After I wrote a blog on what strategies Should a leader take to be successful, I was very curious about what next is the next big thing in corporate strategy. I scrolled through the Xpert app again to watch more interviews with Martin Reeves. There were many videos that could have given me a new insight into corporate strategy but one that caught my attention was on, how a social purpose can help you build a company that can last 100 years.
He (Martin) said, “A company which is strongly aligned with a social purpose will last longer than a company focusing on profit maximization”. It didn’t make sense to me, I mean a company looking at profit maximization will have lower operating cost, more capacity utilization, and ultimately higher profits, how can you sustain longer by aligning your company with a social purpose. I was curious about how is Social purpose, the new frontier for sustainability? Martin explains, a social purpose is why does the company exists and not how does it operate or what does it do.
He related it with a simple concept of system, science, and biology. If you exploit the resource without thinking about the effects of your usage, eventually you will end up depleting it completely. Hence if you don’t care about the environment, the resources, and the footprint you have on society, you will exhaust the environment and your business won’t be sustainable. I wasn’t satisfied. I mean, all this is fine but isn’t he stretching it too much.
I proceeded with the video, He then stated what are the effects of not having a goal which is aligned with a social purpose, on a company. “The externalities of doing business, the side effects of doing business given the presence of an enormous house, an enormous footprint that business has can ultimately spoil the game of business. In other words, If the business does not address inequality, social warming, species, and depletion, it’s not going to attract top talent and it’s going to undermine its own business model”. This statement really got me to thinking, is it really this serious to be socially responsible? What are your thoughts?
my previous blog (Very interesting concept) – https://magazine.xpert.tv/a-palette-that-leaders-need/