company's purpose. This not only will boost employee loyalty and commitment, but also enhance business growth and build a good brand reputation.



Aside from Nairenon, here are some well-known examples of purpose-driven businesses in the market:

A startup company that aims to revolutionize energy storage in wind and solar power systems by creating a new type of battery composed of molten salt. This will greatly improve the efficiency of our current energy storage capacities and will likely accelerate our innovation processes.

On top of making grooming and beauty products, the Body Shop aims to provide an opportunity for economically challenged individuals to have access to work from all over the world. They also aim to ensure all products are made from 100% natural ingredients that are sustainably sourced and traceable, for a reduced impact on the planet.

As part of the Plant The Change initiative, Timberland aims to plant 50 million trees around the globe by 2025. This bold goal builds on Timberland’s longstanding commitment to make products responsibly, strengthen communities, and protect and enhance the outdoors. One key area of focus has been tree planting; since 2001, Timberland has planted more than 10 million trees worldwide.


Keen to know more about purposeful business? Hit us up! We are delighted to share our knowledge and experience with you.

24 views0 comments

Comments


bottom of page