MAKING A POSITIVE IMPACT :
WHAT MAKES A PURPOSEFUL BUSINESS ?
In the blink of an eye , COVID-19 has turned the world on its head . With many aspects of our lives significantly altered , there has been much talk about taking advantage of this shakeup to “ build back better ” — towards a more caring society , one that is othercentred .
While playing a critical role in our economy , companies are a part of civil society , just as the people under their employment are .
We have come to believe that the primary objective of the firm is to maximise its profit , when in reality , the single most important output of enterprise should be creating value for all stakeholders — including the domains of the environment , society and governance ( ESG ). When companies seek sustainable value creation , they realise their true purpose .
But what makes a business purposeful ?
Firms must realise that it is their commitment to corporate purpose , and to those who contribute to creating the common purpose , that will shape their success .
Placing purpose alongside profit
Let ’ s not put up any pretence — profits are the lifeblood of business . Companies need to make money to sustain and grow . But myopic focus on profit maximisation is losing sight of the forest for the trees . Companies have to recentre themselves with purpose at the core .
Leading communications services company British Telecom ( BT ) recognised the interconnectedness of small businesses and larger ones and stayed true to its purpose : “ we connect for good ”. In its corporate social responsibility ( CSR ) efforts , BT asked small firms to find out their biggest worries during COVID-19 and
launched their Small Business Support Scheme in response , providing assistance in :
• connectivity — funding highspeed business lines and payments solutions ,
• cash flow — offering flexibility in customer bill payments while accelerating its own to suppliers , and