Performance and Profit for Purpose
The business world is changing, and more and more companies are recognizing the importance of performance leading to making a profit for purpose thinking. This shift is not just limited to larger, macro businesses but is now spreading to SMEs as well.
The concept of the 4th sector is gaining traction, as more businesses are recognising the importance of social impact and sustainability. This 4th sector refers to businesses that prioritize social impact alongside traditional economic goals. The UN Global Goals and Environmental Social Governance (ESG) Strategies are also becoming increasingly popular, as companies are recognising the need to address global challenges such as poverty, inequality, and climate change.
The B Corporation movement is also growing as a result of these changes. B Corporations are for-profit companies that meet rigorous standards of social and environmental performance, accountability, and transparency. By becoming a B Corporation, SMEs can demonstrate their commitment to creating positive change and attract customers, employees, and investors who share their values.
Incorporating social impact and sustainability into your business strategy can benefit your company in many ways. By becoming part of a larger company’s supply chain, SMEs can access new markets and customers. Additionally, by incorporating ESG strategies, SMEs can reduce their environmental footprint and attract socially responsible investors.
The 4th sector, the UN Global Goals, and Environmental Social Governance (ESG) strategies, and B Corporation movement are all tools that SMEs can use to assess and improve their social impact. By embracing this “profit for purpose” thinking, SMEs can not only make a positive impact on society but also gain a competitive edge in the marketplace. At Pathway Group, we are committed to changing lives through skills and work and are excited to see more and more businesses moving in this direction.
