How to Do Good by Doing Business?

In today's business, it's not enough to simply make a profit. Increasingly, consumers are looking for companies that share their values and are conscious of the impact they have on the world. Fortunately, it is possible to balance profit and consciousness.

For those of us in the business of technology, it's easy to get lost in the weeds. We can be forgiven for forgetting that, at the end of the day, our products and services are meant to make people's lives better. In our never-ending quest to create shareholder value, we often lose sight of the fact that we have an opportunity—and, dare I say, a responsibility—to do good in the world.

Fortunately, there are a number of ways to do just that. Here are a few ideas for how you can use your business to make a positive difference in the world:

Use technology to reach the unreachable

Too often, marginalized communities are left behind when it comes to access to education, employment, and basic human rights. Technology can level the playing field by providing tools and resources that were once out of reach. For example, online learning platforms can provide access to education for people who live in rural areas or who can't afford traditional universities. Job-search websites can help connect people with employers regardless of their location. And social media can be used to raise awareness about human rights issues and give a voice to those who might not otherwise be heard.

Starbucks case study:

Howard Schultz wanted to build a company with an environment that his father couldn't have when he broke his hip. At the moment, Howard didn't have any resources to build a traditional growth machine or brand for Starbucks to do that. But he was able to use the mission he started with to define the brand and bring that experience to the store.

He believed that using that mission would build stronger equity in the brand than any marketing budget. Where did he start? For Howard, it had to start with the decisions of the managers exceeding the expectations of the employees, which in turn would inspire the employees to exceed the expectations of the customers.

Doing good to your advantage

Howard found that Coffee was a personal and frequent experience. Thus, it was an opportunity to create intimacy with the customer the same way he felt with his employees. Notice how the company turns a big challenge (marketing budget) into an asset by investing in the team and its customers (doing good).

The Starbucks Doing Good Strategy

To reconnect people through coffee.

Actionables:

• Give comprehensive health insurance to all employees
• Give college tuition accessible to their employees (online)
• Stock options to all their people

The results

A happier and more humanly connected community.

Actionables:

• Lowered attrition
• A fan base of customers who overpay for a commodity (coffee). Today, over 100M people buy daily on Starbucks.
• Doing good has been shown to be a justification for paying premiums. Expensive by doing good.

Promoting social good has been a means to an end.

In the end, the business results need to be undeniable, this is not a charity strategy but a brand with a strong character that people connect with. People don't buy from companies, they buy from a community of people with a shared interest.

The future of business: Mission-driven versus profit-driven

The future of companies will not be profit-driven, but mission-driven. And by being mission-driven they will become incredibly profitable (like Starbucks). I think this is because consumers are increasingly looking for companies that share their values and are conscious of the impact they have on the world. By being mission-driven, companies can create a human connection with their customers and build a community of people who share their values. This can lead to increased profits, as consumers are more likely to overpay for a product or service if they believe in the company's mission.

Conclusion:

Doing good doesn't have to be hard—or expensive. By using technology in smart and sustainable ways, businesses can make a positive impact on the world without sacrificing profitability or compromising their core mission. So what are you waiting for? The time to do good is now!

More about this topic:

I wrote this article inspired by Howard Schultz's conversation in Masters of Scale. He is one of the CEOs that I look after. His leadership style, his contrarian thinking, and his love for employees and clients are what the business of the 21st should be. Plus, who doesn't like Starbucks?

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