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What is Profit for Purpose?

 

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Perhaps you’ve thought about how your business could change your life, or even the lives of your customers. But have you thought about how your business could make a positive mark on the wider world?

A profit for purpose business model is a great, and simple, way to start on this mission. Take, for example, National Pride, a company that works to create projects that are sustainable and benefit communities – all while being financially profitable.

So, what makes a Profit for Purpose?

The core of profit for purpose businesses is a mission to benefit society, communities, and the environment, by putting some of their profit back into a social mission. For example, your business could match National Pride’s pledge to invest 10% of their extra profit back into the community.

But it’s not just about what you do with your profits

A real profit for purpose enterprise pays close attention to how they do business. The buzzword here is ‘co’. Co-create, co-deliver, co-fund and co-innovate. Profit for purpose is all about community and collaboration. Doing it together, for the benefit of everyone. That’s the essence of truly sustainable transformation.

With this goal in mind, National Pride is an umbrella organisation that brings together a network of ethical, experienced partners. They make sure their values are at the heart of everything their network does. So think about choosing your values and checking that suppliers, contractors and sources of funding align with them. This way, you can form your own network that shares the same purpose.

People Power

Sustainability is ultimately a human mission. Valuing all ages, genders, races, and disabilities is crucial to building and harnessing the power of communities. To fulfil this goal, National Pride are working to develop a diverse community village in East Anglia with a nursery, university accommodation, retirement housing and care assisted living. But you don’t have do build a village to value diversity! Ensuring you create a welcoming environment for all identities in your business and reflecting on the diversity of your employees is a great way to harness people power in your profit for purpose.

Working with what we already have

Just as they hope to build on existing locations, National Pride aim to build with existing workforces. Business can contribute to a community, but to maximise this, it must include people from that community. You can use your business to empower your community by buying local goods and supplies, or employing local experts. Even buying your lunch at a local business, rather than a global chain, can have an impact!

Profit for purpose helps more than just the communities it co-creates

A lot National Pride’s aims align with the UN’s sustainable development goals, which will be the main topic of discussion at the COP26 conference in Glasgow. To do their part, National Pride are developing Net Zero living spaces, which will help the UK reach its promise to the UN to reduce emissions to Net Zero by 2050.

Why not do your part too? Commit to the SME Climate Hub’s Net Zero target pledge to receive lots of tools and support in your carbon-neutral mission. And even better, it will help all of us. Because we are all connected to the same environment on the same planet, if one business reduces their carbon footprint, it benefits everyone.

Want to get started with sustainability in your business? Read this article.

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