Achieve growth and profitability through the creation of Value for society.
The conventional thinking that wants businesses to be driven solely by profit and to be opposed to society is completely outdated and anachronistic. Businesses are flourishing only when they are harmonized with the environment, when they produce value for all the partners, with emphasis being placed on a collective sense of purpose. It is the social conscience of a company which is the compass of its steady course of success.
This truth is amply proven by research: companies with a social face are the most successful ones over time, they create value for an ever-growing circle of partners, they invest in their people, in their employees and staff and they enjoy their loyalty, they attract customers and investors because of their attitude and they ultimately grow their gains as a consequence of their right purpose and their virtuous policy.
In his excellent book “Grow the PIE – How great companies deliver both Purpose and Profit” the economist and author Alex Edmans argues with evidence and examples for companies that serve the good of society and succeed in growing the “pie” and the benefits for all. During the period of the major health crisis, responsible businesses recorded high rates of cohesion and professional loyalty of customers and staff, taking extraordinary actions to serve the needs of society at a difficult time. All these companies adapted their operation to support society and they created Value.
At a difficult moment in time, with the tragedy of war going on at the time of writing, the almost mass decision of dozens of companies to withdraw from a huge market (like that of Russia) showing humanitarian reflexes, signals how important is social responsibility for businesses. Financial profit is not always all that matters. It’s not just about money. The creation of Value through social actions that serve a purpose and a good cause is a determinant factor for this conduct and decision of the companies.
John Anastasopoulos
Advisor to the ACEO Board
