“What’s Your Purpose?” It’s the lofty question being discussed in corporate board rooms, boutique media agencies, management consulting firms and leading-edge think tanks. The notion of defining or redefining corporate purpose and its role in society has now become mainstream. The vernacular may change, but the language around “Purpose and Profit” and “Social Innovation” is now firmly implanted in corporate lexicon and business strategy.
If you need proof, look no further than the 2019 release of the new "Statement of the Purpose of a Corporation” by the Business Roundtable. The statement was signed by 181 CEOs who “commit to lead their companies for the benefit of all stakeholders – customers, employees, suppliers, communities and shareholders – and outlines a modern standard for corporate responsibility.” Alex Gorley, Chairman and CEO, Johnson & Johnson, and Chair of the Business Roundtable Corporate Governance Committee put it this way, "This new statement better reflects the way corporations can and should operate today…It affirms the essential role corporations can play in improving our society."
Those of us who are pioneers in the study and practice of social innovation have long advocated that the integration of corporate social responsibility and business strategy is good for business and for society. Now that we all agree, let’s take collective action and move forward with boldness, creativity and cooperation. Solving the world's most pressing issues demands a new way of working together and combining the organizational strengths of business, non-profits, academia and NGOs.
Let's look at a few examples.
Cross-Industry Collaboration -
100,000 Opportunities Initiative: Starbucks recognized a significant economic and social problem facing the U.S. - there are 4.6 million youth ages 16-24 not in school or working. In 2015, the company launched Opportunity for Youth in Chicago aimed at hiring 10,000 youth by 2018. Starbucks recognized their company couldn't accomplish this goal alone, so they sought corporate partners in diverse industries including: CVS, FedEx, Hilton, Chipotle, JC Penny, and JP Morgan Chase. Today, more than 55 employers are part of a powerful coalition to employ and train America’s next generation of workers. The coalition also engaged Big Brothers Big Sisters and Year Up as youth mentors to help these young adults develop the life skills needed for success. By March 2017, Starbucks and its corporate coalition had met their initial commitment and expanded their goal to hire 100,000 youth by 2020. Today, with Starbucks’ leadership, the coalition is on track to surpass its employment goal for America’s youth.
Investing in Technology and Social Innovation -
Salesforce Impact Fund: Salesforce has a strong history as an investor in new technology and start-ups. Now, they're also investing in social change. Last October, Salesforce announced a new $50 million Impact Fund. The fund invests in technology companies addressing equality, sustainability, and other social issues. Examples include Ellevest, whose mission is to close the investing gap for women through an investment technology platform, and RaiseMe, a technology that partners with universities and community colleges to match high-school students with microgrants earned through service and good grades. Salesforce is directly connecting their business model to society’s greatest challenges. It’s a win-win.
Cross-Sector and Ecosystem Collaboration -
Unilever Sustainable Living Plan: Unilever believes that systemic change requires collaboration and cannot be achieved in isolation, so they've partnered with governments, NGOs, and other companies to drive new ideas and solutions to address society’s most complex social challenges.
One example is their initiative to empower women farmers in the developing world. Forty-three percent of agricultural workers worldwide are women, but they often lack adequate education and training. Unilever has taken an ecosystem approach to problem-solving. They provided financial support to NGOs, paid premium prices to suppliers who invest in training and sustainability, invested in technical solutions and partnered with experts to develop life-skill programs. These programs have helped over 1.7 million women improve the lives of at-risk populations and increased agricultural output to feed the world's hungry.
As we explore these approaches to social innovation, several commonalities arise. At Impact Squared Group, we've identified best practices to aid corporations and their non-profit partners in effective collaboration and impact.
For Corporations:
1. Research: You may have the resources and desire to solve a pressing social issue, but you're likely not the expert. Research the causes, impact, and theories for resolving the issue. Identify the thought leaders and study their work.
2. Choose the Right Partners: Choose well-informed leaders from non-profits, NGOs, academia and government that are knowledgeable about the underlying causes and potential solutions. Identify partners who have grassroots experience working with those impacted by the social issue.
3. Build a Coalition: The more minds (and resources) applied to the problem, the better. Seek partnerships with competitors and other industries to tackle the problem together.
4. Engage Employees: Seek individuals in your organizations with specific skills that can be applied to the problem. Employees want to use their skills to better society - give them the opportunity!
5. Be Realistic: Before engaging partners, understand the company’s commitment and capacity to address the social issue - in funding, human resources and corporate policies. Understand your leadership’s willingness to commit to the issue long-term. If your company does not have a full commitment from leadership, don't move forward.
For Non-Profits:
1. Think of Corporate Funders as Partners: Corporations are much more than sponsors and funding sources. They have talented professionals across multiple disciplines who can provide skills and expertise to help solve social issues. They may not be experts in a specific issue, but they are likely experts in marketing, strategy, technology, research, and development. These skill-sets will be invaluable in solving any issue.
2. Bring Funders in Early: Responsible corporate partners want to be part of solving the issue. As you develop programs, engage them in the research and problem-solving phases early. You'll benefit from their expertise and ensure their engagement for the long-term.
3. Be Selective about your Partners: Be cautious of choosing a corporate partner solely for their financial support. Approach corporate partners who have a proven track record of engaging in a holistic way to solve pressing social issues.
4. Share the Spotlight: Be willing to share credit for advancements with your corporate partners. Engage in co-authored research, advocate jointly around policy issues, issue joint press-releases, speak at conferences together, and spotlight specific employees for their contributions. Let corporate leaders know the impact their employees are having on resolving these pressing social problems.
Fortunately, the decades-old question around the intersection of profit and purpose has found universal agreement. Today's business leaders recognize their responsibility to serve all stakeholders, most especially communities and society. The challenges we face as a society require collaboration and the best and brightest thinking, expertise and financial investment to create a better and more just world. This is an open invitation for corporations, NGOs, non-profits, academia and government leaders to seize the moment and tackle our most pressing issues together. Let’s call it Social Innovation 3.0.