We’re now in late stage capitalism and traditional business models no longer work. Corporations pull in year after year of excessive capital gains while the employees can barely make the next month’s rent. 

So, what’s the alternative? Socialism. But how do we make that work in the context of our current system? Maybe a compromise with a purpose-driven business.

What is a purpose-driven business?

A purpose-driven business is an organization that places a strong emphasis on underlying mission and purpose beyond financial success. It goes beyond solely seeking profits and instead integrates social, environmental, or ethical goals into its core operations and decision-making processes. 

Purpose-driven businesses strive to make a positive impact on society, the environment, or a specific cause while also running a sustainable and profitable enterprise.

While a purpose-driven business can look very different depending on the organization’s values, priorities, and areas of focus, they often align their operations, strategies, and values with their purpose. This can involve incorporating sustainable and ethical practices into their supply chains, promoting diversity and inclusion within their workforce, engaging in philanthropy or community initiatives, or adopting responsible environmental policies.

Some common models that we’ve seen include B Corps, social enterprise, co-ops, circular economies, and shared value models. While some of these are relatively new ways of operating and successful models still remain to be tested, it’s an exciting new direction that we’re moving in!

By prioritizing purpose alongside profitability, purpose-driven businesses aim to create a positive impact, generate long-term value, attract like-minded customers and employees, and build stronger relationships with stakeholders. Financial success is a means to achieve their purpose rather than an end goal in itself and perhaps this perspective is a healthier way of balancing profit and positive impact.