The Call for Action-Driven Businesses

The Call for Action-Driven Businesses

So why this and why now? It’s simple. The world needs more good. People can no longer rely on government to solve some of the planet’s thorniest problems, like world hunger, climate change, public health issues, and poverty . . . the list goes on. Yet, our planet has more complex problems than ever before. Because of that, people are looking to the private sector to step up, take action, and address issues that matter most to them. This is the thrust of Fink’s message to CEOs.

Many companies are doing this, some in unexpected ways. One example that stunned the business community and struck a nerve in the health care arena was the January 30, 2018, announcement that Amazon, Berkshire Hathaway, and JPMorgan Chase & Co. are partnering to form an independent health care company for their U.S. employees.This new organization is being formed to address a pressing issue in health care—helping people find “simplified, high quality and transparent health care at a reasonable cost,” according to the press release. This unprecedented move illustrates how companies are moving into nontraditional territory, taking on bold 

Another example is a company taking action following the devastating Parkland, Florida, shooting in February 2018. Dick’s Sporting Goods was among several companies that took an anti-gun stance and changed its policies. The company announced it would stop selling assault-style rifles and high-capacity magazines and pushed for gun control measures in Congress. The stock market showed its approval with shares closing up.

A New Strategy Model for a New Era

For purpose to be a great transformer in any organization, it requires not just new thinking, but an entirely retooled business model involving a broader definition of strategy.outlines the elements of this tightly integrated model. This model will disrupt the highly siloed approach, in which a company develops a business strategy first and then separate strategies for all other departments, an approach that has been in existence for decades. The new strategy fuses a tight integration across all of these critical pillars of business with purpose as the glue that binds them.

While the concept of purpose is in vogue right now, this is by no means a flash-in-the-pan trend. I believe this is a core strategic driver that will become a permanent element of business strategy. Simply put, it is now an ethical responsibility for companies to integrate good into their overall strategies.

Soul Searching: Exercise to Find Your Moral DNA

In my work to help companies identify their moral purpose, I’ve found that people have very different reactions. For some, an obvious answer will surface immediately. For others, the concept feels overwhelming. In both cases, the exercise outlined below will provide clarity. If you think you have a great idea, this process will serve as a reality check. If you aren’t sure how to start, it will put you on the path of discovery.

Key to this process is remembering this: the purpose you identify should be a natural and logical extension of your business—something embedded in the DNA of your organization. I bring this up again because when this purpose is truly at the heart of your company and its values, something that’s a natural fit, it will take hold, have staying power, and deliver as it should, impacting both the success of your business and of your mission to do good.