Purpose vs Profit

The perpetual quest for market growth, revenue, bottom line profitability or shareholder returns as a singular and naked set of organisational metrics is over. 

Businesses need to think beyond the bottom line and think about impact, beyond profit. Because consumers are now holding businesses to a higher standard and expect more than just products and services from the companies that they support.

 

Nailed it: Exxaro

Exxaro is one of South Africa’s largest and foremost black empowered resource. It’s a mining business that is centered around looking after the health and well-being of the communities that it operates in.

As a company, Exxaro, has put a lot into their purpose and being a purpose led business, with a lot of emphasis being placed on community and building lasting partnerships that have a high impact. With Exxaro investing in activities that are sustainable and result in the development of the community at all levels.

 

Missed it: Steinhoff

One of the biggest corporate failures to ever hit the Johannesburg Stock Exchange. Steinhoff is an example of what happens when corporates value profit over people and don’t care how they add an extra zero to bottom-line. This scandal has seen pensions lost and lives irrevocably altered.

It’s an example of how poor leadership poses a threat to the company, which consists of employees and their dependants.

 

 

The expectation is that brands will not only improve the lives of individuals but also the world as a whole. And if their purpose cannot facilitate that, then the default position should at least be to not cause harm of any kind. Many corporations could take heed of that minimum requirement.

 

Sean McCoy holds a deep-seated passion for the impact and role branding across the spectrum of economic, social and cultural influence. He is one of the founding members of HKLM and supplements extensive practice across a wide variety of industry sectors with ongoing academic research in the field. As a consummate learner he concluded his doctorate in brand alignment for competitive advantage in 2013 and builds on his area of study through ongoing academic research and supervision at a number of leading business schools. He has published in international journals and contributed extensively to thought leadership in the field, through active media and conference participation locally and abroad.

Sean McCoy

Sean McCoy holds a deep-seated passion for the impact and role branding across the spectrum of economic, social and cultural influence. He is one of the founding members of HKLM and supplements extensive practice across a wide variety of industry sectors with ongoing academic research in the field. As a consummate learner he concluded his doctorate in brand alignment for competitive advantage in 2013 and builds on his area of study through ongoing academic research and supervision at a number of leading business schools. He has published in international journals and contributed extensively to thought leadership in the field, through active media and conference participation locally and abroad.

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