In the world of business, profit is often seen as the ultimate measure of success. But is it always? In fact, many businesses and entrepreneurs have objectives that stretch far beyond just making money. Let’s explore some of these alternative aims and the iconic companies championing them.
- Social Impact
- Why: Many businesses aim to create a positive change in society, addressing issues like poverty, education, or health. These businesses are known as social enterprises and use much of their revenue to improve the lives of others rather than maximise profit for their owners.
- Example: TOMS Shoes has a “One for One” model. For every pair of shoes sold, TOMS provides a pair to a child in need. Their business is built on the foundation of giving back.
- Environmental Sustainability
- Why: With increasing concerns about climate change and environmental degradation, many companies prioritize eco-friendly practices to ensure a healthier planet.
- Example: Patagonia, the outdoor clothing company, is renowned for its commitment to environmental causes. They donate a percentage of their profits to environmental organizations and are dedicated to sustainable production practices.
- Innovation
- Why: Some businesses prioritize breaking boundaries, creating new technologies, or revolutionizing existing ones.
- Example: SpaceX, founded by Elon Musk, has the primary goal of reducing space transportation costs to enable the colonization of Mars. While they do earn revenue, their overarching mission is space exploration and innovation.
- Employee Well-being
- Why: A happy employee is often a productive one. Companies that prioritize employee well-being often see increased loyalty, creativity, and productivity.
- Example: Google (Alphabet Inc.) is famous for its employee perks, from free gourmet food to nap pods. Their focus on employee happiness has made them one of the most sought-after workplaces globally.
- Building Communities
- Why: Some businesses aim to foster community spirit, either within their organization or in the broader society.
- Example: Airbnb’s mission is to create a world where anyone can “belong anywhere.” By connecting hosts and travelers, they foster global communities and cultural exchange.
- Educational Initiatives
- Why: Businesses in the education sector or those passionate about knowledge-sharing often prioritize learning outcomes over profit.
- Example: Khan Academy offers free online courses to students worldwide. Their primary goal is to provide a world-class education to anyone, anywhere.
- Cultural Preservation
- Why: Some businesses aim to preserve, promote, or revive cultural practices, arts, or crafts that may be at risk of fading away.
- Example: Etsy, an online marketplace, empowers artists, and craftsmen to sell handmade and vintage goods, thereby promoting and preserving diverse cultural crafts.
In conclusion, while profit is essential for the sustainability of a business, it’s not the only driving force behind entrepreneurial ventures. Many businesses are built on passion, purpose, and the desire to make a difference.
THINK LIKE AN ECONOMIST!
Task: Choose one of the objectives above and find an example of another successful business which pursues this as their main goal. Find out as much information as you can about the business and be prepared to share your findings with the rest of the class.