Historically, profitability has been the metric businesses use to measure their success. The bottom line, the balance sheet, and the profit and loss statement have all played pivotal roles in shaping countless business strategies… and for good reason. Profits are, after all, quantifiable, providing a clear and easy-to-understand measure of a company’s financial health and growth.
But what about purpose? In today’s busy and interconnected world, businesses are undergoing scrutiny to strike a balance between profitability and social responsibility. With the age-old debate of “Profit vs Purpose” taking on new dimensions, the question remains: can these seemingly conflicting goals coexist and even complement each other?
At Mondo Ventures, we firmly believe they can.
An Emerging Shift: Purpose as a Value Proposition
Recent years have seen a few changes in the business landscape. While the allure of profits naturally remains strong, the tides are shifting as a new generation of investors and consumers enter the scene. Almost 80% of today’s consumers are inspired to shop with businesses that are dedicated to positive social and environmental change, while 41% of millennial investors seek out and scrutinise the ‘corporate social responsibility practices’ of a business before choosing to associate with them. In comparison, only 16% of baby boomers do the same.
With Environmental, Social, and Governance (ESG) credentials also taking the spotlight and stakeholders increasingly demanding that businesses show a strong commitment to societal and environmental well-being, it has become necessary for organisations to get with the times.
This has led to the rise of purpose-driven businesses, with more and more organisations deciding to align their missions with larger societal goals. And while there have been past concerns that profit and purpose cannot co-exist, evidence suggests otherwise. Businesses that integrate purpose into their strategies have seen strong results, proving that they can drive profitability while also contributing positively to society.
Fostering Purpose-Driven Success
We have established that, to thrive in modern times, businesses can benefit from being purpose-driven. But what are the steps to accomplish this?
First and foremost, a clear and user-friendly value strategy should be at the forefront of the business’s identity. It is crucial that this strategy is effectively communicated to customers and internal teams. This creates a shared understanding of the organisation’s purpose.
Leaders also play a huge role in shaping a purpose-driven culture within the business. They say that those in charge should always ‘lead by example’, and that is exactly what they need to do for this new culture to become the norm.
For the new purpose to truly resonate, leaders need to embody it in their actions and decisions, even if and when challenged. In the end, staying the course and upholding the values of their business is vital to maintaining authenticity.
Mondo: A Blend of Profit and Purpose
At Mondo, purpose is a huge part of everything we do, although, like any business, profit is also important. There is nothing wrong with making a profit. Businesses cannot survive long-term without it, after all. But along the way, we have managed to seamlessly blend the two and don’t view profit or purpose as mutually exclusive.
There are two sides to our business: tech services and investing. The profits from the tech side of things are used to make purpose-driven investments in Australian businesses and initiatives. Our focus centres more on long-term capital growth for our clients (and ourselves), which we view as far more important than any short-term profit. This approach has worked out well for us so far and also affects many of the decisions that we make. In the end, we are able to stay true to our business… and our purpose of ‘doing good’.
Are you interested in collaborating with a team that values creating positive change? Get in touch with the Mondo Ventures team today to learn how we can help transform your organisation.