In a Re_Set survey, 86 per cent of global innovators said they believed the joint objectives of purpose and profit were achievable, with 64 per cent prioritising purpose
Highlights
- 86% of global innovators believe organisations can be both purposeful and profitable
- 64% would prioritise purpose ahead of profit
- Significant shift away from pure growth agenda to new era of “purpose-born” start-ups
A survey by Re_Set, the next generation consultancy for innovation and sustainability, in partnership with its global intelligence platform, Springwise, has found that the vast majority in the innovation community believe that business can be both purposeful and profitable.
Only two per cent endorsed the mindset of investors critical of “woke capitalism”. Instead, innovators were 43 times more likely to embrace the pursuit of dual priorities than make profit the primary goal. Indeed, 64 per cent believed that purpose mattered more than the bottom line, and a quarter of those asked, maintained that they would sacrifice 10 per cent of their profits in the 2022/23 tax year if it ensured a better world for the next generation.
Against a backdrop of global political unrest, rising inflation and growing discontent among some investors that too many companies are sacrificing profit for the “lofty ideals” of purpose and sustainability, the innovation community defiantly believes that the next wave of disruption and opportunity can, and will be, purpose-led. This is in parallel with widespread acknowledgment of growing pressure on both start-ups, as well as larger corporates, to take a stronger political stand.
Purpose-led disruption
Speaking ahead of B Corp Month in March, which highlights the global movement’s aim of transforming the role of business in society for the benefit of all, John Lunn, CEO of strategy consultancy Re_Set, a certified B Corp, said:
“We are seeing a big shift away from a pure growth agenda to a new era of purpose-born start-ups. Purpose-led disruption is accelerating at pace. The days of businesses being solely focused on profit and growth are numbered. The fact is, that businesses wont’ be profitable unless they have got a purpose. It’s what the consumer and wider society expects.
“Purpose-led start-ups are set to become the competition of the future and businesses need to adapt fast. It’s a case of disrupt or be disrupted” continues John Lunn.
This thinking is born out in the survey with 74% of the innovation community already describing their business as purpose-driven, with almost half of respondents (47%) seeing it as an absolute necessity in 2022.
Business leaders have a responsibility to speak out
In a further sign that businesses need to both transform and adapt to a rapidly changing landscape, 83 per cent of respondents said they felt increased pressure to take a stand on political issues such as the environment, diversity and inclusion, workers’ rights and governance, with consumers primarily behind this. The vast majority of respondents agreed that start-up founders and business leaders have a responsibility to be more outspoken (85%) on issues related to making the world a better place.
The survey polled over 360 of Springwise’s global innovation community, consisting of founders, investors, business leaders and innovation professionals capturing a snapshot of the community’s sentiment on the challenges of balancing purpose with profit ahead of B Corp Month.
Download the press release here.
For more information or to speak to John Lunn for comment or further insights, please contact Emily Owen: emily@thisisreset.com
Notes to Editors:
John Lunn is the CEO of leading strategy consultancy Re_Set, for innovation, sustainability and transformation. An entrepreneur and accomplished business leader, John has an impressive track record in supporting FTSE 100 deliver business transformation. He was part of the leadership team at Moorhouse Consulting, which was successfully scaled and sold. Prior to this, he was a Partner, leading on Business Transformation, at PA Consulting. His extensive experience crosses industry sectors from the Financial Services, Technology, Consumer Business, and Transport to Health and beyond.
About Re_Set
Re_Set is a leading next generation strategy consultancy for innovation, sustainability and transformation, whose mission is to ensure its clients thrive in a disrupted world. The consultancy specialises in understanding what’s next and how to make change happen at pace with a positive, sustainable impact. Re_Set is a certified B Corporation, part of a growing community of businesses committed to redefining the role of business in society as a force for good. Re_Set is also a member of 1% for the Planet, connecting it with some of the most environmentally concerned organisations in the world.
About Springwise
Springwise is the global innovation intelligence platform for positive and sustainable change, providing foresight into the most innovative thinking and ideas on the planet since 2002. Access to its daily innovations and extensive database of more than 11,000 solutions, is free via the website, app, daily and weekly email newsletters. Springwise is also a Certified B Corporation and member of 1% For the Planet.
About B Corp Month
Each year during March, B Lab and the global B Corp Community join together to celebrate what it means to be a B Corp. The B Corp Community is a global movement of businesses who provide leadership by demonstrating their commitment to people and the planet. There are now over 4,600 B Corps in 78 countries and covering 155 industries. Certified B Corporations, or B Corps, are companies verified by B Lab to meet the high standards of social and environmental performance, transparency and accountability.
