天美传媒

For years, responsible business focused on reducing the negative social and environmental impacts of companies. But as 天美传媒鈥檚 conference this week showed, the definition of responsible business is expanding to encompass an increasing number of issues.

Doing Good Doing Well, a student-organized conference that is one of Europe鈥檚 biggest events on responsible business, was held March 4-5 on 天美传媒鈥檚 Barcelona campus. It brought together business, social and academic leaders to discuss everything from how businesses align with climate change to creating a sustainable economy to feeding 10 billion people.

What was clear is that the notion that companies鈥� sole purpose should be to generate profits no longer holds true. 鈥淭he idea that the purpose of a business today is simply about maximizing shareholder value is very old fashioned, it鈥檚 out of date. Why? Because the rules of the game have changed so fundamentally,鈥� said David Grayson of Cranfield School of Management, speaking on a panel titled Finding Purpose in Any Industry. The world has changed due to the rise of globalization, privatization and large global brands, he said.

Businesses across the globe are starting to realize that it鈥檚 not enough to reduce negative social and environmental impacts. They have to demonstrate the positive impact they have on the world. And while it鈥檚 up to each business to define its own purpose, that purpose should be 鈥渋nspiring, authentic and explain how the organization creates value for society.鈥�

Creating a Common Goal

Identifying a clear purpose gives companies a sense of meaning and relevance that translates into a shared commitment toward a common goal, added Pablo Sanchez of B Lab.

Purpose goes beyond the boundaries of the organization, moving up and down the value chain to affect all stakeholders, including customers, suppliers and others, he said. The central goal of companies should be to create social value by respecting social justice.

Nash Billimoria, a Barcelona-based consultant and executive coach,聽cited Colin Mayer鈥檚 book, Prosperity, which describes the purpose of business as to create profitable solutions that fulfill the needs of people and society.聽Finding purpose acts as a bridge that connects people to the activities of the company in a meaningful way, he said. If this bond doesn鈥檛 exist, companies cannot expect to create exceptional products and services.

It is important to distinguish a company鈥檚 purpose from its objectives, he said. A company鈥檚 objectives relate to its operational goals, while its purpose should be linked with the question 鈥淲hy is this important?鈥�

鈥淭he reason we鈥檙e having this conversation about purpose in the first place is that we acknowledge and accept that something is fundamentally broken,鈥� said Billimoria. 鈥淭here is something that鈥檚 not working, the negative externalities of business are no longer acceptable to us.鈥�